Create Irresistible Direct Mail (piworld.com)

Two thousand twenty four has gotten off on an upward start, with U.S. ad spending rising 4.3% over January 2023, according to just-updated data from Guideline's U.S. Ad Market Tracker. Sequentially, January was the 10th consecutive month to post a gain, signaling an end to the U.S. ad recession beginning with the second quarter of 2023. The momentum continues to come from smaller ad categories, which in aggregate, rose 5.3% over January 2023, which compares with an aggregate gain of 3.7% for the top 10 ad categories.

More often than not, we engage with seasoned ecommerce professionals tasked with running print programs while simultaneously holding some measure of responsibility for Profit & Loss statements. And as such, they tend to look at performance metrics with a ROAS (Return on Ad Spend) lens instead of a more critical metric – Contribution Per Order (CPO). Why is that important, and why does ROAS lack adequate insight as a key metric? Let me explain. While ROAS is an efficient measuring metric, it cannot assign health to a channel, making it a relatively useless tool. The reality is it could be hurting your business as a primary form of indicator. ROAS can't tell you how much money you are making for every order received. As an example, a ROAS of 6x is more efficient than a ROAS of 5x, but that doesn't mean you made more money (or any money). A ROAS of 6x on $10 did not make you more money than a ROAS of 5x on $10,000,000. The volume grew top-line demand, but it did not increase profits. In contrast to ROAS, Contribution Per Order (CPO) brings in the magnitude of the campaign segment targeted (marketing cost and cost of goods). This metric will help with your payroll and to keep the lights on – in other words -- adding top-line demand and bottom-line profits.

According to the Joint Industry Committee for Mail (JICMail), during Q2 the average piece of direct mail was interacted with 4.58 times, an 11% increase year-on-year and a record high since JICMail began tracking mail activity in Q2 2017. Door drops also garnered record levels of consumer engagement, with the average item interacted with 3.19 times, which represents 15% growth year-on-year. Business mail, essentially addressed mail that contains some form of bill or statement, also reported higher interaction figures, up 7% to 4.87 times. The various channels all recorded significant increases in the amount of time they live in the home with all three effectively extending their life-span by a day year-on-year: DM 8.5 days; door drops 6.9 days and business mail 9.6 days.