Media Centre

Digital or DM Spend?

  • On May 2, 2018
  • In blog

Digital or DM Spend?

Who’s familiar with the annual battle between departments for who gets the biggest budget to spend on their projects? Or, if you’re a small team, the tough decision of working out where to put your budget to get the best return?

 

Digital is used to winning

Well, up until recently, many would proportion a large amount of their budget on digital channels without too much question.

2017 was the year that digital advertising hit $209 billion worldwide, overtaking TV advertising, and claiming a hefty 41% of the market (Recode, 2017). A big part of this was supported by the continuous growth of programmatic advertising, with this channel now representing 79% of the UK digital display ad spend (MarketingWeek, 2017) Predictions state that by 2019, the programmatic ad market will be worth more than £4.5 bn.

However, with so much advertising traffic now online, consumers are growing tired of the incredibly overcrowded online environment, and in turn, digital marketing channels are dropping in performance. Adding fuel to the fire are the new GDPR and e-privacy regulations looming over us, whilst over in the direct mail channel, businesses are re-inventing the way in which programmatic can be used offline. With these monumental changes taking place, how much of the ad spend will return to a more traditional channel?

 

So what about DM?

Direct mail ad spend had been in decline for a number of years, however, recent reports have highlighted direct mail had its greatest year of growth since 2011 (Decision Marketing, 2018), topping £1.75bn for 2017 (Decision Marketing, 2018).

Despite the prediction that the direct mail market could shrink by up to 4% this year, many businesses are looking at using the postal channel to engage with their audience after GDPR deadlines hit on May 25th.

The direct mail channel has been given a new lease of life by gaining the connection to the digital environment. Programmatic Direct Mail is the new channel that combines the best elements of digital marketing with traditional postal marketing to maximise engagement and increase conversions for brands.

 

Getting the best of both worlds

Tired of fights between the channel managers for spend? Why not try joining forces?

Budgets don’t need to be stretched when using this new channel. Unlike TV or digital advertising, where £100’s of thousands (and the rest) can quickly be blown on adverts that don’t guarantee engagement, Programmatic Direct Mail is a cost effective way to reach your exact audience. Wrapped into a simple CPP model and cost per send from less than £1, you can reach the right audience, at exactly the right time. Simple, huh?

If you think so, get in touch with us today!

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