The latest figures from the Advertising Association (AA) and WARC reveal that UK ad spend reached £10.6bn in Q3 2024 – a 9.7% increase compared to the same period last year. One of the most significant takeaways from the results is the resurgence of direct mail, which saw a remarkable 12.9% year-on-year growth.
“The Strategic Mailing Partnership (SMP) welcomes this data as a clear indication that direct mail remains a vital part of the media mix. As brands increasingly focus on consumer trust and engagement, the tangible, personal nature of mail offers a unique advantage. The industry is evolving, with innovations in data-driven targeting and AI-enhanced personalisation ensuring that direct mail continues to complement digital channels effectively,” says Lucy Swanston, SMP Chair.
This also marks the first time in more than two years that direct mail has returned to growth – demonstrating its continued effectiveness as a trusted and impactful medium for brands looking to connect with consumers.
Philip Ricketts, Wholesale Commercial Director at Royal Mail, comments: “The latest data from AA/WARC reflects an advertising industry that is returning to confidence and investing in a healthily varied media mix. With an overall year-on-year growth rate of 11.2%, ad spend is clearly being viewed – as it should be – as a revenue generator. This is an upgrade of 0.6 percentage points (pp) from the October forecast, with full year spend expected to reach £40.7bn.”
Growth opportunities
Looking ahead, further growth of 6.9% is anticipated in 2025, bringing the total market value to £43.5bn. This continued upward trend presents a strong opportunity for the mailing industry to reinforce its role in integrated marketing strategies.
Philip continues: “The report credits some of the growth of online platforms to new AI technologies and the increased capability to deliver hyper-personalised messages, but these capabilities do not exist online alone. As a tangible medium, trusted by 71% of consumers – it’s good to see advertisers recognising direct mail’s ability to not only balance and reinforce brand messages, but act as a channel to drive consumer attention from the physical mail piece back to digital platforms.”
Channels that also saw a strong 2024 include: Online Display (+18.9%), Search (+12.7%), Broadcaster Video On-Demand (+12.4%) and Out of Home (+10.3%), with final figures for full year 2024 due to be published in late April.
Stephen Woodford, CEO of the Advertising Association, emphasised: “While there is much work to do to kickstart growth in the UK economy, we know investment in advertising produces a fantastic return. It supports competition, innovation, and jobs up and down the country.”
The SMP is committed to supporting mailing houses and their partners in capitalising on this momentum. The renewed confidence in advertising spend underscores the importance of maintaining a balanced and integrated marketing approach, where mail plays a key role in driving engagement and results.
“With direct mail experiencing a resurgence, now is the time for businesses to leverage its strengths. The latest data reinforces what the SMP has long championed – that mail remains a powerful, trusted, and effective marketing tool. The industry is ready to build on this positive momentum and continue demonstrating the value of mail in an evolving advertising landscape,” emphasises Lucy.
www.thestrategicmailingpartnership.co.uk
