'Old-Fashioned' Mail Proves Its Modern Appeal

"Old-fashioned" direct mail spending is expected to hold its own, even rise a tad, in forecasts of 2016 marketing budgets. Why? "Old-fashioned" direct mail continues to have modern appeal quite simply because it's a marketing channel that works, argues a recent Target Marketing magazine post by Carolyn Goodman, president of Goodman Marketing Partners. Mail still reaches target audiences and elicits response more effectively than most digital channels. Goodman cites the USPS "Household Diary Study" that found 42% of recipients read or scan direct mail pieces. Can online ads or e-mail claim the same kind of viewer attention given promotion overload and delivery issues? As Goodman points out, 72% of Internet users say pop-ups are "very annoying," and 49% say the same of banner ads. Goodman urges direct mail doubters to do the math. With a 1% response rate, which is the average direct mail response for prospecting per the Direct Marketing Association's 2015 "Response Rate Report" (3.7% for house lists), a mailing to 10,000 prospects generates 100 responses. In contrast, with a likely click-through of 0.14% and conversion rate as low as 2.35%, an Internet display ad will need to reach 3,035,700 targets to generate the same result, Goodman calculates. But what about mail's higher costs, especially those high postage rates? With its higher response, direct mail's ROI competes with most digital efforts. We can back Goodman's argument with the DMA Response Rate Report's median ROI data, putting direct mail ROI at 15%-17%, on par with social and ahead of mobile (12%-14%) and Internet display (6%). Even without highly targeted lists to up response, mailings to households just by zip or neighborhood, such as local retail promotions, can now be cost-effective with the new USPS Every Door Direct Mail program, with per household costs as low as $0.29, Goodman notes. Of course, direct mail success is not all math. The mail creative package must work, too! For Goodman's creative advice: http://www.targetmarketingmag.com/post/direct-mail-is-it-old-fashioned-if-it-still-works/