Postal decline worsens due to delivery flaws

Share this content:

According to the unaudited numbers released by the US Postal Service last week, the agency faces a net loss of $2.67 billion year-to-date.

The agency has seen a 11.9% decrease year-over year for the quarter ending April 2009. Mail volume decreased by approximately 7.6 billion pieces in the same period for a decline of 14.8%.

Problems with mail delivery was one factor identified as a threat to the direct mail industry in a new forecast from Borrell Associates. Advertising revenue from direct mail is expected to plunge 39%, from $49.7 billion in annual spending in 2008 to $29.8 billion, by the end of 2013, the report added.

If the forecast turns out to be right, direct mail would fall from the No. 1 position for ad revenue to No. 4, behind the Internet, broadcast TV and newspapers, it continued. Cutting the frequency of postal mail delivery and increasing postage rates would spell more trouble for direct mail, according to Borrell's report. “Put all those things together and it's a formula for disaster for the USPS and direct mailers,” said Kip Cassino, VP of research at Borrell.


Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above