Advertising Mail is designed to support direct mail's role in the advertising market, and aims to ensure that direct mail campaigns remain cost effective when compared with other forms of advertising such as TV, press, outdoor and digital.

The move follows Postcomm's decision in February to relax price controls for 2011-2012, which have allowed the postal operator to impose price rises on bulk mail of up to 19%.

The price changes will come into effect on 9 May but, by using the Advertising Mail service, some regular users of direct mail will be face increased costs of just 2%, below the UK RPI of 4.9%.

Prices for higher volume business packet and mail services will increase by an average of 10%.

Mark Thomson, Royal Mail's media director, said: "Royal Mail is committed to promoting the role of direct mail as a standalone advertising activity or combined with other channels.

"In recent years we have invested in new mail and data solutions to help advertisers get even more from their direct mail campaigns. We will continue to do that."

He added that the direct mail market is really performing well.

"It is back as the consumer's favourite direct marketing channel and ROI has increased steadily in recent years. This is great news and something we are determined to build on," he said.

Danny Narey, operations director at Adare, welcomed the move, but said there was more to be done.

"I fully understand what Royal Mail is trying to promote through the use of Advertising Mail, and that they are trying to grow or at least maintain, the direct mail sector," he said.

"However, this product doesn't address the threat of decline in transactional mail volumes; and isn't the drive all about maintaining volume across the postal media in general?"