Direct Mail Volumes on the Up!

According to Group M’s latest media tracker direct mail is set to grow by 0.7 per cent over the next year despite GDPR. This will be its second highest growth rate in eight years. If this is the case direct mail expenditure will surpass the £2bn mark once again which is fantastic news for the DM industry, which had prepared itself for a significant drop in volume as a result of opt-in.

However, a recent study by W8Data suggests a different story. It revealed that in the three weeks immediately following the introduction of GDPR, mail volumes had fallen by 11 per cent, which over the course of a year would result in a reduction of around 1.1 billion items.

However, the same study also found that 79 per cent of repermissioning campaigns were successful and that consumer perception towards the medium had significantly improved. It stands to reason, therefore, that mail may experience a reassurance of interest with brands that had previously dropped it from the mix, reinstating it. Anecdotally we have already heard instances of this happening. Whilst the stigma of junk mail is still strong, consumers are receiving less post thorough their letterboxes than ever before and as a result value a creative and informative mail pack more highly than they might have done before. Moreover, with consent now needed direct mail campaigns will be more highly targeted and the data upon which they are built is likely to be cleaner and more up-to-date. Together these factors could contribute to an overall increase in direct mail volumes. The problem of course is that as increasing numbers of organisations see how effective the medium is and come on board, the volume will continue to increase, but the quality may suffer and customer disenfrancisement could once again take hold – but we’ll cross that bridge when we come to it!!