BY Kathy Crosett
Do you know how much marketing spend goes to direct mail? LOB reports that it’s 25%. It’s easy to see why. As BIA Advisory Services reports, the format delivers a 43% ROI, when it’s targeted to a marketer’s list. If your accounts need direct mail ideas, check out the details here, especially about how to use AudienceSCAN data to target the right audiences.
How are marketers using direct mail?
LOB’s 2026 State of Direct Mail report shows the value of direct mail. Most of the 250 companies in the survey intend to spend more on the format this year. Businesses note that, unlike other media formats, direct mail works in all levels of the sales funnel. It's especially effective as follows:
- Existing customer retention 64%
- New customer acquisition 59%
- Customer referrals 58%
- Customer win-back 50%
Which direct mail formats work best?
All direct mail formats are not the same. If your account doesn’t use the right format, their mailing will miss the mark. Consumers can easily overlook a piece that seems boring. The formats that businesses are most likely to use this year include:
- Sealed snap-pack 20%
- Catalog 21%
- Letter/envelope 17%
How are direct mail marketers keeping costs under control?
The financial requirements of direct mail campaigns can be a challenge. Businesses must deal with multiple vendors, including the U.S. Postal Service.
Research shows that marketers who have conquered AI for their direct mail needs are operating more efficiently. They report the following level of sophistication when using this technology:
- Personalized messaging 74%
- Delivery optimization 65%
- Automated workflows 63%
If your accounts are still struggling with AI, offer to help them.
Personalization and the impact on ROI
The more efficient a direct mail campaign is, the more likely it will be to achieve a solid ROI. 41% of marketers know they need to develop advanced personalization strategies as part of improved efficiency.
To get consumers to convert with direct mail, 37% of marketers report better results when they use first names and custom offers. When they incorporate a personalized journey that combines email with direct mail, effectiveness increases to 63%.
Personalized messaging is easier when marketers use zero-party data. Help them set up data collection systems to capture information. Critical pieces of data include customer birthdays or preferred communications channels. This information can be collected either through email or during in-store visits.
How do marketers track direct mail success?
Lob analysts note that marketers track several metrics to see how well their efforts are working. If your accounts aren’t currently measuring the outcomes of their direct mail efforts, they should be. Offer to help them set up the process. Here’s what marketers are doing:
- Tracking social media engagement 41%
- Monitoring purchase increases with one month after an email blast 38%
- Using personalized URLs or cookies 37%
- Offering in-store coupon/offer redemption 31%
Which audiences respond best to direct mail promotions?
AudienceSCAN, powered by AdMall, reports that some audiences are more likely than others to respond to direct mail promotions.
Around 47% of powersports vehicle shoppers have responded to a direct mail pitch (ads/coupons in mailbox) in the past month. If your powersports retailers have not tried a direct mail promotion, remind them to consider it.
Powersports is also a strong category for co-op advertising support from manufacturers. With a subscription to AdMall, media companies can access co-op ad plan information for thousands of vendors.
Digging deeper into data and providing value to your accounts is an example of how to empower them. Mary Ann Pruitt, CEO of Mosaic Media and ManageSmarter guest, states that giving media buyers information at the right time helps them make great decisions.
Keep in mind that some industry verticals invest more heavily in direct mail marketing than others. BIA Advisory Services reports that apparel stores fall into this category.
AdMall data shows that Men’s Apparel Stores should use direct mail marketing. Their core audience, men’s clothing shoppers, is 25% more likely than other consumers to respond to a direct mail promotion.
If you need more direct mail ideas for your accounts, check out the AI Idea Generator in AdMall. With that information, you and your accounts can grow revenue.
Image by Vika Glitter on Pexels.
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