Direct Mail Growth STILL an Opportunity October, 2003

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Direct Mail Growth STILL an Opportunity
October, 2003
Eugene Columbo Director, Market and
Quality International Post Corporation Brussels,
Belgium eugene.columbo_at_ipc.be 32-2-724-7243
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The Mail Market

• Direct
• Messages store and forward
• Transactions relationships
• Advertising awareness
• Publications information
• Indirect
• Conversations voice
• Entertainment - amusement

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The Message and Advertising Market is
Competitive A Postal Opportunity
Swedish Advertising Market 2002 of Sales
Swedish Business Message Market 2002 of Sales
SOURCE POSTEN SE ANNUAL REPORT 2002
SOURCE POSTEN SE ANNUAL REPORT 2002
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Economic Growth Impacts Direct Mail

• Mail growth has been traditionally tied to
  economic growth (GDP)
• Mail growth may no longer track economic growth
• Other factors may impact mail volume

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Direct Mail IS an Economic Driver

• Mail volume has an opportunity to grow with an
  economic recovery. Postal Operators needed to
• Offer new direct mail opportunities to their
  customers
• Use economic growth as a postal marketing driver

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Electronic

• The assumption - electronic communication offers
  alternatives to mail
• So - over time mail volume may decline
• Internet usage is high in many countries, and
  growing
• Some high internet user countries saw declines in
  mail volume in 2001 or 2002

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E-Commerce Growth CAN Benefit Direct Mail
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DIRECT MAIL NEEDS APPLICATIONS AUDIENCE ADDRESS

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• Applications
• Transactions and messages, not direct mail, are
  more likely to move to electronic alternatives

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• Audience
• All segments of household and business customers
  are using electronic alternatives,
• direct mail can cut through the clutter

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• Addressed or Un-addressed
• The address is changing, for direct mail it can
  be either personal, or occupant

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The Advertising Market Continues to Grow

• The DMA in the US projects solid growth in
  Advertising expenditures through 2006
• The UK will also see growth in 2003
• E-commerce will still see the highest share of
  growth but Direct Mail will also benefit

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Direct Mail Opportunities for Posts

• Internet
• The Internet provides immediate positive
  potential for some posts by using direct mail to
  focus the message to the customer
• Business to Household
• This remains the core driver for direct mail,
  capture more of this audience
• Advertising
• Advertising applications, both addressed and
  un-addressed, also provide opportunity for volume
  and revenue growth

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Expect the Audience to Adapt their Applications
to Communicate
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Expect Business to Change

• Internet shopping and communication are now being
  used by 50 or more of the population in many
  industrial countries (Taylor Nelson Sofres)
• DMA members plan to spend more on e-mail in the
  fourth quarter of 2002 (DMA)
• Direct Mail (DM) expenditures continue to
  increase in the UK, but DM mailings from
  Utilities are declining (DMIS, UK)

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Business Expectations DRIVE Direct Mail

• Business and household expectations are changing
• Business customers drive mail volume growth.
  Postal Operators need to pay increased attention
  to business practice changes
• Business to household and household to business
  are core mail growth opportunity areas - most at
  risk to impact mail volume growth

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The Direct Mail Opportunity
PRINT
OTHER
ADVERTISING
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STILL IS
DIRECT MAIL
CAN DRIVE
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THANK YOU FOR YOUR ATTENTIONDirect Mail
Growth Still an Opportunity
Eugene Columbo Director, Market and
Quality International Post Corporation Brussels,
Belgium eugene.columbo_at_ipc.be 32-2-724-7243