Direct mail spend is likely to be breaking through the £2bn-mark for at least the next two years and will remain third behind only online and TV in terms of budget, according to new figures released today by the Advertising Association and Warc.
Not bad for a medium which some have written off for years, and testament to the staying power of the humble mailshot.
Overall, the report shows that UK advertising expenditure shrugged off European uncertainty to post 8.2% growth in Q1 2015. Reaching £4.7bn in total, UK advertising spend in the first quarter of the year was the highest on record.
The figures for direct mail show that spend is predicted to be £1.86bn this year and £1.88bn in 2016. That prediction does not even include unaddressed letters. leaflets and door-drops, which will push total budgets way over the £2bn mark.
The prediction is in line with a PwC report, produced in the run-up to the Royal Mail flotation, which said the rate of decline in letter volumes will slow between 2013 and 2023, while an improving economy will help stem the fall because businesses will begin to spend more on direct mail.
The AA/Warc study shows online advertising rose 12.8% during the the first quarter to reach £1.9bn, its highest ever quarterly total. The growth is increasingly driven by advertising on mobile devices, which was up more than 50% to pass £500m.
It predicts online ad budgets will reach £8.1bn this year, while TV will top £5.2bn.
Newspapers and other news publishers, however, are due for a torrid time, with ad growth at local and national level in steep decline of 3.6% and 4.7% respectively.
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