Dissecting the Relevancy of Online & Direct Mail Marketing
When ads connect to a customer’s wants and needs, they save both time and money when shopping. In fact, 71% of customers prefer to have ads targeted to their wants and desires.
But how do companies find these relevant customers? Companies typically undergo extensive marketing research and create a customer profile to understand their interests and behaviors. This research allows marketers to identify and market to these customers through an omnichannel approach.
The rise of internet marketing has led many to assume that direct mail is no longer a relevant marketing platform. However, direct mail has been a staple for advertising long before digital marketing’s popularity. Its ability to identify prospects, cater to their interests, and reach them in an impactful way makes print mail a necessary channel for a marketing campaign.
User-Generated Data vs Accurate Data
User imputed data can quickly become a severe detriment for marketers in practice. Since most of the data collected cannot be verified (unless tied to a user’s identity), internet users have no deterrents to submit wrong or otherwise incomplete data to mislead companies.
Other instances of data manipulation like shared devices or privacy tools can also affect a company’s marketing strategy.
Privacy concerns can impact how users share their personal information on websites and accounts. If the user does not trust a company, they may be inclined to spoof their data. Usually, users that knowingly enter false information do not face repercussions unless the business already knows their identity.
Sometimes websites require users to submit their personal data, such as a telephone number for communication purposes or an address to verify the nearest physical store. In this instance, users can give out partially true information, such as a phone number but not a name or address.
While this info is accurate, it does not always give marketers the best insight into that customer. Limiting the amount of personal data a company receives will lead to irrelevant ads for the customer and may push them away from online advertising.
Unlike digital advertisement that relies on user-generated data, direct mail campaigns link to physical addresses. As these addresses update regularly, your company is always up to date on the latest trends and potential leads.
These residences are profitable for companies specializing in the home, such as lawn care, solar roofing, cable, or other services. By verifying through a home address, these companies can reach their target audience far more accurately than with digital ads.
Customers desire a more personalized shopping experience both on and offline. Targeted ads are the solution, as 49% agree that tailored ads are helpful to their shopping experience. However, how do digital ads and direct mail cater to users’ interests?
When digital markers rely on outdated or incorrect user-generated data to create a customer profile, their ads become irrelevant to their target audience. If marketers analyze and experiment based on users they falsely believe to be prospects, they miss their intended audience while annoying uninterested prospects.
A CivicScience report found that 68% of surveyed individuals believe digital advertisements are “Not at all relevant” to their interests. A breakdown by age reveals that 80% of individuals 55 years or older consider digital ads unappealing to their wants and desires.
As previously stated, direct mail uses accurate and recent data, typically tied to home residency. Mail campaigns build an accurate depiction of the household and their interests by analyzing this data. Creating a customer profile before launching a campaign ensures a better ROI for your company.
Due to the nature of homeownership, some businesses will always remain relevant to customers. Household services have the potential to target every homeowner in the United States. With a homeownership rate of 65.5%, every business can profit from households that will need their products and services in the future.
Changing Algorithms Favor Different Content
After a popular online platform emerges, many companies are eager to be the first to advertise to new audiences. However, social media algorithms are a constant threat when creating engaging media. Previous ads may no longer receive impressions thanks to a change in the source code. By the very nature of these platforms, new and exciting content will always change to make any campaign irrelevant in time.
The emergence of TikTok is a recent example of how rising technology and popularity can change how other platforms engage with their audience. The app promotes quick, snappy videos, typically less than a minute long. It did not take long for other social media apps to notice. To compete with TikTok, Instagram introduced Reels in the summer of August 2020.
While these emerging changes may drive user engagement, only large companies can afford to be flexible with their online advertising. For small businesses, a change in the algorithm could mean losing out on their once engaged audience. Marketers with smaller teams cannot keep up with every rising trend that may require learning new skills that differ from what they are familiar with. Or if the company decides to hire freelancers to create new ads, the marketing costs can quickly escalate.
If these variables change every few months, these companies cannot track their ad performance as accurately. Ads that were once profitable are now deemed irrelevant due to the algorithm favoring different forms of media.
Fortunately, direct mail campaigns do not cater to these hidden algorithms and diversified online content to drive engagement. In theory, a company could send out the same mailer year after year with few changes and still achieve success.
Start Your Direct Mail Campaign With DK Solutions
Thanks to DK Solutions’ TargetList methodology, direct mail is more relevant than ever. Through its customer profiling, targeted interests, and adaptive strategy, our clients enjoy 2-3 times the response rate for non-targeted mail while not suffering from burdensome costs for postage and printing.
Want to learn more about the direct mail industry? Contact us or visit our blog for more information on how your business can succeed with direct mail.
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