Email sails as direct mail fails
ADOTAS — First it was newspapers, then it was the Yellow pages, now it is direct mail.
According to Borrell Associates, direct mail has begun spiraling into a decline from which it will never fully recover. The research and consulting firm predicts a 39 percent decline over the next years for direct mail, from $49.7 billion in annual ad spending in 2008 to $29.8 billion by the end of 2013. If the prediction holds, direct mail will fall from the top placeholder for ad revenue to No. 4, behind the Internet, broadcastTV and newspapers, according to Borrell.
And the winner in direct mail decline will be, predictably, e-mail advertising. Last year, according to Borrell, e-mail moved to the No. 1 online ad category spot, surpassing all other forms of interactive advertising. Advertisers spent $12.1 billion last year on e-mail marketing, more than they spent on display and banner advertising or search advertising.
Borrell says e-mail will grow to $15.7 billion over the next five years and remain the preferred channel among many marketers. Most of the growth in e-mail marketing will be local, with local e-mail ads growing from $848 million in 2008, to $2 billion in 2013, as more small businesses abandon direct mail couponing and promotional offers and turn to the more measurable and less costly e-mail.
But the barriers for those trying to get a peice of this pie will have to be able to manage large e-mailmarketing campaigns requiring database marketing expertise, a savvy sales force, adequate e-mailmanagement software, familiarity with the rules and regulations and a lot of patience, according to Borrell.
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Reader Comments.
Direct Mail falls as Email Rises –
Does anyone notice a common word ? MAIL
Email is Direct Mail – assuming of course it is targeted and not just blasted to all.
Thus Direct Mail rises as Email rises — maybe postal mail is declining.
Since when is email revenue up to $12BB? Have seen alot of numbers in the past on email but never close to this?
Also since email arguably does not work well for marketing acquisition, and direct mail spending is primarily (70%+ usually) for acqusition – why would email be the beneficiary here?
Mail will still have its place, and a significant one until online becomes a strong targeted acquistion medium, one that can be directed to prospect and not wiating for the prospect to wave their browser.
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