Direct Mail vs Digital
Having trouble deciding what the appropriate marketing mix is between direct mail and digital? You’re not alone. According to the 2015 DMA Response Rate Report, marketers continue to embrace multi-channel marketing with 44% of respondents surveyed using three or more channels for their marketing efforts. In these instances, the most popular channels tend to be email, direct mail and social media.
The report cited 82% of respondents expect to use the same amount or more of direct mail in the coming year. While fewer companies reported using direct mail, that can be advantageous for those who do — in the form of less competition in the mailbox vying for your prospects’ attention.
Format Matters
As can be expected, format plays a significant role in DM response rate. The report found that oversized envelopes have the best response rate at 5.0%, followed by postcards at 4.25%, dimensional 4.0%, catalogs 3.9%, and letter-sized envelopes 3.5%.
Comparing ROI
As marketers are increasingly pressed to justify ROI, it’s reassuring to discover both direct mail and digital offer strong returns on marketing investment. The report cited that DM offers the same ROI as social media (15-17%) with an average rate of return of 0.5% – 2%. In terms of cost-effectiveness, cost-per-acquisition of DM versus digital was reported as follows: Direct mail: $19; Mobile: $16-18; Social Media: $16-18; Paid Search: $21-30; Internet Display: $41-50; Email: $11-15.
Match Offers With Channels
According to the DMA, the offer that you’re promoting is an important factor in deciding the appropriate marketing channel. The DMA found that direct mail is the preferred channel for receiving marketing from local shops (51%) and banks (49%), while email is favored for events and competitions (50% each).
In the on-going debate of direct mail versus digital, DM can still play an effective role in your marketing mix. When creating your communications plan, consider your audience, objective and message before deciding whether direct mail or digital is a viable component of your media strategy.
