The TransPromo market is poised to explode. InfoTrends’ research indicates that the TransPromo full color digital output for North America was 1.62 billion equivalent images in 2006. We forecast this value to increase at a CAGR (compound annual growth rate) of 91% to reach 21.72 billion images by 2010.
The USPS Makes TransPromo Cost-Effective
Among other factors, this growth will be driven by the fact that TransPromo communications are extremely cost-effective in terms of postage costs. TransPromo enables the further use of transaction documents—which are being mailed anyway—by blending promotional and other messages into one document. This consolidates the amount of mail the recipient receives. Inserts can also accomplish this, but many mailers feel that the effectiveness of inserts has declined substantially. TransPromo offers an opportunity for mailers to consolidate mailings and to use a tool that will attract the attention of recipients because it is unique and innovative. In many cases, the number of offers as well as the relevance of those offers can be increased without incurring incremental postal costs.
Although many postal rate classes rose as a result of the May 14, 2007 USPS rate change, this change actually had a favorable effect on inserts and onserts. Businesses were given incentives to do more with existing communications by adding more weight to a first-class piece. While postal rates on nearly every class of mail increased and in some cases nearly doubled, the cost of sending higher weight first-class letters actually declined. For example, postage on a two-ounce first class letter decreased by nearly 8%. According to DST Output, one of the largest providers of statement and billing output solutions, “The rate to send an additional ounce of first-class mail actually decreased from 24 cents to 17 cents for an individual piece. With letter automation discounts, the rate declined even further to 12.5 cents. Factor in the one-cent rate increase to 21 cents for standard class mail, and companies now find it less expensive to send promotional offers and messages with their transactional statements, even if mail pieces exceed the one-ounce mark.”
The preceding is an excerpt from an InfoTrends report entitled, “TransPromo: An Idea Whose Time Has Come.” To learn more about the report or to make a purchase, please contact Jennifer Skerrett at +1 ext. 111 or.
To learn more about the TransPromo opportunity, join InfoTrends at the ON DEMAND Conference & Expo March 3-6, 2008 at the BostonConvention & ExhibitionCenter. InfoTrends will host a Hot Topic Day entitled “Trans Meets Promo – Transforming Transaction Documents into Marketing Opportunity” on Wednesday, March 5, 2008. This track will focus on how senior executives from the datacenter, in-plant, and commercial printing environments can participate in the TransPromo opportunity to build their businesses.