But in today’s internet-driven, eco-conscious world, there are better alternatives to direct mail. In fact, by today’s standards, it’s expensive to start a direct mail campaign. So how much does direct mail advertising really cost?
On this page, we’ll answer that question and compare direct mail advertising to some reasonable alternatives.
First, let’s look at the cost of direct mail.
how much does direct mail advertising cost?
Direct mail, also called “junk mail” by those who don’t like it, was once an effective way for businesses to reach local customers.
Direct mail operates out of public addresses, which are maintained by all municipal governments in the United States. marketing companies collect those addresses into mailing lists and then sell the mailing lists to companies.
Those same marketing companies could also hire local companies to send mail on their behalf.
Regardless of how they do it, we break down the cost of direct mail in the table below.
Direct mail marketing is broken down into four basic steps: setup process, setup cost, media cost, and follow-on cost.
1. setup process
first, the configuration process is the graphic design. By that, we mean that you write the text and create the images for your direct mail ad before it goes to print. you can do it through your company, a freelancer, or even yourself if you have design skills.
But it’s important to recognize that your time is valuable. If you invest in direct mail marketing, you have to be sure that it will pay off in the long run.
In addition to money and time, direct mail comes with another cost consideration: your reputation.
We will agree with you on this. direct mail is better known as “junk mail”. it is frequently thrown away, and the number of people who even open your envelope will be a fraction of your total mailing list.
Regardless of what you offer, some people just don’t want spam. It’s kind of like telemarketing through the postal service. therefore, for every spam you send, you could damage your reputation.
but if you’re okay with taking that risk, your next step in direct mail is the setup cost.
2. installation cost
Setup cost refers to paying a direct mail provider for their mailing lists and services. Both lists and services depend on who you want to reach, how much mail you want to send, and what you want to accomplish overall. With that in mind, direct mail setup costs can range from $50 to $7,200, depending on your criteria.
That’s usually a flat rate with most direct mail providers, but your costs may recur monthly, quarterly, or yearly.
If that’s the case, you can expect your direct mail cost to be significantly higher than we estimated above.
However, that’s still only about half the total cost of direct mail. you should also consider the cost of supplies.
3. media cost
In this context, “media” refers to the paper, envelopes, stamps, ink, and dozens of other small supplies that make direct mail possible. Your direct mail provider will often sell these supplies as a package with their mail services. in that scenario, you can expect to pay $51.40 on average for a batch of supplies.
Compared to the cost of setting up direct mail, this isn’t a huge increase in your overall bill. still, if you expect to run multiple campaigns with different layouts, mailing lists, and supplies, you can multiply all of these costs by two, three, or more to get your final price.
In other words, running multiple campaigns could theoretically generate over $22,000 over the course of a year, maybe even more depending on your goals!
However, there are still some costs to consider with direct mail. and the last one is bigger.
4. cost of continuing
Direct mail providers often require a cost to go on, like a subscription fee, so if you plan on running multiple campaigns (or a single campaign for a long time), you can expect to add more fees on top of what you already have. you’re paying.
These costs come from redesigns, reprints, restocks and more. Plus, most direct mail services add an extra fee just to continue working with them, kind of like a landlord raising your rent after you’ve lived in an apartment for a year.
That means your direct mail costs could rise year over year, but your bottom line could stagnate. that lowers your roi, which makes it harder to justify a long-term direct mail strategy.
And if direct mail can’t deliver a consistent return on investment, it’s not an ideal strategy for your business.
alternatives to direct mail marketing
Direct mail marketing is basically local marketing, but there are much better ways to get local customers. Thanks to the Internet, all businesses now have access to low-cost, high-ROI marketing strategies that deliver reliable results.
Here are some direct mail marketing alternatives that businesses can use for local marketing:
- local search engine optimization
- web design
- web development
- pay per click advertising
- networks social marketing
- google business profile
No matter how you do it, all of the above marketing strategies allow you to promote your business for less money than direct mail, and often less time, too. in fact, given the potential long-term results, all of the above strategies will work better for you than direct mail.
That’s because the internet makes it easy for companies to market how they want. you can connect with service providers, design ads yourself, and simply add your business information to different directories to get new customers.
While those things take time and money like direct mail, they don’t require as high a level of investment with such a low response rate.
Some of these local internet marketing ideas are even free, like a google business profile. That means even if you only get one new customer from your google business profile account, you’ve made pure profit.
Most of these online strategies are also designed to promote your business much longer than direct mail.
With direct mail, you only get fast shipping to your paid leads.
but local seo can last for years. as well as google business profile, web design, web development and social media accounts.
That means you don’t just get a one-time offer, like you do with direct mail. instead, you are investing in the long-term future of your business and with it, the daily potential for more revenue.
Looking to promote your company?
At webfx, we have a full team of internet marketers who understand direct mail and all of its alternatives.
We specialize in internet marketing strategies you can use for a fraction of the cost of direct mail and a significantly better ROI.
If you want to promote your business, we are here to help!
Contact us today to start marketing your business online!