Jeffrey Ball, a Wall Street Journal reporter covering environmental and energy issues, published an excellent article on the issues facing catalog marketing. Jeff thoroughly researched the topic and put together one of the more balanced pieces I have read. Take a moment and give the article a read. Make sure you check out the comment string.
Jeff clearly articulates some key facts that are shaping the debate around paper-based direct marketing:
More than 17 billion catalogs were mailed in the U.S. last year — about 56 for every American.
In the U.S., catalogs account for 3% of the roughly 80 million tons of paper products used annually.
Much of what used to be done through the mail, including bill payments and personal correspondence, is now handled electronically.
The average U.S. catalog retailer reported mailing about 21 million catalogs in 2007, sending out a new edition every 26 days.
Only 1.3% of those catalogs generated a sale
The paper typically used in catalogs contains about 10% recycled content, according to industry consultant RISI. That is far less than paper in general, which typically contains about 30% recycled content.
Consumers who received catalogs from a retailer spent 28% more on that retailer’s Web site than those who didn’t get a catalog.
Jeff’s article includes some clear insight on the topic. As the title of his article “Marketers Still Prefer a Paper Trail” implies:
But catalogs pay. Like so many environmental initiatives, from solar energy to hybrid cars, reducing the impact of catalogs runs into economic realities that favor the old way of doing things.
But there is hope and that is where Catalog Choice comes in. First, consumers who want to slow the flow of unwanted catalogs can use our service to opt-out. Now that we are two years into our effort, our systems are honed and we are efficiently delivering and verifying that the mailer will honor consumer requests to over 1,000 mailers.
Jeff notes:
The catalog industry says it is working hard to reduce the environmental impact of its mailings, by pushing retailers to increase their reliance on recycled paper and by making it easier for consumers to opt out of mailings they don’t want to receive.
But we have to do more than just close down a channel. In order to facilitate significant change in the direct mail industry, viable digital alternatives need to emerge. Jeff clearly describes the vision behind our iCatalog program following a lenghty call with me.
Jeff writes:
Chuck Teller, executive director of Catalog Choice, is working on an idea that could wean catalog retailers away from paper-based marketing without hurting their businesses. His “iCatalog” aims to adapt the accessibility of a paper catalog to the digital realm. Using an online widget that consumers can install on a personal Web page or social-networking site, Catalog Choice continually updates and customizes retailers’ product selections.
This is where you come in. We need you to use the iCatalogs and give us your feedback. What works; what needs improving? Collect your favorite brands and build your list of favorites for the coming holiday. When you are ready to buy, click through to the brands web site from the Buy Now link in the iCatalog. Each retailer provides a small percentage of the sales price back to Catalog Choice, which helps us fund our free mail preference service.
