Global direct marketing industry outlook positive

The global direct mail advertising market is expected to grow from $58.41 billion in 2020 to $61.14 billion in 2021 at a compound annual growth rate (CAGR) of 4.7 per cent according to a new study from Marketing Insights Report.  

The growth is mainly due to advertisers recovering from the COVID-19 impact, which has led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities resulting in significant operational challenges for many. However, as the economies across the globe start to go into recovery the market is expected to reach $66.28 billion in 2025 at a CAGR of two per cent. 

In the UK direct mail is proving resilient. And it’s no wonder with open rates rising to 80 per cent and the average piece of direct mail being interacted with 4.58 times, an 11 per cent increase year-on-year and a record high. The average door drop, meanwhile, is now interacted with 3.19 times, representing 15 per cent growth year-on-year. The lifespan of mail has also increased, with direct mail living in the home for 8.5 days on average and door drops for 6.9 days. Furthermore, recipient responses to calls to action have increased during lockdowns by 33 per cent. 

We’ve seen new advertisers come to the channel and existing users of the medium bolster their volumes as a result of Royal Mail’s post-Covid initiatives. Across its portfolio of incentives by January Royal Mail had received 680 applications from a raft of sectors accounting for an accrual of £9.2 million in credits to be offset against postage costs demonstrating the popularity of the schemes. 

With mail continuing to be one of the most trusted forms of advertising by consumers in the current climate the growth that the sector is experiencing is very positive news.