Mail in the loans sector

With banks affected during the downturn, personal loans are down. But although the personal loans advertising market is stuggling, direct mail had the largest proportion of the personal loan sector's 2008 ad spend at 61% (£32m).

This 2009 MMC report uses data from TGI, Billetts, Mintel and BMRB to examine the loans sector. It reveals that direct mail provides an opportunity to gain share of voice with younger, under-mailed age groups and ABC1s.

Other key findings include:

• ABC1s are more likely to be loan holders than C2DEs, yet receive only 44% of the mailings.

• Loan mailings enjoy the highest opening rate of all the financial sector mailouts at 94%.

• Mail is a useful tool for generating word of mouth in this sector, with high responders more likely than heavy users of other media to influence others about a financial services brand.