The marketing director of Royal Mail’s new B2B marketing division MarketReach has denied that it will compete with advertising agencies for business, as the service is unveiled.
Royal Mail’s new marketing offer, which aims to provide companies and their communications agencies with further marketing channels, will see the mailing organisation target to increase its share of the advertising market.
MarketReach, will include a number of services, such as targeted address and unaddressed marketing mail, as well as planning to creative and design services. Another aspect of its offer is a multi-media component that allows advertisers to integrate a TV screen, video and sound into a mail pack as well.
Antony Miller, Marketing Director for MarketReach revealed that the service was already working with around 50 clients.
Asked about his views on agencies being wary of the service encroaching on their offer, Miller explained; “I understand that. We are absolutely not an agency. This is a sort of a ‘pick ‘n; mix. We have got planning, we have got data, we got creative, we have production, etc, but what we’re not doing is selling it all as an end-to-end. We’re asking ‘which bit don’t you have and we’ll fill what you don’t have’. So agencies have come back to us and said that it adds another string to their bow.”
He continued; “Agencies are looking at it as a new business strategy. Clients are looking at it from a perspective of ‘I didn’t think of that idea’ and then the rest of the industry has said ‘anything that is keeping marcomms stable for growth is a good thing.”
Miller added that Royal Mail had now moved to a more “ITV strategy” which sold airtime through its postage, while also offering help with planning and production, offering other services should they be needed.
“It’s no secret that we are moving as a business and a strategy to attract investment over the coming years. To us this is an overall business. Our CEO has announced two initiatives; to make sure that we have a parcels business that matches home shopping needs and then to move into a full media strategy, which meant that we were a media owner in the same way as ITV, Clear Channel and arguably 02, in the way that they have become more ‘service-centric’.
Frank Schinella, managing director of Royal Mail’s Media Business, explained to thinking behind MarketReach; “Royal Mail has launched MarketReach to provide advertisers and agencies with the expertise and skills needed to add a real element to campaigns which are increasingly digital.
“We know that in a competitive environment, getting your message across to customers in a planned, targeted and impactful way is integral to business success. Mail is a great way to complement and integrate digital advertising, adding a real element to a campaign.
“We want to help advertisers and agencies by providing the skills and expertise to make it even easier to add mail to their marketing activities. By working across the value chain, Royal Mail aims to increase its share of the £16 billion advertising market.”
The service has been recruiting since last year, hiring media planners, production people, recruits from the Tesco and the COI, explained Miller. Advising the organisation on implementing the framework has been former Ogilvy & Mather executive planning director Mark Earls and former chief innovation officer for PHD John Willshire.
The organisation includes six planners, three production members and a total marcomms force of around 90 people based in a newly built location in London that is scheduled to be complete by August.