What Every Small Business Owner Should Know About Direct Mail Advertising Costs

Many small businesses are always looking to save money on outreach and advertising. With outlets like Digiday reporting many spend around 60-70% of their ad budgets on digital ads, it's no surprise they want to reduce their outgoings. So, what other options exist for companies who wish to speak to potential customers without breaking the bank?

This article will help you save money by helping you understand what a direct mail advertising cost plan entails. Read on to discover small business marketing tips and demystify the truth of what you can expect to pay in mailing expenses. Reduce your direct mail advertising costs and boost your ROI today.

Factors Influencing Your Direct Mail Advertising Cost

While direct mail advertising can be very cost-effective, there are still outgoings you should be aware of. These include:

• Design
• Printing
• Mailing list purchase
• Postage
• Tracking and analytics

More costs may come in the form of the time taken to manage such a project and ensure your mail reaches the right audience. Small businesses must be aware of these hidden costs, as they can severely impact the budget of such a small organization.

Design and Printing Expenses

Planning the initial design of your mail packet can run a wide range of costs. It depends on things like:

• What you plan to send
• Whether it uses color printing
• The materials used
• Stock photo licensing
• Graphic designer costs

If you choose to perform this role yourself, it may be more cost-effective advertising, but it is important to note a genuinely skilled professional can truly make an ad "pop." Higher-quality, customized mail pieces might increase costs but can often improve engagement rates.

It may cost you more to acquire additional iterations from a designer. Check over any contract to ensure you get what you expect.

Postage and Mailing Fees

The postage fees for mail will depend on elements such as:

• Size of the packet
• Weight of the mail and any packaging
• Class of mail you wish to send at
• The distance you intend to send the mail

Of course, local mail will be much cheaper than interstate or international options. You may even be able to work with a local newspaper deliverer to get the ads placed in periodicals, but this may not be as effective as direct mail. People often see direct mail as more honest, with WifiTalents quoting a study stating that 56% of people believe it is the most trustworthy form of advertising.

Doing more than simple postage will also incur additional fees. Item tracking and address verification can start to add up. As such, it may make more sense for many businesses to forgo these as long as you know you received your mailing list from trustworthy sources.

List Acquisition and Management

When assembling a list of addresses to mail you, having a list matching your target demographics is crucial in ensuring the highest ROI. However, ensuring this can be costly, especially if you research the list yourself.

You do have options to rent or buy lists, although each option has different cost implications. You should note that buying lists may mean they go out of date faster, as they will not get updates like when renting.

As such, you need to regularly update or "clean" your list to prevent wastage and ensure you maintain privacy regulations related to each entry. However, managing your own list can add more administration costs. If you keep your own list, though, you can personalize each piece of direct mail by linking it to purchases, dates of birth, or other data.

Tracking and Analyzing Your Campaign

As you send mail out, it is imperative you know how successful each piece is. With this data, you can analyze your direct mail campaign costs and iterate on them, ensuring a higher ROI with each message.

You can measure the response rate for every item you send using tracking tools such as QR codes, personalized URLs, or unique phone numbers. As you learn how to target specific demographics, you can then adjust your budget based on how successful you think you might be.

Cost-Effective Strategies for Direct Mail Campaigns

If you want to make sure you send out professional-looking mail, partner with an expert service who can consult with you and perform many of the steps for you. Working with people like this will simplify everything on your end and reduce the number of mailing errors during your campaign.

Such services will also guarantee any mail you send complies with local and federal advertising laws. They usually have legal consultants on staff, which can prevent you from making mistakes that may result in costly repercussions.

Also, talk to these experts about whether there are any cost-cutting direct mail marketing strategies you can utilize. They will have the experience of handling an advertising budget for small businesses and ensuring a high-quality campaign, even with limited funds.

Another powerful strategy is to go hard and go fast. Use bulk mailing discounts with local mail services, and see if you can get mail to as many people as possible instead of doing it piecemeal. This way, you save money over the long run by ensuring you complete it all at once.

When it comes to the mail itself, opt for standard sizes and weights. Sending ordinary mail, such as postcards or envelopes, will help your printing and mailing costs remain low. Similarly, avoid high-quality material unless you already have people's attention, or you may waste money. 

Avoiding Costly Mistakes in Direct Mail Marketing

Your direct mail advertising cost breakdown will look very different depending on the effort you put into various areas of your campaign. Having someone on your side who can help guide you is crucial in ensuring you stand the best chance of converting potential customers. Taradel can help you achieve this.

We are a seasoned team of marketing experts who can help you embark on a cost-effective and successful ad campaign. So, plan your campaign with us to balance your budget across varying marketing channels and ensure the best use of your time and effort. Get noticed and start your journey to greater success with us.