Door Slamming on Direct Mail Response as It Slams on Home Delivery?
USPS figures show a precipitous decline in First Class mail and Direct Marketing Association research announced on April 2 shows 79 percent marketers sent direct mail in 2012, but that figure is now 50 percent.
"In 2013, postal service products generated $28.2 billion in contribution to institutional cost," USPS OIG says. "The OIG estimates that 23 percent of this total, $6.3 billion, came from advertising mail sent to households. According to the Boston Consulting Group, the Postal Service can expect the non-advertising component of First Class mail volume, its main source of contribution to institutional cost, to decline significantly by 2020. This inexorable change will force the postal service to rely increasingly on other products, including advertising mail, as well as cost-cutting to fund its operations."
Data this study reveals could put ad mail's "contribution to postal service institutional costs in jeopardy," the USPS OIG adds.
Postal officials have said package delivery revenues are steadily increasing, and that's one area where they'd like to concentrate their efforts.
Will this information cause marketers to spend less on direct mail? Will direct mailers push USPS away from the cluster box option?
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