DIRECT MAIL TRENDS IN EUROPE. Dr Sean Smyth

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1 DIRECT MAIL TRENDS IN EUROPE Dr Sean Smyth

2 Not another talk on Direct Mail Oh No!

3 AGENDA The European advertising market Mail volumes addressed and door drops European direct mail print projections DM as part of Customer Communications Management DM drivers DM technology DM ROI

4 Who we are 3 Information Hubs in Europe and the US Working with a Global Network of associates consultants, freelancers and experts Delivering high value information enabling you to make better decisions, faster To serve a World-wide Customer Base

5 Who we serve

6 Dr Sean Smyth Printing technologist (Rexam BroadPrint, Causton & McCorquodale Envelopes) Smithers Pira consultant and analyst Research and author Future of Global Print Markets to 2020 Journalist: Smithers Pira; WhatTheyThink; FlexoTech; Digital Labels & Packaging; RadTech; Ink World; PIA Non-exec Director at printing companies REAL Digital International

7 Make sure you get the right recipient One of the reasons for falling volumes do get the salutation right!

8 E-commerce A death-knell for DM?

9 Direct Mail Definitions Part of advertising mix Addressed personalised communication, mailed to recipient who has not requested the item Smithers Pira data Some also include unaddressed advertising door drops, etc. Competing with TV; Newspaper; Magazine; Radio; Outdoor; PoS; Internet and Mobile Part of the Customer Communication Management Along with On-line; ; SMS text; social media

10 Direct Mail printing market data Constant 2015 value in compare regions, real changes excluding currency fluctuation and exchange rate variation Value of printed products from print supplier includes paper, design & prepress, data analytics where provided by print company does NOT include postage Printed volumes, equivalent A4 single prints, there is overprinting

11 Addressed advertising mail UPU, Smithers Pira seaninprint CAGR (%), Million Austria Belgium Bulgaria Croatia Cyprus Czech Rep Denmark Estonia Finland France 4,312 4,238 3,904 3,618 3, Germany 6,074 6,123 5,869 5,470 5, Greece Hungary Ireland Italy 1,142 1, Latvia Lithuania Luxembourg Malta Netherlands 1,180 1, Norway Poland Portugal Romania Slovakia Slovenia Spain Sweden Switzerland 1,107 1,077 1,101 1,094 1, UK 5,536 5,242 5,078 4,667 4, Total 23,397 22,818 21,560 20,003 18,

12 Door drop volumes Smithers Pira, UPU/ELMA Weekly Door seaninprint drops Households CAGR drops (%), per Country (million) (million) household Austria 3,800 3,600 3,316 3, Belgium Germany 19, , , Bulgaria France 19, , , Croatia Netherlands 11,584 10,911 10, Cyprus Czech Italy Rep. 7,921 1,75711,970 1,903 8,203 1,954 1, Denmark UK 7,822 1,319 7,097 1,163 6,016 1, Estonia Belgium 5,149 4,661 4, Finland 848 1,031 1, France Austria 4,257 6,355 4,237 5,733 4,193 5,313 4, Germany Spain 4,851 4,105 3,919 4,197 3,646 4,281 4, Greece Poland 3, , , Hungary Ireland Sweden 3, , , Italy Hungary 3, , , Latvia Czech Rep. 3, ,814n/a n/a 36 n/a Lithuania Denmark 2,970 2,542 2, Luxembourg Malta Norway 2, , , Netherlands 12,000 11,000 9,000 7, Switzerland 1,188 1,801 1, Norway 2,050 1,951 1,889 1, Poland Finland 1, , , Portugal Slovakia , , Romania Portugal 1, , , Slovakia Slovenia Greece 1, n/a n/a 583 n/a -3.6 Spain Romania 891 2, ,354 8,203 2,294 2, Sweden Croatia 0 1, , ,812 1, Switzerland 1,257 1,902 1,934 1, Ireland UK 3,474 4,010 3,769 3, Total above 107,14145, ,725 45, ,732 42,237 39,

13 Mail volumes UPU

14 European direct mail printing

15 DM drivers Its all about responses and returns ROI = new customers, increased customer loyalty, greater lifetime value Better targeting Better analytics Better design Better offers End-user preferences and experiences Multi-channel - Mobile Cost data, printing, postage Measurable returns Better customer communication management

16 European postage rates Deutsche Post Letter Prices in Europe, March 2017

17 Changing print methods

18 Changing DM technology

19 White paper solutions Flexible design full variability = more targeted offer Single pass, no stock reels with associated waste and potential redundancy Easier than litho printing with continuous toner lettershop Lower cost (dependent on run length and ink coverage) Mailing flexibility mix jobs in software to minimise residuals

20 Single piece mailers Lower cost than lettershop and inserting No matching problems Simpler product but can be sophisticated paper engineering Generally lower responses Stable volumes growing market share

21 Multi-channel marketing The reality Agencies focus on new, hi-tech marketing Millennials are digital, connected world natives is very low cost low responses can pay Much development work in targeted on-line ads Loyalty through facebook, Twitter, Instagram, etc. Many apocryphal claims of high responses through co-ordinated multi-channel approaches BEWARE THE CLAIMS! Some agencies have few print skills they need help

22 Times change, of course

23 On-line has issues

24 Do Your Customers Know This?

25 Good content works Make it relevant to the recipient Make it engaging Make it interesting Make it intriguing Don t send to the wrong people

26 Innovation in Direct Mail Is anything new after many, many years of DM? Don t repeat the same errors Be bold delight your customers I want 150,000 mailers for a new car launch How would you do it? maybe like Classic Color, ($10m t/o print Co in Chicago)

27 Outlook for direct mail in Europe Continuing falls in volume going forward Growth in value to the provider partially by new services: Big Data and analytics Better targeting Better, flexible design Minimising postage cost (maximising discounts) Multi-channel campaigns Demonstrate the ROI boost responses and ROI

28 Thank you for your attention Dr Sean Smyth Print Consultant Smithers Pira Leatherhead, Surrey, KT22 7RU UK Phone: www. seaninprint