ADVO, a targeted print advertising company based in Windsor, CT, plans to increase private carrier delivery (PCD) next year. Last year, the company introduced PCD in the Las Vegas, Cincinnati, Detroit and Philadelphia markets. The vast majority (approx. 95%) of ADVO advertising is channeled through the United States Postal Service. The remaining 5% is delivered via PCD and newspaper alliances. In the markets where private carriers and newspapers are used to deliver advertising, they are a complement to, not a substitute for, USPS delivery.
Proposed USPS rate increases have driven ADVO to look for alternative delivery methods. Postal officials have been warning the mailing community about an impending double-digit increase. The next rate increase is expected to be filed with the Postal Rate Commission this spring and take effect in early 2006. Another reason for using PCD is that private carrier tracks have GPS (Global Positioning Systems), which are helpful to clients who want to mailings to reach customers' homes on certain dates. Additionally, PCD can accommodate heavier weights.
In some markets, ADVO partners with newspaper companies to deliver its Shopwise wraps to subscribers inside their newspapers. Non-newspaper subscribers in those markets get Shopwise via direct mail. ADVO has alliances with 30 newspapers in the Boston, Denver, Orange County, Detroit, Southern Connecticut, Los Angeles and San Francisco Bay areas. Partner newspapers include Spanish-language newspapers (e.g. Impacto USA, circ. 250,000).