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‘Trends & Future of Direct Marketing’ (Part 2) - PRIMIR Summary

April 21, 2011
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PRIMIR recently published a new 420-page research study, “Trends & Future of Direct Marketing.” It examines the direct marketing segment and particularly how printed direct marketing channels are faring in light of a host of new non-print direct marketing options. E-mail, Websites, social media, and mobile channels, among others, all pose threats to print.

Picking up where we left off in the previous edition’s that discussed key trends in direct marketing, this article will discuss higher volume print applications utilized in direct marketing activities.

Direct Mail
Direct mail is the largest direct marketing channel in North America. Although the decline has been precipitous, direct mail’s standing in the marketing mix remains strong. Direct mail volume stabilized in 2010 and will return to positive and more modest growth, although it will be years before it reaches its prior peak.

Direct mail is a key customer acquisition tool. That said, the availability of an increasing number and variety of electronic channels has placed the cost of direct mail in an increasingly unfavorable light in the minds of many marketers. In addition to directly affecting direct mail costs, postal rates and regulations add a layer of complexity to the process, again highlighting the relative speed, simplicity, and low cost of electronic channels (see figure).

Catalogs
Marketers to both consumers and businesses make use of catalogs. The research indicates that despite rising postal costs and other issues catalogers face, the catalog market is healthier than one might expect. During the past decade, the role of the catalog changed substantially, from a direct response vehicle to one that drives customers to the web to place an order. This change impacted the volume and nature of printed catalogs. But on the positive side, it secured their place as an essential part of an integrated, multi-channel marketing program.

Despite the positive outlook revealed in the research study, numerous trends will have a significant impact on catalogers and their service providers. These include: changes in catalog size, circulation, and frequency; personalization and versioning; postal costs; competition and integration with other direct marketing channels; and, implications for print suppliers.

Flyers and Inserts
Preprints and free standing inserts (FSIs) are typically distributed through newspapers; many are also delivered directly to the home through mail or hand delivery. FSIs are proven as an extremely cost-effective means of allowing retailers to reach their targeted customer.

The FSI market is robust and one of the few bright spots for newspapers. The continued health of this category has confounded those who predicted its demise along with falling newspaper circulation. Kantar Media indicated that FSI spending increased by 7.6 percent in the first half of 2010.

The research found that retailers plan to continue to use flyers and inserts, in conjunction with loyalty programs, web-based information, and perhaps e-mail, mobile communications, and social networking tools.

Transaction/Promotion
Secondary advertising in the form of ride-along inserts with bills and statements is the most prevalent form of print-based direct marketing for transactional mailings. In recent months a great deal of attention has been paid to transpromoóadvertising printed directly on a customer’s statement. Thus far, however, the reality has not lived up to the promise.

In next month’s final article of this series, we will examine non-print direct marketing and integrated cross-media marketing. The ”Trends & Future of Direct Marketing” research study was published exclusively for members of PRIMIR, the Print Industries Market Information and Research Organization.

To learn more about the study or PRIMIR membership, contact Jackie Bland, PRIMIR Managing Director, at e-mail: jbland@primir.org or phone (703) 264-7200.
 
Source: NPES News
 
 
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