Brand owners could save an estimated £50m next year on their direct mail costs by switching to Royal Mail’s barcode tracking service Mailmark, according to an analysis carried out by data quality and hygiene specialist The Software Bureau.
The company reckons direct mail has experienced a significant spike in interest and take-up in the last three months, with the its own year on year growth on licence sales has increased by 15% and overall turnover has increased by 8%.
This growth is predicted to continue into 2016 as a result of two contributing factors: the cost reduction in postage offered by Mailmark and a reduction of client confidence in digital display advertising.
Mailmark was introduced by Royal Mail 18 months ago with the aim of making advertising mail more accountable. It is also now the most cost effective way to send bulk mail.
In January 2016, a new price differential for Mailmark will be introduced making it up to 5% cheaper than other postage solutions. The Software Bureau estimates that this could save the industry up to £50m if the majority of bulk mailers move to Mailmark. Royal Mail is considering a further price differential in January 2017.
Already 100 mail producers are now Mailmark-enabled, accounting for approximately 11% of the direct mail market, which is a 67% increase since July 2015.
Software Bureau managing director Martin Rides said: “2015 has been a bumper year for direct mail with growth recorded by AA/Warc and The Bellwether Reports.
“Royal Mail has done a sterling job promoting the channel with its Mailmen campaign and through initiatives such as Mailmark. We have worked closely with Royal Mail and the downstream access operators to move the industry as smoothly as possible to Mailmark. It is our intention to help more bulk mailers in 2016 navigate Mailmark and realise the cost savings that are available to them.”
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