Retail & Direct Mail | How to Excel in Holiday Marketing

Between the hustle and bustle of traveling, party planning, and holiday cheer, customers are feeling the substantial push for end-of-year purchases from retail marketing. In fact, the 2023 holiday season can account for as much as 30% of a retailer’s annual sales.

With the increase in holiday spending comes an increase in holiday advertising. With 57% of customers starting their gift shopping around Thanksgiving (2021 Holiday Consumer Spending Trends), company marketing budgets are likely overinflated to reach as many buyers as possible during November and December.

However, high opportunity costs come at a risk of buyer burnout, especially at this time of year. Americans are feeling the exhaustion that comes with holiday preparations, as a Slumber Cloud survey found that many people will spend up to 13 hours shopping for gifts and cooking.

Holiday shopping may not be the only cause of burnout. Increased holiday advertising may also contribute to why 41% of Americans experience an increase in stress around this time. Some noted causes include spending too much (or not having enough funds) (58%), finding the right gifts (40%), and feeling pressure to make the holidays special (30%) 

Historical Trends and Predictions for Holiday Spending

In 2022, the retail industry spent a shocking $1.9 billion in advertising costs in December. From emails to text messages to in-store advertising, the average customer faces a plethora of adverts from seemingly every consumer industry imaginable.

It should come as no surprise that retail advertising is so heavily prioritized when November – December spending grew 5.3% over 2021, for a total of $936.3 billion according to the National Retail Federation. 

And with such a promising start to 2023’s holiday season, the NRF predicts a healthy record between $957.3 billion and $966.6 billion for retail sales.

Even more surprising – customers are changing the devices they use for holiday spending. Adobe Digital Insights predicts that mobile spending will account for a majority of holiday spending – with a predicted 51.2% of revenue share. 

Customers Retail-iation Against Holiday Advertising

The overabundance of online ads can be a shock to the system for any online user. Which is why many opt for ad blocking, or even develop banner blindness. The alternative would be to constantly view every advertisement, display ad, and video ad interrupting or intruding during an online browsing session – an estimated 6,000 to 10,000 ads every day.

With 26% of American users installing some form of ad-blocking software (as of 2020), this trend is likely to only grow as U.S. citizens feel the pushback from advertisers.

Amid all the advertising done year-round, and additional marketing efforts during the winter months, how can companies break through the static without breaking the budget? 

Direct Mail For Holiday Marketing

Despite the increase in online advertising, consumers are growing more and more frustrated with digital advertisements. Since nearly one in three users are installing some form of ad block, it is only a matter of time before only large corporations can afford to uphold their presence online with hefty spending.

However, direct mail remains a powerhouse for marketers even during the holiday season. While email and display ads may attempt to entice customers, direct mail dominates by offering custom messaging and promotional offers to their audience. 

1.) Personalization

When it comes to leaving a strong impression, personalization is key. According to Epsilon Marketing, 75% of customers enjoy personalized offers, and “super” customers who prioritize personalized experiences are 10 times more likely to become a valuable customer – defined as over 15 transactions per year.

Personalization is an incredible – but often underutilized – advantage of direct mail marketing. The name, location, and spending habits of a household can provide much-needed context into the type of customers they are.

Addressing an individual by name and including custom offers based on their buying preferences can send a much more powerful message than the typical generic email. 

2.) Less Invasive Marketing

It is understandable that direct mail is a less invasive form of advertisement, and customers treat mailers as such. Moreover, direct mail has one of marketing’s longest lifespans, as 27% of direct mail is still “live” within the home after nearly a month.

Customer statistics can give more insight into this behavior, as 59% of US customers enjoy learning about new products through direct mail, and 62% enjoy checking their mailbox for mail.

Additionally, a majority report a preference for receiving information through direct mail. In comparison to internet and email, direct mail outperforms for a majority of popular consumer industries, including retail information (26%) and household products (26%).

3.) Improve Customer Memorability

One key finding in an Office of Inspector General RARC Report (RARC-WP-15-012) found that physical advertisements create a stronger emotional response in comparison to digital ads. The same report states that this information on human behavior “may be crucial when making actual purchases”.

This report also notes that observed brain activity saw a “greater subconscious value and desire” for items advertised in physical media.

Not only can the advertised products or services be seen as “higher value” when presented in a physical format, but the brand is more easily recognizable later on. One Canada Post study observed that a 66% majority of participants could recall the brands they saw through direct mail. In comparison to email (60%), pre-roll ads (57%), and display ads (37%).

What does this mean for direct mail?

Because of how prominent digital marketing is around the holidays, marketers are looking for alternative methods to connect with those who value their message. When a medium such as display ads and email marketing take up a majority of the online advertising space, it’s important to consider how much this type of content could dissuade potential customers due to the sheer volume of ads.

Do most customers read through each marketing email they receive? Do they mentally compartmentalize all the information they see through ads? Most likely not. Even if users forgo ad blockers, their capacity to learn about new products around the holidays is likely overwhelmed due to abundant online advertising.

By combining direct mail’s unintrusive presence within the home, and its advantages with personalization and memorability, it’s easy to see how this marketing medium can leave a stronger impact on the recipient.

And by creating an impactful experience during a critical time for holiday sales, your company has the chance to build long lasting relationships with new customers in addition to hitting sales goals.