2008-11-09 15:56:00 -

www.reports.mintel.com - The credit crunch is far from over and it couldn't be more apparent anywhere than in credit card direct mail offers sent to consumers. Analyzing credit card direct mail trends, Mintel Comperemedia found that the total estimated volume for credit card acquisition offers reached only 1.34 billion during Q3 2008.

Credit card acquisition mail volume has declined

steadily since late 2006, according to Mintel Comperemedia. Q3 2008's estimated mail volume of 1.34 billion represents a 13% decline from the quarter before (Q2 2008) and a 28% drop from one year earlier (Q3 2007). In 2005 and 2006, Mintel Comperemedia tracked an average of 2.07 billion credit card acquisition offers quarterly.

As the financial crisis and credit crunch worsened during Q3 2008, card issuers scaled back mailings at an increasing rate, notes Lisa Hronek, senior credit card analyst at Mintel. But declines in credit card acquisition mail volume started long before that:

"Credit card companies have been cutting back direct mail dollars for years, as they realize that blanketing Americans with credit card offers doesn't translate to increased sign up or card usage," Hronek says. "But now, they're facing a two-fold problem that is much worse. Not only are consumers tapped out financially, but issuers are also facing record losses. They're scaling back direct mail to cope with unprecedented financial problems."

Hronek expects credit card companies to continue reducing acquisition direct mail throughout the holiday season and into 2009. "Card issuers will focus on a narrower target audience, using refined marketing and more precise mailings to tap into people's true needs and desires."

During Q3 2008, Mintel Comperemedia reports that the top 10 mailing credit card issuers for acquisition direct mail were:

1. Chase

2. Capital One Bank

3. American Express

4. Washington Mutual*

5. Bank of America

6. Citibank

7. Barclays Bank

8. Discover

9. HSBC

10. U.S. Bank

*Now owned by Chase

About Mintel

Mintel is a leading global supplier of consumer, product and media intelligence. For more than 35 years, Mintel has provided insight into key worldwide trends, offering unique data that directly impacts client success. Mintel Comperemedia is a competitive media monitoring service that analyzes direct mail, email and print advertising trends. With offices in Chicago, London, Belfast, Sydney, Shanghai and Tokyo, Mintel has forged a unique reputation as a world-renowned business brand. For more information on Mintel, please visit www.mintel.com.

Joanna Peot
Mintel International
312-628-7946
jpeot@mintel.com