Businesses are likely to spend marginally less on direct mail initiatives over the course of the coming year than they did in 2007, new research indicates.

According to figures released by the Advertising Association, direct mail is expected to experience a 2.5 per cent fall in expenditure over the next 12 months, reports Qas.

This projected fall is mainly attributed to the global credit crunch and the general economic downturn that is expected to hit businesses of all sizes.

The decline is also down to improved efficiency of the medium brought about by advances in data quality technology, the report found.

Experts expect online advertising to increase by 21.3 per cent, while cinema advertising will rise by a modest 1.6 per cent.

A study by Pitney Bowes last month revealed that consumers prefer to receive news of a product or service through direct mail rather than by text message or unsolicited mail, which are regarded as annoying.

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