An analyst that tracks credit card direct mailings said thereare signs that large credit issuers may be returning to direct mailcredit card marketing.
Direct mail offers from large credit card issuers has traditionallyprovided the most direct competition for credit union card issuers,but large issuers had largely moved away from the marketingapproach as the credit industry declined.
But now Andrew Davidson, senior vice president with MintelCompermedia, a firm that tracks direct mail advertising, says thereare signs that large card issuers are returning to the marketingpractice.
According to the firm's observations, large card issuers sent 180million direct mail card offers in October, a 34% increase over thenumber of card offers sent by direct mail in September.
“Credit card mail volume is still down significantly from a yearago, but October's sharp increase is an excellent sign for theindustry,” said Davidson. “With recent green shoots of economicrecovery, card issuers feel more confident about the future. Ianticipate that this winter will mark the start of a turnaround incredit card direct marketing that will be sustained through 2010.This could very well be the beginning of the end for credit carddirect mail declines.”
Mintel Comperemedia reported that October's month-to-month increasein credit card direct mail is the highest recorded since February2004. Davidson added that “this is significant because direct mailrebounded from the 2001 recession in early 2004. Then of course, wesaw mail volume reach unprecedented peaks in 2005/2006.”