Re: Internet advertising versus Direct Mail

From: Bruce Koren <bruce_at_citymarketing-sf.com>
Date: Wed 5 Apr 2000 23:21:03 -0800

ILONA KAUREMSZKY WROTE:
> I'd like to appeal to our members who come from a
> direct marketing background and are using the Internet
> for marketing opportunities. I'm dealing with a client
> has a direct mail background. They are considering the
> switch to do Internet advertising but want to know what
> the benefits are versus traditional Direct mail.
> Thoughts, please? Have there been any studies published
> on this?

Ilona,

I've been involved in traditional direct mail marketing
for over 15 years and have recently begun to offer
Opt-in Email programs to my clients. There are so
many benefits, let's see if I can list them. But
first, you use the phrase, "They are considering the
switch to do Internet advertising..." If they're
thinking of banner advertising, that may not be the
answer. Banners pull about .7% response. So they're
great for branding and awareness building, but if your
client is looking for measurable response, Opt-in
Email is worth trying:

1. Opt-in Email targets your client's audience not
only by offering them the demographics they seek, but
also by providing an audience who has actually asked
to receive messages in a specific product or service
area. They are willing recipients of the promotional
message.

2. Because quality Opt-in lists represent an audience
seeking information, the response rates are much
higher. The best response rates we've seen with
targeted direct mail (not direct mail to a general
audience, but targeted by job title, geographic
location, magazine subscriptions, etc.) that we've
seen is about 4%. With Opt-in Email, we can easily
get over 7% response, and sometimes double digit
responses well over 10%.

3. Opt-in is easy to test and change. In the 15 years
of doing traditional direct mail, I've never had a
client who would analyze the results of a split run
mailing, reprint the version that pulled the best, and
go out to a larger audience with the winning package to
the winning list. It's just too expensive for most
clients to reprint the mailing, buy new lists, pay for
postage again, and repeat the mailing. With Opt-in,
we can begin with a four-cell test (two subject lines
or offers and two separate lists). Within 24 hours of
the initial push, we can analyze the results, buy more
names, and roll out the winning message to a larger
version of the winning list.

4. Test, test, test. We are always testing, and it's
so easy. We know an entry in a sweepstakes for a
laptop pulls up to 7% for our target audience. But we
tested other sweepstakes prizes, like a combination
printer, scanner, fax, and copier, and the response
dropped to around 4%. Then we take the winning
message, and test another list vendor. Each vendor
collects names in a different manner, so the response
rates vary. Again, test, test, test.

5. The conversion rates are higher. At first your
client will be pleased with the CTRs. But they'll be
surprised again at how high the conversion rates are.
Remember, these are not only targeted, but willing
recipients of your messages. If we were telemarketers,
we would refer to the quality of these lists as "hot
leads."

We like the measurable responses and high ROI from
Opt-in Email. But we've also done integrated programs
where we drive traffic to a web site with conventional
direct mail, Opt-in Email to existing customers, and
banners. These programs can produce returns of over
20%.

Bruce Koren

City Marketing
bruce_at_citymarketing-sf.com
http://www.citymarketing-sf.com
415 398.0303
City Marketing, your official creative resource
for the new millennium.




Received on Thu Apr 06 2000 - 02:21:03 CDT