Royal Mail says more than 80 companies have signed up to its Advertising Mail service in the first three weeks since launch, with over 14 million items already posted.
The postal operator is also talking to around 100 other companies which have expressed interest in using the scheme, despite pre-launch criticism that companies had been kept in the dark over whether third-party inserts were included in the service.
Advertising Mail is designed to ensure direct mail remains cost effective and competitive against other forms of advertising, such as TV, press, outdoor and digital.
It offers a substantial discount to the double-digit price hikes approved by Postcomm. Under changes to Royal Mail’s prices that came into effect on May 9, the average price increase for customers who use Advertising Mail is around 2% per cent.
The launch of the service follows on from a range of Royal Mail initiatives to encourage direct mail use, including the DM Sale and first-time user scheme.
Royal Mail head of media markets Antony Miller, said: “We are delighted with the exceptional response to Advertising Mail in such a short space of time. Royal Mail remains committed to developing services that support the role of direct mail in the advertising mix. We developed Advertising Mail to help ensure direct mail campaigns remain cost effective when compared with other forms of advertising such as TV, press, outdoor and digital.”
He claimed: “Research revealed there has never been a better time to use direct mail. Integrating direct mail with other channels boosts payback, 92 per cent of mail is opened and it has regained its position as consumer’s favourite marketing channel.”
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