Newspapers Spend Nearly $1B on USPS

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The nation's daily newspapers spend nearly $1 billion yearly on services from the U.S. Postal Service, according to a national survey by the Newspaper Association of America.


Daily newspapers spent more than $900 million in 2005 on postage for the delivery of First Class, Periodicals and Standard Mail compared with $700 million in 2002.


NAA is a nonprofit organization representing the $55 billion newspaper industry and nearly 2,000 newspapers in the United States and Canada. Most members are daily newspapers, accounting for 87 percent of U.S. daily circulation.


Newspapers use the USPS to deliver papers to subscribers and ad mail products, including preprints, to non-subscribers. Newspapers also rely on First Class mail for marketing, and a large majority of subscriber and advertising invoices and remittance come via the U.S. mail.


The NAA survey found that the greatest growth in newspaper spending on postage came in Standard, where daily papers spent nearly $600 million in 2005 compared with $400 million in 2004. Newspapers use Standard Mail to deliver "total market coverage" ad mail products to non-subscribers. Newspapers also use Standard in marketing campaigns for new-subscriber solicitations, renewals and customer loyalty programs.


"Nationally, newspapers are a leading customer of the U.S. Postal Service, and many of our member newspapers are the largest mailers in their local markets," NAA president/CEO John F. Sturm said.


Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


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