Gen Z more likely to respond to physical, direct marketing campaigns

Gen Z is more likely to engage with direct mail marketing campaigns, research by World Advertising Research Centre (Warc) and Royal Mail Marketreach has found.

The report, named Driving Effectiveness with Direct Mail, is based on 218 UK campaigns, published between 2016 and 2020 on Warc’s database, which used direct mail as the lead media or in the marketing mix.

Overall, the research found that 35% of the campaigns that use direct mail (physical mail delivered to the home) recorded an ROI benefit, compared with just 23% for the UK average across all marketing campaigns.

The report deems the physical nature of direct mail as the root cause of this, saying it captures both sensory and mental attention of readers, averaging an engagement rate of 95%.

Amy Rodgers, managing editor of research at Warc, said: “The digital disruption of the past decade has pushed direct mail into the shadow of emerging platforms. But the time has come for a re-evaluation of direct mail amid increasing demands on consumer attention and the acceleration of underlying trends in business and society driven by the pandemic.

“With this research showing that campaigns using direct mail drive a notable impact on effectiveness metrics, like ROI and revenue, the events of the past 18 months have shone a light on the potential for the channel.”

However, it is the digitally raised Gen Z (born between 1997 and 2012) among whom physical mail is the most popular.

The report reasons given are that Gen Z has grown up with digital communications and so, for this group, physical mail presents something unique.

When surveyed, nearly nine out of 10 participants said they preferred a blend of physical and digital marketing; 42% have searched for a brand online after receiving direct mail; and 84% have scanned in a QR code from mail to interact with a brand online

Dan Jury, senior media planner at Royal Mail’s Marketreach, said: “Direct mail is alive and well. It has undergone significant digital transformation of its own, remains the third-largest media channel in the UK, integrates powerfully with other channels to support full-funnel strategies, is a proven driver of business growth and ROI, and is highly trusted – particularly with Gen Z.”

Other sources for the report included a review of Warc’s global data, industry knowledge and data from Jicmail, IPA TouchPoints and YouGov.