Annual door drop
industry report
2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
Contents
Contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Executive summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. Volumes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2. Expenditure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3. Trends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4. Door drop and total UK advertising expenditure growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5. Door drops communication per week.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
6. Door drop promotional material facts and figures 2007 to 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
6.1 Average item weight. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
6.2 Total door drop material. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Methodology.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
About DMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Copyright and disclaimer.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
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COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
Executive summary
Welcome to the 20th Annual door drop report from the DMA Door Drop Board Committee, which each year looks at
advertising volumes and expenditure as it relates to the UK door drop industry.
This report 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 (ie advertiser
spend on door drops).
This report compares figures from 2013 to previous years. Year on year, 2013 saw a reduction in unit volume of some
8.98%, from 7.216bn to 6.568bn. This reduction, however, followed an increase of 3.53% the previous year, from
6.97bn to 7.216bn. Indeed the annual reported unit volume has moved up and down for some five years, with the
general trend being a reduction.
This can be explained by a number of factors:
2
•
The economic climate beginning with the credit crunch in 2007
•
The subsequent double dip and deepest recession(s) post the 1930s, resulting in a number of retail
businesses closing stores
•
During a challenging economic climate, a closure of many free newspapers, one of the three available routes
to market for unaddressed, door-drop distribution
•
In similar circumstances, a contraction of advertising investment in traditional advertising vehicles in favour
of digital channels such as search
•
Finally, continued improvement and refinement to planning techniques encouraging better and less
wasteful targeting/distribution
COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
1. Volumes
Post credit crunch, total unit volumes have remained relatively consistent, between 6.5bn and 8bn for the last five years.
The primary reason for a reduction can be witnessed in the contraction of supply as opposed to a relaxation in
demand. In 2007, you could distribute to some 18m households (total UK circa 27m) via the free newspaper network,
today that number is less than 8m.
The reason why free newspapers have reduced their circulation and coverage is a combination of their ability to
maintain profitability in a post credit-crunch and double-dip recession economic environment, when so many local
advertisers and recruitment business (the revenue mainstay of the free newspaper) dried up.
Today, the free newspaper network is better placed, with the most profitable coverage remaining in an economic
environment that looks positive for local advertising.
11000
10220
9036
Volume in millions
9000
7763
7905
7000
6970
7216
2011
2012
6568
5000
3000
1000
-1000
3
2007
2008
2009
2010
2013
COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
2. Expenditure
Expenditure trends have somewhat followed that of unit volume. However one noticeable observation has been a
steady increase in the unit cost or cost per thousand (CPT):
Year
Volume
Revenue
CPT
2007
10,220bn
£292m
£28.57
2008
9,036bn
£277m
£30.66
2009
7,763bn
£253m
£32.59
2010
7,905bn
£260m
£32.89
2011
6,970bn
£256m
£32.38
2012
7,216bn
£266m
£36.86
2013
6,568bn
£259m
£39.43
This can be explained when you consider firstly a reduction in the free newspaper coverage but also the combination
of National Minimum Wage and fuel cost increases, as well as Royal Mail’s price inflation over the same period.
The values reported here are based solely on door drop media spend (ie 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.
300
292
290
277
Rvenue in millions (£)
280
266
270
260
260
253
259
256
250
240
230
220
2007
4
2008
2009
2010
2011
2012
2013
COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
3. Trends
20.0%
15.0%
10.0%
5.0%
3.9%
2.9%
1.8%
0.0%
-1.5%
-1.4%
-5.1%
-5.0%
3.5%
-8.9%
-6.1%
-8.98%
-10.0%
-11.6%
-15.0%
-20.0%
5
2007
-2.6%
2008
-11.8%
-14.1%
2009
2010
% year on year increase in volume
2011
2012
2013
% year on year increase in distribution revenue
COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
4. Door drop and total UK advertising
expenditure growth
The door drop industry outperformed total UK advertising expenditure during the late 1990s and 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.
Improved use of client data and targeting techniques to enhance relevance also contributed to a below average
growth rate over that period.
According to research conducted by the Advertising Association, door drop expenditure has remained relatively flat
for the last four years:
30%
26%
23%
20%
15%
13%
10%
8%
10%
5%
3%
1%
0%
0%
-2%
-10%
10%
1%
3%
4%
1%
-2%
-7%
2%
0%
-2%
-4%
-6%-5%
-8%
-9%
-3%
-6%
-9%
-12%
-14%
-17%
-20%
-22%
-24%
-30%
-34%
2007
2008
2009
Out of home
6
2010
Press
Cinema
2011
Direct mail
2012
2013
Door drop
COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
50%
40%
40%
27%
30%
19%
20%
17%
17%
13%
10%
3% 4%
9%
7%
5%
3%
3%
4%
4%
4%
4%
0%
0%
-1%
-2%
-5%
-10%
-2%
-3%
-5%
-9%
-11%
-3%
-9%
-20%
-30%
2007
2008
2009
2010
TV
7
Radio
Internet
2011
2012
2013
Door drop
COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
5. Door drops communication
per week
The average number of door drop communications delivered to the average UK household per week has fallen from
7.7 items in 2007 to 4.8 items in 2013. However, it is worth noting that the average numbers in urban, semi-urban and
rural homes will vary significantly.
10
9
No. of door drops per week
8
7.7
6.8
7
5.8
6
5.8
5.1
5.3
2011
2012
4.8
5
4
3
2
1
0
2007
2008
2009
2010
2013
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COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
6. Door drop promotional material
facts and figures 2007 to 2012
The DMA Door Drop Board Committee monitors the total amount of promotional material delivered annually via
door drop campaigns. The scope of the industry survey was expanded in 2009 to include the size and weight of door
drop items. This revealed a reduction in the size and pagination of door drop material, which has also reduced the
overall weight. This exercise has been repeated in 2013 and the results compared with figures from 2007.
The DMA Door Drop Board Committee has identified the following key figures for 2007 and 2013.
6.1 Average item weight
The average weight of a door drop communication item in 2007 was 18 grams but it has reduced by
17.33% over the last five years and stands at 14.88 grams in 2013.
20
18
18
16.5
Weight in grams
16
16.24
14.69
14.13
14.81
14.88
2012
2013
14
12
10
8
6
4
2
0
2007
9
2008
2009
2010
2011
COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
6.2 Total door drop material
The compound position taking into account unit volume and average size/weight means that the total volume of door
drop communication material being distributed has fallen from 184,001 tonnes in 2007 to 97,730 tonnes in 2013 (a drop
of 46.89%) which, when combined with door drop’s green credentials, is a positive news story for the environment.
200000
184001
180000
149088
Weight in tonnes
160000
140000
114024
120000
111698
113189
106872
100000
97730
80000
60000
40000
20000
0
10
2007
2008
2009
2010
2011
2012
2013
COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
Methodology
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 (ie advertiser spend on door drops).
This includes revenue and volumes for pre‐printed communications where the advertiser has directly or indirectly
(eg via an agency) commissioned and funded the door to door delivery of their prepared (ie pre‐printed or produced)
communications material which has then been distributed on a commercial basis. This includes leaflets, catalogues,
newsletters and product samples etcetera for commercial organisations, local authorities, charities, central
government as well as locally sourced directories. The survey specifically excludes volumes and distribution
expenditure for:
•
Local free weekly newspaper
•
Items inserted mechanically into paid or free publications
•
National directories, where these are effectively publications with advertising space sold by the media
owner (examples - Yellow Pages, BT Phonebooks, Thomson Directories)
The above three ‘excluded’ categories measure their own advertising revenue separately and have control over their
own recycling and waste control arrangements, liaising directly with Defra.
Primary research was used to collect the information using a spread sheet and analysed in-house by the DMA’s
research department. The commentary is contributed by the Membership, Legal and Administration Committee of
the Door Drop Board Committee and the DMA’s communications team.
The sample covers all the major door drop companies operating in the UK. This information was collected between
January and April 2014 and the data corresponds to January to December 2013. All the information collected is
confidential and only aggregates are published in this report.
Additional information was collected via secondary research from the Office for National Statistics and
the Advertising Association.
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COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
Appendix
Sources and helpful links
Door Drop Promotional Material Weights: DMA Door Drop Council Item Weight Survey 2010
Recycling Levels: Royal Mail and the DMA Direct Marketing Material Waste Prevention Report 2009
http://www.dma.org.uk/toolkit/direct-marketing-material-waste-prevention
Other Advertising Expenditure: Advertising Association
http://expenditurereport.warc.com/FreeTopLineData.aspx
GB Household Figures: Estimates based on data from the Office for National Statistics
http://www.ons.gov.uk/ons/rel/family-demography/families-and-households/2013/stb-families.html
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COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
About DMA
The DMA is Europe’s largest professional body representing the direct marketing industry. With a large in-house
team of specialists offering everything from free legal advice and government lobbying on direct marketing issues
to research papers and best practice, it is always at the forefront of developments in the industry.
The DMA protects the one-to-one to millions industry and consumers. It promotes the highest standards through
self-regulation and lobbies against over-regulation. The DM Code of Practice sits at the heart of everything we do – and
all members are required to adhere to it. It sets out the industry’s standards of ethical conduct and best practice.
Our 15 DMA councils and committees cover the whole marketing spectrum – from the digital world of social media
and mobile marketing to offline channels, such as door drops and inserts. The councils are made up of DMA members
and regularly produce best practice and how to guides for our members.
We also have a packed calendar of conferences, workshops and discussions on the latest topics and best practice,
and 80% of them are free for members and their staff.
As the industry moves on so do we, which is why we’ve launched a number of new services for our members – a VAT
helpline, a Social Media Helpdesk and an IP Protection Service.
Visit www.dma.org.uk regularly to keep up to date with all our services.
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COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014
ANNUAL DOOR DROP INDUSTRY REPORT 2014
Copyright and disclaimer
The Annual door drop industry report 2014 is published by The Direct Marketing Association (UK) Ltd Copyright
© Direct Marketing Association. All rights reserved. No part of this publication may be reproduced, copied or
transmitted in any form or by any means, or stored in a retrieval system of any nature, without the prior permission of
the DMA (UK) Ltd except as permitted by the provisions of the Copyright, Designs and Patents Act 1988 and related
legislation. Application for permission to reproduce all or part of the Copyright material shall be made to the DMA
(UK) Ltd, DMA House, 70 Margaret Street, London, W1W 8SS.
Although the greatest care has been taken in the preparation and compilation of the Annual door drop industry
report 2014, no liability or responsibility of any kind (to extent permitted by law), including responsibility for
negligence is accepted by the DMA, its servants or agents. All information gathered is believed correct at July 2014.
All corrections should be sent to the DMA for future editions.
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COPYRIGHT: THE DIRECT MARKETING ASSOCIATION (UK) LTD 2014