Direct response channels such as mail and the Internet were among the biggest gainers in 2005 spending by national advertisers, according to Universal McCann Insider’s Report.
Direct mail spending was expected to hit $56.6 billion, an 8.5% increase over 2004, according to McCann. The Internet generated a 15% increase to $7.9 billion.
Overall, national advertising expenditures were projected to rise to $177.1 billion, By the end of 2006, that total will amount to $189.2 billion. Direct mail’s growth will continue to outstrip the overall average, with marketers expected to spend nearly $60.9 billion on the channel. Internet spending will jump to $8.7 billion.
The growth in direct mail spending also is reflected in volume. Direct marketers sent out more than 41.5 million pieces of mail during the first half of 2005, a 4.9% jump over the same period in 2004, and the highest level for the first half of any year since 2000.
For the full year, marketers were expected to send nearly 10 billion more pieces of mail advertising than they did in 2000. Robert Coen, Universal McCann’s senior vice president and director of forecasting, predicts that most mail campaigns will continue or even be expanded during 2006 despite rising postal rates and paper, printing and handling costs.
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