1. Consumer insights – direct mail and the leisure and entertainment sector
April Author: MMC
Sources: BMRB, Billetts, TGI, Mintel
The strengths, weaknesses and marketing opportunities of this £70bn UK sector – which covers in-home and out-of-home activities from gambling to galleries to gym-going. It also analyses responses to different media among key age groups and social classes.

2. Snapshot of the market Economy
The overall value of the out-of-home leisure industry declined by 1.5% in 2009, reflecting the impact of the recession on consumer spending behaviour. However, it remains a substantial industry worth approaching £70 billion per annum.
The recession has increased consumers’ focus on value for money and operators have been forced to react to this by introducing more competitive offers.
Market
Traditional leisure activities such as drinking in pubs/bars have seen participation levels dip in recent years as the smoking ban and recession make themselves felt. Eating out remains the most popular out-of-home leisure pursuit, although there has been a slight dip in the past two years. The huge penetration of eating out underlines the way in which it has become ingrained into society as something which is done regularly rather than just on special occasions.
Cultural attractions such as museums and art galleries have seen strong growth. Many such venues are free to enter and this has been a particular attraction to families in the recession.
Cinema has seen growth, reflecting the fact that it is seen as offering good value for money in terms of entertainment per pound spent and therefore popular in recession when times are hard and money tight.
With 90% of households connected to digital TV, viewers have increased control over ‘when’ and ‘how’ they watch thanks to hard drive-based video recorders and online catch-up services. The resulting effect is viewers are more able to watch TV based around their own schedules, not the broadcasters’.
Consumers
Concern about unemployment underlies the continuing poor state of consumer confidence. This is afflicting both the youth market (where unemployment is particularly high) and also the family market, where consumers are reluctant to invest in large-scale leisure spending when they face the prospect of a pay freeze, pay cut or even losing their job.

3. Entertainment and leisure sector - strengths and weaknesses
High value
Leisure remains a huge area of consumer spending, valued at almost £70 billion in 2009.
Introduction of new leisure activities
An up-and-coming sector is gambling, which has made the transition to respectability thanks to the Lottery and the development of online gaming.
Entertainment on demand
The economic downturn will also have a positive effect on the on-demand market, as consumers spend more time at home and reduce the frequency of their out-of-home leisure activities.
Weaknesses
Legislative burden grows
The burden of legislation on the leisure industry has increased steadily during the past five years.
Increased overheads
Operators have also been troubled by a huge increase in their overheads, ranging from higher staff costs due to sharp rises in food and utility costs.
Planning regulations
Planning regulations have impacted considerably on the type and location of leisure developments in recent years, driving activity into the town centre, to the detriment of some sectors which require large footprint sites.
Source: Mintel Weekday Leisure Time UK May 2009 3

4. What are the top five types of entertainment mail sent?
Number of mailings sent by the entertainment sub market
Competition mailings are the most common form of entertainment mail sent.
Over the past 12 months, consumers have been sent 29,364,313 competition mailings.
Source: Billetts January – December 2009

5. Direct mail consumers enjoy a wide range of entertainment activities…
Top media quintiles (index)
Adults who take part in leisure and entertainment activities are more likely than average UK adults to be heavy respondents to direct mail.
Heavy responders to direct mail visit gyms, watch plays, visit art galleries and are interested in individual sport. They also gamble and take part in competitions.
Source: TGI 2009 Q4

6. And they are responsive to direct mail…

7. Theatre-goers respond to direct mail
It is vital that marketers look beyond traditional response rates when judging the full return on investment of mail. Research shows significant value is delivered beyond the initial interaction.
55% of adults who are theatre-goers have done something in the past 12 months as a result of the direct mail they’ve received.
Bought something
37% bought or ordered something
9% made an enquiry or asked for more information
28% used a coupon
8% tried a new product or service
16% visited a store
25% kept it for later use
9% passed it on
7% paid more attention to ad
Asked for something
Did something
Source: TGI 2009 Q4

8. Art gallery visitors respond to direct mail
It is vital that marketers look beyond traditional response rates when judging the full return on investment of mail. Research shows significant value is delivered beyond the initial interaction.
54% of adults who visit art galleries have done something in the past 12 months as a result of the direct mail they’ve received.
Bought something
36% bought or ordered something
9% made an enquiry or asked for more information
28% used a coupon
8% tried a new product or service
15% visited a store
25% kept it for later use
9% passed it on
6% paid more attention to ad
Asked for something
Did something
Source: TGI 2009 Q4.

9. Gym goers respond to direct mail
It is vital that marketers look beyond traditional response rates when judging the full return on investment of mail. Research shows significant value is delivered beyond the initial interaction.
53% of adults who are gym goers have done something in the past 12 months as a result of the direct mail they’ve received.
Bought something
36% bought or ordered something
11% made an enquiry or asked for more information
26% used a coupon
7% tried a new product or service
15% visited a store
25% kept it for later use
10% passed it on
7% paid more attention to ad
Asked for something
Did something
Source: TGI 2009 Q4

10. Adults interested in individual sports respond to direct mail
It is vital that marketers look beyond traditional response rates when judging the full return on investment of mail. Research shows significant value is delivered beyond the initial interaction.
53% of adults who are interested in individual sport have done something in the past 12 months as a result of the direct mail they’ve received.
Bought something
33% bought or ordered something
8% made an enquiry or asked for more information
24% used a coupon
7% tried a new product or service
14% visited a store
20% kept it for later use
8% passed it on
6% paid more attention to ad
Asked for something
Did something
Source: TGI 2009 Q4

11. Adults who often enter competitions respond to direct mail
It is vital that marketers look beyond traditional response rates when judging the full return on investment of mail. Research shows significant value is delivered beyond the initial interaction.
53% of adults who often enter competitions have done something in the past 12 months as a result of the direct mail they’ve received.
Bought something
38% bought or ordered something
11% made an enquiry or asked for more information
32% used a coupon
11% tried a new product or service
18% visited a store
22% kept it for later use
11% passed it on
8% paid more attention to ad
Asked for something
Did something
Source: TGI 2009 Q4

12. Adults who bet and gamble respond to direct mail
It is vital that marketers look beyond traditional response rates when judging the full return on investment of mail. Research shows significant value is delivered beyond the initial interaction.
52% of adults who regularly or occasionally take part in gambling have done something in the past 12 months as a result of the direct mail they’ve received.
Bought something
36% bought or ordered something
9% made an enquiry or asked for more information
27% used a coupon
8% tried a new product or service
17% visited a store
22% kept it for later use
9% passed it on
7% paid more attention to ad
Asked for something
Did something
Source: TGI 2009 Q4.

13. How do people follow up a piece of direct mail
Response to direct mail received in the past 12 months (000s)
Take part in betting (in past 12 months)
Visit gym
Watch plays
Visit art galleries
Interested in individual sport
Often enter competitions
Using a landline phone
526
102
307
313
1,738
423
Using a mobile phone
168 24 36 53
414
112
By post
487 93
237
220
1,425
476
In person, eg visit to shop
820
192
482
532
2,849
688
Through the internet
565
131
345
406
1,999
469
Via
184 37
104
107
525
160
Almost 3 million people who exercise at the gym, followed up direct mail in person, for example, by visiting a shop.
Source: TGI 2009 Q4

14. Voucher redemption Use of vouchers in past 12 months (000s)
16m people who are interested in individual sports always use money-off coupons.
8.4m have used a voucher or coupon sent to them by direct mail.
Use of vouchers in past 12 months (000s)
Source: TGI 2009 Q4

15. Most entertainment mailings were sent to C2DEs
Entertainment, media and leisure sector direct mailing by social class and gender, June 2008 to May 2009 (%)
57% of entertainment mailings were targeted at C2DEs.
ABC1s were only targeted by 43% of entertainment mailings.
Men were targeted by 52% of all entertainment mailings.
Source: Billetts 2010

16. Most entertainment mailings are sent to people aged 45+
Entertainment, media and leisure sector direct mailing by age, June 2008 to May 2009 (%)
Adults 65+ were targeted the most, by 39% of all entertainment mailings.
78% of mailings were sent to adults aged 45 and above.
Only 22% of mailings were sent to adults aged
Source: Billetts 2010

17. However, most entertainment consumers are ABC1s
Entertainment, media and leisure sector direct mailing by social class and gender (%)
81% of art gallery visitors are ABC1.
78% of theatre-goers are ABC1.
63% of gym goers are ABC1.
60% of adults interested in individual sports are ABC1.
Adults that regularly or occasionally bet and often enter competitions tend to be C2DE - 50% and 52% respectively.
Source: TGI 2009 Q4

18. And many entertainment consumers are under 45
Entertainment, media and leisure sector direct mailing by age (%)
48% of art gallery visitors are under 45.
44% of theatre- goers are under 45.
65% of gym-goers are under 45.
60% of adults who regularly or occasionally take part in betting are under 45.
54% of adults who often enter competitions are under 45.
Source: TGI 2009 Q4

19. Betting & gambling except lottery Played individual sports
Reasons to open mail
Leisure and entertainment (%)
All Adults
Betting & gambling except lottery
Often
enter competitions
Played individual sports
Visited gym
Visited theatre
Visited art gallery
If it's a bank statement
97%
96%
98%
If it's a bill
95%
If I am the customer of the sender
90%
92%
91%
If it makes a sound (for example music)
43%
44%
54%
46%
39%
If it has a smell (for example the scent of a product)
41%
42%
38%
If it contains something you can taste
61%
48%
If it contains a catalogue
57%
52%
71%
59%
If it contains a magazine
69%
66%
84%
70%
72%
If it contains a coupon
79%
81%
85%
78%
If it contains a free sample
68%
67%
If it contains an interactive DVD
51%
64%
49%
If it's something I have requested
77%
If I am already considering buying the type of product
75%
73%
74%
76%
Source: BMRB Royal Mail Q1 2010

20. Betting & gambling except lottery Played individual sports
Reasons why people don’t open mail
Leisure and entertainment (%)
All Adults
Betting & gambling except lottery
Often
enter competitions
Played individual sports
Visited gym
Visited theatre
Visited art gallery
If my name is spelt incorrectly
33%
36%
31%
If it's addressed to 'the occupier'
50%
53%
49%
51%
54%
If I don't know who it is from
35%
28%
29%
30%
If it is from a company I have heard of but don't deal with
45%
48%
42%
44%
46%
If I've had too much mail on that day
24%
25%
26%
20%
If I've seen the same information before
61%
62%
63%
Source: BMRB Royal Mail Q1 2010

21. Betting & gambling except lottery Played individual sports
Attitudes to mail
Leisure and entertainment (%)
All
Adults
Betting & gambling except lottery
Often
Enter Competitions
Played individual sports
Visited gym
Visited theatre
Visited art gallery
I tend to open all of my post
84%
80%
89%
83%
82%
I keep bills and statements
86%
92%
88%
I often keep printed brochures/leaflets to read at my leisure
46%
44%
59%
I like receiving money-off vouchers, special offers or coupons
75%
77%
76%
81%
71%
I like to receive customer magazines
38%
41%
62%
43%
37%
I like to receive catalogues
34%
31%
51%
33%
36%
35%
I welcome receiving mail from companies I'm already a customer of
61%
60%
57%
56%
I would like my bank to stop sending me paper statements
27%
28%
26%
30%
29%
I prefer to get paper bills and statements rather than access them online
63%
66%
58%
55%
I'd like my bank/utility/phone/supermarket to write to me
45%
54%
42%
When researching a purchase online, I'd like the option of requesting more information by post
49%
48%
50%
I would like Royal Mail to offer a service so that I could tell them what mailing I'm interested in
64%
65%
Source: BMRB Royal Mail Q1 2010

22. Summary
The competitions sub market sends the largest amount of mailings in the entertainment sector.
However, consumers of direct mail enjoy a much wider range of entertainment activities.
Most entertainment mailings are sent to C2DEs aged 45+.
However, most entertainment consumers are ABC1 and aged under 45.
This presents a missed marketing opportunity to many entertainment advertisers.

23. Appendix Details of research surveys and terms used 23
BMRB
Royal Mail uses BMRB to pose additional questions to BMRB TGI respondents. A nationally representative sample of 2,000 respondents aged 16+ are drawn from the latest rolling TGI and re-contacted using CATI (Computer Assisted Telephone Interviewing). Their responses are then merged with their TGI data.
Billetts Media Monitoring A Division of Ebiquity A single source survey providing fast and accurate estimates of media expenditure in the UK across press, TV, radio, internet (including paid search), outdoor, cinema, direct mail and door drops. Billetts Media Monitoring also provide a continuous monitor of consumers’ attitudes to direct mail.
Mintel International Group
Mintel is an independent award-winning provider of world-leading market intelligence, delivering robust information, analysis and critical recommendations. Mintel's trusted portfolio of proprietary industry solutions and products has been supporting high profile clients in key sectors such as FMCG, financial services, media, retail, leisure and education for over 38 years. With office locations in London, Chicago, New York, Shanghai, Tokyo and Sydney our global presence continues to grow.
Nielsen
The Nielsen Company is the global leader in multinational media research and analysis. It is active in 40 markets, offering TV and radio audience measurement, advertising information services, print readership and customised research services.
Royal Mail Consumer Panel
TNS has run a Consumer Panel for Royal Mail since 1985, measuring all consumer activity in relation to Royal Mail including full details of all mail received and sent. Information collected from panel members’ diaries is used to estimate consumer mail volumes for the UK. The panel is based on a representative sample of 1,000 households in the UK (from a live panel of 1,350 households).
TGI
TGI is a continuous, single-source survey of consumer demographics, usage habits, lifestyles, media exposure and attitudes. Established in 1969, the survey provides accurate and independent marketing information on GB adults aged 15+. Annual sample size 24,000. Published by BMRB.
Quintile Media quintiles are created by separating media consumers into equal fifths from the heaviest to the lightest 20% in terms of their consumption of each medium. 23

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