Stumbled across the following statement from Royal Mail Group, which gives a good insight into their medium term plans for growth in the Advertising Letters market. Let’s hope they make a positive impact for the whole of the industry’s sake.
The Royal Mail Group’s strategy –
“Royal Mail is no longer just a UK-focused, letters business. The traditional letters market is in structural decline. It is changing…”
“We are developing our media mail offer to deliver improved advertising services that meet our customers’ needs – introducing services across the value chain; from detailed campaign planning, through creative, to digital measurement and calls to action. Our medium-term aim is to capture a greater share of the £17bn UK advertising market by targeting the UK’s top advertisers”
There are a number of short term risks which could have one off negative impacts on the projection which we have not modelled
- Our projection assumes a return to trend GDP growth in 2015
- A future macroeconomic downturn would have a significant impact on postal volumes by reducing transaction volumes and direct mail
EU Regulation on Direct Mail
- The EU Commission has recently proposed changes to consumer data protection rules
- The proposed changes include the ‘right to be forgotten’ to allow people to have their data deleted and limitations on the use of customer profiling
- The requirement for more explicit consent for personal data to be used could significantly impact the ability of companies to engage in Direct Marketing, both by mail and in digital formats
- The disruption of delivery volumes (e.g. from weather or industrial action) can have a significant impact on mail volumes
- The majority of this impact is temporary. However, service disruptions may also encourage greater e-substitution as a result of customer switching to alternative methods of communication
- The impact of service disruptions on postal volumes can be modelled on the basis of the historic correlation between previous disruptions and mail volumes.