{"id":16284,"date":"2019-02-21T19:35:18","date_gmt":"2019-02-21T19:35:18","guid":{"rendered":"https:\/\/www.valpak.com\/?p=16284"},"modified":"2020-04-27T18:03:19","modified_gmt":"2020-04-27T18:03:19","slug":"tv-advertising-vs-direct-mail","status":"publish","type":"post","link":"https:\/\/www.valpak.com\/advertise\/blog\/tv-advertising-vs-direct-mail","title":{"rendered":"TV Advertising vs. Direct Mail"},"content":{"rendered":"<p>Rich colors, high-fidelity sounds, images in motion and the ability to reach a wide audience once made TV advertising the clear-cut leader in marketing channels. That is, before the rise of the internet and proliferation of smart things.<\/p>\n<p>With a lot of luck, we\u2019re talking lottery luck, TV advertising can still turn a relatively unknown name into a household name. The \u201cbig break\u201d opportunity TV advertising promises is what makes this marketing method compelling to many small business owners. It\u2019s also what makes <a href=\"https:\/\/www.sba.gov\/sites\/default\/files\/articles\/Advertising_0.pdf\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">TV advertising cost<\/a> 10 to 30 times more than radio and print ads.<\/p>\n<p>To maximize the chance for a solid return on your investment (ROI) in a TV commercial, your ad needs to run enough times that, eventually, it plays in front of enough people in your target demographic. It doesn\u2019t stop there. The content of your TV commercial must then motivate the viewer to do business with you.<\/p>\n<p>For prices that are just a fraction of a TV commercial, <a href=\"https:\/\/www.valpak.com\/advertise\/products-services\/direct-mail\">direct mail advertising<\/a> can reach your target demographic and drive them to action. Unlike TV advertising, where changes to the content (rewrites, reshoots, etc.) or time slot can cost thousands of dollars, each direct mail campaign you run can easily be tweaked based on your marketing need to meet, and very often exceed, your ROI goals.<\/p>\n<h2>Direct Mail Targeting and Tracking<\/h2>\n<p>It\u2019s not just affordability that makes direct mail marketing a powerful complement for TV advertising or even the superior choice when your marketing budget is tight.\u00a0There\u2019s also direct mail\u2019s ability to target ads at shoppers prequalified by years of consumer research \u2013 research that grows with each mailing. Direct mail is cost-effective marketing that doesn\u2019t squander your ad dollars by broadcasting your business to households too far away to pay attention (or care). With direct mail advertising, you can:<\/p>\n<ul>\n<li>Target local households by demographics, geography and purchasing behaviors\n<ul>\n<li>Valpak\u2019s audience has a 20% higher purchasing power<\/li>\n<\/ul>\n<\/li>\n<li>Only mail to high-income consumers with discretionary income to spend\n<ul>\n<li>Consumers who receive Valpak have 32% higher incomes<sup>1<\/sup><\/li>\n<\/ul>\n<\/li>\n<li>Tailor your message by audience (new, current and past customers)\n<ul>\n<li>Valpak\u2019s smart envelope enables household-level targeting<\/li>\n<\/ul>\n<\/li>\n<li>Analyze and optimize ad performance to ensure no wasted spend\n<ul>\n<li><a href=\"https:\/\/www.valpak.com\/advertise\/products-services\/roi\">Marketing ROI<\/a> tools from Valpak track response\/performance<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Direct mail marketing answers many of the questions left unanswered or insufficiently addressed by TV advertising. How many consumers saw your ad? Did they really see your ad, or did it play for an empty couch? What actions did they take after your ad aired somewhere in their household?<\/p>\n<p>With the right direct mail company, you can measure consumer response to your print advertising \u2013 thanks to tracking codes, URLs and phone numbers unique to your campaign.\u00a0You\u2019ll know which households redeemed your offers and when. You\u2019ll know if a household looked online for more information about your ad or business. And you\u2019ll know when and why a prospective customer calls.<\/p>\n<p>With the scattershot approach of TV advertising, advertisers can\u2019t pick which streets or neighborhoods receive their ads \u2013 the entire TV market will receive them.<\/p>\n<p><em>What happens when you don\u2019t have fine control over where your brand\u2019s message goes and who receives it? <\/em><\/p>\n<p>Home services companies waste money marketing to apartment complexes. Maid services squander marketing dollars advertising to hotels. Pizza shops entice someone on the other side of town to get their pizza fix at a much closer parlor.<\/p>\n<h2>Consumer Response<\/h2>\n<p>While more than half of baby boomers (55%) primarily get their news from broadcast and cable TV, it\u2019s another marketing channel that drives them to act: direct mail.<\/p>\n<p>About a third of boomers (33%) responded to a direct mail ad in the past 30 days, compared to 27% for TV ads (includes over-the-air, mobile video and web video) and 22% for newspaper ads (includes print, web and mobile ads).<\/p>\n<p>And contrary to the conventional knowledge of just a few years ago, millennials enjoy receiving direct mail too, with 31% responding to an ad in their mailboxes in the past 30 days.<\/p>\n<h3>Direct Mail Response Rates<\/h3>\n<p><em>Responded to an Ad in the Mailbox in the Past 30 Days<sup>2<\/sup><\/em><\/p>\n<ul>\n<li>Baby Boomers: 33%<\/li>\n<li>Gen Xers: 33%<\/li>\n<li>Millennials: 31%<\/li>\n<li>Gen Zers: 21%<\/li>\n<\/ul>\n<p>Through more than 50 years of local marketing expertise, Valpak continues to lead the industry in direct mail response and engagement:<\/p>\n<ul>\n<li>90% of households open the Valpak Blue Envelope<\/li>\n<li>82% look at every local ad inside it<\/li>\n<li>54% use Valpak coupons once a month or more<\/li>\n<li>71% set aside 1-4 coupon ads to share or use in the future<sup>3<\/sup><\/li>\n<\/ul>\n<h2>TV Cord Cutting and the Rise of Streaming<\/h2>\n<p>Something of a novelty early on and a bit of a hobby a little later, cord cutting has become a way of life for millions of consumers in the U.S. In 2018, eMarketer forecasted U.S. cord cutters to reach 33 million, a <a href=\"https:\/\/www.emarketer.com\/content\/more-than-half-of-us-consumers-watch-subscription-ott-video-2018\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">32.8 percent increase<\/a> over the previous year.<\/p>\n<p>While many cord cutters don\u2019t cut the coax cable altogether, it\u2019s still needed to connect to antennas for over-the-air channels, the lifestyle change to streaming and on-demand content continues to eat away at the potency of TV advertising.<\/p>\n<p>The money saved on opting out of cable TV packages is either banked or spent elsewhere. So, if cord cutters aren\u2019t watching the premium ad slots on pay TV, where are they finding deals that resonate and prompt them to purchase <em>now<\/em>? The answer: They\u2019re responding to coupons and ads in their mailboxes.<\/p>\n<p>28% of cord cutters responded to a direct mail ad in the past 30 days. Direct mail ads are trailed in response rates by sponsored internet search results (25%), email ads (24%), ads on social networks (23%) and television ads (23%).<\/p>\n<h2>TV Advertising Costs<\/h2>\n<p>From hiring talent to shooting and editing your commercial, TV advertising has significant upfront costs. Once your commercial is ready to air, costs continue to rise when you choose the station, time of day and coverage area of your TV spot. Obviously, most small business owners aren\u2019t vying for airtime during Monday Night Football or other high visibility nationwide programs. The average cost per thousand (CPM) for national broadcast networks is $31.97. The <a href=\"https:\/\/blog.hubspot.com\/marketing\/tv-ad-business\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">cost of a local TV spot<\/a> is easier to swallow, averaging between $200 and $1,500 for a 30-second ad. This does not include upfront production costs.<\/p>\n<p>Let\u2019s say you own a Mexican restaurant. If you run a 30-second local TV ad each week in a month period, your advertising cost ranges from $800 to $6,000. If 50 people come into your restaurant after viewing your ad in a given month, your cost per lead (CPL) could be up to $120. Is your average order $120?<\/p>\n<p>Compare this CPL to Valpak, which costs as little as pennies per household per monthly mailing. Using 3 cents as the average, for Mexican restaurants, we recommend you mail 30,000 targeted homes around your location. That equals $900 per month \u2013 up to $5,100 less than a month of TV advertising.<\/p>\n<p>If 50 people come into your restaurant in response to your Valpak ad, your monthly CPL is $18 (up to 85% less than TV).<\/p>\n<p>Now, let\u2019s look at an industry with higher average order value and lower consumer demand.<\/p>\n<p>Let\u2019s say you own a roofing company and 5 people call after hearing your TV ad. Your CPL could be up to $1,200. The <a href=\"https:\/\/www.homeadvisor.com\/cost\/roofing\/install-a-roof\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">average homeowner spends $7,568<\/a> on a new roof, so TV advertising is a viable marketing investment for your business\u2026 but Valpak is better!<\/p>\n<p>If you run Valpak\u2019s recommended quantity of 100,000 targeted homes in your service area, you\u2019ll spend $3,000 per month \u2013 up to 50% less than TV advertising.<\/p>\n<p>If 5 people call your roofing company, your monthly CPL is $600 (50% less than TV).<\/p>\n<h2>A Bundle of Synergy with TV &amp; Direct Mail<\/h2>\n<p>Here\u2019s the major takeaway from all this: TV ads work, but they can cost too much for many small and midsize businesses. Direct mail delivers more bang for each advertising buck, with hyper-targeting and tracking capabilities that TV advertising simply can\u2019t compete with.<\/p>\n<p>For those set on making TV ads part of their marketing campaigns, it\u2019s important to not overlook the synergies realized by combining this form of marketing with other channels. Those households free of cable cords or that have opted to keep TV out of the living room entirely, might be some of your best customers. You just need the right marketing firm to help you identify them.<\/p>\n<p>When you consider consumers\u2019 tendency to skip commercial breaks, the continued rise of premium streaming services, the staying power of direct mail marketing and the sheer cost of TV advertising, a compelling conclusion emerges: You probably shouldn\u2019t abandon other forms of marketing in favor of going all in on TV advertising.<\/p>\n<p>1. Compared to the average U.S. consumer. Claritas data with current year projections. January 2019.<br \/>\n2. 2018 AudienceSCAN<br \/>\n3. Among households that receive Valpak. 2018 Valpak\u00ae Readership Study, Research Now\u00ae, December 2018.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rich colors, high-fidelity sounds, images in motion and the ability to reach a wide audience once made TV advertising the clear-cut leader in marketing channels. That is, before the rise of the internet and proliferation of smart things. With a lot of luck, we\u2019re talking lottery luck, TV advertising can still turn a relatively unknown [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16280,"comment_status":"open","ping_status":"open","sticky":false,"template":"siege-2018.php","format":"standard","meta":{"_acf_changed":false,"_uag_custom_page_level_css":"","_swt_meta_header_display":false,"_swt_meta_footer_display":false,"_swt_meta_site_title_display":false,"_swt_meta_sticky_header":false,"_swt_meta_transparent_header":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-16284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>TV Advertising Compared to Direct Mail \u2013 Cost &amp; Industry Stats<\/title>\n<meta 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That is, before the rise of the internet and proliferation of smart things. With a lot of luck, we\u2019re talking lottery luck, TV advertising can still turn a relatively unknown&hellip;","_links":{"self":[{"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/posts\/16284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/comments?post=16284"}],"version-history":[{"count":9,"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/posts\/16284\/revisions"}],"predecessor-version":[{"id":19630,"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/posts\/16284\/revisions\/19630"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/media\/16280"}],"wp:attachment":[{"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/media?parent=16284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/categories?post=16284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.valpak.com\/advertise\/wp-json\/wp\/v2\/tags?post=16284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}