Direct Mail

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Direct mail marketing touches most of us every day, at home and at work.  The volume of direct mail consumers receive is so high that many refer to it as "junk mail."  Direct mail hasn't disappeared, but has certainly declined in volume over the past 10 years. However, more marketers are adding mail to their array of integrated marketing tactics, because the engagement is growing as the clutter declines.

By definition, direct mail advertising is the process of sending offers or promotions by mail to current customers or others who may be prospects. Direct mail pieces may include a sales letter, brochure, order form and a prepaid envelope. Some companies advertise in a magazine-format piece or collection of inserts, combining with other companies for a more cost-effective effort.

  • 66% of consumers say direct mail makes them aware of neighborhood stores, restaurants and services.
  • 45% of consumers say seeing an ad in both print and online captures their attention.

(Source: Vericast, This Direct Mail Moment, 2022)

  • 62% of consumers say that direct mail has influenced their behavior.
    • 43% visited the product or businesses site
    • 31% visited a retail location to check out the product
  • (Source: Lob/Comperemedia 2022 State of Direct Mail)

  • 40% of consumers sometimes share direct mail with friends and family.
  • 72% of consumers immediately read direct mail immediately or read it the day they bring into their home. 
    • 63% of consumers keep their direct mail pieces for a maximum of two days 

    (Source: Lob/Comperemedia 2022 State of Direct Mail)

    The following lists the format consumers are most likely to read by industry:
  • Retail- 53% catalogues/magazines
  • Healthcare- 45% letters & envelopes
  • Financial Services- 48% letters & envelopes
  • Local Business- 46% brochures
  • (Source: Lob/Comperemedia 2022 State of Direct Mail)

  • 74% of consumers said that they can be swayed by advertised promotions & sales
  • 71% of consumers ranked saving the most money by “using coupons and discounts” as the second most important thing when going grocery shopping.
  • Affluent consumers love coupons and enjoy using them.
    • 79% of affluent consumers use coupons when planning their shopping.
    • 79% of affluent consumers think it’s exciting to discover a coupon or discount on a product they were already thinking of buying 
    • 64% of affluent consumers state that a coupon or discount helps to speed up their purchase decision
  • (Source: 2021 Valassis Consumer Intel Report)

    Direct mail and COVID

    The pandemic has allowed people to slow down and appreciate the things they didn't have time to before, including direct mail. According to a Valassis study, consumers have been looking forward to what they'll find in their mailbox.

    • 68% of consumers use coupons they recieve in the mail. 
    • 46% of consumers say an ad in the mail encorages them to go online for more information about that advertiser.
    • 41% of consumers say receiving an ad in the mail encourages them to go online to make a purchase from that advertiser. 
    • 34% are spending more time reading direct mail ads now vs. before the pandemic.
    • 31% are more excited to receieve their mail each day vs. before the pandemic.  

    (Source: Vericast, This Direct Mail Moment, 2022)

    Direct Mail Advertising relies heavily on commercial markets with nearly 80% of all revenue coming from such market. The breakdown is:

    • 33% - Finance, banking and insurance providers
    • 29% - Retail stores and catalogs
    • 16% - Government, NGOs and households
    • 11% - Telecommunications and cable service providers
    • 8% - Other
    • 3% - Travel 

    (Source: IBISWorld – Direct Mail Advertising, 2021)

    Direct Mail Revenue

    • In the fiscal year of 2021, USPS gained the majority of their revenue (33 million) with shipping and packages services. Other segments include: 
      • First-class mail - 23.3 million 
      • Marketing mail - 14.6 million
      • International - 2.2 million
      • Periodicals - 942 million
      • U.S. Postal Service Mail - 280 million
      • Free Matter for the Blind - 20 million
      • Other - 3.9 million

    (Source: United States Postal Service, FY 2021 Annual Report to Congress)

    For Additional Information on Direct Mail Marketing:
    Direct Marketing Association (DMA): http://thedma.org/
    United States Postal Service (USPS): https://www.usps.com/business/promotions/direct-mail-brochure.pdf


    A well-designed direct mail piece makes it easy for prospects to respond by including a response card of a postage-paid envelope for privacy
    Response rates are easily measured – pieces can be coded so the business can determine where customers are coming from
    Businesses can build databases based on responses to mailings, and maintain current database
    Mailings can be targeted within specific geographic areas or by interests of recipients
    Even though costs are high, scale and ROI remain strong when direct mail is delivered to a well targeted audience
    Flexible – can be as simple as a card of flyer or may contain an actual free product sample
    Messaging can be personalized with the intended recipient's name – well-designed pieces can make the recipient feel that the piece was created expressly for them, engendering a feeling of trust
    Can be cost effective, depending on design and production methods
    There's no limit to the length of the message – can be a few lines on a postcard or a sophisticated package
    Direct Mail is less disruptive in comparison to online ads

    Cost of designing and producing an effective direct mail advertisement can be high
    Timing of distribution is often critical to direct mail campaigns, but design, production and mailing times can be difficult to predict
    The mailbox is typically a cluttered environment – the direct mail piece is delivered with many other pieces
    Targeted mailings are only as good as the mailing list used – addresses can be out of date. Some consumers will ignore direct mail pieces because they feel that the print mail/catalogs seem like they serve other people's needs, not people like me
    Targeted mailings are only as good as the mailing list used – addresses can be out of date. Some consumers will ignore direct mail pieces because they feel that the print mail/catalogs seem like they serve other people's needs, not people like me
    (Source: Marketing Sherpa)
    Privacy policies – "Do Not Mail" lists
    A single mailing seldom produces results, so multiple mailings over time are required, accumulating costs
    The great amount of direct mail that is tossed has environmental implications, and that fact alone may lead some consumers to object to this form of advertising

    Radio is a perfect complementary medium. It can help direct mail. Radio as a standalone medium can generate a 29% lift in search.
    (Source: RAB: Radio Drives Search, Sequent Partners, Media Monitors, In4mation Insights, 2017)
    Consumers hear only one radio ad at a time, in contrast to the clutter of many pieces of mail delivered at once
    Radio generates new customers by branding an advertiser. Consumers who are familiar with a brand may be more receptive to direct mail pieces they find in their mail. Radio ads run concurrently with a direct mail campaign can educate consumers about the business and direct them to check their mailboxes for more detail, ordering, etc. Radio can amplify a campaign's impact. In fact, radio can drive awareness lift of a direct mail campaign by 78%.
    (Source: Nielsen study of 4 advertisers in B2B, Auto Aftermarket and Motorcycles)
    Radio Ad Lab and other studies since then have established that listeners feel a personal connection to the radio stations they tune to, so hearing an ad on radio and finding a direct mail piece in the mailbox for the same business may alleviate the perception that they're receiving junk mail


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