IPA Bellweather released a report earlier this month that showed many businesses had increased their spending on promotional efforts in the fourth quarter of 2011, focusing on Internet advertising as well as direct marketing.
In an article for MarketingWeek, Russell Parsons notes that direct mail has often been a popular standby for brands that wanted to quickly drive up sales when consumer confidence was waning. He cites the research from IPA Bellwether, arguing that the findings represent a "fillip for DM" and should be used "to stake a claim for its future use."
Yet that does not necessarily mean smooth sailing for the channel and those who rely upon it. "Direct marketers, however, face difficulties that could stunt its recent growth," he says.
A proposal from Royal Mail to lift price caps on its services has garnered some push back from companies that rely on direct mail as a way to communicate with consumers. Parsons argues that an increase in price would be detrimental to the efforts of Royal Mail and its regulator, Ofcom, to shore up volumes and make the service provider profitable. If the cost becomes too high, marketers will just move to other channels, he warns.