door drop facts & figures 2009 uk
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The UK DMA's Door Drop Facts and Figures for 2009TRANSCRIPT
DMA Door Drop Council – Annual Door Drop Facts & Figures 2009 Page 1 of 5
UK Door Drop Industry Facts & Figures: 2009
Advertising Expenditure and Volumes for 2009 plus
Promotional Material Figures for 2005 to 2009
The DMA Door Drop Council has released the latest annual Door Drop facts & figures, including advertising volumes and expenditure, for 2009.
The results are based on the Council’s 16th annual survey of the UK Door Drop Communications Industry which shows that advertising expenditure together with the volume, size and weight of Door Drop communications material has fallen in 2009.
The annual Door Drop survey measures and identifies the size of the UK market in terms of volume and spend from advertisers who directly, or through an agency, fund the distribution of their pre‐printed communications material (i.e. advertiser spend on Door Drops).
This year the survey has been extended to include estimates of the annual weight of Door Drop material, with a view to understanding the impact of various developments and industry initiatives on the overall amount of material produced and delivered by the sector.
The survey recorded that Door Drop volumes fell by 14.1% to 7.763 billion items in 2009. This followed a decline of 11.6% in 2008.
For the third year in succession, expenditure on Door Drop distributions fell at a lower rate than volume, recording a decrease of 8.9% to £253 million in 2009.
This followed expenditure reductions of 5.1% and 1.5% for the two preceding years.
The values reported here are based solely on Door Drop Media spend i.e. the amount spent by Advertisers on the distribution element of the campaign. Figures do not include the cost of print and production or related activities such as Independent Validation.
Expenditure
Volumes
Trends xx
Size and Growth of the Door Drop Market - Volumes
10,880 10,2209,036
7,763
11,870
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2006 2007 2008 2009
Year
Volu
me
(Item
s) -
Mill
ions
Volume (Items) - Millions
Size and Growth of the Door Drop Market - Expenditure
301 297 292 277253
0
2550
75100
125150
175200
225250
275300
325
2005 2006 2007 2008 2009
Year
Expe
nditu
re -
£ M
illio
ns .
Distribution Expenditure - £millions
DMA Door Drop Council – Annual Door Drop Facts & Figures 2009 Page 2 of 5
Following a period of robust and sustained growth from the late 90’s to 2005, the industry has contracted over the last four years.
The survey also shows that volumes have consistently contracted at a faster pace than spend. This trend reflects a number of factors including:
Improved use of client data and targeting techniques to enhance relevance and reduce volume
Growth in digital / online share of advertising spend
The recession which has impacted especially on the retail and financial sectors
A steady reduction in the free newspaper circulation base and the transfer of some activity to more expensive Door Drop channels
The Door Drop industry noticeably outperformed total UK advertising expenditure during the late nineties and early noughties. This reflected the increasing maturity of the medium and its growing popularity as both a strategic and a tactical communications tool.
Its ability to work with other media and almost uniquely offer both precision and penetration were also important contributors to growth against the background of increasing media fragmentation.
However, with spend on digital media growing at a significant pace, Door Drops, in common with most other traditional media, performed less well than total advertising expenditure from 2006 to 2008.
Improved use of client data and targeting techniques to enhance relevance also contributed to a below average growth rate over that period.
Trends
Door Drops and Total UK Advertising Expenditure Growth
Size and Growth of the Door Drop Market: % Year on Year Movements
-8.3%-6.1%
-11.6%-14.1%
6.0%
-1.5% -1.5%
-5.1%
-8.9%
3.9%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
2005 2006 2007 2008 2009
Year
% Y
ear
on Y
ear
Mov
emen
t
% Year on year increase in Volume % Year on year increase in Distribution Revenue
Door Drop Growth compared with other Media
13.1% 13.0%14.9% 14.0% 13.6%
6.5%9.2%
11.2%
17.8%
5.4% 6.0%
-1.5% -1.5%-5.1%
-8.9%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
% In
crea
se Y
ear o
n Ye
ar
Door Drop Press Television Radio Total Advertising
Door Drop Growth compared with other Media - The Internet
13.1% 13.0% 14.9% 14.0% 13.6%6.5% 9.2% 11.2%
17.8%5.4% 6.0%
-1.5% -1.5% -5.1% -8.9%
-25%
0%
25%
50%
75%
100%
125%
150%
175%
200%
225%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
% In
crea
se Y
ear o
n Ye
ar
Door Drop Internet Total Advertising
DMA Door Drop Council – Annual Door Drop Facts & Figures 2009 Page 3 of 5
Finally, the recession began to take its toll on traditional advertising channels, including Door Drops, in the latter part of 2008 and throughout 2009. However, despite a relatively high degree of dependence on the retail and financial advertising sectors, Door Drops once again out outperformed total advertising expenditure in 2009.
Over the last four years, the number of GB households has grown by an estimated 3.1% whilst Door Drop volumes have decreased by 34.6%.
The average number of Door Drop communications delivered to the average GB household on an average week has, therefore, fallen from 9.1 items in 2005 to 5.8 items in 2009 ‐ a reduction of 36.6%.
As part of the DMA’s overall policy towards environmental affairs, which has included the introduction of the Your Choice Preference Scheme for unaddressed mail, Environmental Best Practice Guidelines and BSi’s PAS2020:2009, the Door Drop Council has undertaken to monitor the total amount of promotional material delivered annually via Door Drop campaigns.
Last year’s industry survey report noted evidence that the size and pagination of Door Drop material had reduced in recent times, so that the overall weight of material sent out had reduced by even more than was indicated by the reduction in the volume (quantity) of Door Drop items delivered. This has, therefore, been the subject of an additional survey by the Door Drop Council in 2009.
For 2005/06, Postcomm estimated that 13 billion items of unaddressed direct mail were sent out and that a combination of unaddressed Door Drops and Inserts (advertising material in magazines and newspapers) totalled 368,500 tonnes of promotional material.
The Door Drop Council’s survey has identified the following key figures for 2005 and 2009:
The average weight of a Door Drop communication item in 2005 was 18.7 gms (equivalent to an A4‐12pp item on 50 GSM paper or an A4‐8pp item on 75 GSM paper).
For 2009, the average weight of a Door Drop item was 14% less at 16.1gms (equivalent to an A4‐10pp item on 50 GSM or an A4‐7pp item on 75 GSM).
Average Item Weight
Door Drop Promotional Material Facts & Figures: 2005 to 2009
Door Drop Communications Per Letterbox Per Week
Size and Growth of the Door Drop Market
9.18.3 7.7
6.85.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2005 2006 2007 2008 2009Year
Item
s.
Average Volume (Items) Per GB Household Per Week
Door Drop Industry Weight Estimates - Average Item Weight - gms
Average Item Weight - gms18.7
Average Item Weight - gms16.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2005 2009
Year
Gm
s
Average Item Weight - gms
DMA Door Drop Council – Annual Door Drop Facts & Figures 2009 Page 4 of 5
Between 2005 and 2009 Door Drop volumes have fallen by 35% from 11.870 billion items to 7.763 billion items.
As a result of a reduction in Door Drop volumes together with a reduction in the size / weight of Door Drop items the total amount of Door Drop communications material being sent out has fallen by 44% from 221,565 tonnes to 124,808 tonnes.
A report produced for Defra by Royal Mail and the DMA was published in April 2010 entitled ‘Direct Marketing Material Waste Prevention – Report on industry performance – Full Year 2009’.
This is a detailed report and includes the results of a comprehensive survey regarding the level of recycling of Direct Marketing Material.
The research identified that recycling rates for Direct Marketing Material had grown from just 29% in 2005 to 77% in 2009.
The results significantly exceeded the industry recycle rate targets agreed with Defra, which were 55% by the end of 2009 and 70% by the end of 2013.
Due to the relatively basic materials used in production; the non‐personalised nature of the communications and the fact that items are delivered individually to consumer’s homes, Door Drop Communications are recycle‐friendly and tend to be recycled at an above‐average rate.
Recycling of Direct Marketing
Total Door Drop Material
Volumes
Recycling of Unaddressed Door Drop Mail
Recycled76%
Non- Recycled
24%
Recycled Non- Recycled
Door Drop Industry Weight Estimates - Volume (Items) - millions
Volume (Items) - Millions11,870 Volume (Items) -
Millions7,763
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2009
Year
Volu
me
(Item
s) -
mill
ions
Volume (Items) - Millions
Door Drop Industry Weight Estimates - Total Weight - Metric Tonnes
Total Weight - Metric Tonnes221,565
Total Weight - Metric Tonnes124,808
0
50,000
100,000
150,000
200,000
250,000
2005 2009
Year
Met
ric T
onne
s
Total Weight - Metric Tonnes
Door Drop Industry Weight Estimates - % Movement 2005 to 2009
Average Item Weight - gms
-13.9% Volume (Items) - Millions-34.6%
Total Weight - Metric Tonnes-43.7%
-50%
-45%-40%
-35%
-30%-25%
-20%
-15%-10%
-5%
0%5%
10%
2009 % Var 2005
% M
ovem
ent
Average Item Weight - gms Volume (Items) - Millions Total Weight - Metric Tonnes
DMA Door Drop Council – Annual Door Drop Facts & Figures 2009 Page 5 of 5
Scope of the Annual Industry Survey:
For data published from 2005, the survey was redefined seeking to measure and establish the size of the UK market in terms of volume and spend from advertisers who directly, or through an agency, fund the distribution of their pre‐printed communications material (i.e. advertiser spend on Door Drops).
This includes revenue and volumes for pre‐printed communications where the Advertiser has directly or indirectly (e.g. via an Agency) commissioned and funded the door to door delivery of their prepared (i.e. pre‐printed or produced) communications material which has then been distributed on a commercial basis. This includes leaflets, catalogues, newsletters, product samples etc for commercial organisations, local authorities, charities, central government, locally‐sourced directories etc.
The survey specifically excludes volumes and distribution expenditure for:
Local Free Weekly Newspapers.
Items inserted mechanically into paid or free publications.
National Directories, where these are effectively publications with advertising space sold by the media owner (e.g. Yellow Pages, BT Phonebooks, Thomson Directories).
All three areas excluded above measure their own advertising revenue separately and have direct control over their own recycling and waste control direct with DEFRA.
Sources:
Door Drop Volumes and Expenditure: DMA Door Drop Council Annual Survey 2009
Door Drop Promotional Material Weights: DMA Door Drop Council Item Weight Survey 2009
Recycling Levels: Royal Mail and the DMA Direct Marketing Material Waste Prevention Report 2009.
Other Advertising Expenditure: Advertising Association Advertising Statistics Yearbook 2009
GB Household Figures: Estimates based on data from the Office for National Statistics
© Copyright DMA Door Drop Council, May 2010