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USPS to Try Direct Mail Refund Program
Published on Apr 21, 2011
Read our article, 'USPS to Try Direct Mail Refund Program' at 'Time to Start Up,' the small business blog by BizFilings.
As the recession and the digitization of media have led many businesses to turn to web-based services for their marketing, customer relations and services needs, many are beginning to worry about the future of direct mail advertising.
However, the U.S. postal service announced this week that it will be testing a program that encourages marketers, advertisers and startups to use mail, offering them refunds if their sales efforts prove ineffective.
"The top advertisers in America represent $90 Billion in total expenditures for media advertising," the announcement reads. "The USPS share is currently 3.1 percent or about $3 Billion annually which represents a huge revenue potential for the Postal Service."
The proposal will nominate 16 businesses that spend at least $250 million per year but are not very active in direct mail efforts. If a company fails to reach a certain goal, they would be entitled to a credit of up to $250,000 for its postage expenses, according to the Associated Press.
Earlier this week, research firm MagnaGlobal reported that direct media ad revenue is expected to increase by 0.8 percent this year.