Direct mail is an important print application and with the many options for embellishments, finishing, and personalization, it can be an attractive one. However, like other print applications, mailings are in competition with alternative channels and depend on advertising spending levels in general. The COVID-19 pandemic had a major impact on direct mail revenues, with revenues in Germany declining by 16% and in France by as much as 26%. Given the cuts in all kind of advertising spending during the pandemic, this is not too surprising. While some of the remaining marketing spending has been diverted into electronic channels in 2020, it is expected that revenues for direct mail are going to rebound to some extent in 2021.

Still the market outlook for direct mail is somewhat uncertain. Direct mail has been under pressure for quite a while in Europe, even before the COVID-19 pandemic shook up the market. In the period from 2015 to 2019, direct mail revenues had already declined by an average rate of 1.9% a year in Germany and 3.7% in France. Numbers kept fluctuating but the downward trend is noticeable. Looking closer at the data reveals some interesting details. Addressed mailing revenues have been in a decline for a while now, while unaddressed mailings, also known as door-drops, held steady—at least until 2020. In the chart below are numbers for France and Germany. UK data for door drops is similar, with revenues having hovered at £250 million for years until they declined to £143 million in 2020.

Spending Addressed and Unaddressed Mailings Germany and France