Demand Elasticities at the Intensive and Extensive Margins for Advertising Mail Traffic in the UK

Frédérique Fève, Thierry Magnac and Soterios Soteri
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Frédérique Fève: University of Toulouse
Soterios Soteri: Royal Mail Group

A chapter in The Changing Postal Environment, 2020, pp 213-224 from Springer

Abstract: Abstract Advertising letter mail competes for marketing budgets against a range of different media types. Since the early 2000s, its share of total advertising expenditure in the UK declined by approximately half to account for less than a tenth by the end of 2018. However, advertising mail remains an important component of UK letter volumes, accounting for over three billion items and around a third of addressed inland letters in 2018. A number of factors impact the demand for advertising letters, some outside the control of postal operators and decision-makers (such as economic conditions and advances in new technology), but price is a factor that can influence demand. Here we investigate advertising price elasticities using a rich source of UK customer data.

Date: 2020
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Working Paper: Demand elasticities at the intensive and extensive margins for advertising mail traffic in the UK (2020)
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DOI: 10.1007/978-3-030-34532-7_16

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