Direct Mail Advertising

Advertising and Media

Direct Mail

• All forms of advertising sent directly to prospects through a government, private or electronic mail delivery service

• Most direct line to consumers• Third most common form of

advertising behind newspapers and TV– 20% of all ad dollars spent in 2005

Types of Direct Mail Advertising

• Dimensional direct mail – 3D shapes and unusual sizes/textures

• E-mail – best used for customer retention and relationship management

• Sales letters – Most common• Postcards – used to announce

sales and special offers

Types of Direct Mail Advertising

• Business reply mail – recipient can reply at no cost

• Folders and brochures – colorful and image rich

• Broadsides – larger than folders, used as window displays and can be folded for mailing

• Self-mailers – any form of direct mail that can travel without an envelope

Types of Direct Mail

• Statement stuffers – ads enclosed in monthly customer statements from banks, retailers, etc.

• House organs – publications produced by associations or business organizations (newsletters, shareholder reports)

• Catalogs – reference tools that list, describe and picture products

Pros & Cons of Direct Advertising

• Pros– Selectivity– Extensive reach & coverage– Flexibility– Control– Personal impact– Exclusivity– Response– Testibility

Pros & Cons of Direct Advertising

• Cons– High cost per exposure– Delivery problems– Lack of content support– Selectivity problems– Saturation– Environmental concerns– Negative attitudes– Antispam laws

Components of Direct Mail

• The mailing list– 60% of the success of the mailing

• The offer– 25% of the success of the mailing

• The creative package– 15% of the success of the mailing

The Mailing List

• House lists – company’s own database of current, recent and long-past customers, as well as identified prospects– Gathered from registration forms and

customer management programs• Mail response lists – house lists of other

direct-mail advertisers; which can be rented with a variety of demographic breakdowns

The Mailing List

• Compiled Lists – lists are those that some entity compiles for a different reason and the rents or sells– Offer the lowest response rate

• List brokers manage the rental of direct mail lists for a commission

• Prices vary but average about $55 per 1,000 names

Developing the Offer

• Every direct mail package should include an offer– Incentive or reward that motivates

prospects to respond• Offers should be clear, specific,

believable, and easy to acquire• Offers should present a sense of

URGENCY!!!!!!!!

Creating the Package

• Developed in-house or by an ad agency or freelance designer– Some agencies specialize in direct

mailings• Similar production process as a

print ad• Letter shops can perform remaining

production and handling tasks

Specialty Advertisements• Advertising specialty is a promotional

product that is distributed free as part of a marketing communications program– Imprinted with the advertiser’s name,

message or logo• Premiums typically are given to

consumers as a reward for purchasing a product, attending a demonstration, etc.

Specialty Advertisements

• Consumer Specialties– $3 to $5 specialties are common

since consumers associate the quality of the specialty with the quality of the advertised product

• Inappropriate specialty items can backfire

Ads can be placed anywhere a consumer might see it