April 2025 hasn’t been kind to marketers. Between economic jitters, tariff threats, and increased business taxation, UK companies are re-evaluating where they spend—and where they can see tangible returns. The latest IPA Bellwether Report for Q1 2025 confirms the squeeze, marking the first overall decline in UK marketing budgets in four years.
While main media channels like out-of-home and audio have seen significant cuts (with a net balance of -6.7%), direct marketing bucks the trend. Budgets for the channel rose sharply to +9.0%, up from +5.6%—a clear signal that when the pressure is on, marketers are turning to what works.
The Data-Driven Edge
One of the key reasons for direct mail’s ongoing strength? Data hygiene. As marketers continue to sharpen their targeting capabilities, it’s the clean, accurate, and well-managed data that forms the backbone of successful campaigns.
Direct mail has always offered a high level of accountability, but what’s changed is the sophistication in how campaigns are built. With better segmentation, deduplication, suppression, and profiling tools available, brands are now able to connect with consumers in a more personal, relevant, and cost-effective way. The days of wasteful mailings are no longer—and that’s why ROI is climbing.
Tangibility in a Turbulent Market
In a period of economic instability, it’s not surprising that marketers are prioritising channels that drive immediate action and measurable results. Direct mail lands physically in the consumer’s home. It stays longer, is more trusted, and—when powered by clean data—is more effective.
From sales promotions to re-engagement campaigns, direct mail is proving its value. In fact, alongside direct marketing, only events and PR showed any budgetary growth in Q1—highlighting a wider shift toward channels that foster trust and connection.
As we all know, great data is the difference between a message that converts and one that never lands. And in a landscape of cautious optimism and shrinking spend, clean, smart data will continue to power the resilience of direct mail! Get in touch to find out more!
