FEDMA - Federation of European Direct and Interactive marketing

Italian Direct Marketing Market - An Overview

Mr. Sergio Pilu, Marketing & Communications Manager at Addressvitt (Italy), a FEDMA List Council member, has contributed with the following article on the Italian direct marketing market.

 ITALIAN DIRECT MARKETING MARKET - AN OVERVIEW

Preferred media and weight of investments in direct marketing on traditional advertising

The advertising expenditures in Italy are highly focused on television and press. The sum of these two voices amounts to roughly 13.7 billion Euro, 74.8% of total expenditures.

Taking into account the last two years, the variance of the relevance of each media compared to total investments was limited, as well as for the period 1996-1999, throughout which only a moderate switching from TV and magazines towards radio took place.

2000 (Eur million)

% on total

2001 (Eur million)

% on total

Variation 01/00 (%)

Total Advertising

18.512

 

18.317

 

-1,05%

Television

7.928

42,83%

7.614

41,57%

-3,97%

Press

6.217

33,59%

6.094

33,27%

-1,98%

Newspapers

3.891

21,02%

3.666

20,01%

-5,79%

Magazines

2.326

12,57%

2.428

13,26%

4,40%

Radio

700

3,78%

618

3,37%

-11,70%

Outdoor

387

2,09%

398

2,17%

2,94%

Cinema

123

0,66%

140

0,76%

13,90%

Direct Mail

1.822

9,84%

1.957

10,69%

7,46%

Telemarketing

628

3,39%

732

4,00%

16,56%

Direct Response

707

3,82%

763

4,17%

7,92%

 

Sources: AC Nielsen - FCP/FIEG - AIDiM

Over the last few years, the total investments in direct marketing have constantly grown. The only exception happened in 1997, when the Data Protection Act 675/96 became operative: the deep psychological impact that this Act aroused among both the public opinion and the business community and the uncertainties about how the new rules would be implemented, triggered a remarkable decrease in overall expenditure.

Taking 1996 (the last year not influenced by any data protection regulation) as starting point, direct marketing expenditures grew by 30.4%, at an average annual rate of 7,87%.

Investments in direct mail grew by 18,4%, at an average annual rate of 5,6%.

Investments in telemarketing and teleservices reported a quite steep increase, up by 79% at an average annual rate of 20%.

 Medium

2001

2000

1999

1998

1997

1996

Direct Mail

1.957

1.822

1.374

1.273

1.157

1.653

Telemarketing

732

628

566

592

286

409

Total

2.689

2.450

1.940

1.865

1.443

2.062

Sources: AIDiM - FEDMA Figures are in millions of Euro - 2001 and 2000: estimates

Average number of direct mail pieces per head and comparison of direct mail use between Italy and other European countries

Italy ranks fifth in terms of number of direct mail pieces delivered per year, covering 7% of the whole European market.

Italy falls sixth in the pieces-per-head ranking: the average Italian receives one third of the direct mail delivered to his German, English or French counterparts, while Dutch and Belgian citizens receive four times more direct mails per year.

 

Country

Number of pieces

Country Population

Pieces per head

Germany

6.210.000.000

83.029.536

74,79

United Kingdom

4.600.000.000

59.647.790

77,12

France

4.370.000.000

59.551.227

73,38

Netherlands

1.610.000.000

15.981.472

100,74

Italy

1.610.000.000

57.680.000

27,91

Belgium

1.150.000.000

10.258.762

112,10

Spain

690.000.000

40.038.000

17,23

Others

2.760.000.000

 

 

Data are referred to year 2000. Sources: FEDMA - McKinsey - CIA World Factbook

MAILING LISTS IN ITALY

Here under, a brief overview of the Italian list market.

1) Publicly available lists

  • B2B lists

  • B2C lists

  • : telephone directories (Yellow Pages), professional rolls and data taken from Chamber of Commerce. These two last sources are run locally and lists are not always available in digital format.
    Data include the address and other information to contact the firm, as well as branch of activity, financial and administrative information (e.g.: share capital, balance sheet).
    : telephone directories and electoral registers.
    Data include address and telephone number, or – in the case of electoral registers – date and place of birth, qualification and job. Electoral registers are run locally (municipality) and often available only on paper or at disposal for consultation at the premises.
    E-mail addresses and mobile telephone numbers referred to individuals can be collected from no public source. A general telephone directory will soon be printed and will contain e-mail addresses, mobile telephone numbers and other data not available in the current directories, provided that specific provisions regarding privacy are complied with.

Data taken from public sources are often processed by direct marketers and list brokers together with social and demographic statistical data; trend and status indexes are calculated and clusters created. Their reliability cannot be completely granted, but they are certainly better targeted than lists derived from the above mentioned public sources.
Lists publicly available can be collected directly at the source or rented from list brokers.
Average price: 0,02 EUR per address.

2) Life-style and profiled lists

  • B2B lists

  • B2C lists

     

  • : characteristics and decisive information are specifically collected to be added to the data taken from public sources, by list brokers and operators specialised in this activity, as well as by publishers of yearbooks and directories, thanks to telemarketing researches too. Yearbooks can give detailed information about the firm (e.g.: office, e-mail address, web site, turnover and number of employees). : coupons and questionnaires, carried out by list brokers and direct marketers, add important data to the public lists, such as job, family unit, ownership of hi-tech goods, methods of payment and investments, response level to direct marketing and promotional campaigns, e-mail address and mobile telephone number of individuals.
    Subjects who have taken part in prize draws can be classified as highly responsive of promotional campaigns so that this profile offers a decisive clue for direct marketing initiatives.

Profiled lists are available with both elementary and processed data, the latter being the result of operations of elaboration, comparison, selection, interconnection, also concerning different lists or statistical researches and analysis.
Average price: 0,20 EUR per address.

ITALIAN POSTAL SERVICE

It is common opinion that the average quality of the services supplied by Poste Italiane (the Italian state-owned postal service) has gradually improved over the last few years, due to the reorganization of the company and its production processes.

Poste Italiane has recently published data concerning an internal survey about efficiency and speed of delivery of direct mail pieces sent under the common DM rate called PostaTarget (for rates, see below). The survey has been conducted placing a reply coupon inside the customers’ direct mail package, addressed to Poste Italiane; the addressee was asked to reply, reporting the day the package had been received. 95% of the shipment was delivered within 4 working days (Mon-Sat) after the day of shipment.

PostaTarget

"Money Maxx" campaign – Aegon Group

Working days after day of shipment

Per day

Cumulative

Within 1 day

59,9%

59,9%

Within 2 days

17,5%

77,4%

Within 3 days

13,7%

91,1%

Within 4 days

4,4%

95,5%

Within 5 days

1,5%

97,0%

Within 6 days

0,3%

97,3%

Within 7 days

0,3%

97,6%

Within 8 days

1,2%

98,8%

Within 9 days

0,3%

99,1%

More than 9 days

0,9%

100,0%

Source: Poste Italiane, internal survey, year 2001

Data are also available to evaluate efficiency and speed of delivery of different kind of items, like magazines. Figures come from both a Poste Italiane internal survey and a similar survey run by ANES (National Association of Technical Publishers). The two surveys show rather different figures for the first 4 delivery speed ranges (J+1-J+4), but – starting from range J+5 – they tend to converge; it therefore sounds reasonable to say that approximately 80% of periodicals are delivered within 5 working days after the day of shipment.

Magazines, journals, periodicals

Magazine: "PC Open" – Agepe Publishing Group ANES Survey

Working days after day of shipment

Per day

Cumulative

Working days after day of shipment

Per day

Cumulative

Within 1 day

5,7%

5,7%

Within 1 day

32,9%

32,9%

Within 2 days

11,0%

16,7%

Within 2 days

15,2%

48,1%

Within 3 days

22,4%

39,1%

Within 3 days

19,0%

67,1%

Within 4 days

22,3%

61,4%

Within 4 days

8,4%

75,5%

Within 5 days

17,6%

79,0%

Within 5 days

5,6%

81,1%

Within 6 days

9,1%

88,1%

Within 6 days

6,1%

87,2%

Within 7 days

5,1%

93,2%

Within 7 days

4,0%

91,2%

Within 8 days

2,2%

95,4%

Within 8 days

3,2%

94,4%

Within 9 days

1,4%

96,8%

Within 9 days

2,1%

96,5%

More than 9 days

3,2%

100,0%

More than 9 days

3,5%

100,0%

 

Source: Poste Italiane, internal survey, year 2001 Source: ANES, year 2001

Limi

tations on sizes and weights – Impact on postal rates

The postal rate of a "direct mail package" depends on four main elements:

  • Item typology (common addressed direct mail – magazines and publications – mail-order offer – Etc.)

  • Size

  • Weight

  • Quantity

 

As the possible combinations are extremely numerous, this article will describe only PostaTarget (common addressed direct mail) and VPC (mail-order offer) specifications.

PostaTarget

It is the postal rate usually chosen for direct mail campaigns; customer is allowed to enclose promotional items or zero-value samples, and it is furthermore possible to use non-paper media (CD-ROMs, videotapes, etc.). It is not allowed to send goods intended for sale under this rate.

PostaTarget – Sizes and weight

 

PostaTarget – Rates (EUR)

Weight

1.000-9.999 pcs

10.000-50.000 pcs

50.001-100.000 pcs

100.001-200.000 pcs

200.001-500.000 pcs

0-20 g

0,31

0,29

0,28

0,27

0,26

21-50 g

0,34

0,32

0,31

0,3

0,29

51-100 g

0,36

0,34

0,33

0,32

0,31

VPC (mail-order offer)

This rate can be applied to any mail-order offer, whether for products or services. Mandatory condition is the enclosure of a reply order coupon.

VPC - Sizes and weight

 

Minimum Weight

10 g

Maximum Weight

2 kg

Minimum Size

9x14 cm

Maximum Size

45x45 cm

VPC – Rates (EUR)

Weight

Standard Rate

500.000 – 1.000.000 pcs

1.000.000 – 5.000.000 pcs

> 5.000.000 pcs

0-100 g

0,17

0,1601

0,1549

0,1498

101-150 g

0,22

0,2143

0,2066

0,2014

151-200 g

0,27

0,2686

0,2582

0,2505

Weight

Standard Rate

500.000 – 1.000.000 pcs

1.000.000 – 5.000.000 pcs

> 5.000.000 pcs

0-100 g

0,15

0,1394

0,1369

0,1343

101-150 g

0,2

0,1885

0,1859

0,1833

151-200 g

0,24

0,2324

0,2272

0,2247

The basic rule is that the less available data are, the more severe are the provisions to be complied with .

VPC special conditions for publishing houses – Rates

 

DATA PROTECTION IN ITALY

  • Lists publicly available

  • Life-style and profiled lists

  • Processing and communication of publicly available data are allowed only within the limitations and modalities laid down by laws and regulations with regard to their disclosure and publicity. Under such circumstances, processing and communication are permitted without the subject’s (natural or legal persons, bodies and associations, public administration) explicit consent. The information to be given to the data subject must be provided when collecting his or her data, before the beginning of the processing: it contains details about controller and processor, purposes and methods of processing and data subject’s rights.> They can be processed and passed on to third parties for marketing purposes only if the subject has been given the information and has given his or her explicit and specific consent. The opt-in system in force in Italy – while many EU countries have adopted opt-out system – has inhibited the creation of marketing lists. The data subject often does not express himself in any way (that is interpreted as if he has not given his consent and therefore data cannot be used) or he refuses to receive promotional and marketing messages. Consequently, marketing lists are of small size.
    Consent affects s only natural persons (B2C lists) and has great importance for e-mail and fax messages. Apart from Act n° 675/1996, laws regarding mail order and similar contracts and telecommunications require subject’s previous express consent for marketing messages sent by e-mail, fax or telephone without an operator, SMS, and for analysis researches.
    Even if an opt-in system is an obstacle for the creation of mailing lists, it is a decisive clue to discriminate and select one’s target group: a subject having given his consent is highly interested in receiving advertising messages. Opt-in produces smaller but more responsive lists.
    Opt-in is not required for data regarding subjects different from natural persons: any information about a firm can be processed and communicated provided that the subject has been given information and the right to object to the processing of data for purposes of direct marketing, commercial communication and advertising

For further information on the business activities of Addressvitt, please refer to Addressvitt  or check their company profile included in the FEDMA online membership directory.


Standard

Compact

Voluminous

Maximum Lenght

23,5 cm

35,3 cm

35,3 cm

Maximum Width

12 cm

25 cm

25 cm

Maximum Thickness

5 mm

2 cm

5 cm

Weight Limit

20 g

350 g

2 kg

They are the result of questionnaires, coupons (off-line and on-line) and other forms to be filled in with profiling information carried out by list brokers or direct marketers.
Easy to collect, these lists are not fit for marketing purposes because they lack profiling data.