USPS: Declining mail volume may increase impact of direct mail | PostalReporter.com
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USPS: Declining mail volume may increase impact of direct mail

Electronic communication has resulted in less traditional mail arriving in customers’ mailboxes. But that could be good news for direct mail marketers, according to an expert.

It may seem counterintuitive, until a mailbox is viewed as an advertising vehicle, said Caribou Honig, founding partner of Richmond, VA, QED Investors, a marketing firm in a recent interview.

“In most media [the cost per impression] plummets as impressions or ratings points, or circulation numbers drop,” Honig said. “But the value of a direct mail piece actually rises as total volume goes down. As total volume of mail declines, marketers who stick with it gain ‘share of mailbox’ and higher response rates as a result.”

At the same, Honig said, direct mail is cost-effective for marketing. For instance:

  • Response. Sending out a piece of mail may cost 50 cents, but response rates can run well over 1 percent.  If a customer is worth $100 or more, the return on investment is excellent, Honig said.
  • Accountability.  “Direct mail doesn’t pretend to build brand,” Honig said.  “Either it pays for itself, or it doesn’t.” It’s a channel that both the chief marketing office and the chief financial officer can appreciate.
  • Big Data. “There’s a robust ecosystem of targeting data available [in direct mail marketing], often with no equivalent online,” Honig said.

In 2012, marketers spent over $45 million on direct mail, according to a report by the Winterberry Group, a consulting firm. “That’s bigger than search, online video, online rich media, online banner ads, and traditional magazine advertising combined,” Honig said.

via USPS News Link

12 thoughts on “USPS: Declining mail volume may increase impact of direct mail

  1. Direct mail gets results. Email ads have not hurt the PO it is the loss of 1st class mail like bills and personal letters / greetings.

  2. I found this blog really informative and helpful in the direct mail campaigning. I think to get success in this field one has to take care of some basic things like mailing list, targeted audience , mail format and he can get greater success in this area.

  3. I don’t open any junk mail and that goes paper or electronically. Its get rid of Newspapers ads too!!! Post Office just needs to staring worrying about packages cause that’s the only thing that’s going to save them.

  4. The answer is: E-mail has more effective.
    That’s why the PO losing money every single day.

  5. When I receive an email ad, I don’t even open it but just hit delete button.
    When I receive by mail, at least I take a look and then throw it away.
    Which way has more effective?

  6. When I receive direct mail, I don’t even open it but just throw to trash, it’s kind of wasting paper.
    When I receive by e-mail, at least I take a look and then delete it.
    Which way has more effective?

  7. THESE MAILERS DONT KNOW THAT THE CIRCULARS ARENT EVEN BEING DELIVERED OR DELAYED SO LONG THAT THE SALE MIGHT EVEN BE OVER WHEN THEY GET THE CIRCULAR.

  8. direct mail is way more effective then email. no spam no delete b4 reading etc. all studies prove this. support your comment with facts. and going green does nothing to save the earth.

  9. Going green, save the earth, suggest mailers using e mail system, it works more effective.

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