Summary of Report -
Direct marketing is widely used by all industry sectors for both business-to-
The effect of the recession on the direct marketing industry was less severe than that experienced by other marketing sectors; direct marketing channels (such as direct mail or e-mail marketing) often provide a cheaper and more targeted alternative to other advertising methods such as television advertising. Direct marketing has a proven track record, offering value for money and demonstrating measurable returns on investment (ROI). During and since the recession, companies have been forced to account for much-reduced budgets and are now looking for the maximum return from any marketing campaign. As such, digital marketing was the fastest-growing part of the wide advertising industry during the economic downturn, as companies looked for cheaper marketing alternatives.
According to the Direct Marketing Association (DMA), in 2011, display advertising in newspapers and magazines was the largest sector within the overall direct marketing industry and accounted for one fifth of total direct marketing expenditure. Internet search and banner advertising combined accounted for the second-highest advertising spend, at 17.6%, followed by direct mail and door drops, and email marketing, each taking a 16% share of total spend.
The future of some direct marketing sectors, primarily direct mail, is likely to be negatively affected by changes to the UK postal system; in March 2012, postal regulator Ofcom announced that the Royal Mail was free to set its prices for most of the letters and parcels it delivers under a new 7-year framework. In terms of the effect on direct marketing, the price of a large letter direct mail rose between 4% and 7% but Royal Mail insisted that most increases would be below 5% and some under 1%. Moreover, the proposed EU Data Protection Regulation is expected to have a hugely detrimental impact on the UK's direct marketing industry.
Growth in Internet advertising, e-mail marketing and customer magazines, as well as mobile marketing, is expected to continue over the next few years. Key Note forecasts that the value of the overall direct marketing industry will increase by 5.8% in 2012, followed by further growth of 3.2% in 2013.
Direct Marketing: UK Market Report 2012, is available at: