Direct Mail Market -- Market Share from Another Medium?

Nielsen foresees an increase in direct mail spending as the economy improves in 2004. On the supply end, pricing continues to be an obstacle; Nielsen notes that some printers are finding that some work is no longer profitable to manufacture, and lower margins mean less money to reinvest in a printer's operations.

Although the trend toward customer consolidation of business using fewer suppliers will have a negative impact on smaller printers, it is actually of benefit to Quebecor World, Nielsen remarks. "The flexibility and strength of our manufacturing platform, combined with our range of products and services, has enabled us to be successful in helping our clients leverage their buy. We remain well positioned to be a single-source provider."