Archive for the ‘Direct Marketing’ Category

Are Royal Mail encouraging or discouraging companies to use direct mail…?

Wednesday, April 27th, 2011

In a bid to support businesses in their direct mail campaigns and grow the direct mail sector, the Royal Mail has launched the new ‘Advertising Mail service’, to promote the role of direct mail as a form of advertising activity (for detailed information on the new service visit, http://bit.ly/fbISdh).  This is positive news for the industry and as we are all well aware, the increase in support comes at a price…! ).  The question will be whether the costs incurred will impact decisions on the allocation of resources within marketing departments.

This is one of many campaigns that Royal Mail has launched in recent years and according to Mark Thompson, Royal Mail’s media director, direct mail is performing well as a result of increasing ROI compared with other forms of marketing communications such as TV, press and digital (for the full report visit, http://bit.ly/eL99).  An interesting claim from Mark Thompson, however is he not considering the fact that by increasing prices, Royal Mail will impact on ROI and therefore companies will need to evaluate whether direct mail is cost effective.  A similar concern has been voiced in a recent report from the DMA with regards to Direct Mail’s price increases.  Chris Combemale, executive director of the DMA, expresses concern that the raise in funds at the expense of businesses will have a massive impact on marketing decisions and the move to digital (for the full report visit, http://bit.ly/gt6Knl

The changing nature of marketing communications means that companies are exploring marketing channels such as social media, more and more to communicate with consumers.  Micael Dahlen explores the rate of change in the digital revolution and how advertising campaigns using sites like YouTube are being used more widely (for more information see chapter 16, Beyond Traditional Marketing Communications)

Will companies see this as an incentive to increase direct mail activity, or will the hike in prices drive more marketers online? Companies are tightening budgets on marketing spend, consumers are going online more and more to obtain information, and companies are investing more resources on researching online marketing communications.  We may well see a drop in direct mail after all…!

 

Direct Marketing, on the rise…?

Monday, April 18th, 2011

A report from the MMC demonstrates the success of direct mail marketing campaigns as more resources are being ploughed into personalised communications.  Jonathon Margulies, vice president at Winterberry Group, has been working with the DMA on a recent US marketing research project and in his statement reported that payback on marketing campaigns represented huge achievement for an industry that has recently faced crises conditions (http://www.mmc.co.uk/news/Direct-mail-marketing-lift-in-US-bodes-well-for-UK-fortunes/).

The increase in ROI from direct mail activity is supported by Royal Mail and their plans to increase their advertising mail offerings.  Mark Thomson, Royal Mail’s media director, declares direct marketing as the consumers’ favorite! Continuing investment from royal mail means that companies are getting the most out of their direct mail campaigns (http://www.printweek.com/Printing/article/1060518/royal-mail-launches-new-service-support-direct-mails-role-advertising/).

Marketing Communications: A brand Narrative Approach demonstrates the importance of including targeted communications in the marketing mix as a strong method to tracking campaign performance and increase profitability (see chapter 10 for a case study).

Although the costs are increasing for direct mail, companies’ profits are increasing as a result of direct mail campaigns, and therefore should companies allocate more resources to direct communications in general? –The answer is YES…where data is becoming more accurate and accessible, performance tracking is easier and more efficient, and consumers are becoming increasingly agitated as they get bombarded with irrelevant advertising campaigns!