With its reluctance to take up digital initiatives, the U.S. government is largely keeping direct mail marketing afloat. However, as more consumers move to email, social and mobile, federal officials are being urged to adopt digital – a move that could have a negative impact on the United Stated Postal Service.
Between 1998 and 2009, government spending on direct mail increased 11 percent, according to a report by chief counsel to the chairman of the Postal Regulatory Commission Michael Ravnitzky and economist J.P. Klingenberg. The government remains the No. 1 largest user of the USPS, claiming 2 percent of First Class mail revenue, Post and Parcel noted.
On average, the government has spent $1 billion per year on direct mail between 1997 and 2010, with an additional $200 million – $250 million spent on shipping services such as FedEx or UPS. Given the impact of direct mail marketing, it doesn’t look like the government will soon stray from the medium, either.
“As an example, warning letters from the Food and Drug Administration, notifying companies of a regulatory problem, convey a sense of gravity and importance that would not be found in an email or fax,” Post and Parcel noted, referencing the report. “Letters say unequivocally: ‘We know where you live.'”
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