Direct Marketing, Mail Order, and E-commerce News from the National Mail Order Association

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Direct Marketing Spending Soars to $56.6 Billion

Direct mail is growing. The ad medium is expected to make one of the highest
gains among national advertisers this year – jumping by 8.5 percent to $56.6 billion.
That’s according to a Universal McCann Insider’s Report.

The report also states that Internet and cable TV ad spending will increase 15
percent to $7.9 billion and $18.9 billion, respectively.

Look for an even peachier outlook for direct mail in 2006 – despite the postal
rate hike coming up in January. Marketers will continue pouring in money on
direct mail efforts – about $60.9 billion on it next year.

Robert Coen, Universal McCann’s senior vice president and director of
forecasting predicts most mail campaigns will continue and expand even with
the increases in paper, printer and handling costs.

According to the report, during the first half of 2005, the number of mail pieces
sent at the regular standard mail rate increased nearly 5 percent. This is the
mail class used for most advertising, although some is sent at first-class rates
and some at non-profit rates. For 2005, nearly 10 billion more pieces of mail
advertising will be sent out compared to 2000, the report reveals.

The report states that the uptick in mail advertising is caused by increasing
restrictions on telemarketing, such as the “Do Not Call” regulation.

Here’s a more detailed look at the trend in mail advertising pieces.

1st Half of Year Millions of Pieces %Change Change in Pieces (000,000)

2000 36,800 +7.1 +2,400
2001 37,200 +1.1 +400
2002 35,300 -5.1 -1,900
2003 36,500 +3.5 +1,200
2004 39,600 +8.3 +3,100
2005 41,540 +4.9 +1,940

Source: Universal McCann Insider’s Report
You can get a copy of the full Advertising Insider report here:

Advertising Insiders Report

 

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