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BizReport : Email Marketing : May 22, 2009

Borrell predicts demise of direct mail, rise of email

As more businesses abandon direct mail in favor of email, the paper-based medium is spiraling into a precipitous decline, finds new research from Borrell Associates.

by Helen Leggatt

It's cheap, measurable and environmentally friendly, hence why many businesses are using email over direct mail. In fact, recent reports show that Borrell Associates projects direct mail efforts will decline almost 40% over the next five years from 2008's $49.7 billion in annual spend to $29.8 by the end of 2013.

Local email advertising will also grow at the expense of direct mail as more coupons and catalogs are distributed digitally. Borrell predicts local email advertising will grow from $848 million in 2008, to $2 billion in 2013.

However, Borrell cautions marketers who are planning the jump from direct mail to email that it requires the accumulation of certain skills and resources and can't be taken lightly. "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," said the report, entitled "Direct Mail Falls, Email Soars".

Tags: Borrell Associates, catalogs, coupons, direct mail, email, email advertising, local email

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