Dropping 2009 Ad Spend, USPS Reduced Work Week, creates TransPromo Opportunity

The decrease in advertising spending, the weak economy, and the increased need to cut costs led the second largest US employer with nearly 685,000, employee’s to cut their work week.   With significant drops in mail volume, 2009 could be the worst delivery year since 1946.  According to MAGNA’s Robert Coen’s Insider Report  projects a decline in US advertising spend for 2009 of 3% over 2008 due to the weak economy. While internet spending will increase by 5%, Direct Mail continues to take the majority of dollars.  

Postmaster General John E. Potter said reported on January 28th to congress that the USPS was faced with decreasing mail volume and continued rising costs – putting them on course to lose $6 billion in 2009. By reducing the six day work week to five, could help the struggling mail service save 3.5 billion dollars.  

This reduction in the mail is applauded by many as it reduces the USPS already large carbon footprint by 1/5 in reduction in energy which powers the largest civilian fleet in the world of with more than 219,000 vehicles driving using nearly 121 million gallons of fuel.

In 2008 the USPS delivered 202 billion (down 9 billion from the previous year) pieces of mail to about 148 million homes.  Quick math calculates that each household received on average, about 4.5 pieces of mail per mail day. Of this volume, According to the USPS Household Diary, over half of the household mail received was advertisement or junk mail, followed by transaction statement, otherwise known as bills.

If the USPS is able to reduce their work week by one day, then the average mail received would increase to 5.46 pieces delivered per mail day or by one piece increasing competition for eyeball share.  It has been reported by many analysts saying that colorful, interesting, transpromo type, personalized mail can keep the readers attention for up to 3 minutes.  While a non relevant, non interesting piece of mail survives a limited shelf life of only 15 to 45 seconds.

The current economy is providing a calling card for customer strategic transpromo discussions on cutting through the mailbox clutter or simply how to mail smarter, with less dollars.   The recent focus on green, Do Not Mail, and now USPS potential reduced delivery schedule, provides the perfect opportunity for business to move from commodity driven print provider to a strategic partner.