1. Direct Mail Advertising
Advertising and Media

2. 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

3. 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

4. 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

5. 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

6. Pros & Cons of Direct Advertising
Selectivity
Extensive reach & coverage
Flexibility
Control
Personal impact
Exclusivity
Response
Testibility

7. Pros & Cons of Direct Advertising
High cost per exposure
Delivery problems
Lack of content support
Selectivity problems
Saturation
Environmental concerns
Negative attitudes
Antispam laws

8. 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

9. 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

10. 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

11. 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!!!!!!!!

12. 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

13. 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.

14. 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

15. Ads can be placed anywhere a consumer might see it