Despite a dip in overall market values last year, Ukrainian direct marketers believe the future is highly promising for their industry as more and more companies grasp the power of direct. So optimistic are they, a rise of 11 per cent this year is projected.

According to the Ukrainian Direct Marketing Association (UDMA), the total value of the DM market in 2009 dropped 1.4 per cent, year-on-year – a figure the UDMA describes as ‘not extreme, considering the economic downturn, a generally low level of knowledge about direct marketing among Ukrainian companies and the complexity of relations with state organisations’.

UDMA president, Valentin Kalashnik, added: "The number of consultations, briefs and discussions, compared to 2008, have tripled. Customers have started asking questions, and this means their knowledge of the market is developing."

Kalashnik believes the 11 per cent increase projected for 2010 may be out of step with the growing swell of interest in DM: "The figures we state are quite modest. I think this indicator will be much higher."

The UDMA report shows that, last year, the amount of unaddressed bulk mailings continued to grow due to the acquisition of new customers – attracted by the affordability of the medium. Direct mailing as an instrument of consumer engagement was particularly embraced by retailers.

The report said: "In the first quarter of 2009, there was a decline in the bulk mailing market but, from the second quarter, large companies activated unaddressed mailouts. Mail order companies have also supported the market of unaddressed direct mail. UDMA specialists hope that in the next year the bulk mail market volume will continue to grow."

Addressed direct mail (targeted mailing) market volume experienced a considerable fall starting from the first quarter of 2009. Currently in Ukraine, addressed direct mail is sent by the state postal operator Ukrposhta, which recently increased its rates. The report said this has led to ‘problems of co-operation with the operator for many companies’ as budgets for targeted mailing were cut – almost halving the market volume.

Many Ukrainian companies are now searching for an alternative to the state post - delivery firms are springing up around the country, which, the report adds ‘may lead to considerable changes in the Ukrainian postal market’.

More information about the DM market in Ukraine is available here.

Registration is also open now for the Direct Marketing Days in Ukraine 2010 show, which is being held in Kiev June 3-4. The tenth annual international business forum, this year the event is shining a particular spotlight on ‘below the line’ as a powerful sales tool, under the slogan: Down With Marketing – Up With Sales!

More about the DMDays in Ukraine show here.