Direct mail spending fell for a second consecutive year, according to a new report.

The figures from Thompson Intermedia and KPMG for the 2005 media spend also revealed that the drop in direct mailing has been offset by a growth in door drop activity.

Michael Higgins, KPMG spokesman, said: “After many years of strong increases, spend on direct mail has gone into reverse.

“On the other hand, the financial services and retail industries both seem to have made significant switches from direct mail to door drops.”

The retail sector was responsible for 20 per cent of the total spend on direct marketing last year but the biggest player by far was the finance sector, which was responsible for 47 per cent of the total direct mail media spend for 2005.

Higgins added: “We see three main causes for the decline in direct mail – the rise of e-mail marketing, better targeting of direct mail, and consolidation among marketers, especially in financial services.”

Related Topics: General Marketing