Direct mail marketing was one of the most powerful and effective marketing channels for reaching new customers in 2022.
Here’s a look back at what happened in 2022, as well as our top tips for launching high-ROI direct mail campaigns in 2023, including:
- Rising costs of digital marketing.
- Decreased performance of digital marketing in 2022.
- Direct mail reigned as the ROI champion in 2022.
- Tips for direct mail marketing in 2023.
Rising Costs of Digital Marketing in 2022
One of the main reasons direct mail marketing performed so well in 2022 was due to the rising costs–and underwhelming performance–of digital marketing channels.
For example, the average cost per lead (CPL) for Google Ads increased for 91% of industries in 2022. Facebook ads also became more expensive. The average Facebook cost per click (CPC) was $0.50 in September 2021, but rose to $0.97 in July 2022. While digital advertising CPLs and CPCs rose significantly, direct mail marketing costs barely changed, increasing only 1.5% over the past year.
Decreased Performance of Digital Marketing in 2022
Unfortunately, the cost of digital marketing channels increased, but performance did not follow suit.
For instance, the average email open rate fell from 21.3% in 2021 to 16.97% in 2022. On social media, the average Instagram click through rate (CTR) dropped from 0.88% in 2021 to 0.22% in 2022. The average Facebook CTR dropped to 1.11%, down 0.37% when compared to 2021 averages. Google ads took a beating when it came to CTRs in 2022 with an average of only 3.17%, down from 6.18% in 2021.
Direct Mail Reigned as the ROI Champion in 2022
Marketers spent $1 billion more on direct mail marketing in 2022 than they did in 2021 due to its many benefits, which include high response rates and personalization. The ROI of direct mail was tough to beat, too, especially with the underwhelming performance of digital channels.
The 2022 Response Rate Report from the Association of National Advertisers (ANA) stated that direct mail campaigns generated 112% ROI, compared to SMS (102%), email (93%), paid search (88%), social media advertising (81%), and digital display advertising (79%).
Direct mail marketing was also extraordinarily cost-effective in 2022. The average cost was as low as $0.65 per mail piece. This is cheaper than many digital marketing strategies, especially for competitive industries, such as finance.
With inflation, a looming recession and an unpredictable business environment expected throughout the year, ROI will be a critical focus for businesses in 2023.
Tips for Direct Mail Marketing in 2023
To get the most bang for your direct mail marketing buck in 2023, we compiled our top tips for high-performance direct mail campaigns.
Personalize, Personalize, Personalize
Personalization is one of the biggest trends shaping direct mail marketing. Marketers can maintain databases of important customer dates, such as anniversaries and birthdays, and send automated mailings on those dates. They can also create mailings with custom colors based on known customer preferences.
In other words, we are all familiar with how social platforms use data to build algorithms. They prioritize which content a user sees in their feed by the likelihood that they’ll actually want to interact with it. That same tactic can (and should) be applied to direct mail marketing campaigns.
Make sure your direct mail marketing campaigns are personalized to the preferences and pain points of individual recipients. Why? The precise targeting capabilities of direct mail enable marketers to focus their resources on leads most likely to convert to paying customers.
Clearly Showcase Your Value Proposition
Direct mail marketing campaigns work best when they have a clear value proposition. These value propositions can include discounts or promotions, information about upcoming events, or statistics about the benefits of a service. Ensure these important points and calls-to-action (CTAs) stand out with compelling headlines, easy-to-read fonts and personalized content that resonates with each individual recipient.
Leverage Digital Marketing Efforts with Direct Mail
Direct mail is a flexible addition to any larger marketing strategy and can be incorporated at all stages of the marketing funnel. New direct mail technology also offers unique opportunities to make direct mail more interactive. Customers can use augmented reality functionality to view postcards in 3D images, and use scannable features that provide interactive video content and QR codes to facilitate mobile shopping.
While some of these technologies were first conceived in 2019, they really weren’t fully utilized until 2022. Marketing strategists and industry experts agree that these technologies will become much more mainstream in 2023.
Direct Mail Marketing with Jet Mail in 2023
Since 1993, Jet Mail has helped businesses deliver high-performance direct mail campaigns that boost ROI and generate new business. Our in-house print, mail, and fulfillment capabilities–including our on-site USPS facility–result in high-quality, fast and personalized direct mail campaigns. Learn how Jet Mail can amplify the performance of your 2023 direct mail campaign by contacting our team of experts today.