direct mail advertising
Post on 14-Feb-2016
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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
• E-mail – 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
• Inappropriate specialty items can backfire
Ads can be placed anywhere a consumer might see it
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