Direct mail set to bounce back

Direct mail has seen better days, but is due to have a slight increase in 2011/2012, according to Michael Durie, marketing consultant at Australia Post.

“It has a very healthy future. It is a very different future from the one predicted ten years ago,” Durie (pictured) said. “In the printed environment, our channel is not doing so bad.”

The direct mail volume has diminished – the year-on-year spend for 2010 is -2% from the previous year – yet Durie foresees new technologies and tactics will see it make a comeback. The focus on personalisation is optimal ground for direct mail to flourish, in addition to the multichannel mix (that is, integration with emails, social media, online advertising).

However, Kate Dunn co-founder and CEO of American strategic marketing company DIG (Digital Innovations Group), warned that postal systems worldwide could be threatening the medium’s future due to postage increases. “The more they raise prices the less volume there is,” she said. “But if you do it properly, it’s still an effective way to reach the people you need to reach.”

Australia Post issued a postage increase in June this year.

Mail makes a mark
In his presentation at PODi, Durie outlined the following four reasons why direct mail can thrive in the social media age.

1.    What is old can be new again – too much email spam is deadening the impact of the medium as a marketing channel, and direct mail has “rested” long enough to be considered new again.
2.    Mail may be old but it’s wise – there are previous lessons that can be learnt from the medium and its implementation, unlike social media which is in its guinea pig phase.
3.    Each channel has its strengths, marketers need to play to them – direct mail is tangible and can touch each of the five senses. “People like to get stuff they can pick up and sample as an experience of the brand,” Durie said.
4.    In some markets, online remains small potatoes – “Old habits die hard,” Durie said, with some customers not warming to the email channel. Durie added that use and abuse of the email channels has seen its popularity and efficacy wane.