The allure of digital marketing is undeniable. Sleek, instant, and seemingly cost-effective, digital channels offer marketers an array of tools to engage with their audiences in real time. As a result, many brands are funneling more of their budgets into digital campaigns, often at the expense of traditional print media. This shift is further fueled by the rising USPS postal rates, which have made direct mail campaigns increasingly costly.
But despite the digital buzz, a complete move away from physical media might not be the wisest strategy. Physical marketing pieces like catalogs and direct mail have unique strengths that digital formats simply can’t replicate. The tactile experience of holding a catalog, the visual appeal of high-quality print, and the lasting impression left by a well-designed mail piece are irreplaceable. But with the increasing costs of postal rates, marketers are faced with a tough decision: How can they justify maintaining their print campaigns in an era dominated by digital marketing?
Why Some Marketers Are Abandoning Print Media
The recent USPS postal rate hikes have sent ripples through the direct mail marketing industry. In July 2024, the USPS raised postal rates significantly, affecting various mailing classes and shapes. Marketing Mail, a staple for catalogers and direct mail marketers, saw an overall increase of 7.55%. Specifically, letters rose by 6.958%, flats by 11.708%, and parcels by 7.790%. Nonprofit Marketing Mail wasn’t spared either, with flats facing a whopping 16.2% increase and high-density flats seeing a 23.26% hike.
These increases are part of a broader strategy by the USPS to address operational costs and financial losses, but they present a substantial challenge for marketers who rely on direct mail. The higher postage costs can quickly eat into marketing budgets, making it harder to justify the expense of print campaigns. For many, the natural response is to seek out more cost-effective alternatives, with digital marketing emerging as the most appealing option.
Digital marketing has captured the imagination of the marketing world. It’s new, it’s innovative, and it promises unparalleled reach and engagement. Platforms like social media, email marketing, and search engine advertising offer instantaneous results, real-time analytics, and the ability to target audiences with precision. The allure of digital is hard to resist, especially for marketers looking to maximize their ROI.
The perceived modernity and innovation of digital marketing have led to a rapid increase in investment. According to recent trends, digital ad spending in the United States is expected to reach nearly $300 billion by the end of 2024!
However, while digital marketing offers numerous advantages, it’s important to consider the potential drawbacks of abandoning print media entirely. It’s pertinent to pay attention to the potential risks of a purely digital strategy and to not lose sight of the enduring value of print.
The Risks of Going 100% Digital
While digital marketing offers many advantages, it also comes with significant drawbacks, particularly in terms of engagement and recall. Digital ads are fleeting — often viewed for just a few seconds before users scroll past. Studies show that 42% of recipients read their direct mail, compared to a much lower engagement rate for digital ads, which often hovers around 10-20%. Additionally, the tactile nature of print media creates a more memorable experience, leading to higher brand recall. For example, 75% of consumers are more likely to remember a brand after receiving direct mail, compared to much lower recall for digital ads.
Worse, digital ads can suffer from “banner blindness,” where consumers subconsciously ignore online advertisements due to their ubiquitous presence. This leads to reduced effectiveness over time as audiences become desensitized to digital marketing efforts.
Oversaturation of Digital Channels
The digital marketing landscape is increasingly crowded. With countless brands vying for attention on social media, search engines, and email, the competition is fierce. This oversaturation makes it challenging for any single message to stand out. Consumers are bombarded with ads every time they go online, which can lead to ad fatigue — a state where they start ignoring or even resenting online advertisements.
This constant bombardment also contributes to the perception of digital marketing as intrusive. Unlike direct mail, which arrives at a consumer’s home and can be browsed at their leisure, digital ads often interrupt the online experience, leading to a negative perception. Additionally, privacy concerns and the rise of ad blockers further diminish the effectiveness of digital marketing campaigns.
In light of these challenges, it’s clear that relying solely on digital marketing can be risky. Fortunately, there is a solution to improve the effectiveness of your marketing mix.
The Enduring Value of Print Catalogs and Direct Mail Marketing
Print catalogs and other forms of physical mail should still be a vital part of your marketing campaigns. They bring several significant benefits that improve upon the shortcomings of the digital world.
One of the most significant advantages of print catalogs and direct mail is their tangibility. Unlike digital ads, which can be easily ignored or forgotten, physical mail demands attention simply through its presence. Consumers can touch, feel, and interact with printed materials, creating a more immersive experience. A study by the United States Postal Service found some remarkable results for physical direct mail and catalogs:
- Catalog recipients buy 28% more items and spend 28% more money than non-recipients.
- Direct mail recipients buy 24% more items and spend 13% more money than non-recipients.
- More than 60% of catalog recipients go to the company’s website.
- 57% of people prefer having a catalog available — even when shopping online!
- 84% of people say having a catalog makes online shopping easier.
Print catalogs also have a longer shelf life. While digital ads disappear with a click, catalogs are often kept on coffee tables and countertops, inviting multiple viewings. The USPS study found that 60% of online shoppers enjoy receiving catalogs. Other studies have found a majority of people keep them for at least a month, providing repeat exposure to the brand’s message.
Despite the higher upfront costs associated with print marketing, catalogs deliver a strong return on investment. Studies show that using catalogs in direct mail leads to a return of $3–$9 for every $1 spent. This impressive ROI is driven by the ability of catalogs to generate both online and offline sales.
Given these benefits, it’s clear that print catalogs and direct mail remain a vital part of a well-rounded marketing strategy. What’s left is to figure out the best way to manage costs while maximizing revenue.
Strategic Postal Optimization Solutions for Mail Marketers
Despite the rising costs and the allure of digital-only strategies, maintaining physical mail campaigns is crucial for a balanced and effective marketing approach. The unique benefits of print media — tangibility, higher engagement, stronger brand recall, and impressive ROI — cannot be replicated by digital channels alone. Abandoning physical mail would mean losing these advantages and potentially weakening the overall impact of your marketing efforts.
To ensure continued success, marketers should view physical mail as a complement to digital marketing, rather than a competitor. By integrating print and digital strategies, businesses can create a comprehensive marketing mix that leverages the strengths of both mediums. For example, a well-designed catalog can drive traffic to an online store, while digital campaigns can reinforce the messages conveyed in print.
Utilizing Enru’s High-Density Co-Mail Optimization Program for Catalog Marketing
For a better way to manage rising postage costs, marketers can turn to Enru’s High-Density Co-Mail Optimization Program. Enru specializes in consolidating catalogs and magazines from various mailers into High-Density Pools, which are then sorted by zip code to optimize postal delivery. This process significantly reduces postage costs by leveraging USPS workshare discounts.
For example, by consolidating mail and skipping multiple postal processing steps, Enru can reduce costs from approximately $1.00 per magazine to as low as $0.50. These savings add up quickly, making it feasible for you to continue your print campaigns even in the face of rising postal rates.
By strategically maintaining physical mail campaigns and managing costs with Enru’s innovative solutions, you can continue to benefit from the unmatched impact of print media. Contact our team today to learn more about how you can have the most cost-effective, impactful campaigns possible!
