Australian update

by Tony Smith on 20/03/2013

It is an interesting time across the world in terms of advertising, spend and retail results.

In my time, both in the UK and Australia, a similar picture or trend will always come forward.

How does an advertiser remain in front of their audience at the same time as having a profile across the many channel options available?

In Australia, we are still seeing very large retailers doing full covers of Australia each week, with many more doing monthly campaigns.

Key retailers are doing more but some of the smaller clients are watching their spend, due to the economy slowing down.

In contrast to this, the UK market appears to see brand name after brand name continue to disappear.

Branding is interesting.

Brands are simply world renowned.

Say, for example, Pizza Hut.

If you ask most consumers to name a pizza store chain, they will say ‘Pizza Hut’, however not everyone necessarily buys from them.

Retailers still need a strong offer to stimulate the consumer.

The letterbox industry in Australia certainly does differ to the UK model.

There are only three key players in Australia that have their own delivery network across the entire country; these are Salmat, PMP and Australia post.

They are key D2D players; Salmat has the dominant market share, delivering twice a week, whilst the other two deliver once.

To give you a real idea of pagination, we have clients who do items up to 80 A4 pages with monthly frequency and other clients such as food retailers, doing weekly campaigns with pagination of up to 40 pages.

Competition is particularly high in the food sector. Events like Father’s day and Mother’s day will see a significant spike in volumes and this has been growing annually.

Delivery verification, I am sure, is high on the agenda in both the UK and Australia.

At Salmat, we check our network twice a week, using delivery verification units.{ GPS} This is not a small task, it is completed across the entire country. Clients can see these reports and this model has become the industry currency for accountability.

In terms of delivery challenges between the UK and Australia, they certainly differ greatly, the UK can have snow and rain, but challenges rarely arise due to heat.

The Western Australia network has to cope with days over 45 degrees and I am sure you would have seen the news regarding recent floors and bush fires over our eastern seaboard all challenges clients expect the networks to cope with..

So does print media work in a digital world?

Based on volumes and clients results, yes!

Targeting is important for some clients just as full covers are to others.

Salmat has a very strong digital division, offering customers E-marketing, mobile marketing, iPhone app texting, SMS services, plus more. Despite this, the letterbox business is still the key driver for our wide range of customers.

When it comes to my confidence in well planned and targeted letterbox drops, I read an interesting editorial in New York.

It’s message was that around USA today, where they ran an advertising contest with $15 million dollars going to the winner.

The end result was not a win for a creative ad agency, but for Google creative labs.

This was at a time where clients are increasingly unhappy with how their video and digital based advertising is performing and hence are insisting on paying less.

It is all very interesting to read.

The great thing about D2D is that although it may be regarded as the unglamorous side of advertising, it works and drives till turnover.

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– who has written 1 posts on Letterbox Consultancy for Door Drop Marketing.

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