It’s not easy determining the most effective channels when it comes to annual budget planning and working out exactly where the best utilisation of our marketing spend should go. Have you even considered direct mail spend in the marketing mix over the last few years? There is a good chance you probably haven’t.

Digital is used to winning

Well, up until recently, many would proportion a large amount of their budget on digital channels without too much question. Direct mail appears to decline in relevance when it comes to planning spend.

In 2017 digital advertising hit $209 billion worldwide, overtaking TV advertising, and claiming a hefty 41% of the market (Recode, 2017). A big part of this was supported by the continuous growth of programmatic advertising with the channel growing to represent 79% of the UK digital display ad spend (MarketingWeek, 2017). In 2019 the programmatic ad market was worth £4.5 bn.

With so much advertising traffic becoming increasingly digitised, consumers can grow tired of the incredibly overcrowded online environment, which can lead to a decline in the performance of digital channels. Adding fuel to the fire is the GDPR and now e-privacy regulations that loom over us. Direct mail on the other hand has enjoyed somewhat of a renaissance recently especially as businesses try to reinvent the way in which programmatic can be used offline. With these monumental changes taking place, how much of the ad spend will return to a more traditional channel?

So what about DM?

Direct mail ad spend had been in decline for a number of years, however, recent reports have highlighted direct mail had its greatest year of growth since 2011 (Decision Marketing, 2018), topping £1.75bn for 2017 (Decision Marketing, 2018).

Despite the prediction that the direct mail market could shrink by up to 4% year on year moving forward, many businesses are looking at using the postal channel to engage with their audience. GDPR has certainly brought some advantages for those looking for a new way to reach customers.

The direct mail channel has been given a new lease of life by gaining the connection to the digital environment. Programmatic Direct Mail is a new way of combining the best elements of digital marketing with traditional postal marketing to maximise engagement and increase conversions for brands.

Getting the best of both worlds

Tired of fights between the channel managers for spend? Why not try joining forces?

Budgets don’t need to be stretched when using this new channel. Unlike TV or digital advertising, where millions of pounds can quickly be blown on adverts that don’t guarantee engagement, Programmatic Direct Mail is a cost-effective way to reach your exact audience. Wrapped into a simple commercial model with rates far lower than how much it would cost to purchase a stamp you can reach the right audience, at exactly the right time. Simple, huh?

If you think so, get in touch with us today!

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