My concerns about the mail medium

19th May 2010v6.0

Mike CollingT: 020 7307 6107

E: mike@mcand.co.uk

Strategic mailing partnership

Four things in the next thirty minutes

Remember my yardsticks?

Media investment patterns still changing

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC/Mediatel

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Press Television Direct Mail Outdoor & TransportRadio Cinema Internet

Exp

endi

ture

£m

Direct mail share of advertising spend

Source: Mediatel

Loss of advertisers accelerating

Source: Addynamix MC&C analysis

Number of advertisers using direct mail in UK

2005 2006 2007 2008 2009 20100

500

1000

1500

2000

2500

3000

3500

3,078

2,0271,917

2,567 2,573

2,216

CAGR = -5.33%

Prices continuing to rise

Source: Royal Mail Media Centre/MC&C calculation

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010445

450

455

460

465

470

475

480

485

Adult

C

PT £

m

More of the top mailers are reducing spend

Pos. Advertiser

Direct Mail Spend (£m)

2005 2006 2007 2008 2009 2010

1 MBNA Europe Bank 35.6 49.6 34.7 32.5 12.7 17.7

2 Lloyds TSB 42.2 36.9 30.1 20 13.5 10.27

3 Shop Direct Home Shopping 36.2 38.1 21 27.4 14.4 10.66

4 Direct Wines 31.2 29.2 26.1 18.1 23.8 15.3

5 Saga Services 28.6 25.4 23.2 26.6 23.2 24.8

6 British Sky Broadcasting 20 24.8 22.9 25.1 28.1 19.5

7 BT 13.7 20.7 17.6 23.6 30.2 29.1

8 JD Williams & Co 19.4 16.6 8.5 18.5 34.8 21.1

9 Halifax 22.4 22.1 21.2 17.9 13.3 13.2

10 Capital One 28.1 39.3 20.6 5.5 0.4 0.45

Source: Ad dynamix/MC&C analysis

So more than ever you need to be popular

45% of our waking hours spent consuming media

And that’s continuing to grow

Source: Ofcom 2010

Which means we have multi-storey media

And print is being squeezed out

There’s lots of tech we can see coming

Big trends

Video

Who you trust

Authentic experienc

e

Personalisation

All pervasive

Data capture

Fun

The future is video

Personalisation on speed

All pervasive data capture

Who says coupons are dull?

Authentic: O2

CAN WE LEARN FROM TV?

TV RIP?

Colonisation of new territories

Hours per Day

TelevisionPVRDVDGamingOnline

Lots more TV

On intelligent screens

With your mates

Any rays of sunshine?

Take heart- youngsters do like writing

Good news: some gold is fools gold

Source: Comscore

Email makes you stupid!

Source: University of Pennsylvania

Good news: high petrol prices fuel online shopping

High petrol prices fuel online shopping

Trust tectonics are shifting

Source: Edelman global trust barometer 2011

So what do I think?

My biggest concern

GOOD LUCK!