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U.S. Direct Marketing Spend By Medium

Posted on May 10, 2012

Ad Projections

 

Channnel 2006
$ bil.		 2011
$ bil.		 2012
$ bil.		 2016
$ bil.		 CAGR
2006-2011		 CAGR
2011-2016
Commercial Email 0.8 1.6 1.7 2.3 13.80% 8.60%
Direct Mail (Catalog) 20.1 17.3 17.7 20.5 -3.00% 3.50%
Direct Mail (Non-Catalog) 33 32.8 33.4 37.1 -0.10% 2.50%
Insert Media 1.9 2.1 2.2 2.3 2.40% 1.70%
Internet Display 5 8.5 9.5 14.1 11.30% 10.60%
Internet Search 8.4 13.9 15.6 22.4 10.60% 9.90%
Social Media/Networking 0.6 2.5 3 6.1 34.40% 19.40%
Mobile 0.1 0.9 1.2 3.1 75.20% 28.70%

 

Source: Direct Marketing Association, 2012 Statistical Fact Book.

Direct Mail Promotions Catch the Eye

Posted on May 08, 2012

Marketing research firm Ask Your Target Market (AYTM) recently undertook a survey examining the effectiveness of direct mail — Are customers more likely to look at their mail than they are at emails? Make purchases based on offers received?

Surveying 400 U.S. adults online panel participants, they found:

  • Nearly one in five (17%) respondents receive advertisements or special offers from businesses via direct mail every day. One third (33%) say they receive this type of mail fairly often, 33% receive direct mailings sometimes, and 17% say they rarely or never get direct mailings.

    • Of those who receive direct mail from businesses:

  • 6% say they always read the printed mailings
  • 23% say they read it more often than not
  • 3% say they read it about half the time
  • 35% state they rarely read it
  • 4% don’t ever read mail from businesses.

    • When it comes to making purchases:

  • 21% say they are more likely to purchase based on direct mail promotions rather than email offers
  • 13% are more likely to make purchases based on email offers rather than direct mail offers
  • 38% said it makes no difference – they are just as likely to make purchases based on direct mail offers as they are to do so based on email promotions
  • 28% claim they never make purchases based on direct mail or email messages.

    • Contact Arandell today to see how we can assist with your direct mailing efforts.

    Consumers Value Physical Mail, Even In This Digital Era

    Posted on May 05, 2012

    Multichannel marketing agency RAPP Germany commissioned global measurement firm Nielsen to conduct a study of the effects of different offline and online direct mailing techniques as part of the consumer purchase decision process.

    Approximately 1,800 consumers in Germany and the United States participated in the study, which employed marketing mailings form a fictitious travel agency. The direct mailings tested: standard envelope, printed envelope, self-mailer, wrapper, and email. Using these various marketing vehicles, the effectiveness of a personalized vacation offer was tested amongst two groups of recipients—interested and not interested.

    The results confirm the unique advertising effects of the envelope — that an envelope reinforces marketing efforts and messaging, that personalization is an effective technique to get the envelope opened, and that consumers value physical mail, even in this digital era.
    Select findings:

    • Printed envelopes — manufactured custom to marketers’ specifications — were opened and their contents read by 84.5% of recipients, making them the most opened advertising tested. Standard envelopes were opened and read by 75.6% of respondents, self-mailers 71.4%, and wrappers read and opened by 71.2%. Email had an 80% open rate, making it second to the physical envelope in open rate.
    • The Nielsen study demonstrates that “a high-value direct mailing in a creatively designed and printed envelope alone is still not enough to guarantee the success of a direct marketing campaign.” Personalization of the envelope proved key:Recipients who received non-personalized marketing mailings were three times more likely to throw the mail in the trash or delete it, compared to recipients who received an individualized mailing. In addition, individually tailored messages played a key role in the consumer purchase decision funnel — 44% of interested recipients of an individualized direct mailing said they would investigate the travel offer further online, compared to the 36.6% of recipients of non-individualized mailings.
    • Recommendations have proven to be the most important factors of influence when making a purchase decision. According to the survey, in general, marketing messages mailed via a personalized printed envelope are more apt to be passed along to friends and family — in fact, twice as often as emails (14.2% v. 7.8%). The testing of the fictitious travel offer proved this true: 13.1% of the interested recipients said that they would pass on content they read in the individualized offers to friends and family —while just 9.1% who received generic offerings said they would do the same.
    • Interestingly, older respondents (55–65 years) valued an email advertisement more than the younger target group (16–34 years). Nielsen states that 63.2% of 16–34 year olds see emails “disappearing in the flood of advertisements they receive,” and thus the individually addressed printed envelope is valued very highly by the younger target group. Younger target groups want the best of both worlds: a real envelope and the flexibility of individualized emails.

    Personalization of Direct Mail Steadily On the Rise

    Posted on April 19, 2012

    Every month the Who’s Mailing What! Archive receives and analyzes approximately 4,000 to 5,000 pieces of direct mail in 220 categories–consumer, business, fundraising, catalogs, and more. The database calls itself “the largest library of direct mail,” housing information on 240,000+ direct mail packages.

    An analysis of 40 months of data from the Archive, from January 2009 through October 2011, demonstrates the growth of personalization/VDP (variable data printing) in the direct marketing and mailing process.
     

    • In 2009, 28% of direct mail pieces were personalized.
    • In 2010, the number of personalized mail pieces increased to 34% —a 21% increase.
    • In 2011, seven of the 10 months recorded saw even higher VDP usage — another 21% increase from the prior year, and a 46% jump from 2009 levels.

    Direct Mail Still Works and Consumers Still Want It

    Posted on April 17, 2012

    A study released by global interactive marketing provider ExactTarget finds 66% of online Americans have made a purchase as a result of email and nearly just as many — 65% — purchased a product or service thanks to direct mail; This is nearly three times the percentage who have purchased after receiving marketing messages delivered via Facebook (20%) and four times greater purchases prompted from mobile marketing messaging (16%).

    Based on a survey of 1,481 U.S. online consumers, ExactTarget’s 2012 Channel Preference Survey asked about Americans communications preferences and how consumers want to receive marketing messages.

    When asked about how they PREFER to get permission-based marketing messages, 77% of respondents said email.  Direct mail was second at 9% and text marketing messaging was third at 5%.

    ExactTarget also asked how ACCEPTABLE it is for companies to send them these different messages through various channels. Direct mail is the only channel where an unsolicited message isn’t viewed as inappropriate by consumers.

    ExactTarget states, “Our research into marketing-inspired purchase behavior illustrates that we live in a multi-channel world where brands that can execute campaigns across both mass and direct media will have a distinct advantage over their less coordinated competition. Today’s consumers are cross-channel communicators, and they’re ready to reward those brands that abide by the unique rules that govern each channel.”

    Arandell provides customized direct marketing solutions across all marketing channels. With a specialty in the catalog and retail direct mail industry, Arandell’s Marketing Solutions group offers database management services, list hygiene, matchback analysis, email, mobile and social marketing solutions, as well as marketing strategy consulting.

    ACMA Breaking Alert: PRC Approves Mobile Barcode Promo

    Posted on March 26, 2012

    It isn’t easy to find good news coming out of the Postal Service these days, but here’s a little: This afternoon the Postal Regulatory Commission approved, as proposed, the USPS’s request to offer a 2% discount for catalog and First-Class mail containing mobile barcodes.

    Although inclusion of Carrier Route presorted flats in the promo were never of concern, inclusion of Standard Flats came under heavy fire in comments filed by both Valpak and the Public Representative. However, ACMA filed a brief as well in this case, defending Standard Flats despite the category’s being “underwater.” Fortunately, the PRC sided with us. Here’s an excerpt from the PRC’s order of approval:

    ACMA supports the inclusion of Standard Mail Flats, stating that catalog mailers would be less inclined to take part in the promotion if this product were excluded. It maintains that excluding Standard Mail Flats would diminish the experimentation and innovation resulting from the 2012 Promotion. In its Reply Comments, the Postal Service emphasizes the strategic value of initiatives like the 2012 Promotion in improving product volumes, essential to the ongoing efforts to improve cost coverage. In particular, the Postal Service asserts that inclusion of Standard Ma il Flats is essential to prevent unnecessary complications to mailers in designing their promotional campaigns and “ensure that Standard Mail Flats’  value to cataloguers remains robust.

    The promotion takes place July 1-August 31, 2012. Click here to see the USPS’s resource page. Click here to read the PRC’s order approving the discount.

    To learn more, contact Arandell to speak with Don Landis. 800-558-8724 x301

    The History of Postage Rates in the US

    Posted on March 15, 2012

    “The real price of every thing, what every thing really costs to the man who wants to acquire it, is the toil and trouble of acquiring it… But though labour be the real measure of the exchangeable value of all commodities, it is not that by which their value is commonly estimated… Every commodity, besides, is more frequently exchanged for, and thereby compared with, other commodities than with labour.” – Adam Smith, The Wealth of Nations, 1776

    USPS Plan for Profitability

    Posted on February 22, 2012

    Last week, the USPS released a five-year plan designed to return the agency to profitability. Inside this 28-page pdf, you may note on page 13 a section called “Key Items for Consideration.” Among them is a proposal to increase the First-Class stamp to 50 cents. Although there’s no indication of a Standard Mail rate hike, that same section also states, “Pending exigent case could secure moderate price increase.” No further specifics on rate increases are included, but I thought the report is worth a look.

    Do you have an Effective Catalog Printing Process?

    Posted on February 16, 2012

    If your company offers a variety of products, a simple e-mail or flyer may not be enough to successfully market your goods.  Catalog printing has been used for decades as a way for business owners to bring in greater sales.  Catalogs show up everywhere, from the mailbox to grocery store shelves.  If you are a business owner, an effective catalog campaign can raise brand recognition and sales.

    The first step in creating a great catalog is to research your target market and your business.  What type of business is it?  Who are the clients you wish to target?  What do they look for?  What do they need and want?  How can you provide benefits to them?  Once you know the answers to these questions, you can provide a catalog that will give your target audience what they need.

    Next, you must bring all the data you researched together so it can be put into a successful marketing strategy.  That leads you to your next step, which is designing the catalog. 

    The design and theme of your catalog must be governed by the information to be included.  The information you received from the target clients should give you an idea of the level of professionalism necessary for the work.  For instance, if your target market is purely corporate, you will need a very professional design.  Bright colors and flashy graphics are not appropriate, because the prospects will ignore them, or at worst, won’t even look at the catalog.  If you have a more general audience, a simple, easy design will be best.

    The final step to creating your catalog is the printing.  Arandell is a  professional, reputable printing company who specializes in catalogs. We can help you increase the effectiveness of your piece.  Keep in mind that many consumers do not like catalogs because they are considered a waste of paper.  Be sure to have the work printed on recycled paper with environmentally-friendly ink, and have these facts printed on the front and back covers to catch the reader’s eye before they ignore the contents. 

    Now it is time to distribute your print catalogs.  This stage is critical for your catalog marketing.  You must research where and how you will give them away so they will bring in optimum response.  Send as many out as possible, but only to the right potential clients.  It is a waste of money, time, and resources to distribute them to uninterested parties in the hopes that someone interested will see them.  They must reach the target audience to be effective.

    There are several ways to get your catalogs into the right hands.  They can be mailed, handed out, or included in bags and packages when a client buys something from you.  When you know the potential client has an interest, they are a good prospect for your catalog.

    Catalog printing can be a great way to spread information about your goods and services.  An effective marketing plan can increase your sales volume and help your company succeed!

    Arandell provides customized direct marketing solutions across all marketing channels. With a specialty in the catalog and retail direct mail industry, Arandell’s Marketing Solutions group offers database management services, list hygiene, matchback analysis, email, mobile and social marketing solutions, as well as marketing strategy consulting.

    At Arandell, we do more.

    Posted on February 09, 2012

    Over a year ago, we started working with a consulting group to develop a new brand identity. After countless concepts, design experiments, and revisions, we selected a new image, a new message…Arandell reborn. It was the one design that we felt truly represented the energy and impact of Going beyond. It symbolizes the consistent message of delivering solutions, to a variety of clients, on multi platforms that go much further than the printed page.

    We spent the last 35 years perfecting the printing of beautiful catalogs and delivering them into the awaiting hands of hungry shoppers looking for the next catchy trend, the next generation gadget to allow one to have the world at their fingertips. Delivering expert solutions.

    As we enter the world of evolving technology, it requires for one to adapt, survive and navigate, assisting clients through this newly branded world is what Arandell is all about. Going beyond…. Beyond Expectations.

    Brands who remain stagnant, those who are unwilling or unable to budge from their current focus even as the rest of the world evolves, are the ones who gradually die out and lose customers, because they are unable to adapt. It’s become quite important for you to stand out among the rest and show people what you’re all about. Going beyond… Creating meaningful partnerships.

    As time goes on, one will continually grow, evolve and blossom as a better focus is found on what you really want to stand for. Arandell has just done that.

    Our brand…this is our way to distinguish ourselves from others. Going beyond for today, for tomorrow, for our clients – looking to the future. Arandell is here to stay.
    Arandell is already viewed as a leader in print quality. That quality can be seen on the printed page but what pushes Arandell above is everything that happens beyond that printed page.

    Going Beyond The Printed Page

    Arandell offers everything you need to execute a robust direct marketing campaign. We have strategies in place to help you succeed in the following areas:

    • Strategic Planning
    • List Management
    • Mailing Strategies
    • Paper Management
    • Print Production
    • Metrics and Analytics
    • Green Initiatives
    • iPad App Development

    Let’s talk so we can learn and understand your needs (deep dive if you will), your business, and challenges – then we can develop a solution that specifically addresses these and follows through with measurement and review.

    At Arandell we do more.

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