Download Direct Mail Advertising

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
• B to B Specialties
– Designed to promote goodwill
standing over competitors
• Inappropriate specialty items can
backfire
Ads can be placed anywhere
a consumer might see it