Direct Mail Shows Modest Growth During Q4 2002

Direct mail continued to perform well as a marketing and communications tool during the last quarter of 2002, with expenditure increasing by 3.9% year on year to £667 million.

The latest figures from the Direct Mail Information Service (DMIS) show that total expenditure for 2002 rose by 6.6% year on year to £2,377 million. This was split between postage and production, which accounted for £979 million and £1,399 million respectively.

Research from Thomson Intermedia shows that financial brands spent the most on direct mail during 2002, investing £657 million in the medium. This was followed by retail brands with £256 million and entertainment, media and leisure companies with £124 million (see below).

According to the DMIS, the volume of direct mail also increased by 5.9% year on year to 5,233 million items. However the rate by which volume is growing has slowly decreased over the past five years and now seems to be levelling off at around the 6% mark (see below).

Jo Howard-Brown of the DMIS, said: “The signs that percentage growth is levelling off year on year may signal an end to the boom growth, but direct mail’s success is in the ascendant and the medium remains one of the top marketing tools.”

The government sector saw a volume increase of 25% for the year, with home shopping and the financial sector increasing by 15% and 0.3% respectively. The media sector saw volume slip by 11.8% year on year, whilst retail and utilities declined by 2.4% and 3.1%.

The receipt of direct mail by ABs decreased by 0.1% year on year, while DEs saw an increase of just over 17% in volume. The 16-34 age group saw a decrease in volume of 19% for 2002, while all other age groups increased.

Last year the DMIS released a study which suggested that the popularity of the medium remains unaffected by the growth of email and web-based marketing (see Direct Mail Remains Unaffected By Web-Based Marketing).

DMIS: 0207 494 0403 www.dmis.co.uk

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