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UK Advertising Spend Hits New High in 2017

In News by Alan Horton

The advertising market appreciated by 3.5% in the third quarter of 2017 and reached £5.4 billion spend. The figures were released by the Advertising Association (AA) and WARC. This recent increase was a part of the growth in advertising spending for 2017 which went up to a total value of £22.1 bn. This growth is an important part of the UK advertising market growth story, which has continued unabated for the 8th consecutive year in a row.

The resurgence of direct mail

An interesting find by the AA report pertains to the direct mail market. Direct mail actually grew in 2017 by 5.9% in comparison to the same period during the previous year. That makes it the largest growth registered for direct mail since 2011. The direct mail industry went through a lull post-2012 and many people believed that it was the beginning of the end for direct mail.

The Direct Marketing Association (DMA) have been regularly tracking the direct mail industry through annual surveys, these reveal some interesting insights. Advertising spend on direct mail rose by 7% in 2015 – 2016, ensuring that total spend was once again equivalent to 2012 levels. The DMA report also found that the volume of total door drops was 5.735 million in 2016.

While digital marketing continues to gain ground, direct mail remains an integral part of the marketing mix as far as the UK is concerned. The DMA earlier conducted a survey called ‘From the letterbox to the inbox’. This ground-breaking study found that 90% of UK’s population could not live without their letterbox and almost half of the consumers in the UK believe that a world without print would not be that great a world to live in. The study also found that 36% of B2B companies preferred to use direct mail, while that number at 20.5% for B2C companies wasn’t all that bad either. Lastly, response rates for direct mail at 3.4% were found to be better than 0.12% for email.

The growth of mobile commerce

Mobile commerce looks set to skyrocket and the report by the AA bear testimony to that trend. The 2017 findings published by the AA shows that approximately 25% of the total UK advertising spend in the third quarter of the year was invested in mobile advertising. As part of their report, the AA estimated that the total ad spend on mobile commerce was in excess of £5bn. Of course, mobile visual advertising is a burgeoning market and a large percentage of this ad spend is today being invested in social media video advertising on channels like Facebook and YouTube, among other popular social media platforms.

Highly effective direct mail campaigns

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Call our team of experts at bakergoodchild on 0800 612 1972 or contact us online. We can help create a bespoke, effective, highly personalised direct mail campaign for you that’s right for your budget and provides your business with the boost that it deserves.