Is Direct Mail Expensive?

You may be wondering, "Is direct mail expensive?" But how can you lower your direct mail costs without cutting corners? Consider using software such as Postalytics to manage your mailings. By automating much of the work, you can cut your direct mail campaign's costs significantly. One of the most common advertising metrics is CPM (cost per thousand impressions). This calculation uses the unit price for 1,000 "impressions." The "M" in CPM stands for mille, which is Latin for thousand. This means that, if you're sending out one mailer, you'll get a two percent response. By the fourth mailer, you'll have a 10 percent response rate, and by the fifth mailer, that response rate will skyrocket to 80 percent.

Postage rates vary, depending on mailing list size, so it's important to compare prices between direct mail sizes. Letter-sized paper is the most common size for personal correspondence, but you might want to consider sending out extra-large 8.5" x 14" letters if you'd like to include a reply device. Self-mailers, which are 8" x 20" and fold into a trifold, bifold, or oblong, offer more room than a typical postcard, but you'll need to calculate graphic costs into your budget.

Postalytics makes it easy to add copy to your postcards, monitor results, and re-use templates. As with most types of advertising, 40% of the success of your direct mail campaign depends on the quality of your mailing list. The quality of mailing lists varies widely, and so can their cost. A good list can make or break your direct mail campaign. If your list is high-quality and responsive, direct mail can be an effective means of marketing your new business. Read more