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