Direct mail spending will grow by a robust 7.5% in 2005, according to a new report from Winterberry Group.

Trends including the upcoming postal hike, possible new data legislation and production overcapacity are affecting direct mail volumes across all vertical markets, according to the report.

"The looming postal rate increases, regulatory constraints on marketers, the rise of the Internet and other challenges to direct mail production have been relegated to back-of-mind status as marketers continue to both expand advertising budgets and shift spending to direct, measurable media like direct mail," said Bruce A. Biegel, senior managing director at New York-based Winterberry.