Global ad spend on direct mail to increase through 2015

Posted by on 15 Sep 2010 | Category: Industry Trends

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While many businesses are increasingly adopting digital marketing practices, new research conducted by Global Industry Analysts indicates that companies are also boosting their ad spend on direct mail marketing materials.

As Global Industry Analysts notes, direct mail has numerous advantages over other advertising mediums.

  • The platform has the unique ability to affect consumers’ sense of touch,
  • and mailers are also often personalized, maximizing the impact pieces can have on consumers.
  • Additionally, the source claims that customers treat postal mail with higher regard in comparison to other marketing channels.

According to the report, the direct mail industry is gaining steady momentum in today’s digital world. Global Industry Analysts predicts that global marketing expenditures for postal mail will reach $25.45 billion in the immediate and near future.

The growth of the platform is largely buoyed by the effectiveness of the channel to reach consumers regardless of their income. Whereas online, television and other platforms depend on potential customers subscribing to a service to receive a message, anyone with a home can be contacted through direct mail.

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In an effort to stave off advances by other platforms, companies are beginning to innovate the way they design creative pieces. For example,

  • multidimensional mailers can help entrepreneurs create lasting impressions on consumer.
  • Global Industry Analysts predicts that, as a result, the market for creative direct mail development will reach $200 million before 2012 in the United States.

Additionally, direct mail can be used to bolster the effects of digital marketing campaigns. For instance, using tracking technology, businesses could send consumers an email message on the same day a direct mail piece is set to arrive or they could use QR codes to drive recipients online to their retail websites.

"The direct mail advertising market will also stand to benefit from the growing importance of one-to-one interactive marketing and its role in effectively engaging thousands of prospective customers on a personal level," says the source.

Global Industry Analysts’ report echoes recent research conducted by MagnaGlobal. According to the marketing insights firm, direct mail will account for $19.17 billion ad spend worldwide during 2010, making it the top channel globally. MagnaGlobal expects direct mail to be used primarily by large corporations, though small and mid-size business owners will similarly be able to effectively integrate it into their marketing initiatives.

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