Think that the effectiveness of direct mail is dropping? That may be true, but data findings from the Direct Marketing Association don’t want you to dismiss direct mail. Yory Wurmser, Director of Marketing and Media Insights at the Direct Marketing Association (DMA) says, “even though direct mail is less effective in driving response than it was a decade ago, it still is among the best media for generating overall response.”

Drawn from a survey closed in April 2012 with 481 useable responses, the DMA’s 2012 Response Rate Report currently includes email, display ads, paid search and history trends. Findings concluded that overall, mail campaigns generate a better overall response than digital channels, even though the response rates of direct mail have dropped almost 25% in the last nine years.

A Higher Return on Investment?

The DMA reported that the return on investment for email is significantly higher than that of direct mail, at 28.5 vs. 7.0, but that is to be expected because of the minimal costs related to sending email. However, for a true comparison, there is one specific variable that must be considered when looking at the return on investment for direct mail and email – the product you are marketing. What is successful for one market might not be for another, at no fault of the direct mail or email. And using the data found from marketing to two completely different areas won’t give an accurate measure of one’s success.

The Cost of a Campaign

Also found in the report was that the cost per order or lead for acquisition campaigns were about the same. Direct mail was $51.40, postcard ($54.10), email ($55.24) and paid search ($52.58). Telephone marketing is one of the most expensive methods. Each order or lead for a house list costs $78, and a prospect list is $190. However, the expense might be worth it. Telephone marketing was reported to have one of the highest response rates, with almost 13% to a house list.

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