Direct mail provides ’solid ROI’

Posted by Dean on 17 Sep 2010 | Category: Industry Trends

by Mark Haslan

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Though businesses now have more communication channels to reach consumers than ever before, marketing expert David Jackson recently argued on Promotion World that direct mail marketing is still an effective way to generate sales.

Jackson asserts that a properly executed direct mail campaign still provides a "solid return on investment." Citing a recent study conducted by the Direct Marketing Association, he says that direct mail marketing expenditures are expected to increase by more than $1 billion during 2010.

Consumers are also eagerly welcoming the influx of mailers. Referring to the same study, Jackson claims 79 percent of U.S. households either completely read or skim through direct mail messages sent to their homes. Meanwhile, a survey conducted by postal automation firm Pitney Bowes found that consumers still prefer physical mail over digital communication channels, relays the source.

Consumers are especially accepting of postal messages containing confidential statements or new product announcements. Jackson writes that

  • 73 percent of respondents prefer direct mail to receive information about new items,
  • while 86 percent would rather receive private communications through postal mail.
  • In both cases, consumers reveal a strong preference for postal messages over digital mail.

Pitney Bowes’ survey also indicates that

  • 31 percent of mail recipients tend not to throw away unopened postal messages, ranging from brochures to envelopes,
  • whereas 53 percent are likely to delete unopened email messages.

Additionally, many consumers find direct mail to be less intrusive than unsolicited emails and phone calls.

  • Nearly half of respondents (43.2 percent) said direct mail was more convenient,
  • while 30.2 percent indicated the sales environment was less high pressured.
  • This translated into greater responses overall, with 12 percent claiming direct mail was more persuasive.

"If you haven’t considered trying direct mail, maybe you should. A properly executed direct mail campaign combined with online marketing methods could be an unbeatable combination," Jackson wrote.

The effectiveness of direct mail marketing has caused many businesses to adopt the channel. According to a recent report from the Global Insight Analysts, direct mail expenditures are expected to hit $25.45 billion globally by 2015. The firm cites direct mail’s physical presence as its biggest selling point, especially in comparison to digital channels.

Global ad spend on direct mail to increase through 2015

Posted by Dean on 15 Sep 2010 | Category: Industry Trends

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While many businesses are increasingly adopting digital marketing practices, new research conducted by Global Industry Analysts indicates that companies are also boosting their ad spend on direct mail marketing materials.

As Global Industry Analysts notes, direct mail has numerous advantages over other advertising mediums.

  • The platform has the unique ability to affect consumers’ sense of touch,
  • and mailers are also often personalized, maximizing the impact pieces can have on consumers.
  • Additionally, the source claims that customers treat postal mail with higher regard in comparison to other marketing channels.

According to the report, the direct mail industry is gaining steady momentum in today’s digital world. Global Industry Analysts predicts that global marketing expenditures for postal mail will reach $25.45 billion in the immediate and near future.

The growth of the platform is largely buoyed by the effectiveness of the channel to reach consumers regardless of their income. Whereas online, television and other platforms depend on potential customers subscribing to a service to receive a message, anyone with a home can be contacted through direct mail.

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In an effort to stave off advances by other platforms, companies are beginning to innovate the way they design creative pieces. For example,

  • multidimensional mailers can help entrepreneurs create lasting impressions on consumer.
  • Global Industry Analysts predicts that, as a result, the market for creative direct mail development will reach $200 million before 2012 in the United States.

Additionally, direct mail can be used to bolster the effects of digital marketing campaigns. For instance, using tracking technology, businesses could send consumers an email message on the same day a direct mail piece is set to arrive or they could use QR codes to drive recipients online to their retail websites.

"The direct mail advertising market will also stand to benefit from the growing importance of one-to-one interactive marketing and its role in effectively engaging thousands of prospective customers on a personal level," says the source.

Global Industry Analysts’ report echoes recent research conducted by MagnaGlobal. According to the marketing insights firm, direct mail will account for $19.17 billion ad spend worldwide during 2010, making it the top channel globally. MagnaGlobal expects direct mail to be used primarily by large corporations, though small and mid-size business owners will similarly be able to effectively integrate it into their marketing initiatives.

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