According to a MarketingSherpa blog post published today by Adam T. Sutton, Gordon Borrell, CEO, of Borrell Associates, Inc., predicts a 38% decrease in spending on direct mail over the next five years. Last year, marketers spent $48 billion on direct mail. Borrell’s report, Direct Mail Falls, Email Soars, states that email marketing spend will grow from $12.1 billion in 2008 to $15.7 billion by 2013. Borrell cites the following reasons for the prediction:
- Internet marketing is a technology disrupter that provides a similar level of service but more efficiently.
- Email marketing is a fast and affordable way to send targeted, personalized messages.
- The US Postal Service is considering eliminating Saturday service which will impact consumer marketers who try to time catalog delivery for Friday or Saturday.
Other reasons not cited in the blog post but also impacting the transition away from direct mail:
- Buyers are more and more comfortable shopping online and enjoy the interactive experience of rich media such as images and video.
- Online marketing helps companies appeal to buyers who are concerned about the environment and want to do business with “green” vendors. Direct mail uses limited resources, including paper and fossil fuels for transportation.
In a recent MarketingSherpa case study Going Green: How to Transition Catalog Users to Email & Lift Conversions 19%, Brian Mehler, Ecommerce Manager with Chiasso, offered customers an online alternative to their printed catalog and reduced print costs while increasing gross revenue.
Although there will always be a place for direct mail, the marketing landscape is changing with online marketing poised to grow substantially over the next few years.