Direct Mail industry perspective on market developments and ways to promote DM16 October 2019 Berne DMABWho are weEuropean Federation of Envelope Manufacturers52 members envelope manufacturers suppli ID: 861531
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1 Direct Mail â an envelope industry
Direct Mail â an envelope industry perspective on market developments and ways to promote DM 16 October 2019, Berne DMAB Who are we? ï§ European Federation of Envelope Manufacturers ï§
2 52 members â envelope manufacturers
52 members â envelope manufacturers & suppliers ï§ representing 100+ companies Objective? ï§ Support, defend and promote the envelope industry in Europe: ï the voice of the industry a
3 t EU level ï promote the use of enve
t EU level ï promote the use of envelopes through campaigns ï Provide our members with relevant market information Envelope market statistics * data reported by FEPE members only â repre
4 senting 75 - 80 % of the market Envelop
senting 75 - 80 % of the market Envelope market statistics * data reported by FEPE members only â representing 75 - 80 % of the market - 42% in last 10 years Forecast 2017 - 2025 Paper promi
5 nent scenario - 19% until 2025 Inevit
nent scenario - 19% until 2025 Inevitable decline scenario - 34% until 2025 Digital breakthrough scenario - 50% until 2025 Forecast 2017 - 2025 Paper prominent scenario - 19% until 2025
6 Inevitable decline scenario - 34% unt
Inevitable decline scenario - 34% until 2025 Digital breakthrough scenario - 50% until 2025 Envelopes vs letter mail Demand of letter mail is influenced by a variety of drivers 9 Digitisati
7 on resources (infrastructure, e - skills
on resources (infrastructure, e - skills) Economic activity/ growth Demographic change Cultural factors E - commerce growth Private individual preferences Preferences of large mail senders Prefere
8 nces of advertisers Government preferenc
nces of advertisers Government preferences Postal operatorsâ strategic choices Regulatory landscape Fundamental drivers Drivers inherent to changing societies Strategic drivers Decisions of m
9 ail market actors Mail volume influen
ail market actors Mail volume influence Relevant drivers for Direct Mail 10 Digitisation resources (infrastructure, e - skills) Economic activity/ growth Demographic change Cultural factors E -
10 commerce growth Private individual pref
commerce growth Private individual preferences Preferences of large mail senders Preferences of advertisers Government preferences Postal operatorsâ strategic choices Regulatory landscape Funda
11 mental drivers Drivers inherent to cha
mental drivers Drivers inherent to changing societies Strategic drivers Decisions of mail market actors Mail volume influence Mail segments - Europe ï§ Direct Mail ï§ Business mail ï§ So
12 cial & other mail ï§ Public sector mail
cial & other mail ï§ Public sector mail Direct Mail is decreasing ï§ Direct mail has fallen as a share of European advertising expenditure since the early 2000s with digital growing strongly o
13 pposing drivers impact direct mail
pposing drivers impact direct mail volumes But it has potential! 13 High effectiveness: great way to gain attention in a digital world Stronger targeting: DM cannibalises on itself as
14 more targeted Complementarity with digi
more targeted Complementarity with digital: new technologies increase DM attractiveness as complementary tool Growing e - commerce: physical mailings prove to be effective in e - comm
15 erce Regulation: GDPR - less legal c
erce Regulation: GDPR - less legal certainty? Or legal advantage? ? opposing drivers impact direct mail volumes Features of Direct Mail 14 High effectiveness: new way to gain attention
16 in a digital world Stronger targeting
in a digital world Stronger targeting: DM cannibalises on itself as more targeted Complementarity with digital: new technologies increase DM attractiveness as complementary tool Grow
17 ing e - commerce: physical mailings p
ing e - commerce: physical mailings prove to be effective in e - commerce Regulation: GDPR - less legal certainty? Or legal advantage? ? DM is highly effective ï§ online media are 60%
18 more effective when combined with physi
more effective when combined with physical mail ï§ A DM in a multi - media campaign increases ROI by 12 % ï§ It is kept in average 17 days Digital advertising is over - estimated opposing
19 drivers impact direct mail volumes
drivers impact direct mail volumes Features of Direct Mail 17 High effectiveness: new way to gain attention in a cluttered digital world Stronger targeting: DM cannibalises on itself a
20 s more targeted Complementarity with dig
s more targeted Complementarity with digital: new technologies increase DM attractiveness as complementary tool Growing e - commerce: physical mailings prove to be effective in e - com
21 merce Regulation: GDPR - less legal
merce Regulation: GDPR - less legal certainty? Or legal advantage? ? Direct Mail â in print value Source: Smithers Pira (2016) opposing drivers impact direct mail volumes Features of
22 Direct Mail 19 High effectiveness: new
Direct Mail 19 High effectiveness: new way to gain attention in a cluttered digital world Stronger targeting: DM cannibalises on itself as more targeted Complementarity with digital: new
23 technologies increase DM attractivene
technologies increase DM attractiveness as complementary tool Growing e - commerce: physical mailings prove to be effective in e - commerce Regulation: GDPR - less legal certainty? O
24 r legal advantage? ? Multi - media is tr
r legal advantage? ? Multi - media is trump Increase of campaign ROI opposing drivers impact direct mail volumes Features of Direct Mail 21 High effectiveness: new way to gain attention in
25 a cluttered digital world Stronger tar
a cluttered digital world Stronger targeting: DM cannibalises on itself as more targeted Complementarity with digital: new technologies increase DM attractiveness as complementary tool
26 Growing e - commerce: physical maili
Growing e - commerce: physical mailings prove to be effective in e - commerce Regulation: GDPR - less legal certainty? Or legal advantage? ? DM is highly effective ï§ 57% of consumers
27 received Direct Mail from e - retailers
received Direct Mail from e - retailers ï§ 44 % purchased an item online after having received a direct mail from their e - retailer We know print in advertising is a trusted medium and it
28 increases effectiveness⦠but how to
increases effectiveness⦠but how to get the message across to whose who need to know ? Myths & Facts In the EU arena⦠⢠Elections to a new European Parliament we sent them a letter Prin
29 t Power Print & Digital Convention ï§
t Power Print & Digital Convention ï§ 1287 visitors ï§ 94 exhibitors ï§ 46 workshop sessions Düsseldorf, 8 - 9 May 2019 At the same time in Hamburg⦠OMR Festival ï§ Online Marketing Roc
30 kstars Festival ï§ 52.000 visitors ï§
kstars Festival ï§ 52.000 visitors ï§ over 600 speakers ï§ 400+ exhibitors ï§ master classes , side events ï§ And concerts Postal operators ´ strategic choices matter! ï§ Lower letter
31 volumes drive postal operatorsâ cost
volumes drive postal operatorsâ cost up ï§ Drastic price increases may accelerate mail volume decline ï§ Hence , postal operators need to ensure moderate price developents by reducing co
32 st and gaining more regulatory flexibi
st and gaining more regulatory flexibility Postal operators ´ strategic choices matter! ï§ Making Direct Mail âeasyâ for customers ï§ Promotion, promotion, promotion! Thank you for you