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Key digital marketing trends to watch out for in 2025
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What’s going to be big in digital marketing space in the coming year? Epsilon’s team of experts put on their thinking caps and share their thoughts on the key trends to watch out for in 2025…

Esme Robinson, Director of Platform Solutions Epsilon:

Retail media on course to reach maturity

We have been talking about Retail Media for a few years now, with some commentators even suggesting the term is already outdated. But instead, should we be looking at it like a proud parent when a child finally reaches maturity?  Retail media has evolved from a secondary revenue stream into the core strategic driver for many retailers. Initially considered an add-on, retail media platforms now shape the entire business model, allowing retailers to leverage first-party data for targeted advertising.

Collaborations, like Curry’s partnership with Roku so brands to reach customers across Roku devices in the UK, including streaming players and Roku TV models, show how retailers are using retail media to reshape the customer journey​. Tesco’s efforts to introduce video ads on its site also signal a shift towards a content-rich retail environment that attracts and retains consumers. Retail media is no longer just about monetising digital space but crafting personalised experiences that foster customer loyalty​.

As it matures, retailers will refine product offerings and engage in precision targeting, making retail media a fundamental aspect of strategic planning. By embedding these media strategies into their core operations, retailers can drive long-term growth and strengthen consumer connections, marking a huge transformation in the retail landscape.

Maria Giacobbe, SVP, Business Development, Epsilon:

Make loyalty a journey not a destination

A one-size-fits-all approach to customer loyalty doesn’t work anymore. With consumers looking for value from brands, it’s becoming less about points and rewards and more about connecting with customers on an emotional level to win ‘share of heart’. Brands will need to see loyalty as an experience, not just a programme.

In our 2024 UK Customer Loyalty Index, we identified the fundamental loyalty drivers that predict future behaviour, including measures like quality, price, and service that must be on point. Aldi, who don’t have a loyalty program are a prime example of this having scored the highest out of the 10 brands within the grocery category in terms of attitudinal and behavioural loyalty.

Creating successful loyalty strategies will only be achieved by combining data-driven strategy and creativity. This way brands truly understand their audiences and deliver authentic engaging experiences that align both the brand and consumers’ values to create a shared sense of purpose. It also requires constant care and attention as loyalty is not a destination, but something that needs to evolve along with consumer attitudes.

Brands will have to tackle the CTV fragmentation challenge

This year we’ve seen new developments in the Connected TV (CTV) space, with Amazon Prime Video introducing ads and new interactive and shoppable formats, and the launch of the Freely service offering live and on-demand streaming. Netflix in the meantime saw a 150% rise in ad sales for 2023 after launching its lower-cost, ad-supported service, boosting revenue and stock performance. We can expect more developments in this space in the comping 12 months.

But with new opportunities come new challenges. Brands facing an increasingly fragmented CTV landscape will have to navigate multiple platforms to run media campaigns, potentially leading to overlapping budgets, and duplicated efforts. Fragmentation could also lead to discrepancies in metrics and difficulties in verifying where ads are being seen and weakening the consistency of brand messages.

To unlock its full potential, brands need a seamless, data-driven strategy across the entire customer journey. Accurately factoring in browsing habits, purchase history and engagement means better targeting and verification of user interactions, ensuring brands are reaching genuine audiences. Deeper insights into how long-term awareness impacts sales and lifetime value – going beyond traditional metrics like attention and recall – will be a real gamechanger, aligning brand awareness and performance more closely and ensuring money is well-spent.

The rise of ‘brandformance’

CTV is an ideal channel to drive the convergence of branding and performance marketing, known as ‘brandformance’, thanks to its ability to provide measurable outcomes from brand executions as we’re seeing with the introduction by Amazon Prime of shoppable formats.

This will become even more important as more brands shift their ad spend into streaming platforms. It’s predicted that CTV ad spend will surpass $42 billion by 2028. The enormous potential lies in CTV’s ability to combine brand building with precise targeting. For example, ESPN, Fox, and Warner Bros Discovery are launching a new platform, which will feature major professional sporting events. Imagine the potential for brands to leverage the moment when viewers are watching a live sports game to offer an interactive, limited time offer via Deliveroo.

As more and more platforms come online and the market continues to evolve, streaming services will have their ‘golden age’ with advertisers. But it’s only with better targeting capabilities and enhanced audience engagement that ad-supported streaming can deliver on its promise and sustain demand.

Ben Foulkes, VP Digital, Epsilon:

Programmatic advertising: Time for a name change?

X, the platform formerly known as Twitter continues to lose advertisers over trust and brand safety concerns and this exodus shows no signs of slowing down. Recent Kantar data reveals that 26% of marketers globally plan to decrease their spending with X in 2025, while overall trust for X ads has fallen from 22% to 12% since 2022.

Advertisers are moving onto more reliable and less controversial platforms like TikTok and Instagram, while innovative brands like Spotify and Netflix are leaning into programmatic advertising on both buy and sell sides. But programmatic advertising is often misunderstood. Re-framing its capabilities, like precision targeting and real-time optimisation, or even renaming it, could do more to show off its value and relevance, distancing it from outdated perceptions.

Better data-driven approaches mean programmatic offers personalised and relevant ads that can enhance the user experience and drive results. For instance, in the realm of CTV, a scalable and accurate identity framework enables brands to forge long-term connections with individuals, allowing CTV efforts to be linked to measurable performance outcomes.

Sustainability will drive second-hand marketplaces

The popularity of buying second-hand is surging. Platforms like Facebook Marketplace and Vinted are thriving as people increasingly seek pre-owned items, especially younger, eco and cost-conscious shoppers, who prioritise sustainable choices.

Retailers are keen to capture this commerce, much of which currently occurs off their platforms. This approach not only meets demand but also allows retailers to broaden their product range and attract new audiences, fuelling their retail media flywheel with richer data insights supporting more personalised customer experiences.

One of the biggest advantages of this model is that retailers don’t need to invest heavily in stock acquisition or storage. Sellers manage the supply chain, enabling retailers to expand their offerings without significant operational costs, making it a highly efficient way to scale their business. Additionally, embracing second-hand commerce inevitably improves a retailer’s eco-friendly image, resonating with sustainability-focused consumers while supporting long-term brand loyalty.

Elliott Clayton, UK Managing Director, Epsilon:

Moving closer to ‘personalisation’ perfection

Brands know that personalisation is essential for winning and maintaining customer loyalty. Consumers expect them to understand their needs and preferences – and to target them with ads that are relevant and timely.

We are seeing some progress, but there are still some challenges according to a consumer study published by Epsilon this year. Consumers are still getting irrelevant ads. Nearly half (47%) see the same ads too often and more than half (56%) report they often scroll past promotions that don’t resonate with them. More concerning are the issues raised with the disruption caused by advertising with just over a third (34%) saying ads pop up at the worst possible time.

At the heart of effective personalisation is a ‘person-first’ identity approach, which fundamentally transforms how brands engage with consumers. At its core is first-party data, which gives brands a comprehensive view of each shopper so they can make the shopping experience more personal. It also reduces the reliance on third-party data sources, including third-party cookies that will eventually become obsolete despite Google’s U-turn this year.

Brands that embrace first-party data will build lasting connections with shoppers and get them closer to personalisation perfection. By creating a seamless, tailored experience that resonates with individual preferences, personalisation can transform from a mere marketing tactic into a powerful tool for loyalty.

Focus on younger generations at your peril

In a study on personalisation that Epsilon undertook earlier this year, we found that in some cases brands are too busy focusing on personalising their advertising for younger generations and failing to target older consumers. The survey of 2,000 UK consumers shows that 38% of 18-24s say brands have got better at personalisation, while just 11% of over 55s felt the same. Two-thirds (67%) of over 55s say most ads are irrelevant to them and they simply scroll past.

This could be a costly mistake for brands. The 2030 Forecast published by Ogilvy Consulting suggests that 60+ is the fastest growing and wealthiest demographic, representing a potentially lucrative ‘silver economy’ for brands. Advertisers must be careful not to take a one-size-fits-all approach. As with younger generations – Millennials, Gen X and Gen Alpha – brands must tap into their interests, experiences and aspirations while understanding that older people are also tech and social media savvy and enthusiastic online shoppers.

By 2025, it’s estimated that the global spending power of those aged 60 and older will reach the trillions. With time spent by this demographic online only increasing, DTC brands in particular have a real opportunity to target consumers with more disposable income. Tailoring products, services and experiences to this group can lead to greater customer loyalty, higher lifetime value and access to a market that is less price-sensitive and more focused on quality and service.

Finally, get rid of third party cookies in 2025!

The never ending flip-flopping on third party cookies over the last few years – including the latest U-turn by Google – is not helpful for anyone. If I could have just one wish for 2025, it would be to finally get rid of third party cookies, which just leads to poorly targeted audiences supported by poorly measured outcomes. It’s far too messy as it stands today.

As an industry we need to start focusing on first-party data where brands own the relationship with the consumer and can drive really meaningful communications with them. The net-net of this is better advertising, which is good for brands and retailers, and better quality communications, which is good for consumers.

Consumers want to be connected to the brands they like, so let’s make sure it’s done in the right way.

Don’t miss the chance to join AB Inbev, Boohoo, Tesco and more at the eCommerce Forum!
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Will you be joining the cream of the UK’s online retail community at the annual eCommerce Forum in London this February?

4th February | Hilton London Canary Wharf 

Free attendance – Book Now!

Connect with leading suppliers in one-on-one meetings to benchmark for your 2025 projects. Learn from insightful seminars led by industry experts and network with peers to share ideas and build lasting connections.

Don’t miss this opportunity to shape the future of your business alongside top decision-makers and innovators in eCommerce. You could be joining those representing the likes of:

  • AB Inbev
  • Beards & Daisies
  • Biotiful Gut Health
  • Boohoo Group
  • Colewood Automotive
  • Crane Garden Buildings
  • Ettore
  • Hearing Direct International
  • HSNF
  • In The Style
  • Knight Home Living Ltd
  • Misfits Health
  • Moonbug Entertainment
  • Moss & Glow
  • Nkuku
  • Parfums Christian Dior (UK) Ltd
  • Peggy Rain Limited / ROLLAER
  • Regal Fish Supplies
  • Serious Pig
  • Sock Snob Uk
  • Stephen Webster Ltd
  • Tesco
  • The Economist
  • The Electric Car Scheme
  • Toast
  • Wolverine Worldwide
  • WYSE London
  • Yoox Net-A-Porter

… And many more! – BOOK NOW

We’re thrilled to announce that The Ecom Mixer is back for its second year!

After the eCommerce Forum, join us for an evening of networking, music, and drinks on the terrace of The Park Pavilion. This annual event unites the eCommerce community for a memorable celebration. Reserve your spot now! – Book your attendance here

ONLINE STRATEGY MONTH: AI is important, but marketing success also requires personalisation and an omnichannel approach
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Senior brand marketing professionals are navigating a rapidly evolving landscape, driven by technological advancements, shifting consumer expectations, and the growing importance of sustainability. Staying competitive requires innovative strategies and solutions that combine creativity, data, and technology. Here are the key trends shaping brand marketing, covering techniques, technologies, costs, and future outlook as we head into 2025…

1. Personalisation and Customer-Centric Campaigns

Personalisation has become a cornerstone of brand marketing, with consumers expecting tailored experiences. Advanced data analytics and AI-driven tools enable brands to deliver hyper-targeted content, offers, and messaging across digital channels. For example, personalised email campaigns and dynamic website content enhance engagement and drive conversions.

While implementing these tools involves upfront investment in technology and data infrastructure, the increased ROI from better customer retention and higher sales makes it a valuable strategy.

2. Omnichannel Integration

Seamless omnichannel marketing is essential for delivering consistent brand experiences across platforms. Consumers interact with brands through multiple touchpoints—social media, email, e-commerce, and in-store—making unified messaging critical.

Technologies like customer data platforms (CDPs) allow brands to integrate and synchronise data across channels, enabling marketers to create cohesive and engaging campaigns. This approach is particularly effective in retail, where a seamless experience from online browsing to in-store purchasing boosts loyalty.

3. Sustainability and Purpose-Driven Marketing

Consumers increasingly expect brands to align with their values, particularly regarding sustainability and social responsibility. Purpose-driven marketing campaigns that highlight eco-friendly initiatives or community engagement resonate strongly with modern audiences.

Brands investing in sustainable packaging, ethical sourcing, or carbon-neutral practices often incorporate these efforts into their storytelling. While such initiatives can increase costs initially, they build long-term brand loyalty and appeal to younger, value-driven demographics.

4. Advanced Creative Technologies

Creative innovation is accelerating with technologies like augmented reality (AR), virtual reality (VR), and AI-generated content. AR is being used for immersive product demonstrations, while VR enables virtual brand experiences. AI tools streamline content creation, reducing costs and accelerating campaign delivery.

These technologies allow brands to stand out, particularly in competitive sectors like fashion, automotive, and technology. Though they require investment, their ability to captivate audiences and enhance engagement justifies the expenditure.

Outlook: AI and Predictive Marketing

Looking ahead, AI will play an even greater role in predictive marketing, using data to anticipate consumer trends and preferences. Brands will increasingly use AI to optimise campaigns, improve efficiency, and create more personalised and impactful experiences.

Conclusion

Senior brand marketing professionals in the UK are leveraging personalisation, sustainability, and advanced technologies to build stronger connections with consumers. By staying ahead of these trends, brands can ensure they remain relevant, engaging, and competitive in a dynamic market landscape.

Are you searching for Online Strategy solutions for your organisation? The Digital Marketing Summit can help!

Photo by Windows on Unsplash

Marketers ‘must focus’ on transcending disruption in 2025
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With increased pressure to deliver growth and support cross-functional work, Gartner has identified three priorities for CMOs to deliver marketing excellence in 2025, namely Transcending Disruption, Elevating Enterprise Impact and Maximising Marketing Yield.

“Marketing faces extraordinary expectations heading into 2025, and CMOs cannot risk incremental change when the enterprise expects transformative results,” said Ewan McIntyre, VP Analyst and the Chief of Research for the Gartner Marketing Practice. “A sharp focus on marketing excellence is key. By applying the resources CMOs have with ever greater vision and discipline, they will earn the confidence of the business to expand their leadership and stewardship of resources.”

In a survey of 395 CMOs conducted in February and March 2024, respondents said they devote almost 40% of their budget to activities focused on change and transformation. The problem is that constant disruption diverts attention from long-term goals. CMOs must identify where tactical thinking has replaced strategic discipline and dedicate resources to ongoing strategy management, such as staff time, training and tools.

“A strategy management capability is a self-funding investment. While managing strategy is a core part of the CMO role, it cannot happen without a supporting organizational capability,” said McIntyre.

Gartner asserts that many CMOs are not fulfilling their growth potential – both in terms of delivering business results and maximizing their leadership effectiveness. In a survey of 125 CEOs and CFOs conducted in August and September 2024, executive leaders reported that only 14% of CMOs are effective at market shaping, or influencing market dynamics by identifying and fulfilling unmet customer needs. Companies where CMOs are effective at market shaping are 2.6 times more likely to exceed revenue and profit goals.

Market shaping CMOs distinguish themselves from C-suite colleagues with their exceptional skill-level in data-based decision making, strategy management and market knowledge. These skills help CMOs make meaning from data and convert trends into visionary strategies.

“This is a different skill set than merely understanding or empathizing with the customer,” said Sharon Cantor Ceurvorst, Vice President, Research in the Gartner Marketing Practice. “With customer data increasingly available to all functions, the CMO edge lies in knowing how to synthesize insight from an array of different sources to find opportunities for differentiation.”

With customer understanding being a significant driver of marketing-led growth, CMOs should be concerned that many customers feel misunderstood by brands. In a survey of over 6,000 U.S. consumers conducted in July and August 2024, 58% reported that the companies trying to sell them something don’t have a good understanding of their needs and preferences. The consequence is that many marketing campaigns underperform, wasting budgets, resources and opportunity.

“What’s perplexing about this is that marketing has never had more access to data, or more technology tasked with building customer understanding and targeting messages. Right now, technology-driven customer engagement is at an inflection point,” said McIntyre. “The vast majority of marketing teams are accelerating AI initiatives; 95% of CMOs in 2024 reported that GenAI investments are a priority.”

Gartner says CMOs must avoid the pitfalls of AI-driven excess and prioritize customer journey investments with the greatest economic return. A data- and hypothesis-led approach will help rebuild emotional connections with customers who are feeling misunderstood and drive a mutually productive growth engine.

Photo by Carl Heyerdahl on Unsplash

Research highlights gender pay gap in marketing
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New research shows that two-thirds of UK jobs with a predominantly female workforce have gender pay gaps in favour of men, including the marketing sector in fourth place.
Ciphr’s gender pay gap study, based on the latest figures from the Office for National Statistics (ONS), found that most (70%) female-dominated occupations, with workforces of over 50,000 employees, have a gender pay gap.
Just 3% of occupational roles held by a greater proportion of women than men (60% or more vs 40% or less) have no gender pay gaps, while a quarter (27%) have pay gaps that favour women.
Some of the jobs with the largest numbers of workers and median gender pay gaps of 10% or more include office managers, solicitors and lawyers, marketing and commercial managers, and financial accounts managers. Around 380,700 women hold these roles (compared to 206,800 men) yet their gender pay gaps range from 13.4% to 18.4% in favour of men. This means that men in these types of roles earn more per hour, on average, than their female peers doing similar work.
Other jobs with big gender pay gaps include residential, day and domiciliary care managers and proprietors (including care home owners, community centre managers, and welfare housing managers), and other educational professionals (roles in this group include bursars, university administrators, moderators, academic tutors, and HE learning support officers). The average gender pay gaps for these occupational groups are 14.8% and 14.4% respectively.
Notably, there’s even a 4.7% gender pay gap for women working as office administrators and clerical/admin assistants, despite 78% of the workforce being women. It’s the third-most common job type filled by women, after care workers (and home carers) and sales and retail assistants, with nearly half a million (452,800) female employees.
Hourly pay disparities like these (the average gender pay gap for all workers is currently 13.1% in favour of men) can add up over women’s working lives – potentially leading to gender pay differences of thousands of pounds, as well as impacting their final pension savings.
Unsurprisingly – given that three-quarters of all jobs have a gender pay gap in 2024, according to Ciphr’s analysis – this disappointing trend of women earning less per hour, on average, than men, is also repeated across most (82%) job roles that are predominantly held by men. And 85% of the roles that have relatively gender-balanced workforces too.
The female-dominated careers with the widest gender pay gaps in 2024 are:
  • Financial accounts managers: 18.4% gender pay gap
  • Residential, day and domiciliary care managers and proprietors: 14.8%
  • Other educational professionals: 14.4%
  • Marketing and commercial managers: 13.6%
  • Office managers: 13.4%
  • Solicitors and lawyers: 13.4%
  • Business associate professionals (including business systems analysts, planning assistants and project coordinators): 11.3%
  • Business and related research professionals: 11.1%
  • Public relations professionals: 10.7%
  • Other health professionals (including public health advisers, audiologists, dieticians, immunisation managers and mental health workers): 8.6%
  • Education managers: 8.4%
  • Records clerks and assistants: 8.3%
  • Book-keepers, payroll managers and wages clerks: 7%
  • Nurse practitioners: 6.9%
  • Cleaning and housekeeping managers and supervisors: 6.9%
These stats stand in stark contrast to recent survey results, which revealed that just 8% of UK employees (of 1,200 polled) think their job has a gender pay gap in favour of men.
Ciphr’s gender pay gap report, including gender pay gap data by occupation, industry, and major towns and cities, is available at https://www.ciphr.com/infographics/gender-pay-gap-statistics-2024.

CREATIVE & DESIGN MONTH: From brand guidelines to AI tools, here’s how to source the best expertise
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Partnering with the right creative and design consultancy is essential for building impactful campaigns, enhancing brand identity, and driving engagement. As consumer expectations evolve, so do the requirements for innovative, adaptable, and results-driven creative solutions. Here’s how to effectively approach the task of sourcing a creative and design partner for your organisation, based on inout from delegates and suppliers at the Digital Marketing Solutions Summit…

1. Define Objectives and Brand Needs

Start by identifying your organisation’s creative and design goals. Are you looking to develop a new brand identity, revamp packaging, produce multi-channel campaigns, or create immersive digital experiences? Clarify how these objectives align with broader business goals, such as increasing brand awareness, driving conversions, or expanding into new markets.

Your partner must also understand your brand’s ethos, tone of voice, and target audience. Having a well-documented brand guideline can help potential partners understand your creative framework and ensure alignment from the outset.

2. Evaluate Expertise and Industry Alignment

Look for consultancies with a proven track record in your industry. Agencies familiar with your sector—whether it’s retail, technology, healthcare, or financial services—will better understand market dynamics and consumer behavior. Review their portfolio and case studies for examples of work that aligns with your objectives.

Ask for references or testimonials from previous clients to validate their experience and ability to deliver results. A strong partner should be able to demonstrate measurable outcomes, such as increased engagement, improved sales, or enhanced brand visibility.

3. Focus on Innovation and Technology Integration

Modern marketing demands innovative solutions. Choose a partner that leverages the latest technologies, such as AI-driven design tools, augmented reality (AR), and data-informed creative strategies. These capabilities can elevate your campaigns by offering personalization, interactivity, and immersive experiences.

Also, consider the partner’s expertise in digital-first design, ensuring they can adapt creative assets for social media, e-commerce, and mobile platforms.

4. Assess Costs and ROI

Creative consultancy fees vary widely, often depending on project scope and agency reputation. Evaluate whether their pricing structure—be it retainer, per-project, or performance-based—aligns with your budget. Assess the potential return on investment (ROI) by considering how their work will impact brand perception, customer engagement, and revenue growth.

5. Prioritise Collaboration and Long-Term Fit

A successful creative partnership relies on collaboration. Choose a consultancy that values open communication and can adapt to your organisation’s evolving needs. Long-term partners often deliver greater value, as they develop a deeper understanding of your brand over time.

By aligning goals with the right expertise, innovative approaches, and a focus on ROI, senior marketing professionals can build productive relationships with creative and design partners. The right consultancy will not only execute your vision but also elevate your brand’s presence and drive measurable success.

Are you searching for Creative & Design solutions for your organisation? The Digital Marketing Solutions Summit can help!

Photo by UX Indonesia on Unsplash

Are podcasts the key to reaching Gen Z and Millennials?
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Podcasts have emerged as a powerful medium for brand discovery, overtaking traditional platforms — especially amongst younger audiences, according to new data from research platform GWI’s Connecting the Dots report.

The shift highlights a growing opportunity for brands to tap into this trend to reach their key audiences. Since 2021, brand discovery through podcasts has accelerated, particularly with Gen Z listeners, who are increasingly tuning into podcasts over other media.

And it’s not just brand awareness that has increased. Almost as many Americans get their news from podcasts (21%) as newspapers (24%) — a shift driven primarily by Millennials and Gen Z listeners, of which one in four say they enjoy listening to podcasts.

The recent US election also highlighted the importance of podcasts to American listeners, with 14% of Americans noting podcasts as a source of information on US politics, and 5% noting it as one of the most trustworthy sources.

With podcast investment on the rise through high-profile deals — like the recent acquisition of Call Her Daddy by SiriusXM for $125 million — they are positioned as a lucrative investment for brands wanting to connect with younger consumers, who are spending more time with podcasts than ever before.

However, as with all channels, brands must be mindful of ad fatigue — especially among younger listeners, of which one in five say they’ll tend to skip ads, compared to just 15% of Gen X and Baby Boomers.

In fact, consumers have made it clear that the format of an ad is a deciding factor in skipping it or switching off entirely. 17% of listeners have a preference for ads integrated into the episode, in the host’s style — making it crucial for brands to tailor engaging and relevant advertisements.

Although most listeners dedicate less than an hour a day to podcasts (42%), the growing listenership is a clear opportunity for brands to align with their audiences interests through tailored, host-led ads that seamlessly blend into the show’s content.

Commenting on these findings, Bridget Evans, Global Director of Business Brand Marketing at Spotify, said: “Gen Z’s love for podcasts extends offline, with 37% attending live podcast events, deepening their relationships with trusted hosts and communities.

“This means podcasts are now a 360-degree amplification opportunity for brands. Spotify’s ecosystem — from live events to social and audience targeting via Spotify Audience Network and more — lets brands reach these highly-engaged audiences and forge authentic connections across multiple touchpoints.”

Matt Smith, Trends Analyst at GWI adds: “Unlike traditional media, podcasts provide a unique opportunity for brands to reach listeners in an environment where ads can feel like a part of the experience. Younger generations value a deeper personal connection to content and are drawn to hosts that they find relatable, so podcasts are a powerful option for targeting these audiences in an engaging way.

“As podcast popularity continues to grow, brands that adopt a well-thought out and aligned approach to podcast advertising can create more memorable touchpoints with audiences that can’t be replicated via other channels.”

Photo by Soundtrap on Unsplash

OPINION: Why direct mail remains a timeless marketing tool
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While digital marketing dominates the advertising landscape, traditional marketing is still going strong. Despite the rise of digital channels, direct mail remains a powerful tool for businesses to connect with their target audience.

Direct mail marketing is continuing to be a significant investment for businesses. In 2024, advertising spending on direct mail reached £2.85 billion, and it’s projected to grow to £3 billion by 2029, with a steady annual growth rate of 1.01%.

With that in mind, Jon Beasley, Technical Director at Washington Direct Mail has shared his insight on the usage of direct mail saying, “physical mail offers businesses a more personalised, targeted and tangible approach to connect with their audience that aligns with their purchasing behaviours. Not only has direct mail stood against the test of time but it also charts a new advantage for businesses to come up with more creative solutions and implementations beyond what can be achieved by digital marketing.”

Here’s why direct mail remains a vital component of your marketing strategy…

Personalisation Powerhouse

One of the biggest challenges marketers face is mastering personalisation. Since personalised brand messages became the norm in 2020, digital creatives have been continually refining their audience segmentation tactics. In fact, 71% of consumers expect personalised interactions from brands, according to McKinsey, and 76% get frustrated when they don’t.

While both digital and direct mail advertising enable accurate personalisation, direct mail offers a wider scope for crafting truly individualized campaigns. Beyond physical delivery, direct mail leverages data to gather insights into customer purchasing behaviour, demographics, and interests across channels, enabling the creation of tailored messages and campaigns.

Combined with variable data printing, advertisers can align messages with customised designs tailored to each consumer’s preferences. The goal of individualised campaigns is to make customers feel valued and understood, and direct mail offers an effective way to achieve this.

Tangibility meets creativity and innovative solutions

Another challenge facing online marketing campaigns is oversaturation. Consumers are constantly bombarded with brand messages across all digital platforms, each competing for their attention. This overstimulation can lead to message fatigue, with recipients becoming immune to online ads and often discarding them. While email marketing has an average open rate of 35.63%, direct mail boasts a significantly higher open rate of 57.5% to 85%.

Once the initial excitement fades, consumers are left with an inbox filled with uninteresting brand advertisements or social media posts disguised as content from friends, which only disrupt their online experience.

To capture consumer attention, brands must offer something exciting. Gen Z, the youngest consumer segment surveyed by USPS, expresses enthusiasm for opening mail and 72% reported that they would be disappointed if it was stopped. Gen Z also favors unique and creative direct mail formats.

Receiving an innovative print piece with an interesting design and premium paper, or a free sample of a favourite beauty cream, will not only intrigue consumers but also increase their engagement with the mail or product.

Technology and innovation are also entering the physical mail world, promising to make this marketing channel even more enticing. For example, in March 2021, R.R. Donnelley & Sons Company launched a portfolio of 3D direct mail solutions, enabling simulations and digital prototyping. These enriched user experiences are expected to increase the current average open rate of 57.5% to 85% and result in higher ROI.

Leveraging in a Multi-Channel Strategy

Direct mail can be integrated into a broader marketing strategy, rather than being used as a standalone tactic.

By including a clear call to action, you can guide customers across multiple channels, optimising resources and building strong relationships. On average, it takes eight touchpoints to convert a B2B sale with a new prospect. The main goal of a mixed marketing campaign is cohesive storytelling that keeps consumers present and engaged.

According to JICMAIL, 6% of mail resulted in purchases in Q1 2024, a 1.8% increase from Q1 2023. Additionally, 38% of those who visited an advertiser’s website after receiving a direct mail piece made an online purchase.

Personalised URLs and QR codes enable marketers to track response and conversion rates and create more detailed audience segments for retargeting.

Conclusion

Direct mail has established itself as a valuable advertising channel, and it’s only a matter of time before more advertisers embrace it. Early adopters of direct mail can capitalize on its benefits and gain a competitive edge.

Photo by Kutan Ural on Unsplash

eCommerce Forum places are filling up fast – Register today!
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We only have a limited number of free delegate passes available for the eCommerce Forum this February—join us for a unique networking experience tailored to the ecommerce industry!

Your free pass includes:

– A personalised itinerary of 1-2-1 meetings with top industry suppliers to discuss your upcoming projects and explore how their solutions can support you.
– Access to our engaging seminar programme, led by industry experts, designed to expand your knowledge.
– Complimentary lunch and refreshments throughout the day.
– Multiple networking breaks to help you make valuable business connections.

4th February | Hilton London Canary Wharf | 8am-5pm

Interested? BOOK NOW!

Plus… Exciting news!

The Ecom Mixer is back right after the eCommerce Forum—details to follow! You can add your name to our waiting list to get first dibs on updates.

If you have any questions or need more information, just reach out to us here.

December is Online Strategy Month on Marketing Briefing – Here’s how to get involved!
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Each month on Digital Marketing Briefing we’re shining the spotlight on different parts of the print and marketing sectors – and in December we’ll be focussing on Online Strategy solutions.

It’s all part of our ‘Recommended’ editorial feature, designed to help marketing industry professionals find the best products and services available today.

So, if you specialise in Online Strategy and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Kerry Naumburger on k.naumburger@forumevents.co.uk.

Here’s our features list in full:-

Dec 2024 – Online Strategy
Jan 2025 – Content Management
Feb 2025 – Lead Generation & Tracking
Mar 2025 – Email Marketing
April 2025 – Digital Printing
May 2025 – Social Media
June 2025 – Brand Monitoring
July 2025 – Website Analytics
Aug 2025 – Conversion Rate Optimisation
Sept 2025 – Digital Signage
Oct 2025 – Printing
Nov 2024 – Creative & Design