Local E‑Mail Marketing Set to Grow; Direct Mail to Drop

Direct mail marketing, long a favorite of both B‑2-​C and B‑2-​B advertisers, may experience a drop of as much as 39% between 2008 and 2013. A study  from Borrell Associates concludes that within the next 4 years, the industry’s value could be as low as $29.8 billion. Why this large shift? spam-1398833-l

Advertisers have begun to realize that direct mail is an expensive proposition. Catalog production and mailing require a long lead time. And the U.S. Postal Service’s expected move to stop Saturday delivery will also negatively impact the direct mail industry.

These changes should bring about favorable conditions for e‑mail marketing according to Borrell Associates. This online advertising form garnered $12.1 billion in 2008. By 2013, businesses could be spending at least $15.7 billion on e‑mail marketing.  Analysts at Borrell Associates believe a significant percentage of this growth will come from local businesses that will gradually shift from direct mail to e‑mail marketing. As a result, local e‑mail marketing, which Borrell measured at  about 7% of the industry in 2008, will represent 12.7% of the total spending in this channel by 2013.

As local companies improve their e‑mail marketing capabilities, look for the positive features of this medium – targeting by name and coupons – to bring in more local business.

[Source: Magill, Ken. Direct Mail Spending to Plummet, E‑mail to Soar: Borrell, DirectMag​.com, 2009] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.