Direct Mail Grows in 2023 – Because it Works!
- ptb475
- Oct 16, 2023
- 2 min read
Higher costs…
Challenges in addressability…
Decreased performance…
No, I’m not writing about Direct Mail.
Today’s marketers face a triple threat of challenges to their digital campaigns that previously were goldmines of profits.
In fact, a recent study by The Winterberry Group reports that many digital marketers now turn to good old-fashioned Direct mail to acquire new customers.
Direct Mail expenditures in the US will exceed $39.3 billion this year, according to the research. That’s $500 million more than in 2020.
So, why is Direct Mail making such a dramatic comeback?
The study shows that the resiliency of Direct Mail comes from its unique capability as a “performance marketing channel.”
“While marketing practitioners have long been migrating spend to performance-oriented digital media channels, a growing number are coming to see Direct Mail as a powerful tool for delivering curated, personalized messages and content on the basis of data triggers,” the report continues.
The Winterberry Group reports Direct Mail supports customer acquisition, incremental sales and other key marketing objectives.
This unique capability is likely to keep Direct Mail as a leader in the marketing mix well into the future.
The report, conducted with more than 500 companies and individuals over the period from November, 2022 to August, 2023, shows that savvy marketers add Direct Mail to their omnichannel campaigns because its tactile nature makes it more memorable and generates much higher response rates than digital channels.
Four significant trends stand out in the research:
1. Brands embrace the omnichannel marketing that includes both digital and Direct Mail.
2. Performance is fast becoming the most important factor in channel performance, specifically in customer acquisition and sales.
3. Increased costs and challenges borne from the addressability of data-driven digital media leads many marketers – especially direct-to-consumer brands – to test direct mail.
4. On-demand production is easier today thanks to improvements in the integration of data and creative content, combined with less expensive and more capable marketing technologies. This helps Direct Mailers to achieve long-promised value from personalization, trigger-driven programs, retargeting, and other innovations.
The research also found:
45% of marketers say the most important use case direct mail fulfills is customer acquisition;
59% of marketers are taking steps to better integrate their use of direct mail with other channels; and,
53% of marketers are shifting to more personalized content over the next year.
This report shows that direct mail is still a vital tool for acquisition and engagement across the buying journey.
New and creative omnichannel approaches breathe new life into Direct Mail and postal activity will grow as more marketers find it has a stable place in the channel mix.
Peter T. Britton
Idea Generator. Wordsmith. Resultant.
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