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Financial advertising is no longer abundant in the USA

June 3, 2008 - 6:20am | News | Other themes |
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[img_assist|nid=7883|title=|desc=|link=none|align=left|width=100|height=66]Direct mail of the US financial service companies is being sharply cut back which is attributed to the economy slowdown. In the first quarter of the year banking, credit card, investment and mortgage loan companies decreased their unsolicited mailings 12.7% down from the same period a year ago, the number rendered by Chicago-based Mintel Comperemedia.

 

"One of the main drivers definitely has to do with the economy," said Chris Zagorski, Mintel senior analyst. "With credit lines tapped and people struggling to make ends meet, both consumer spending and savings are down."

 

As of present time credit card and other offers in mailboxes of consumers vary by companies. Financial service companies sent an estimated 4.2 billion pieces of direct mail in the first quarter, down nearly 10 percent from 4.6 billion in the fourth quarter of 2007.

 

"Even though there is a decrease, we're talking about billions of mail pieces," Zagorski said.

Credit card issuers are the most ardent institutions in reducing mailings as compared to other financial services companies. Estimated mail volume for credit cards fell nearly 14 percent in the first quarter to roughly 2.6 billion mailings. Mortgage and loan companies cut their mail offers 6 percent.

 

JPMorgan Chase & Co. included last year in the list of top 10 credit card mailers cut back its direct mail the most. Its mailings fell 34% during the first quarter. It is followed by London-based HSBC Holdings PLC which reduced direct mails 23.3% and then Bank of America Corp. with 17.5% decrease.

 

Just several credit card companies like American Express Co. and Discover Financial Services enhanced their volume to some extent. Interestingly, credit card mailings from Washington Mutual Inc. were up 55.8 percent in the quarter. As per Zagorski this variation is partly the result of companies employing different marketing in different parts of the country.

 




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