Research and Markets: Examine This Essential Report on the Decline of Direct Mail and the Rise of Email Advertising with This Report and Webinar

* Reuters is not responsible for the content in this press release.

Wed May 27, 2009 4:35am EDT

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/432dca/direct_mail_falls) has
announced the addition of Borrell Associates Inc.'s new report "Direct Mail
Falls, E-mail Soars: Report and Webinar" to their offering. 

Advertisers spent $12.1 billion last year on e-mail marketing, more than they
spent on display/banner or search advertising. 

Borrell Associates is predicating continued growth some of it at the expense of
direct mail which will dramatically drop. This new report details the
opportunity for local media sites. 

Eight years ago Borrell Associates began issuing forecasts showing a steep,
permanent falloff for newspaper advertising, starting with help-wanted, then
automotive, then retail and then real estate. Despite the industry's claims that
any downturn would be cyclical, it wasn't. Newspapers have seen a 30 percent
decline in revenues since their peak eight years ago. 

Last August, Borrell Associates predicted an accelerated decline for another
print medium - Yellow Pages - forecasting a 38 percent drop in ad revenues over
five years. The Yellow Pages industry and its consultants, which had been
forecasting single-digit declines, scoffed. By the end of the year, the bottom
seemed to have dropped out, hurtling the Idearc into bankruptcy and causing it
to tell investors that a 40 percent drop in revenues over the next five years
was likely. 

Now, the publishers latest prediction: The kudzu-like creep of the Internet is
about to claim its third analog victim - the largest and least-read of all print
media - direct mail. Direct mail has begun spiraling into what we believe is a
precipitous decline from which it will never fully recover. Boreell Associates
are predicting a 39 percent decline for this Goliath over the next five years,
from $49.7 billion in annual ad spending in 2008 to $29.8 billion by the end of
2013. If that occurs, direct mail will fall from the No. 1 placeholder for ad
revenue to No. 4, behind the Internet, broadcast TV and newspapers. 

So where's the upside? It would be too easy to say that its digital replacement
will be e-mail. But e-mail advertising is indeed skyrocketing while its
traditional counterpart plummets. In fact, last year e-mail advertising quietly
moved to the No. 1 online ad category spot, surpassing all other forms of
interactive advertising. Advertisers spent $12.1 billion last year on e-mail
marketing, more than they spent on display/banner advertising or search
advertising. We're predicting that e-mail will continue to distance itself from
other online advertising formats over the next five years, growing to $15.7
billion and remaining the preferred channel among many marketers. 

Most of the growth in e-mail marketing will be local. The publisher is expecting
local e-mail advertising to grow from $848 million in 2008, to $2 billion in
2013, as more small businesses abandon direct mail couponing and promotional
orders and turn to a more measurable and less costly medium, e-mail. Those
trying to latch onto this trend aren't likely to strike instant gold. Managing
large e-mail marketing campaigns require database marketing expertise, a savvy
sales force, adequate e-mail management software, familiarity with the rules and
regulations and a lot of patience. 

Webinar, Tues., June 2, noon - 1 p.m. EDT 

Key Topics Covered:

Introduction 

Return to sender: Direct mail's decline

* Direct mail dominated the 2008 advertising landscape 
* Next 5 years: Direct mail suffers largest drop 
* U.S. mail deliveries: On the way down 
* Nearly half of adults don't buy what direct mail sells

The rise of e-mail marketing

* E-mail advertising: Leading ad expenditure in 2008 and 2013 
* Advertisers' intent: Trouble for display, increase for e-mail 
* Permission-based e-mail: Proceed with caution 
* Scatter gram: E-mail ad revenue for 190 local sites

E-mail's big drivers: Coupons and promotions

* Hand-in-glove rise for interactive promotions and e-mail advertising 
* Coupon sources: Sunday newspaper still No. 1 
* Advertising is among the most-read part of newspapers 
* Toledo.com's weekly entertainment e-mail

Conclusions 

Appendix A: THE CAN-SPAM Act of 2003 

Appendix B: U.S. Ad Spending Forecast to 2013 

For more information visit
http://www.researchandmarkets.com/research/432dca/direct_mail_falls





Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
Fax (USA): 646-607-1907
Fax (International): +353-1-481-1716 

Copyright Business Wire 2009

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