Growth of just 2% for consumer direct mail is temporary blip
Last week’s feature on prospects for consumer direct mail argued
that growth of just 2% last year was a temporary blip rather than
evidence of a terminal decline. This week’s comparison of direct
mail with other media seems to confirm this forecast.
First, it is clear that fluctuating and slowing growth rates are not
confined to direct mail. Looking at January 2001, TV advertising was
6% down on last year and an overall 1.5% rise in non direct-mail
advertising translates into a cut in real terms, once inflation is
taken into account.
Given that the overall growth rate of UK advertising halved last
year, direct mail’s performance is neither exceptional nor cause for
concern.
Second, with more media outlets than ever battling for advertisers’
money it is encouraging to see that not only did direct mail hold on
to its overall share of media spend, but it also increased it in key
markets such as FMCGs, retail and motor. Here, companies such as Van
den Bergh Foods, Marks & Spencer, Next and Vauxhall significantly
upped activity.
Finally, direct mail’s share of spend relative to other media is
likely to improve in 2001 due to continuing pressure on TV and other
media to deliver target audiences cost-effectively. The
after-effects of the dotcom fallout, where adspend by dotcoms on non
direct-mail media was down year-on-year for three months running,
has also helped.
\
Direct mail as a percentage of total adspend.
Company Total adspend Percentage Direct mail Direct
mail
2000 growth as percentage as
percentage
(pounds m) on 1999 of all 1999 of all 2000
adspend adspend
Food/drink/FMCGs 1008.9 -3.8 1.78
3.4
Health and drugs 651.9 -3.9 7.0
6.0
Tobacco 20.3 -51.4 4.3
6.7
Mail order 754.6 -6.7 44.0
44.5
Household 339.1 -0.6 4.9
7.3
Retail 998.4 -0.2 5.5
6.9
Gardening 32.7 21.2 29.0
16.0
Leisure/media 1074.4 8.3 9.1
8.6
Motor 871.0 -6.2 3.6
4.0
Holiday/travel 375.9 -2.4 12.3
13.9
Charity/social 351.3 4.1 40.0
36.9
Utilities 711.5 13.0 12.1
10.4
Other 859.9 50.4 1.5
2.2
Credit cards 260.5 13.4 70.9
71.0
Personal loans 160.4 15.6 52.2
50.8
Motor/home insurance 184.3 -2.7 54.0
41.6
Mortgages 98.2 53.0 8.8
7.2
Other financial 630.1 20.1 65.4
55.6
Total 9383.4 5.0 15.1
14.6
\
ACNielsen MMS monitors direct mail activity and spend using a panel
of 10,000 people profiled and weighted to be representative of the
UK population. Spend is estimated by multiplying grossed-up mailing
volumes against average post and production costs for mailpacks in
each area.
Data does not include requested items, door-drops or inserts.
Detailed information on direct mail is available via
marketmovements.com.
Copyright 2001 Marketing.
Source: World Reporter (Trade Mark) – FT McCarthy.
MARKETING, 08th March 2001
