direct mail in europe · millennials are digital, connected world natives e-mail is very low cost...

Dr Sean Smyth

DIRECT MAIL TRENDS IN EUROPE

smitherspira.comseaninprint

Not another talk on Direct Mail – Oh No!


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

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Who we are

Delivering high value information enabling you to make better decisions, faster

3 Information

Hubs in Europe

and the US

Working with a

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consultants, freelancers

and experts

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Who we serve


Dr Sean Smyth

Printing technologist (Rexam – BroadPrint, Causton & McCorquodaleEnvelopes)

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


One of the reasons for falling volumes

Make sure you get the right recipient

– do get the salutation right!


A death-knell for DM?

E-commerce


Definitions

Direct Mail

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; e-mail; SMS text; social media


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


UPU, Smithers Pira

Addressed advertising mail

Million 2010 2011 2012 2013 2014CAGR (%), 2011-2014

Austria 702 692 690 635 581 -5.7Belgium 632 620 598 575 550 -3.9Bulgaria 15 9 4 5 6 -11.8Croatia 40 39 32 30 24 -15.3Cyprus 1 1 1 1 1 -6.6Czech Rep. 174 174 165 146 146 -5.7Denmark 109 96 85 75 67 -11.4Estonia 11 13 12 11 11 -6.2Finland 265 266 262 243 220 -6.1France 4,312 4,238 3,904 3,618 3,230 -8.7Germany 6,074 6,123 5,869 5,470 5,129 -5.7Greece 62 50 45 39 39 -8.2Hungary 25 37 36 48 59 17.5Ireland 28 23 21 20 17 -10.2Italy 1,142 1,139 930 812 770 -12.2Latvia 5 4 3 3 4 1.9Lithuania 3 3 3 2 2 -14.6Luxembourg 33 33 32 32 32 -1.5Malta 1 1 0 1 1 -9.4Netherlands 1,180 1,095 997 848 757 -11.6Norway 381 391 372 360 347 -3.9Poland 144 133 122 164 204 15.3Portugal 135 120 101 87 76 -14.3Romania 9 7 5 4 3 -22.9Slovakia 30 26 22 23 42 17.3Slovenia 77 78 73 65 67 -5.2Spain 773 712 640 577 545 -8.5Sweden 388 375 357 345 333 -3.9Switzerland 1,107 1,077 1,101 1,094 1,087 0.3UK 5,536 5,242 5,078 4,667 4,603 -4.2Total 23,397 22,818 21,560 20,003 18,953 -6.0


Smithers Pira, UPU/ELMA

Door drop volumes

Country 2011 2012 2013 2014CAGR (%), 2011-2014

Austria 3,800 3,600 3,316 3,032 -7.2Belgium 881 850 742 681 -8.2Bulgaria 95 81 61 29 -32.9Croatia 28 44 59 67 34.0Cyprus 7 4 3 3 -29.6Czech Rep. 1,757 1,903 1,954 1,675 -1.6Denmark 1,319 1,163 1,036 917 -11.4Estonia 148 162 193 199 10.5Finland 848 1,031 1,188 791 -2.3France 6,355 5,733 5,313 4,743 -9.3Germany 4,105 4,197 4,281 4,394 2.3Greece 6 5 5 5 -8.2Hungary 625 784 800 810 9.0Ireland 123 140 164 159 8.9Italy 616 535 500 479 -8.0Latvia 99 88 44 36 -28.4Lithuania 104 74 77 72 -11.5Luxembourg 48 44 53 42 -4.0Malta 20 24 28 32 17.9Netherlands 12,000 11,000 9,000 7,900 -13.0Norway 2,050 1,951 1,889 1,822 -3.9Poland 268 284 296 248 -2.6Portugal 541 517 529 508 -2.1Romania 12 50 51 79 84.8Slovakia 168 181 273 271 17.3Slovenia 651 599 574 583 -3.6Spain 2,523 2,354 2,294 2,191 -4.6Sweden 1,967 1,872 1,812 1,748 -3.9Switzerland 1,257 1,902 1,934 1,990 16.5UK 3,474 4,010 3,769 3,738 2.5Total 45,896 45,182 42,237 39,243 -5.1

Door drops (million) 2010 2012 2014

Households (million)

Weekly drops per household

Germany 19,901 25,000 28,802 30.7 18

France 19,109 23,199 20,964 23.6 17

Netherlands 11,584 10,911 10,938 5.8 36

Italy 7,921 11,970 8,203 26.2 6

UK 7,822 7,097 6,016 28.8 4

Belgium 5,149 4,661 4,557 4.4 20

Austria 4,257 4,237 4,193 3.1 26

Spain 4,851 3,919 3,646 11.7 6

Poland 3,663 3,708 3,646 14.0 5

Sweden 3,168 2,860 2,734 3.1 17

Hungary 3,960 2,542 2,734 4.4 12

Czech Rep. 3,861 3,814n/a n/a n/a

Denmark 2,970 2,542 2,188 1.8 23

Norway 2,178 2,013 1,823 1.1 31

Switzerland 1,188 1,801 1,823 1.8 19

Finland 1,782 2,013 1,641 2.1 15

Slovakia 0 1,377 1,458 2.2 13

Portugal 1,683 1,589 1,276 3.5 7

Greece 1,089 953n/a n/a n/a

Romania 891 742 8,203 78.7 2

Croatia 0 636 729 1.3 11

Ireland 111 140 159 1.5 2

Total above 107,141 117,725 115,732 249.8 9


Mail volumes

UPU


European direct mail printing


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


European postage rates

Deutsche Post – Letter Prices in Europe, March 2017


Changing print methods


Changing DM technology


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


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

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjgrvL80P_PAhWCBBoKHd2BAsMQjRwIBw&url=http://www.cojo.com.au/self-mailer&psig=AFQjCNHsNpggI60MUpIacUpnJZz-rEXA5w&ust=1477817401176145


The reality

Multi-channel marketing

Agencies focus on new, hi-tech marketing

Millennials are digital, connected world natives

E-mail 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


Times change, of course

2000 2017


On-line has issues


Do Your Customers Know This?


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


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)


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


Thank you for your attention

Dr Sean Smyth – Print Consultant

Smithers Pira

Leatherhead, Surrey, KT22 7RU UK

Phone: +44 1372 802113

[email protected]

www.smitherspira.com

seaninprint

http://www.google.co.uk/url?sa=i&source=images&cd=&cad=rja&docid=3LTVBTaCB-E50M&tbnid=TW40P_3a4vVnfM:&ved=0CAgQjRwwAA&url=http://theinspirationroom.com/daily/2012/twitter-logo-redesigned/&ei=wbFFUtqzOIvv0gWzkoCYDg&psig=AFQjCNFce7Imru07rS4PJI2G_sZboMS3_A&ust=1380385601974835

http://www.smitherspira.com/

direct mail in europe · millennials are digital, connected world natives e-mail is very low cost...

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