Advertising Direct Mail

December 26, 2022
Direct Mail Advertising

Direct mail is highly informative but can also be expensive.Direct mail is highly informative but can also be expensive.

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Direct mail advertising can include cooperative mailings, where a company's ad goes out with other businesses, or a solo advertising piece that only contains information from one business. Cooperative advertising saves a company money, but solo ads are more effective in generating leads and orders. However, compared with all the different forms of advertising available to companies, there are certain pros and cons of direct mail advertising.

Highly Targeted

Direct mail marketing is highly targeted, which is a huge advantage for companies that know their target market. In other words, companies can send direct mail pieces to specific buying groups, based on key demographics, such as gender, age, household income, household size and profession. For example, if a company wants to advertise family vacation packages, it would likely target households with multiple family members. In addition, the company would try to find households that have already purchased family vacations in the past. Mailing list suppliers sell all types of mailing lists. The Direct Marketing Association is one of the largest purveyors of these lists.

Easy to Track

Direct mail advertising is also easy to track, which allows a company to easily compute their return on investment (ROI). Companies that send out direct mail usually include an order form or application. If the company generates leads or orders by mail, all the company needs to do is key the order form. For example, a mailing that goes out on Jan. 8 can be keyed: 18, which is 1 for January and 8 for the date. That way the company will know exactly which mailing elicited the response. The company can then determine the number of sales from the mailing, subtract expenses and calculate its profit.

Related Reading: Business License Pros & Cons

Highly Informative

Direct mail advertising provides the reader with a wealth of information, unlike other types of advertising. Companies that send out solo mailings often include a sales letter, brochure and order form. The sales letter usually informs the potential customers how the company's product or service will benefit them. Companies usually provide a picture and detailed information about the product or service in the brochure. Moreover, the price is usually included on the order form, and in the sales letter. Actually, company often uses the sales letter to offer special deals, especially at the end of the letter.

Costly

One disadvantage or con with direct mail advertising is cost. It costs a lot of money to send out direct mail in volume. Many small companies send out tens of thousands of pieces a month. Postage and printing can be extremely expensive, according to the article titled "E-Mail Vs. Direct Mail: Which Works Better?" at businessknowhow.com. Companies that use direct mail count highly on repeat business from customers as they spend so much per lead, or for each order in acquiring their customers.

Largely Unread

Despite the effort that goes into designing and writing a direct mail package, 44 percent of all mail recipients throw away their "junk mail" without reading it, according to AllBusiness.com. Furthermore, only 1 percent or 2 percent of all recipients respond to any direct mail offer, whether they are ordering or asking for additional information, according to the article titled "Typical Direct Mail Response Rates" at Gaebler.com. That is why it is so crucial to design and write a highly convincing direct mail piece, then send it to the right target audience.

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Source: smallbusiness.chron.com
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