The latest data from the Advertising Association/WARC Expenditure Report and IPA Bellwether Report show that direct marketing, including direct mail and door drops, continues its strong upward trajectory, consolidating on growth seen throughout 2024 and performing robustly across 2025.
According to the AA/WARC Q2 2025 Expenditure Report, direct mail achieved 4.8% year-on-year growth in Q2 and is forecast to post overall annual growth of 0.9% for 2025, following a positive net position in 2024.
While Q4 2024 saw a slight decline, the full-year result confirmed a return to strength for the channel, with 2025 projections suggesting further consolidation despite wider economic uncertainty.
The report indicates that UK advertising spend overall rose by 9.1% in Q2 2025, reaching £11.3bn, with the total market expected to climb 8.2% to £46bn for the year. Amidst this, direct mail maintained a solid presence as brands looked to deliver effective, measurable engagement at a time when trust and attention remain vital. While channels such as video-on-demand and online formats saw double-digit growth, direct mail’s continued expansion highlights its stability and sustained value among more volatile media categories.
Direct marketing budgets grow
Complementing this, the IPA Bellwether Report (Q3 2025) reinforces the continued confidence in direct mail and direct marketing channels. The latest data shows direct marketing budgets rose by a net balance of +9.7%, the strongest uplift in almost a year, extending a near three-year run of growth and outperforming most other marketing channels. It was one of the best-performing categories in the report, second only to events, with businesses increasingly recognising the value of targeted, data-driven campaigns that build relationships and drive response.
Bellwether commentary highlights a strategic pivot among marketers towards brand-building activities over short-term sales promotions, favouring channels that deliver direct and measurable engagement. This trend supports direct mail’s role as a trusted medium with proven impact in driving both brand recognition and purchase intent.
Lucy Swanston, Chair, Strategic Mailing Partnership (SMP) says: “It’s encouraging to see direct mail building on its strong performance from 2024 and continuing to deliver value for brands in 2025. The data clearly shows that marketers recognise the importance of channels that drive engagement and trust, qualities that mail has consistently demonstrated. As the industry embraces new technologies and data-driven creativity, mail’s role as a high-performing, accountable medium within the marketing mix has never been more relevant.”
The findings also point to improving business confidence. For the first time since mid-2024, Bellwether respondents reported positive company-level financial prospects, with more than a quarter of firms expecting stronger performance in the months ahead. The combination of rising optimism and expanding direct marketing budgets underscores the channel’s integral role in helping brands connect with audiences effectively amid a mixed economic backdrop.
Advertising strengthens its resilience
At the same time, the AA/WARC report confirms that advertising investment remains resilient. Despite concerns around inflation and the forthcoming Autumn Budget, the UK ad market is forecast to continue expanding steadily into 2026, with total spend expected to grow by 6.6% next year. Direct mail is projected to maintain a stable share within the wider mix, supported by the ongoing focus on personalised, tangible communication that complements digital activity.
Philip Ricketts, Wholesale Commercial Director at Royal Mail adds: “The latest AA/WARC and Bellwether data reinforce what we’re seeing across the market, a continued confidence in direct mail and direct marketing as essential components of an integrated media mix. Even as brands diversify into new digital formats, the tangible, trusted nature of mail continues to deliver measurable results. In a fast-changing landscape, its ability to cut through and create meaningful connections makes it one of the most effective and enduring channels available to advertisers.”
The industry’s confidence in direct mail aligns with a broader shift towards balanced marketing strategies that integrate physical and digital experiences. As online platforms increasingly adopt AI-driven personalisation, mail remains a uniquely tangible and trusted medium, offering brands a powerful opportunity to cut through digital noise and deliver targeted, meaningful interactions with consumers.
Together, the AA/WARC and Bellwether reports confirm that direct mail and direct marketing remain central to advertisers’ plans, combining reach, accountability and consumer trust at a time when budgets are being directed toward proven, high-performing channels.
The continued momentum seen across both datasets reflects a wider recognition of mail’s evolving role in omnichannel campaigns. With measurable results, high engagement rates and enduring consumer trust, direct mail continues to prove its value as part of a diversified marketing mix.
Looking ahead, both reports suggest that marketers will continue to prioritise channels that deliver long-term value and measurable returns. For direct mail, this means further opportunity to leverage innovation in data, design and production to drive results and sustain its growth trajectory through 2026 and beyond.
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