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 – 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