There are so many advertising channels available to market your product or service that it is important to define which will be best to reach your target audience. With a limited marketing budget, small and medium businesses need to be selective in where they allocate resources. Additionally, it is important that small and medium businesses don’t spread themselves too thin by investing a little bit in a large number of advertising channels. We’re going to break down the benefits and drawbacks of various advertising channels to help you in allocate your advertising budget for maximum returns. In part 1 of our series, we’ll take a look at Direct Mail as an advertising channel for small and medium brands.

Benefits of Direct Mail

  • With a good quality mailing list, you have the ability to target distribution of your campaign based on various demographic and psychographic characteristics
  • Direct mail offers the ability to target audiences that are not heavy internet or social media users

Drawbacks of Direct Mail

  • Not only do you have to pay for the creative and messaging, you also have production costs for samples, postcards, flyers or whatever else you might choose to send out for your campaign
  • How many flyers end up unread and in your recycling bin? Direct Mail success rates typically range between 1 and 2 percent. The low return and environmental implications are major drawbacks of this advertising channel

Who can benefit from Direct Mail?

While this is in no way exhaustive, Direct Mail could be a good option for:

  • Businesses in small markets (i.e. towns of 50,000 or less)
  • Businesses targeting older populations who are less likely to be heavy internet/social media users
  • Campaigns that deliver exciting promotional offers that have a high likelihood of eliciting a response

Direct Mail Hack

At TACK10, we love companies that are finding new ways of doing business in established industries. Sampler has digitized sampling and direct mail couponing & promotions, only sending out samples or coupons when a customer takes up the offer. The backend analytics generated by Sampler allows clients to better understand who is taking advantage of their offers, thereby increasing the ability to refine target audience marketing.

TACK10 thoughts on Direct Mail as an advertising channel

Direct Mail can work for some types of businesses when it is done well. In fact, 51% of consumers prefer receiving marketing messages from local businesses via Direct Mail. The trick is having a well defined target audience, messaging and artwork that grabs the customer’s attention and a compelling offer to elicit immediate action.