Lob, the leading direct mail platform, today released its 2023 State of Direct Mail report, in partnership with Comperemedia, to understand how marketers use direct mail to drive growth, how they measure results, how marketing costs are changing, and what the future holds for direct mail. The study found 74% of sellers believe that direct mail offers the best ROI, response, and conversion rate compared to other channels, including email.
The report surveyed 250 marketing professionals working at North American companies with more than 1,000 employees in finance/banking, eCommerce, retail, healthcare, insurance, and nonprofits. Sixty-four percent of respondents that their companies do business through the Internet and on the site where many write their letters from 100,000 to 100 million a year.
Advertisers are responding to consumers’ willingness to mail by investing heavily in the channel—despite the rumblings of recession and technology overload. The report found includes:
- Eighty percent of the sellers has more ad dollars allocated to mailers in 2023 than they did in 2022:
- 69% of sellers has 25% of all advertising revenue allocated to mailings
- 20% of sellers they have 26-50% of their total advertising budget dedicated to mailing
- 11% of advertisers they have more than 50% of their total marketing budget devoted to mailing
- 81% of sellers Those who use direct mail software agree that it provides the best solution for all the channels their company uses today. This changes to 70% of respondents WHO don’t use a software program. Direct mail marketers reap the benefits of better response rates by being able to create targeted, personalized, and actionable campaigns.
- The need to measure and monitor direct mail costs is growing. Thirty-six percent of sales dealing with poor response rates and 32% report Bad address. Only 40% use a technology platform running direct mail campaigns, which can address some of these issues and improve targeting, data tracking, and advanced customization.
“We’re seeing more and more marketers expanding their use of direct mail, and this report underscores that sentiment,” said Ritu Kapoor, CMO, Lob. “The key learning we see in the data is the power and technology in direct mail testing. Those who are using direct mail platforms and integrating and testing those campaigns fully with digital marketing are seeing huge benefits.”
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