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STRIKE UPDATE: Postal strike could force advertisers to write off direct mail campaigns worth £10 million

October 22nd, 2009 // Permalink

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The Guardian reports that the national postal strike could lead to advertisers writing off direct mail campaigns worth at least £10m and force 40% of companies to rethink their Christmas advertising plans if industrial action continues.

Big direct mail spenders including BSkyB, BT and Virgin Media may have to rewrite their advertising strategies if disruption continues into the Christmas sales period.

Total direct mail spend by UK companies last year was more than £1.5bn. This means that about £5m is spent by UK companies on direct mail each day when the post is operating normally.

The Direct Marketing Association (DMA) has warned that there could be a much wider impact than the immediate potential loss of about £10m during the upcoming 48-hour strike.

Robert Keitch, chief of membership and brand at the DMA, believes if mailing campaigns are disrupted over just a few months, particularly in the lead up to Christmas, then it will have a massive impact. 

Keitch added that almost 50% of businesses believe the strike would have a long-term effect, with companies deciding not to earmark as much of their marketing budget to direct mail campaigns in the future.

UK advertisers’ trade body Isba said that a series of regional mail disruptions in recent years had already started to take its toll on the relationship companies have enjoyed with Royal Mail.

As featured in The Guardian.

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