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Direct mail marketing industry is 'too fragmented'

Rachel Wheeler Archive
An estimated $83 billion a year is spent on taking direct mail from concept to customer, with USPSĀ® garnering roughly $20 billion from delivery.

However, the service does include other free aspects to help mail marketers with returned mail and address verification.

Alan Robinson, president of the direct communications group, reported on the Courier, Express and Postal Observer blog that of the 40,000 firms involved in the direct mail process, whether it is in the designing, printing or preparation aspects, the actual direct mail is produced by less than 1,000 firms.

"These 1,000 firms are generally fully capable of handling the whole process from concept to the hand-off to the Postal Service," argues Mr Robinson.

However, mailers continue to choose separate advertising agencies and outsource mail design and the development of mailing lists, which could suffer from the outsourced firm's lack of effective data quality management, rather than attempting it in-house where it can be monitored and done more cheaply.