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How much does direct mail marketing cost?

Direct mail marketing has been around for decades, and it continues to be a popular and effective way for businesses to reach their target audience. But if you're considering incorporating direct mail into your marketing strategy, you may be wondering, "how much does direct mail marketing cost?"

To answer the question of cost, you need to understand all of the elements that make up a direct mail marketing campaign, which can include procuring an address list, discussing strategy with a marketing specialist, the cost of postage, postal presorting, printing and delivery. If your campaigns prove to be a success, you might also consider performing every aspect of your direct mail marketing campaigns on your own rather than paying others for their expertise and use of their equipment.

In this article, we'll break down the cost of direct mail marketing and provide tips on how to make the most of your budget.

Understanding Direct Mail Marketing

Direct Mail Marketing is an effective and cost-effective way to advertise your business

Before we dive into the cost of direct mail marketing, let's first define what it is. Direct mail marketing is a form of advertising where businesses send physical mail pieces, such as postcards, letters, or brochures, to a targeted list of recipients.

Direct mail marketing can be used for a variety of purposes, including promoting a new product or service, announcing a sale or promotion, or simply staying top-of-mind with potential customers.

Benefits of Direct Mail Marketing

Direct mail marketing offers several benefits that make it a valuable addition to any marketing strategy. These include:

  • Targeted reach: With direct mail, you can target specific demographics, such as age, income, location, and interests, to ensure your message reaches the right audience.
  • Tangible and personal: Unlike digital marketing, direct mail allows you to physically put your message in the hands of your audience, making it more personal and memorable.
  • High response rates: According to the Data & Marketing Association, direct mail has a response rate of 4.9%, compared to email's response rate of just 0.6%.
  • Measurable results: With direct mail, you can track the success of your campaign by including a call-to-action, such as a coupon or unique URL, and monitoring the response rate.

Factors That Affect the Cost of Direct Mail Marketing

five people sitting at table and talking

The cost of direct mail marketing can vary depending on several factors. These include:

Type of Mail Piece

The type of mail piece you choose will have a significant impact on the cost of your direct mail campaign. Postcards, for example, are typically the most affordable option, while brochures and catalogs can be more expensive due to their size and weight.

Quantity

The number of mail pieces you send will also affect the cost. Generally, the more you send, the lower the cost per piece will be.

Mailing List

The quality and size of your mailing list can also impact the cost of your direct mail campaign. Purchasing a targeted list from a reputable provider can be more expensive than using an in-house list, but it can also yield better results.

Design and Printing

The design and printing of your mail piece will also contribute to the overall cost. A simple postcard with minimal design elements will be more affordable than a full-color brochure with custom graphics. But keep in mind that the higher quality paper you use, the more effective the direct mail campaign will be. For postcards, you want to use a paper that feels good to the touch, is rigid enough to prevent damage easily, and where the address block on the mail piece will be legible from the time it was printed to the point in which the mail piece lands in the mailbox.

For postcards, considering using a 100# cover stock to ensure the mail piece withstands sorting and handling.

Postage

Postage is another significant factor in the cost of direct mail marketing. The type of mail piece, size, and weight will determine the postage rate. Additionally, if you're sending mail internationally, the cost will be higher.

Frequency

According to the Association of National Advertisers and the American Marketing Association, as well as top mail service providers, the optimal amount of times to send a direct mailing to a specific targeted audience for maximum effectiveness is 3 times, and 21 days apart. When you factor in the cost of postage (in addition to the cost of data processing, printing and delivery), multiply this by 3 in order to properly estimate the cost of the marketing campaign.

Average Cost of Direct Mail Marketing

According to the Data & Marketing Association, the average cost of a direct mail campaign is $0.30 per piece. However, this cost can vary depending on the factors mentioned above.

To give you a better idea of the cost, here are some examples of the average cost per piece for different types of mail pieces:

  • Postcard: $0.30 - $0.50
  • Letter: $0.50 - $0.70
  • Brochure: $0.60 - $1.00
  • Catalog: $1.00 - $2.00

Keep in mind that these are just estimates, and the actual cost may vary depending on your specific campaign.

Tips for Making the Most of Your Direct Mail Marketing Budget

Now that you have a better understanding of the cost of direct mail marketing, here are some tips to help you make the most of your budget:

Define Your Target Audience

Define your target audience

Before you start your direct mail campaign, it's essential to define your target audience. This will help you create a more targeted and effective campaign, which can ultimately save you money.

Use a Targeted Mailing List

As mentioned earlier, the quality and size of your mailing list can impact the cost of your campaign. Instead of sending mail to a broad audience, consider purchasing a targeted mailing list, such as the lists you can purchase for 3 cents per record at BuyLists.com, to ensure your message reaches the right people.

Keep Your Design Simple

While a visually appealing mail piece can be eye-catching, it can also be costly. Consider keeping your design simple to save on printing and design costs.

Test Your Campaign

Before sending out a large batch of mail pieces, consider testing your campaign with a smaller group. This will allow you to make any necessary adjustments before sending out the full campaign, potentially saving you money in the long run.

Track Your Results

Track your direct mail campaign results

Tracking the success of your campaign is crucial in determining its effectiveness and ROI. By including a call-to-action and monitoring the response rate, you can make data-driven decisions for future campaigns and potentially save money by eliminating tactics that aren't yielding results. The call-to-action can be triggered by the results of tracking the intelligent mail barcodes on your printed piece. When you use IM Barcode tracking, you'll be given information on when each individual mail piece has hit the mail stream, where it is along the path to its destination, and the date and time each piece has reached the final facility in which the barcode is scanned. With this information, you'll know when the mail piece is going to arrive in mail boxes, and that can affect the timing of your CTA.

Rule of thumb: If you receive an out-for-delivery scan on a mail piece before 5 AM, count on that piece being delivered that same day; otherwise, delivery can be expected the following day.

Conclusion

Direct mail marketing can be a valuable addition to your marketing strategy, but it's essential to understand the cost and how to make the most of your budget. By considering the factors that affect the cost and implementing cost-saving tips, you can create a successful direct mail campaign that yields a high ROI.

With careful planning and execution, you can create a cost-effective campaign that helps you reach your marketing goals.

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