1. Trends in consumer and business direct mail volumes
March Author: MMC
Source: Royal Mail
Trends in consumer and business direct mail volumes
An overview of the key trends in B2C and B2B mailings from 1983 to 2009 with comparisons by sector – including financial services, government, health, telecomms and utilities mail.
The report also looks at the impact of the credit crunch on mail volumes and provides up to date data on cost-effectiveness and seasonality.

2. B2C direct mail traffic has grown
Consumer and business direct mail volumes by calendar year, 1983 to 2009
B2C direct mail traffic has grown more than B2B because it delivers higher response rates and better returns. Consumer direct mail grew by 137% between 1988 and 2009 as consumer spending rose and businesses used improved segmentation techniques to target new audiences.
Business direct mail grew by 23% between 1988 and 2009 but declined by 31% from 1998 to 2009.
Source: Royal Mail

3. Direct mail volumes have decreased
Total direct mail volume by quarter, 1998 to 2009 (millions of items)
The decrease in direct mail volumes since 2004 has been caused by consolidation in the financial markets and the credit crunch.
Volume % Change
2009
3563m
-18.2%
2008
4353m
-6.5%
2007
4655m
-7.4%
2006
5028m
-2.1%
2005
5134m
-5.3%
2004
5418m
-0.4%
2003
5438m
+3.9%
2002
5233m
+6.0%
2001
4939m
+5.9%
2000
4664m
+7.3%
1999
4345m
+8.3%
Source: Royal Mail

4. Economic trends affect direct mail volumes
Total direct mail volume trends by calendar year, 1983 to 2009, highlighting the link between direct mail volumes and the wider economy.
Consumer
Index %
Business
Total
1983
713m 66
371m 34
1084m
1984
889m 70
373m 30
1262m
1985
933m 72
370m 28
1303m
1986
976m
425m
1401m
1987
1161m 71
465m 29
1626m
1988
1221m 69
545m 31
1766m
1989
1445m
100 68
672m 32
2117m
1990
1544m
107
728m
108
2272m
1991
1435m 99
687m
102
2122m
1992
1658m
115 74
588m 88 26
2246m
106
1993
1772m
123 73
664m 27
2436m
1994
2015m
139
715m
2730m
129
1995
2198m
152 76
707m
105 24
2905m
137
1996
169 77
737m
110 23
3173m
150
1997
2701m
187 75
887m
132 25
3588m
1998
3123m
216 78
891m
133 22
4014m
190
1999
3283m
227
1062m
158
4345m
205
2000
3516m
243
1148m
171
4664m
220
2001
3706m
256
1233m
183
4939m
233
2002
3939m
273
1294m
192
5233m
247
2003
4240m
293
1198m
178
5438m
257
2004
4222m
292
1196m
5418m
2005
4002m
277
1132m
168
5134m
2006
3937m
272
1091m
162
5028m
238
2007
3690m
255 79
965m
144 21
4655m
2008
3483m
241 80
870m 20
4353m
206
2009
2891m
200 81 19
3563m
Source: Royal Mail

5. Direct mail has become more cost-effective
Direct mail expenditure and postage expenditure by calendar year, to 2009 (£millions)
Direct mail has become more cost effective, particularly since 1995, with postage expenditure rising less than the total expenditure.
Total direct mail expenditure grew by 1% between 1998 and Over the same period, postage expenditure fell by 2%.
Source: Royal Mail

6. B2C direct mail has increased volume share
Direct mail volume and expenditure by calendar year, 2005 to 2009
B2C direct mail increased its share of total volume between 2005 and 2009 at the expense of B2B mail.
Direct mail volumes (items)
Direct mail expenditure
change
4.353m
(-6.5%)
4.655m
(-7.4%)
5.028m
(-2.1%)
5.134m
(-5.3%)
change
£2.040m
(-6.0%)
£2.171m
(-6.5%)
£2.322m
(-2.1%)
£2.371m
(-3.9%)
Source: Royal Mail

7. Reduced direct mail volume means less competition on the doormat
Consumer direct mail received, moving annual total
Consumer direct mail volumes started to decline in 2004 following a long period of growth, with volumes declining by 17% during Mail volumes are down by 32% over the period Jan-Dec 2003 to Jan-Dec 2009.
Source: Royal Mail

8. Financial direct mail is still largest by volume
Consumer direct mail volume share 2009, by sector
Base: Total consumer direct mail 2009
Financial direct mail accounts for 24% of all mail on the doormat, down from 29% in 2008 and a high of 34% in 2003.
Source: Royal Mail

9. Trends in consumer mail volume share
Consumer direct mail volume share Oct-Dec 2009, by sector
Base: Total consumer direct mail (October-December 2009)
20% of direct mail between October and December 2009 was generated by the financial sector.
24% of direct mail came from the retail or home shopping sectors.
Source: Royal Mail

10. Mail volumes rose in a number of sectors
Consumer direct mail volumes by sector, 2009 v 2008 (millions)
Base: Direct mail received by consumers (unknown and other excluded)
The credit crunch has led to a drop in financial direct mail, but volumes have increased in the telcos sector.

11. Seasonal trends in mail volumes
Consumer direct mail volumes by October-December 2009 v 2008 (millions)
The weak economy reduced direct mail from the financial services sector.
Volumes held up better in the retail and telcos sectors despite lower consumer spending.
Volumes increased in the leisure sector.

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