Direct Mail in a Multimedia World
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Transcript of Direct Mail in a Multimedia World
Direct Mail in a Multimedia WorldDarrell Edwards VP of Marketing
Mspark
Advertisers Still Prefer Direct Mail
The effectiveness of Direct Mail is measurable, more so than for
any other media listed.
Source: Winterberry; TVB; NAA; CAB; RAB; IAB/PricewaterhouseCoopers; OAAA
** Newspaper ROP/Inserts includes National and Retail expenditures, and does not include internet advertising expenditures. ***Out Of Home replaces Billboards, to include billboards on buses, etc…
Direct Mail Broadcast TV Internet Cable TV Radio Newspaper ROP Inserts
Out-of-Home News Online
$45.2$49.6 $36.6 $24.4 $15.7 $14.3 $6.7 $3.4
Annual U.S. Advertising Expenditures(in billions)
Who Says Direct Mail is Dead?“Those marketers who still fully embrace traditional marketing tools such as print catalogs and direct
mail have an opportunity to stand out to consumers bombarded by digital
pitches.”
“But these print channels rarely stand alone. Many of
the brands that use print media within their direct marketing efforts weave digital tightly into their
campaigns. This approach is becoming a must .”
Using direct mail as a foot into the consumer’s door—and then inviting them to connect via another channel—makes great
sense.
"We're seeing mail being used in some tremendous new ways—especially as
part of integrated marketing campaigns,"
"You can use mail to launch a video on a smart phone, or to
make quick purchases out of a catalog or a flyer. We're now able
to measure and analyze all of these interactions—that's adding
value for senders and causing marketers to give mail a fresh
look.“
"Our industry needs to give all marketers a sense that mail can be used in new ways," "We need to drive a better understanding of the value mail brings to integrated marketing campaigns. Mail is the most effective channel for driving customers to a retail location and
for driving customers to websites."
- Patrick R. Donahoe, Postmaster General
Direct Mail Works Until you see the USPS cutting down the
mailboxes in your neighborhood….
Direct Mail is Very Much Alive !!
Direct Mail WorksAccording to Direct Mail News, in 2012 the average response rate for direct mail was 4.4% for both business-to-business and business to consumer mailings—considerably higher than industry expectations, and surging past electronic mail’s response rate of just 0.12%. - See more at: http://www.onlinemarketinginstitute.org/blog/2013/06/why-direct-mail-still-yields-the-lowest-cost-per-lead-and-highest-conversion-rate/#sthash.fpueaFcu.dpuf
According to the Direct Mail Association (DMA) Factbook for 2013, 65% of consumers of all ages have made a purchase as a result of direct mail. - See more at: http://www.onlinemarketinginstitute.org/blog/2013/06/why-direct-mail-still-yields-the-lowest-cost-per-lead-and-highest-conversion-rate/#sthash.fpueaFcu.dpuf
And what about ROI?
Source: DMA, 2012 Response Rate Report
Media Penetration
Ads looked at or made purchase from in the last 7 days
Readership% of HHs that read
print ads
Response% of HHs that made
one or more purchases as a
result of print ads
49%42%
22%6%
15%7%
Total Ad Mail
Shared Mail
Total Sunday ROP
Total Sunday Retail Inserts
Total Daily ROP
Total Daily Retail Inserts
7 out of 10 read
Shared Mail
4 out of 10 purchased
from Shared Mail
Source: Advertising Readership & Response Tracking Study, TNS Custom Studies, NFO WorldGroup
Total Ad Mail
Shared Mail
Total Sunday ROPTotal Sunday Retail
InsertsTotal Daily ROP
Total Daily Retail Inserts
83%72%
0.480.38
0.350.33
Newspaper Advertising Mail
Readership & Response
69.0%
59.0%
58.0%
51.0%
24.7%
17.9%
New Normal = Coupons Still Very Popular
Do you redeem coupons in any of the following ways? (Check all that apply)
Source: BIGinsight MBI, 12.13
Scan them on my smartphone at the checkout (+10% change)
Download them to my frequent shopper card (+6% change)
Print them out from a website (-2% change)
Print them out from an email (-3% change)
Cut them out or bring them in from other sources (-3% change) (e.g. newspaper, magazines)
Cut them out from advertising inserts (0% change)
Total Adults
Traditional MediaDigital Media
More Direct Mail Coupons, Please
Bridging to Digital Media
Print Drives Digital Response58% of people said they were more likely to click on a search link for a company if they’re received something in the mail.
67% refer to physical mail when searching for a new product or service online.
Direct mail can also improve the performance of other channels. For example, the TV component of campaigns is 37% more effective when direct mail is in the media mix. In the report Tess Alps, chief executive of Thinkbox says: “Direct mail can satisfy those appetites that TV provokes.”
Source: Mail Media Centre Report
Multichannel: Optimize the path to purchase
Direct Mail: Remains a Strong Media!
Deals: Digital or Traditional, deals are still a big deal
What Does It All Mean?