Junk Mail Junked - The one bright spot of recession.

I have finally found a bright spot in these financial hard times. Direct mail is in the tank. My mailbox is less cluttered, trees feel safer and my mailman is walking a little straighter.

The most recent report by Mintel Comperemedia reports that nearly all the major Direct Mail categories are down. Some of the categories such as Credit Cards (-22%) or Mortgage Loans (-39%) are face down in the dirt.  

Growth/decline in direct-mail volume in 2008

Telecommunications               9.6%
Insurance                                 4.6%
Banking                                   -1.3%
Investments                           -4.2%
Travel/Leisure                      -4.7%
Automotive                            -9.4%
Technology                            -16.6%
Credit Cards                          -21.8%
Mortgage and Loans             -38.8%

Source: Mintel Comperemedia

Traditionally, declines in Direct Mail are a leading indicator of bad financial times. And, you’d expect that the flow of junk mail will rebound quickly as the economy re-starts.

But, it will be interesting to see if Direct Mail every recovers to its former heights. Direct mail has been astoundingly resiliant in the face of a media market that has brought newspapers and other advertisers to their knees. Will direct mail ever recover or will advertisers use this break as an opportunity to explore new advertising opportunities? Direct Mail has outlasted many predictions of its demise. But eventually, don’t you think it has to die? It just seems so last century.

Let me know what you think. Do you believe Direct Mail is on its way out or on its way back?