Why Direct Mail is a Cost-Effective Channel During Political Ad Seasons

The presidential election season is synonymous with an overwhelming surge in political advertising spend, predominantly across digital and television platforms.

Historically, candidates and political action committees (PACs) flood these channels with billions of dollars in a bid to sway voters. According to eMarketer, the 2020 U.S. presidential election saw an unprecedented $9.57 billion spent on political advertising, with a significant portion allocated to digital and TV. And 2024 political ad spending will vault past 2020 by nearly 30%, up to $12.32 billion. This deluge of political advertising not only saturates the market but also drives up the costs for other advertisers vying for consumer attention during this period.

Direct Mail: An Alternative to Google, Facebook, And Instagram

The spike in political ad spend has a cascading effect on cost-per-thousand impressions (CPMs) across various industries and verticals. Platforms like Google, Facebook, and Instagram experience dramatic increases in CPMs due to heightened competition. Data from AdStage revealed that during the 2020 election season, CPMs on Facebook increased by nearly 50% compared to the same period the previous year. This surge in costs compels non-political advertisers to reconsider their strategies, as the inflated prices can severely impact their marketing budgets and ROI.

Direct mail emerges as a highly effective political advertising alternative amidst the chaos of digital ad inflation.

Direct mail campaigns boast an impressive response rate, often outperforming digital efforts. According to the Data & Marketing Association (DMA), direct mail’s response rate for house lists stands at 9%, significantly higher than the 1% response rate for email marketing. During the election season, when digital channels are costly and oversaturated by political ads, direct mail offers a tangible, less cluttered medium that captures consumers’ attention more effectively.

Consider a retail brand that traditionally allocates a significant portion of its budget to digital advertising. During the election season, this retailer could pivot to a direct mail campaign. For instance, a retailer could launch a personalized direct mail campaign featuring “Back to School” products and sales. By leveraging customer purchase history and preferences and demographics (like kids who are heading back to school), the retailer can send tailored offers and exclusive discounts directly to consumers’ mailboxes, ensuring a high engagement rate without competing in the inflated digital space.

Similarly, an insurance company could relocate its digital budget to a targeted direct mail campaign. By utilizing data on life events such as recent home purchases or new births, the insurance brand can send personalized offers for home or life insurance policies to relevant households. Combining demographic data with psychographic insights allows for the creation of compelling, personalized messages that resonate with the target audience, driving higher conversion rates.

Crafting Your Ideal Audience With Direct Mail

Data is the cornerstone of effective direct mail campaigns, and companies like Speedeon Data provide a wealth of targeting options. Speedeon offers comprehensive consumer datasets, including demographics, psychographics, life events, and online behavioral intent – all of which can be used to craft the perfect audience for a direct mail campaign. Brands are empowered to reach the right audience at the right time, ensuring maximum impact and ROI.

Here are five reasons why direct mail is an invaluable tool during times of digital advertising inflation:

1. Targeted Reach: Direct mail allows for precise targeting based on robust data, ensuring your message reaches the most relevant audience.
2. Personalization: With detailed consumer data, direct mail can be highly personalized, increasing engagement and response rates.
3. Higher Engagement: Tangible mailpieces often garner more attention and trust from consumers compared to digital ads.
4. Complementary to Digital Campaigns: Direct mail can enhance and reinforce your digital marketing efforts, creating a cohesive multi-channel strategy.
5. Measurable Results:  Direct mail campaigns offer clear metrics and tracking capabilities, making it easy to measure success and ROI.

So while the upcoming presidential election and political spend season inflates digital advertising costs, direct mail provides a cost-effective, high-impact alternative. By leveraging sophisticated data targeting and personalization, marketers can achieve impressive results without competing in the saturated digital arena. Want to know how Speedeon can help? Then click below and book a strategy session with our team!