Although Online and TV advertisements are the leaders, DM comes a very solid third.
Forecasts issued by Group M last week predicted that the third-place Direct Marketing industry will be worth £1.6bn during 2017.
When technology solutions seem to be leap-frogging the apparently low-tech paper-posters, analysts are predicting that DM is still ranked at number three in the UK.
“Why should that be?” you ask, “considering that the online channel is growing exponentially.”
There are number of factors confirming this trend, but the main one is that the relentlessly increasing pure-play online retailers are still not (and probably never will be) sweeping up the ever-increasing older consumers who do not trust or even understand the online world.
Speak to your aunts, grannies or even yourself, if you are over 55 and you will discover the plethora of DM cards and letters pinned to kitchen notice boards because the receivers are still of the opinion that the senders ‘care’ and ‘personalised’ mail is what it says – personal to the individual.
Overall, the percentage of DM against other channels is reducing slightly, but the total volume is on the increase.
Describing DM as apparently ‘low-tech’ may be correct at the receiving end, but the high-tech expertise applied by data marketers is what has maintained their success by reducing wasted print and creating very successful convincing personalised mail to a slow-to-change and loyal consumer market.
As an indirect marketing bonus, those little kitchen ‘advertising notice boards’ are viewed by consumer’s friends and relatives from within the same buyer profile and with the same needs and desires.
Jonathan Miles, XCM’s multi-channel director said –
“Leveraging accurately segmented data and then using it to target loyal customers is the basis of Analytics and CRM”. He goes on to say “…but if those customers are averse to online, generally have disposable incomes and are also driven by the desire to save money, then they are more likely to respond well to DM campaigns. It is these primary factors that ensure that DM remains one of the most valuable channels available to marketers across the globe”.
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