Direct Mail Forecast

CHARLOTTESVILLE, VA – A comprehensive forecast of the use of digital printing in the direct mail market has been undertaken and published by INTERQUEST, a market research and consulting firm that serves the digital printing and publishing industry. The document is entitled Digital Printing in Direct Mail: Market Analysis & Forecast (2008-2013) – 260 pages.

The study contains 155 tables and charts and also provides an assessment of the impact of the financial crisis on the direct mail printing business. It was published in January 2009 and complements a previous study from June, 2008 entitled North American Transactional Printing: Market Analysis & Forecast.

This new study is based on in-depth surveys of 40 leading North American direct mail printers and large mailers. The collective volume of the survey participants interviewed for the report account for about 20% of the total digital direct mail impressions produced in North America.

INTERQUEST President, Gilles Biscos, pointed out that direct mail printing has generally been a bright spot in the printing industry for a some years, now. He has seen some dramatic advancements in recent years – the latest generation of equipment in particular – so he and his company felt that the time was right to take a serious look at how digital printing technology was being used in direct mail.

The study is aimed at industry professionals involved in sales and marketing, product management, engineering and product development, application and technical support, market research and strategic planning, sales and technical training, selection and purchase of printing solutions and printing and publishing operations.

Among the topics undertaken in the study are:

• The state of the direct mail market – both current and future
• The use of digital printing in direct mail – including technologies and applications for black-and-white and color
• Important business issues to consider – such as postage, the environment and legislative matters
• The use of laser and ink jet printing in direct mail
• The impact of promotional transactional applications on direct mail inserts
• The impact on direct mail by the current financial downturn

Business who use marketing lists for their direct mail campaigns will certainly be affected by the conclusions arrived by this new study. The study findings suggest that digital providers should be in a stronger position than non-digital providers and should stand a much better chance to weather the current economic downturn. Providers of direct mail lists who use the new digital printing technology will be on the bleeding edge.

The U.S. delegation is headed by Bisa Williams, who is the current deputy assistant secretary of state for Western Hemisphere affairs. The negotiations are being held at the Cuban capital of Havana. Representatives of the U.S. Postal Service were also present.

Since there is no U.S. embassy in Cuba, Washington maintains a U.S. Interests Section in Havana, a spokeswoman for which is Gloria Berbena. Berbena told The Associated Press that this is the first time State Department officials have traveled to Cuba for talks since late 2002.

The talks seem to be pretty hush hush. The Cuban government has no comment on the talks, not even to confirm they are happening … nor will either side disclose exactly where in Havana the talks are being held.

In August 1963, direct mail service between the U.S. and Cuba was suspended. Washington imposed its embargo a year later. Because of the ban on direct mail, a letter currently mailed between the two nations can only arrive by first going through a third country like Mexico or Canada … with a little bit of luck … maybe. Still, it can sometimes take months for letters to arrive.

The U.S. first attempted to restore direct service in 1999, then tried again in 2000, 2002 and 2008. Cuba finally accepted in May, of this year and agreed to host the talks when representatives from U.S. and Cuba met in New York in July when the bilateral talks on migration were held.

According to the Associated Press, Berbena stated that the talks would be limited only to direct mail service and that the talks were expected to take all day.  Berbena said that the Obama administration sees the talks “as a potential avenue to improve communication between our countries’ peoples.” The outlook does appear to be optimistic for families who are separated by this political divide and for users of mailing lists in general.

Direct mail to Cuba stopped in 1963, and since then mail has had to go through other countries. Diplomats have now arranged to meet in Havana to discuss the renewal of direct mail between the countries to put an end to rerouting direct mail through Canada or Mexico. President Obama would like to improve relations between the U.S. and Cuba. He has taken measures to see if the Cuban leadership is interested in participating. One such step taken involves the support of a recent decision by the Organization of American States to reverse its position in 1962 to suspend Cuba from the 34-country group.

This is also big news for suppliers of mailing lists and for businesses that buy mailing lists. Restoring direct mail service between U.S. and Cuba has been an issue that has thwarted previous presidents, including George W. Bush and Bill Clinton. Previous attempts had been stalled by the Cuban government. Experts say that it would not only be a big step for families that have been divided but also would be a politically critical move. The decision to have the direct mail talks comes just after migration talks in New York in July.

In a Sep 1st article from the Miami Herald, Cuba expert Phil Peters from the Lexington Institute,  a Virginia research center, stated that there is a big difference this time and that Cuba was never able to agree to talk about it and now it seems like Cuba has agreed to talk about it. Peters also said that this is important “Within the context of Cuba and all the divided families,”  and that it was also very symbolically important.

The Miami Herald article also mentions Cuban writer Manuel Vázquez Portal who says that a letter that  should take only three days to arrive can take three or four months.  He also emphasizes that this has bigger meaning because if he wants to communicate to his family in Cuba he is not restricted to calling them by phone or sending them an e-mail.

Vázquez Portal also points out that mail doesn’t get there by magic but that it gets there on ships and planes, and that mail arriving on more ships and more planes has a very important commercial and political meaning. He says, “This is the tip of the iceberg.”