Rising Marketing Efforts Combine Direct Mail and Digital Audiences | Adstra | Open mic
This month, Adstra’s Ideal Insights shines a light on privacy concerns and growing trends at the national and state level.
“Renewal is not just innovation and change. It is also the process of aligning the results of change with our goals. – John W. Gardner
This month’s update
As the world around us begins to wake up from the pandemic, so too is the level of marketing we are seeing from our customers. We are seeing an increase in our direct mail and digital audience activities among our customers. Interestingly, we’re also seeing an increase in combined direct mail and digital marketing campaigns. On the non-profit side, we see more than twice as many multi-channel campaigns as in the past two years. So what is driving this interest? Multichannel or omnichannel marketing has always been one of those we talk about often, but it hasn’t caught on fire yet. While we can’t offer a definitive answer, we can certainly provide some insight and advice on the recent increase in effort.
First, the need to resolve the impact of the announced postal increases. While digital marketers fear the impending changes in cookie depreciation and AMM tracking, direct mail marketers fear the announced cost increases in postage and printing rates. The return on direct mail campaigns is also determined by response rates and execution costs. Marketers can adapt to small cost changes, but are faced with major changes like those offered. Direct mail certainly has a place for marketers in the future, but it needs to be improved so that ROIs continue to work at scale and allow access to a newer and younger audience.
Second, marketers are faced with the continued abandonment of younger generations’ engagement with mail and the bifurcation of consumer attention across multiple media channels. No medium has the scale of mind-sharing and engagement to make many traditional marketing approaches work. Walled gardens certainly offer some of the best opportunities to engage customers, but it is often dependent on garden conditions and eliminates most of a brand’s ability to effectively manage the communication journey. For brands that may exist outside of the traditional direct mail audience, they can still get away with it, but the trail is getting shorter as that audience continues to age outside of the ideal retail area. This is never more true than in the nonprofit space, where organizations are desperate to find younger donors and ensure their long-term relevance.
Together these two factors lead to the need to try something new. And that’s where multichannel campaigns fit in. Direct mail still has the many benefits of providing the relevant material to help customers buy or donate, but digital offers the low-cost opportunity to build brand awareness and stimulate discussion around a potential purchase or donation. Like anything new, however, the success of multi-channel campaigns has been limited. In many cases, we see brands simply claiming that it just doesn’t work.
We think a lot of this has to do with the original audience. Models suitable for direct mail often distort the value or promise of digitally engaged prospects. And numerically defined audiences do not reflect the ability to engage in direct mail. Brands need to start the audience definition process over again, as they would with any new product launch. If you haven’t looked at or understood how a multivariate test works, we may suggest that you learn more here. There must be a lot more testing of ideas and approaches before declaring that multi-channel marketing is banned. Marketers need to better understand the entire customer engagement process and ensure that their campaigns fully and effectively support that engagement.
For many campaigns, marketers see the digital component as simply building brand awareness and direct mail as the transaction method. But in some cases, and with some audiences, it may be best to reverse the thought. Couldn’t direct mail be the element of brand awareness and the digital component of the transaction vehicle? The problem with this scenario for many brands is that their websites are not designed to transact, but rather to support the company’s broader branding efforts.
In one of our clients’ recent tests, we saw a 250-300% increase in traffic to their website outside of the campaign, but no increase in conversion. This was clearly a case of a missed opportunity as the website was not set up to close the deal. The overall campaign results showed no improvement in performance, but it was clear that it was more of a self-inflicted failure than a failure of the campaign itself.
Thinking of customer engagement, we would also like to highlight here the need for consistency and alignment in messaging across channels. When messages are aligned at the individual level, brands are much more likely to be successful than when they are not. For one of our publisher clients, they were able to increase direct mail performance by over 80% for an insurance company they worked with by supporting highlights of direct mail material and telling customers to watch mail. . Based on the success of this campaign, the publisher tried to digitally support its own direct mail subscription offers, only to find that it had lowered response rates by around 20%. The reason was that direct mail had long been designed to look like an “invoice,” so customers just paid for the subscription. By raising awareness in the digital campaign that it was an “offer”, and not an “invoice”, the response lift is motivated by a feeling of obligation that has disappeared.
Overall, our experience suggests that if you stay aligned and consistent in your posts on an individual level, you should expect a 5-20% improvement in ROI. And we believe that will only get better as the experience and ability to market at the individual level improves. As we learn more from the campaigns we currently have in the market with our clients, we will continue to report on successes and failures. There is a future in multichannel marketing, we just need to do it together.
National privacy highlights
Senators Amy Klobuchar, John Kennedy, Joe Manchin and Richard Burr introduced the Social Media Privacy and Consumer Rights Act 2021. The bill would “give consumers the right to opt out and keep their information private by disabling tracking and data collection” and “require users to be notified of a breach of their information within 72 hours.” the sponsors said. The edge, Gizmodo, andArs Technica reported on the invoice.
Senator Kirsten Gillibrand introduced the 2021 Data Protection Act, which would create an independent data protection agency to “protect Americans’ data, protect their privacy, and ensure fair and transparent data practices.” The legislation spans similar legislation the senator introduced last year. “In today’s digital age, big tech companies are free to sell individuals’ data to the highest bidder without fear of real consequences, posing a serious threat to today’s privacy and civil rights. ‘hui. A data privacy crisis threatens the daily lives of Americans and we must hold these bad actors accountable, ”said Senator Gillibrand.
Street R called Congress to take action to protect Americans’ data from its adversaries by passing federal data security law and data privacy law. A white paper published by the group “seeks to reframe the need for data security and privacy legislation to recognize a harsh reality.
Greg Bensinger, New York Times Editorial Board Member, city the 6% US daily users who opted to collect data on Apple’s latest software update as evidence of consumer demand for more privacy. “Consumers have no federal privacy rights, leaving technology companies to implement policies as they see fit. And critics allege that Apple could propose changes to get ahead of regulatory pressure and an ongoing antitrust lawsuit against its app store. Advertising is only a small part of Apple’s business, which means it can afford to cut revenue while sticking to its competition. Ironically, Apple will have to act even more of a regulator itself to ensure that application developers follow the rules of its new software, ”he wrote. “Companies have been very successful for decades marketing to consumers without access to their every move or click of a mouse and keyboard. And with 94% of Americans saying they liked it that way, it’s time for advertisers to listen.
Consumer concerns about data privacy and the need to meet regulatory requirements such as GDPR are the main obstacles to the growth of mobile marketing, according to ARM investigation of more than 500 marketing professionals in Europe, Middle East and Africa (EMEA).
State-level privacy highlights
New York – Legislation that would require businesses to obtain consumer consent before processing their data for targeting advertising and allow class actions for violations has been approved by the Senate Consumer Protection Committee in New York.
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