Direct Mail in a Multimedia WorldDarrell Edwards VP of Marketing

Mspark

Advertisers Still Prefer Direct Mail

The effectiveness of Direct Mail is measurable, more so than for

any other media listed.

Source: Winterberry; TVB; NAA; CAB; RAB; IAB/PricewaterhouseCoopers; OAAA

** Newspaper ROP/Inserts includes National and Retail expenditures, and does not include internet advertising expenditures. ***Out Of Home replaces Billboards, to include billboards on buses, etc…

Direct Mail Broadcast TV Internet Cable TV Radio Newspaper ROP Inserts

Out-of-Home News Online

$45.2$49.6 $36.6 $24.4 $15.7 $14.3 $6.7 $3.4

Annual U.S. Advertising Expenditures(in billions)

Who Says Direct Mail is Dead?“Those marketers who still fully embrace traditional marketing tools such as print catalogs and direct

mail have an opportunity to stand out to consumers bombarded by digital

pitches.”

“But these print channels rarely stand alone. Many of

the brands that use print media within their direct marketing efforts weave digital tightly into their

campaigns. This approach is becoming a must .”

Using direct mail as a foot into the consumer’s door—and then inviting them to connect via another channel—makes great

sense.

"We're seeing mail being used in some tremendous new ways—especially as

part of integrated marketing campaigns,"

"You can use mail to launch a video on a smart phone, or to

make quick purchases out of a catalog or a flyer. We're now able

to measure and analyze all of these interactions—that's adding

value for senders and causing marketers to give mail a fresh

look.“

"Our industry needs to give all marketers a sense that mail can be used in new ways," "We need to drive a better understanding of the value mail brings to integrated marketing campaigns. Mail is the most effective channel for driving customers to a retail location and

for driving customers to websites."

- Patrick R. Donahoe, Postmaster General

Direct Mail Works Until you see the USPS cutting down the

mailboxes in your neighborhood….

Direct Mail is Very Much Alive !!

Direct Mail WorksAccording to Direct Mail News, in 2012 the average response rate for direct mail was 4.4% for both business-to-business and business to consumer mailings—considerably higher than industry expectations, and surging past electronic mail’s response rate of just 0.12%. - See more at: http://www.onlinemarketinginstitute.org/blog/2013/06/why-direct-mail-still-yields-the-lowest-cost-per-lead-and-highest-conversion-rate/#sthash.fpueaFcu.dpuf

According to the Direct Mail Association (DMA) Factbook for 2013, 65% of consumers of all ages have made a purchase as a result of direct mail. - See more at: http://www.onlinemarketinginstitute.org/blog/2013/06/why-direct-mail-still-yields-the-lowest-cost-per-lead-and-highest-conversion-rate/#sthash.fpueaFcu.dpuf

And what about ROI?

Source: DMA, 2012 Response Rate Report

Media Penetration

Ads looked at or made purchase from in the last 7 days

Readership% of HHs that read

print ads

Response% of HHs that made

one or more purchases as a

result of print ads

49%42%

22%6%

15%7%

Total Ad Mail

Shared Mail

Total Sunday ROP

Total Sunday Retail Inserts

Total Daily ROP

Total Daily Retail Inserts

7 out of 10 read

Shared Mail

4 out of 10 purchased

from Shared Mail

Source: Advertising Readership & Response Tracking Study, TNS Custom Studies, NFO WorldGroup

Total Ad Mail

Shared Mail

Total Sunday ROPTotal Sunday Retail

InsertsTotal Daily ROP

Total Daily Retail Inserts

83%72%

0.480.38

0.350.33

Newspaper Advertising Mail

Readership & Response

69.0%

59.0%

58.0%

51.0%

24.7%

17.9%

New Normal = Coupons Still Very Popular

Do you redeem coupons in any of the following ways? (Check all that apply)

Source: BIGinsight MBI, 12.13

Scan them on my smartphone at the checkout (+10% change)

Download them to my frequent shopper card (+6% change)

Print them out from a website (-2% change)

Print them out from an email (-3% change)

Cut them out or bring them in from other sources (-3% change) (e.g. newspaper, magazines)

Cut them out from advertising inserts (0% change)

Total Adults

Traditional MediaDigital Media

More Direct Mail Coupons, Please

Bridging to Digital Media

Print Drives Digital Response58% of people said they were more likely to click on a search link for a company if they’re received something in the mail.

67% refer to physical mail when searching for a new product or service online.

Direct mail can also improve the performance of other channels. For example, the TV component of campaigns is 37% more effective when direct mail is in the media mix. In the report Tess Alps, chief executive of Thinkbox says: “Direct mail can satisfy those appetites that TV provokes.”

Source: Mail Media Centre Report

Multichannel: Optimize the path to purchase

Direct Mail: Remains a Strong Media!

Deals: Digital or Traditional, deals are still a big deal

What Does It All Mean?