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Posts Tagged ‘ad spending

At Wilson RMS, we’re fortunate in that we develop creative and place media in many different channels — we work on everything from e-mail to TV to online display ads to insert media — and more.

One of the channels we’ve worked in consistently since we opened shop is direct mail and, boy, have we seen it experience change. From the heyday of direct mail spending in 2006 ($55.6B) to the precipitous decline in spending in 2009 ($43.7B), the ride down was steep and, for many in the industry, quite painful.

But, in 2010 the ride down stopped. And, in that, there is very good news.

How so? Well, the impact of the recession and shifting consumer preference for all things digital was supposed to kill direct mail. And yet, there it is on the chart below, second only to TV in terms of share of total estimated ad spending in 2010.

While the big winners for year-over year increases in ad spending in 2o1o were TV (up 17.5%, thanks, in part, to cable), and digital (up 8.3%), the big losers were the traditional print channels — newspapers (down 9.2%) and magazines (down 6.2%) — that are often lumped together with direct mail when marketers talk about the end of dead-tree media.

To be sure, direct mail has its challenges as more and more marketing dollars are allocated to the digital darlings — social, mobile and search — as well as e-mail and online display.

But,  as a recent survey conducted by Winterberry Group indicates, marketers consistently rate direct mail higher than any other form of direct marketing for “effectiveness across customer acquisition and retention missions”.

Click here to register for the very comprehensive presentation download.

Direct mail is still alive and kicking — because it still works.

And with the increasing sophistication of technology and data processing power that is being employed by service providers and clients alike, my prediction is that direct mail will become an ever more effective tool for generating new customers and engaging existing ones.

The days of carpet-bombing mailings are gone — and true target marketing lies ahead.

Next up: Technology is great, but it’s still about the people.

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