Direct mail figures in Scotland

The modern curse of junk mail may be lifting, as figures revealed direct marketing has slumped to its lowest level this century.

According to the Royal Mail, there are now 800,000 fewer items being delivered annually than at the industry peak in 2003. However, the industry watchdog warned that while this might be welcomed by householders, it could be bad news for the postal service.

Figures from the Royal Mail still showed 4.65 billion items of direct mail dropping through doors last year – down 7.4 per cent year on year.

Trisha Dow, director of Postwatch Scotland, said the drop was “worrying” as it would cost the postal service – but the figure could be an aberration due to industrial action by Royal Mail workers last year. Postal workers went on strike over pay and conditions, leading to a major backlog of mail.

Ms Dow said: “We would say it’s worrying because it’s an element of the mail that helps balance the books. If that drops substantially – and we know there seems to be a growth in electronic marketing – then it’s difficult to say we would be glad of that.

According to the advertising industry, the figures mean firms are getting better at targeting direct mail so that householders only get the type of offers in which they are interested. New methods of getting the message out – such as texts and e-mails – are also taking away some of the direct-mail business.

Robert Keich, a spokesman for industry body the Direct Marketing Agency, said: “There is a much greater use of targeting and precision and taking out ‘gone always’ – people who have left the household.

For its part, Royal Mail believes the internet is creating the biggest dent in its business. Fraser Chisholm, head of media, said: “The internet is a significant threat to direct mail in its current form but it’s a fantastic opportunity for direct mail to re-position itself. “

HIGH-VALUE BUSINESS

GBP 2.97bn
The value of direct marketing to the Scottish economy last year

90,000
People employed in the sector in Scotland

GBP 2.38bn
Spending generated as a result of direct marketing in Scotland

GBP 312m
Total direct marketing budget in Scotland

20 pct
Proportion of the UK budget outsourced to overseas

GBP 27,300
Average salary for people employed in the sector in Scotland