Thank you for the above piece the makes it easy for new entrants like to me understand Direct Marketing better. I am the owner of a Custom made Bespoke Suiting Company that makes suits, trousers, jackets, skirts, blouses and shirts for men and women. I have tried digital media advertising but haven’t had any luck. I am a start-up business and running on very tight budget so would like to start with a small but affluent neighbourhood with small population. I am thinking of targeting Westlake Village which is on the Western Edge of LA County and has a population of around 9000 with nearly 3000 households. What should be my approach and how may households should I target keeping in mind budgetary constraints.
Many laws specifically regulate the ways online ads are delivered. For example, online advertising delivered via email is more regulated than the same ad content delivered via banner ads. Among other restrictions, the U.S. CAN-SPAM Act of 2003 requires that any commercial email provide an opt-out mechanism. Similarly, mobile advertising is governed by the Telephone Consumer Protection Act of 1991 (TCPA), which (among other restrictions) requires user opt-in before sending advertising via text messaging.
I’m a bride myself and I can’t tell you how many emails I’ve marked as spam from venders I’ve never requested any information from. They received my email address from the shop I bought my wedding dress from and tried to sell me services I never asked for. I marked every single one of those emails as spam because I never gave them permission to email me. I also had no idea that my dress shop had shared my email address with other vendors.
Neil O’Keefe, senior vice president of marketing and content at the Data & Marketing Association, says that marketers began questioning direct mail’s endurance in 2007. That year, Statista reports that smartphone sales jumped 70% from the previous year to $8.7 billion. At the same time, the volume of mail sent through the U.S. Postal Service began to plummet: In 2006, people in the U.S. sent 213.1 billion pieces of mail, according to USPS; by 2017, they were sending 149.5 billion pieces each year, a 29.9% decline. By this point, smartphone sales had reached $55.6 billion. The price of postage and paper had skyrocketed, as did the number of internet users—everything seemed to hammer a nail into direct mail’s coffin.
This is simplified, according to the IAB. Exchanges may try to unload unsold ("remnant") space at low prices through other exchanges. Some agencies maintain semi-permanent pre-cached bids with ad exchanges, and those may be examined before going out to additional demand side platforms for bids. The process for mobile advertising is different and may involve mobile carriers and handset software manufacturers.
Emails triggered by milestones, like anniversaries and birthdays, are fun to get -- who doesn't like to celebrate a special occasion? The beauty of anniversary emails, in particular, is that they don't require subscribers to input any extra data, and they can work for a variety of senders. Plus, the timeframe can be modified based on the business model.
Perhaps you're a new company and don't have a customer base. Maybe you have a service you're sure that people will love... if only they heard about you. Whatever the reason, buying an email list seems like an easy, low cost way to grow your business. But, there are some serious consequences to purchasing. And there are real benefits to using an opt-in list!
Marketers must first determine whether the goal is to retain customers or attract new ones, who their target audience is, and what they’re looking for. They then look to their budgets to determine which direct marketing strategy would work best for them, whether that be catalog, postcard, or email campaigns. Once they know the answers to these questions, they begin to build a strategic implementation plan.
Thanks for the warning re ESPs, spam traps & spam treatments Crystal. That’s a shame. Who puts the Spam trap in there & I wonder what they’re trying to achieve? The clients I have already picked up with this purchased list may save our business. As mentioned, at $250-$500 per lead through our SEO campaign, this lead acquisition rate was unsustainable. In brief, this would not be a business. But at $13.75 per lead through the purchased cold email list, those are metrics which make a profitable business. I wonder why anyone would try to block this efficiency with Spam traps? Thanks for your time to help.
If you are able to consult with customers one-on-one, ask any new clients how they heard about you. This will be trickier if you own a restaurant or clothing store since you won’t be able to track down every customer to ask how they heard about you. In these instances, consider asking customers to take a survey on every receipt. Offer an incentive (coupon, discount, etc.) to increase the chances that people will actually fill it out.
Online marketing can also be crowded and competitive. Although the opportunities to provide goods and services in both local and far-reaching markets is empowering, the competition can be significant. Companies investing in online marketing may find visitors’ attention is difficult to capture due to the number of business also marketing their products and services online. Marketers must develop a balance of building a unique value proposition and brand voice as they test and build marketing campaigns on various channels.
This ties into the first 40 of the 40/40/20 rule – even if you have what you feel is a great and well-defined target list, you won’t truly know how great it is until you test it. If you operate a business in a smaller community, this won’t be as critical – but if you’re in a medium or large city, it can be crucial. Using the example above, even if you know that the Life Alert bracelet offer is meant for seniors, in a city like San Francisco or New York, you wouldn’t want to send it to everyone over the age of 55 citywide. Instead, select one (or in a very large city, several) small area to test the market out. Start small and measure the effectiveness and ROI along every step of the way.
Take the email below from Paperless Post, for example. I love the header of this email: It provides a clear CTA that includes a sense of urgency. Then, the subheader asks a question that forces recipients to think to themselves, "Wait, when is Mother's Day again? Did I buy Mom a card?" Below this copy, the simple grid design is both easy to scan and quite visually appealing. Each card picture is a CTA in and of itself -- click on any one of them, and you'll be taken to a purchase page.
Here are some of the most interesting email marketing stats around. The Radicati Group says we’ll send and receive around 281 billion emails this year. According to Adestra, 78% of teens use email. Statista reports that 85% of US adults use email. Consumers like getting emails from the brands they love. But email senders have to respect the inbox. Email too often, or include the wrong content, and Litmus says some people will report your email as spam instead of unsubscribing.
Email marketing has evolved rapidly alongside the technological growth of the 21st century. Prior to this growth, when emails were novelties to the majority of customers, email marketing was not as effective. In 1978, Gary Thuerk of Digital Equipment Corporation (DEC) sent out the first mass email to approximately 400 potential clients via the Advanced Research Projects Agency Network (ARPANET). This email resulted in $13 million worth of sales in DEC products, and highlighted the potential of marketing through mass emails. However, as email marketing developed as an effective means of direct communication, users began blocking out content from emails with filters and blocking programs. In order to effectively communicate a message through email, marketers had to develop a way of pushing content through to the end user, without being cut out by automatic filters and spam removing software.
Most email marketers around the world are legally required to allow recipients to opt out of emails they no longer want to receive. Contacts must be able to do this directly in the email message. The General Data Protection Regulation (GDPR), a European data privacy act that went into effect in May 2018, doubles down on the opt-in side of this relationship. And purchased email lists are simply not compliant.
If you sign up for something and the terms include words like "Sign up to receive updates from us and our partners that we think you'll like," your email address is likely being collected for a shared or sold list. A subset of this method is called co-registration. This is where you sign up at a website, but that website also automatically, or nearly automatically, signs you up for other sites. They try to legitimize this by informing you of the additional subscriptions, or providing boxes to uncheck. This is a situation where it's not the subscriber’s intention to sign up for the material they will be receiving.
The fact is, a significant percentage of millennials like mail. It has a built-in emotional response factor. Gallup reported that 36% of people under the age of 30 look forward to checking their mailboxes every day. What’s more, 95% of 18-to-29-year-olds have a positive response to receiving personal cards and letters. Notably this generation will wield a combined $1.4 trillion in spending power by 2020, as reported by Accenture.
Marketers continue to use direct mail in 2016 because it still leads in ROI. However, traditional direct mail marketing has changed dramatically. InfoTrends did a study on direct mail that found the following statistics: 66% of direct mail is opened, 82% of direct mail is read for a minute or more, 56% of consumers who responded to direct mail went online or visited the physical store, 62% of consumers who responded to direct mail in the past three months made a purchase, and over 84% reported that personalization made them more likely to open a direct mail piece.
A call to action (CTA) is a word or phrase that encourages readers and subscribers to do something specific. Examples of calls to action include “subscribe”, “shop now”, “get the free ebook”. You use CTAs on landing pages, blog posts, in email newsletters, and more. When someone does what you want as a result of your call to action, that’s called a conversion. In email marketing, a conversion often means following a link in a newsletter to visit another resource.
Project conversion metrics. The general rule of thumb is that the smaller and more targeted your list, the more you can spend per piece. It’s better to make a strong impression to a few than to make a weak impression to many. Know your cost per unit, and project a conversion rate, so you can estimate whether your campaign will have a positive ROI before running it.
Once your list is targeted, you need to spend an equally large portion of time coming up with a great deal – even if it means you might lose a bit of money on it. The underlying goal of any marketing campaign is to gain new customers, and it’s worth it to significantly reduce your profit margins to gain said customers. Once you have a surgically-honed list and an amazing offer, then you can spend some time on the design, copy, delivery methods, postage rates, date of delivery, size of the mailer…there are a lot of other options to consider, but following the 40/40/20 rule you can see how important audience and offer truly are.
A blast email is a type of electronic mailing that is distributed to a large recipient list, and is sent out over a specified amount of time. Often used by marketers, these types of bulk emails were once considered a form of spam, or junk email. Many companies now use blast emails as a legitimate tool to communicate with their customers, and as a result, blast email has become an effective type of email marketing.
As advertisers collect data across multiple external websites about a user's online activity, they can create a detailed profile of the user's interests to deliver even more targeted advertising. This aggregation of data is called behavioral targeting. Advertisers can also target their audience by using contextual to deliver display ads related to the content of the web page where the ads appear.:118 Retargeting, behavioral targeting, and contextual advertising all are designed to increase an advertiser's return on investment, or ROI, over untargeted ads.