Does mail advertising work even in a digital world?

TikTok videos, Instagram Reels, live on social shopping, artificial intelligence (AI), gamification – in an ever-changing marketing and advertising landscape, it can feel like there’s no room left for traditional tactics such as direct mail. However, even the earliest adopters of marketing tech would agree that there is a compelling argument for utilizing direct mail and developing a direct mail marketing strategy.

A recent survey by the Association of National Advertisers found that marketers reported the highest Return on Investment (ROI) with marketing campaigns that utilize postcards and letter-sized envelopes. Direct mail ROI is strong.

For those with a variety of products, catalogs can be highly effective. More than 60% of people who receive catalogs then visited the organization’s website. And catalog recipients are more likely to make an online purchase than people who did not receive a catalog, according to recent research from the U.S. Postal Service (USPS). In other research, the USPS found that more than half of all households read advertising mail. 

Why you should include direct mail in your advertising campaign

Marketers across industries report their direct mail campaigns are successful and effective. The numbers don’t lie. Does mail advertising work? Yes, direct mail advertising works and marketers should include direct mail in advertising campaigns, but it has to be done correctly and it cannot exist in a bubble. 

How effective is direct mail marketing vs. digital channels?

When it comes to direct mail vs. digital, direct mail stands up to a variety of digital marketing channels. As always, it is recommended that marketing campaigns be multi-faceted and utilize multiple channels to form a robust experience and a variety of touchpoints in a customer’s journey.

Perception plays a large role in direct mail marketing. For some, direct mail marketing will always be seen as “junk mail,” but older generations who enjoy getting mail every day don’t necessarily agree. Perhaps surprisingly, younger generations like Millennials and Gen Z feel the same way. Their digital lives are at the forefront and direct mail is often seen by young people as an organization going above and beyond to reach out instead of simply relying on a typical and easier email communication. 

Direct mail vs. email

As you can see, direct mail effectiveness is high when measured against email marketing on its own.   

• Direct Mail: Response rate between 2%-4% | Sales lift up to 49% | Viewed positively by younger generations
• Email Marketing: Response rate of 0.6% | Sales lift up to 28% | Occasionally viewed positively by younger generations

Moreover, response rates for direct mail can even be up to 9%, depending on the call to action (CTA) and avenues provided for response. Email CTAs are primarily direct and immediately actionable, so the increased response rate for physical mail is that much more impressive. Similarly, on its own, email marketing sales lift is valuable, but with an added boost from direct mail pieces used in conjunction, the sales lift can be dramatic. 

Direct mail vs. social media

Due to the cost of direct mail, organizations often choose to deploy it as a marketing tactic for current or past customers or highly targeted groups. Social media can be a cost-effective way to cast a wider net, make people aware of a brand and begin engaging them. Social media advertising can also reach people outside of an organization’s immediate customer base for a relatively small amount of money. 

However, the average organic (unpaid) social media post only reaches approximately 5% of an account’s established audience. The cost of social media advertising is rising and budgets are often limited when it comes to increasing the number of people a social media post or ad is shown to. When direct mail is received, 42% of people report reading it and 22% report at least having looked at it. 

Direct mail vs. online advertising

Online advertising (search engine ads) can be a good foundational investment for businesses. However, systems themselves can be complicated, organizations can end up spending far outside of their established budgets if they’re not paying close attention and many companies end up having to hire or contract with a specialist to set up and manage online advertising programs. Whether you do it yourself or work with a partner like Deluxe, direct mail marketing can be straightforward with an easy-to-track budget.

Direct mail vs. cold calling

While cold calling can be an effective way to reach prospects and receive an immediate response, that response is typically, “No.” That is, if the caller even reaches a person to speak with. The majority of cold calls go to voicemail and unknown numbers are often distrusted. Direct mail is less disruptive and the audience tends to be more receptive.

In the battle of direct mail vs. digital marketing, the statistics show direct mail is a solid marketing pillar, but that multiple channels – digital and analog – can and should coexist for the most effective marketing campaigns. 

Most effective types of direct mail

The data is clear that direct mail can hold its own against digital marketing channels. However, the great news is it doesn’t need to stand alone and, in fact, it shouldn’t.

What types of direct mail are the most effective? Direct mail effectiveness is strong when used in conjunction with other marketing tactics. One direct mail piece on its own is going to make less of an impact than one with a supporting email or social media follow up and vice versa.

The marketing specialists at Deluxe answer the question, “Why use direct mail?” and share their best advice for utilizing direct mail effectively: 

Rely on great data

There are dozens of life event triggers -- getting married, having children, purchasing a home, moving to a new location. Utilizing robust data to inform your direct mail campaign allows for greater targeting of consumers during these moments when they are highly likely to make purchasing decisions. Life event data provides a 200% lift compared to the average response of traditional campaigns, so there’s no doubt that direct mail campaigns precisely timed to these decision-making cycles can be highly effective.

Target the right mail recipients

Budgets are limited, right? So, start with existing customers before broadening the base to include new consumers. When investing in direct mail marketing, the familiarity factor is key. Unfamiliar, unsolicited and irrelevant mail is most likely to be tossed translating into wasted dollars, so the advantage goes to brands and companies mailing to current customers and/or people known to have an interest in the brand, organization or category in general.

Catch people’s attention

The very act of getting something in a physical mailbox today can be a disruption (a good one!) in and of itself. After all, the average person receives more than 120 emails per day. Email marketing is important, but just given the sheer volume of emails a person receives, it’s difficult to make and individual one stand out. However, whether it’s a coupon with a generous offer and a QR code for immediate redemption or a clever assemble-it-yourself collage, people will stop, interact, recall and, in many cases, hang onto that piece of direct mail – as long as it doesn’t look like every other piece of mail that’s in the mailbox.

Customize and track

Utilizing technology such as QR codes, custom phone numbers and tailored landing pages can help track leads coming through a direct mail marketing campaign. 

Pros and cons of direct mail advertising

Just as every marketing tool has its advantages and disadvantages, so does direct mail. However, smart, efficient direct mail campaigns are worth it for many brands and companies across industries. What are advantages of direct mail advertising and what are the disadvantages of direct mail?

Advantages of direct mail

• Can be easily targeted
• No opt-in required
• No spam filters
• Easy personalization
• Natural extension and highly complementary of other marketing tactics
• Measurable

Disadvantages of mail campaigns

• Can be cost prohibitive for some companies/brands
• Potentially low response rates
• Danger of being seen as “junk mail” or intrusive, if mail is sent too frequently

Final thoughts

Direct mail can be a powerful marketing tool when used wisely. Using the most up-to-date, high-quality consumer and mailing data helps ensure direct mail effectiveness, getting messaging into the right hands and, when used in conjunction with tools and additional digital channels, inspires people to take action.

The experts at Deluxe data-driven marketing know just how to do direct mail marketing and can demonstrate how direct mail can work for virtually any business, across industries and categories. Connect with us and together, we can create a direct mail campaign that will make a difference.