At first glance, the battle of direct mail vs. digital marketing may seem like a classic either/or choice. For years, both strategies have had their supporters and detractors, always ready to defend their favorite. Each technique offers advantages that are boosted by marketers, companies, and organizations as the best way to meet their goals. The reality is, though, that to drive the best ROI and engagement, both methods have to be carefully considered.

In this article, we will look at the advantages and challenges of both direct mail and digital marketing. Through looking at the differences between the two, we’ll help you decide which one works better for your business or organization overall or for specific campaigns.

Direct mail marketing works well today based on more than a century of experience. Ink on paper, with all of its longevity, has both pros and cons to be weighed by businesses of all sizes.

The best reasons to use direct mail have been well-known for many years and include:

Direct mail, especially in less-experienced hands, may have some limitations, such as:

Digital marketing includes many online marketing techniques, such as:

So, the growth of digital channels in the last 20 years has been impressive. However, no strategy is perfect in every campaign for every brand. To achieve success, the pluses and minuses must be evaluated and balanced against each other.

As some technologies mature and others are introduced and deployed by marketers, the advantages of investing in digital channels have become more apparent. They include:

The limitations of digital marketing have also become more apparent as audiences mature and marketers adjust to a quickly changing landscape. Here are the main challenges to growth:

When deciding on a channel in your marketing strategy, one crucial detail to consider is the budget for the campaign. One long-time myth is that digital marketing is cheaper than traditional marketing. Considering all of the factors that can affect the cost of a campaign run in a single channel – any channel – it’s impossible to say which method of marketing is cheaper. Instead, think of how your costs need to be balanced against other elements, and how those may affect your goals.

Please note that the investment amounts referenced here are reflective of mid-market and enterprise-level companies.

A lot of factors and variables make up your direct mail costs. Each comes with its own advantages that have to be carefully weighed against others when planning your direct mail marketing. Here’s a breakdown of some of them:

Digital marketing costs vary significantly depending on which channel is being used in your strategy. And for each channel you’re in, your company size and industry vertical also play a role. Generally speaking, total costs may fit into specific (but wide) ranges for channels like:

Data – and how to use it well – is a critical factor in both direct mail and digital marketing success stories. Instead of putting an audience on blast, focusing on specific segments or individuals with more relevant offers and messages saves money (improving ROI), strengthens loyalty and the customer experience, and results in greater retention and more sales.

Data segmentation is a powerful way to target customers and prospects by specific groups to drive action. For example:

Variable data printing (VDP) allows customers to be targeted on a 1-to-1 basis with a mail piece that includes a personalized offer, headline, image, or other element from hundreds of possible data points. Results show that personalized mail pieces, because they have a higher perceived relevance and value to the recipient, achieve a higher conversion rate than non-personalized ones.

By its nature, digital marketing is precise when it is based on data. And like direct mail, it is powerful when it drives action along every part of the funnel to prompt action by customers.

Thanks to VDP, these same strategies can also be used to target audiences using always-on direct mail triggers. This results in higher conversion rates and better customer experience.

The success of a direct mail or digital marketing campaign can be measured in a variety of ways, but the one that’s important to most marketers is return on investment (ROI). By comparing what you get back in purchase or other metrics with what you spend, you can make adjustments to optimize your next campaign.

Direct mail success can be measured by looking at three key figures:

To maximize the value of your direct mail campaign, consider and test ways to reduce your costs while not affecting response. 

To understand the effectiveness of your digital marketing, use tools like Google Analytics to track, then review key measurements of actions taken by the customer:

Reviewing data on these metrics helps you identify patterns or trends that can inform decisions about how to refine strategies in your channel(s) and/or your spend to achieve better results.

How you reach customers and prospects will vary depending on your audience, budget, time, and other factors. In some cases, either direct mail or digital may work best at producing that all-important ROI that you desire. On the other hand, some campaigns may work best when they incorporate both. 

When you combine direct mail with your digital marketing efforts, you can:

Digital marketing will not entirely replace traditional marketing. Instead, both forms of marketing are evolving to coexist in the marketplace. When both are available, they offer marketers a full range of options for their marketing campaigns, helping marketers decide what methods or combinations work best to meet their goals. 

When integrated with multichannel marketing, data-driven direct mail is an even more powerful tool in creating and deepening customer relationships.

For example:

Ultimately, people don’t buy based on your channel. People buy for four reasons:

The challenge is in figuring out which channel best communicates any or all of those reasons to your target audience for that campaign.

To get started:

The benefits of direct mail marketing – as noted above – are many and well-understood. It’s one of many reasons mailing.com has grown and thrived for over 50 years. At the same time, we know how to create digital marketing campaigns as part of an integrated marketing strategy that improves your overall conversion rates and ROI. 

Looking for a direct mail marketing partner that can help you build a unified customer experience across channels? Contact our team today to talk about how we can help your company or organization!