Integrated Marketing Strategy

Report
Direct Mail in a Multimedia World
Darrell Edwards
VP of Marketing
Mspark
Advertisers Still Prefer Direct Mail
Annual U.S. Advertising Expenditures
(in billions)
The effectiveness of Direct Mail is
measurable, more so than for any
other media listed.
Broadcast TV
$49.6
Direct Mail
$45.2
Internet Cable TV
$36.6 $24.4
Radio
$15.7
Newspaper Out-of-Home News Online
ROP Inserts
$14.3
$6.7
$3.4
** Newspaper ROP/Inserts includes National and Retail expenditures, and does not include
internet advertising expenditures. ***Out Of Home replaces Billboards, to include
billboards on buses, etc…
Source: Winterberry; TVB; NAA; CAB; RAB; IAB/PricewaterhouseCoopers; OAAA
Who Says Direct Mail is Dead?
“But these print channels rarely
“Those marketers who still
fully
"Our
industry needs to give all
stand alone. Many of the
embrace traditional marketing
marketers a sense that mail can
brands that use print media
tools such as print catalogs and
within their direct marketing
be used in new ways," "We need
direct mail have an opportunity
efforts
to drive a better understanding
of weave digital tightly into
to stand out to consumers
their campaigns. This
bombarded by digital pitches.”
the value mail brings toapproach is becoming a must .”
integrated marketing campaigns.
"We're seeing mail being
Mail is the most effective channel
"You can use mail to launch a
used in some tremendous
video on a smart phone, or to
new ways—especially
as
for driving
customers to a retail
make quick purchases out of a
part of integratedlocation
marketingand for driving customers
Using direct mail as a foot into
catalog or a flyer. We're now able
campaigns,"
websites."
the to
consumer’s
door—and to measure and analyze all of
then inviting them to connectthese interactions—that's adding
via another channel—makes value for senders and causing
marketers to give mail a fresh
great sense.
look.“
- Patrick R. Donahoe, Postmaster General
Direct Mail Works
Until you see the USPS cutting down the
mailboxes in your neighborhood….
Direct Mail is Very Much Alive !!
Direct Mail Works
According to Direct Mail News, in 2012 the average response rate for direct
mail was 4.4% for both business-to-business and business to consumer
mailings—considerably higher than industry expectations, and surging past
electronic mail’s response rate of just 0.12%. - See more at:
http://www.onlinemarketinginstitute.org/blog/2013/06/why-direct-mail-still-yields-the-lowest-cost-per-lead-and-highest-conversionrate/#sthash.fpueaFcu.dpuf
According to the Direct Mail Association (DMA) Factbook for 2013, 65% of
consumers of all ages have made a purchase as a result of direct mail. - See
more at: http://www.onlinemarketinginstitute.org/blog/2013/06/why-direct-mail-still-yields-the-lowest-cost-per-lead-and-highest-conversionrate/#sthash.fpueaFcu.dpuf
And what about ROI?
Source: DMA, 2012 Response Rate Report
Media Penetration
Readership & Response
Ads looked at or made purchase from in the last 7 days
Readership
% of HHs that read
print ads
7 out of 10
read Shared
Mail
83%
Total Ad Mail
72%
Shared Mail
Total Sunday ROP
48%
Total Sunday Retail
Inserts
38%
Total Daily ROP
35%
Total Daily Retail Inserts
33%
Advertising Mail
Response
Total Ad Mail
% of HHs that made
one or more purchases
as a result of print ads
Shared Mail
4 out of 10
purchased from
Shared Mail
49%
42%
Total Sunday ROP
Total Sunday Retail Inserts
22%
6%
Total Daily ROP
Total Daily Retail Inserts
Newspaper
15%
7%
Source: Advertising Readership & Response Tracking Study, TNS Custom Studies, NFO WorldGroup
New Normal = Coupons Still Very Popular
Do you redeem coupons in any of the following ways? (Check all that apply)
69.0%
Cut them out from advertising inserts (0% change)
59.0%
Cut them out or bring them in from other sources (-3% change) (e.g. newspaper, magazines)
58.0%
Print them out from an email (-3% change)
51.0%
Print them out from a website (-2% change)
24.7%
Download them to my frequent shopper card (+6% change)
17.9%
Scan them on my smartphone at the checkout (+10% change)
Total Adults
Traditional Media
Digital Media
Source: BIGinsight MBI, 12.13
More Direct Mail Coupons, Please
Bridging to Digital Media
Print Drives Digital Response
58% of people said they were more likely to click on a
search link for a company if they’re received something in
the mail.
67% refer to physical mail when searching for a new
product or service online.
Direct mail can also improve the performance of other
channels. For example, the TV component of campaigns is
37% more effective when direct mail is in the media mix. In
the report Tess Alps, chief executive of Thinkbox says:
“Direct mail can satisfy those appetites that TV provokes.”
Source: Mail Media Centre Report
What Does It All Mean?
Direct Mail:
Deals:
Remains a Strong Media!
Digital or Traditional, deals are still a big deal
Multichannel: Optimize the path to purchase

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