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1、DELIVERING PERFORMANCE DIRECT MAIL IN THE UNITED STATES 2023SEPTEMBER 2023 PRESENTED BYNOTICEThis report contains brief,selected information and analysis pertaining to the advertising,marketing and technology industries and has been prepared by Winterberry Group.It does not purport to be all-inclusi
2、ve or to contain all of the information that a prospective manager,investor or lender may require.Projections and opinions in this report have been prepared based on information provided by third parties.Neither Winterberry Group nor its respective sponsors make any representations or assurances tha
3、t this information is complete or completely accurate,as it relies on self-reported data from industry leadersincluding advertisers,marketing service providers,technology developers and agencies.Nor shall any of the forgoing(or their respective officers or controlling persons)have any liability resu
4、lting from the use of the information contained herein or otherwise supplied.All trademarks are the property of their respective owners.2023 Verista Partners Inc.d/b/a Winterberry Group.All rights reserved.This report would not have been possible without the significant contributions of hundreds of
5、marketing industry leaders who contributed their time and insights in support of this research.To all of them,we say thank you.ACKNOWLEDGMENTSPRESENTING SPONSORPREMIER SPONSORSSUPPORTING SPONSORSTABLE OF CONTENTS2TABLE OF CONTENTS04 Introduction&Executive Summary05 U.S.Direct Mail ExpendituresIn Sum
6、mary09 Trends 2023:What Factors Are Driving Investment in the Direct Mail Channel?20 Looking Ahead:The Future of Direct Mail in the U.S.21 Methodology22 About Our SponsorsTABLES AND CHARTS3TABLE OF CONTENTS05 U.S.direct mail spending,2019-2023E08 U.S.direct mail spending,2019 vs.2023E,postage and no
7、n-postage expense10 How is the role of direct mail changing in your organization?11 Brands have come to widely embrace the“omnichannel”philosophy12 Which of the following is the most important use case direct mail fulfills for your organization?13 Marketers are increasingly prioritizing performance1
8、5 DM growing more competitive given growing cost,challenges associated with addressability of certain digital media17 Tech-driven innovations allowing direct mailers to achieve long-promised value18 Robust data availability,mature supply chain support DM programs19 Brands looking to marketing channe
9、ls and partners that support flexibility,scalability and adaptability4INTRODUCTION&EXECUTIVE SUMMARYIts old school.Out of touch with the digital age.Unlikely to connect with younger consumers.And yet this year,U.S.brands will invest more than$39 billion on the channel(inclusive of postage,materials,
10、printing and mailing services,data and a host of other functions associated with executing campaigns).If stood up against a roster of other paid advertising vehicles,this“out of touch”medium would thus rank fifth among advertising and marketing channels used by U.S.brandscommanding a healthier share
11、 of total expenditures than those directed to connected TV,online display advertising,email and other tools considered central to modern marketing.That may come as a surprise to those who see the postal channel as something of a relic.But the primary factor underlying direct mails resilience ought t
12、o come as no surpriseeven if the terminology used to describe it is very contemporary.Direct mail,in short,is a performance marketing channel.Its proven to be a highly capable tool for helping brands acquire new customers,drive incremental sales and support winback and cross-selling effortsall while
13、 generating the kind of data that supports measurability,audience segmentation,granular targeting,personalization and other functions that are increasingly at the heart of the modern marketing playbook.Marketers continue leaning into the channel because it worksand for that reason,say they intend to
14、 continue investing in direct mail at comparable levels for the foreseeable future.Nevertheless,direct mail today exists at something of a crossroadsdelivering reliable value when brands are looking to capitalize upon its modern,performance-oriented benefits,but often saddled with a reputation for b
15、eing expensive,cumbersome and distinctly traditional in form and consumer appeal.How should brands thus be thinking about incorporating direct mail in their long-term spending mix?And what factors should they keep in mind as they work toward improving their marketing effectiveness,efficiency and bot
16、tom-line performance?The answers to those questions will vary from vertical-to-vertical,and brand-to-brand.Today,no fewer than six dominant themes are dictating how U.S.brands invest inand derive value fromdirect mail in the United States:Brands have come to widely embrace the“omnichannel”philosophy
17、,emphasizing the integration of all marketing channels,both digital and traditional,in a diverse media mixMarketers are increasingly prioritizing performancethe ability to achieve specific,incremental objectives with respect to customer acquisition,sales and other outcomesover other use casesGrowing
18、 costs and challenges associated with the addressability of data-driven digital media are leading many marketers(and digitally native direct-to-consumer brands,in particular)to test alternative channels,like direct mail,in support of their growth ambitionsImprovements in the integration of data and
19、creative content,coupled with the advent of less expensive and more capable marketing technologies,are allowing direct mailers to achieve long-promised value from on-demand production,personalization,trigger-driven programs,retargeting and other innovations that capitalize on intent signals in the b
20、uying cycleThe continued robust availability of licensable third-party databacked by a mature,multifaceted supply chainrepresents the foundation upon which brands responsibly orchestrate their direct mail programs at scale;andSeeking to manage the vast complexity inherent in modern marketing,brands
21、are looking to media channels and supply chain partners that provide for flexibility,scalability and the ability to rapidly adapt to changing needs.The tired old misconceptions about direct mail have been repeated time and time again.INTRODUCTION&EXECUTIVE SUMMARY5U.S.DIRECT MAIL EXPENDITURESIN SUMM
22、ARYIn 2023,U.S.marketers will invest$39.36 billion on their direct mail efforts,supporting a diverse range of marketing use cases:new customer acquisition,direct sales/merchandising,cross-and up-sales,transpromotions(incorporating marketing messages into customer service and billing messages)and loy
23、alty communications,among others.U.S.DIRECT MAIL EXPENDITURESIN SUMMARYSPENDING REMAINS ROBUST DESPITE MACROECONOMIC VOLATILITYWinterberry Group(2023)U.S.DIRECT MAIL SPENDING,2019-2023EU.S.Direct Mail Spending(2019-2023E,$BB)2019$43.182020$38.79CAGR:0.49%2021$41.062022$41.702023E$39.36Direct mail(DM
24、)in the U.S.has represented a multi-billion-dollar annual enterprise for many decades,with brands having long ago understood the channel to represent a reliable means of supporting certain clear-cut performance objectives.But,like other media,DM has been both a beneficiary and victim of macroeconomi
25、c forces that have reshaped marketer prioritiessometimes significantly and without much advance warning.The COVID-19 pandemic presents just such a case study.As with other channels,direct mail spending declined precipitously in 2020 as brands moved to conserve precious resources and redirect their e
26、fforts to support short-term business priorities.In the case of certain verticalsstore-based retail,automotive and travel&hospitality,most notablythis no longer included“new customer acquisition,”for which DM had long represented a tried-and-tested tool.Direct mail did not suffer from this developme
27、nt in significant disproportion to other advertising and marketing media.(And,in fact,the channel fared well relative to its experience during the last significant economic downturn.In the wake of the“Great Recession,”for example,2009 U.S.DM spending declined 16.7 percent from the previous year as s
28、ome brands“paused”their outbound marketing efforts,and others redirected a significant share of expenditures toward digital media that until then had been considered new and untested.)Nevertheless,aggregate marketer investment in the DM channel has yet to return to pre-COVID levels and may not do so
29、 for another year or longer based on prevailing demand trends.6Marketers began 2023 with a relatively bullish outlook for the year,with optimism that the doldrums of late 2022 would give way to a more robust economic environment once the new year got underway.But that sentiment shifted sharply towar
30、d the end of the first quarter,as continued macroeconomic uncertainty drove brands to adopt a more conservative approach to their marketing investments particularly those focused on acquiring customers and driving incremental sales in verticals that were most susceptible to inflation-related pullbac
31、ks.On a full-year basis,DM spending will remain robust relative to other prominent advertising vehicles(and especially as compared to other“traditional”channels,many of which are rapidly losing share to emergent digital media).But with postage and other campaign costs on the rise,and no federal elec
32、tions or major tentpole marketing eventslike an Olympics or World Cupon the calendar,its unlikely the channel will repeat the spending gains it garnered in each of the two years since the COVID crisis began.Circumstances vary significantly across verticals.But while most brands are now projecting th
33、at marketing expenditures will grow this year,many say the pace of that growth will slow relative to the past few years.And while diminished inflation,higher-than-expected GDP growth and the easing of supply chain pressures have helped instill enough confidence such that many expect to soon resume t
34、heir focus on customer acquisition and growth,the persistence of high interest rates and tepid consumer confidence have led many to remain cautious with budgets for the third and fourth quarter of 2023.The net result:the back half of the year should bring with it some growth in DM expenditures,but n
35、ot enough to make up for the sleepy first two quarters of the year,and total annual U.S.direct mail spending will slip more than 5 percent relative to 2022.2023:OPTIMISM AT NEW YEARS,REALITY BY THE BEGINNING OF SPRINGU.S.DIRECT MAIL EXPENDITURESIN SUMMARY7U.S.DIRECT MAIL EXPENDITURESIN SUMMARYDirect
36、 mails inherent measurability has always helped substantiate its prominent place in the marketing mix.And DM has fared particularly well in recent years as better data availability(and the advent of sophisticated measurement and attribution technologies)have allowed for more precise comparison again
37、st other channels.Increasingly,though,brands are making marketing spending decisions later in the promotional process,with a close eye on changing market conditions(and a default understanding that media ought to be able to support last-minute pivots from one channel to another).Thats had a mixed ef
38、fect on DMers,since traditional production planning associated with the channel has typically required longer campaign cycle times than those supporting digital media.Brands may thus be less willing to commit to more conventional/longer-run programs,but more inclined to experiment with shorter-run p
39、rograms leveraging digital production technology that allows for quicker turnaround times while incorporating richer content personalization to enhance relevance,and thus optimize campaign performance.That development is foundational to brands long-term confidence in direct mailand their plans,most
40、say,to continue investing in the channel at comparable levels well into the foreseeable future.“Direct mail is still an important channel,”says the vice president of client engagement of one audience data provider.“Its a core channel for many brands that are seeking creative solutions to expand.”“Th
41、ere is always talk of direct mail going away,”added the vice president of predictive solutions at an enterprise-focused data provider.“But in reality it remains one of the largest channels in marketing budgets,and will continue to be.”WHATS DRIVING GROWTH?Where marketers are expanding their direct m
42、ail investment,several themes are now playing a regular role.In particular,brands are:Emphasizing channels and strategies that deliver clear performance at meaningful scaleSeeking channels that can help achieve desired returns given challenges to performance of digital advertising outside of walled
43、garden environments(a function of declining addressability of identifiers needed to support online audience targeting),and/orRefocusing their efforts on targeted customer acquisition across all marketing touchpointsincluding reinvestment in traditional“offline”channels to balance the increased volum
44、e of digital ads shown during the COVID and immediate post-COVID periods.OVER THE LONG TERM:BRANDS SAY THEY EXPECT TO MAINTAIN DM BUDGETS AT COMPARABLE LEVELSWhere marketers are pausing their direct mail investments(or redirecting such funds to other media),another combination of factors is likewise
45、 commonplace.In these cases,brands may be looking to manage:Macroeconomic conditions,in certain verticals,that have diminished their need to drive demand,acquire customers or pursue incremental salesThe transformation of the role and format of the DM catalog from a platform for merchandising to one
46、supporting omnichannel/connected commerce strategies(with attendant changes in page counts and physical formats)An emerging generation of brand-side marketing leadership thats“digitally native,”inexperienced with the DM channel and thus less understanding of DMs role and impact,particularly as a lev
47、er for both performance and brand marketing objectives;and/orThe rising cost of postage(and certain other components of DM campaigns),thus diminishing the net return on investment associated with the channel.Many research contributors were pointed in their feedback on the impact of rising postage an
48、d materials costsnoting that,even in relatively healthy industry verticals,higher costs have been eroding mailers ability to sustain historical campaign volumes,compounding the impact of soft demand in other segmentsand resulting in the 16 percent volume decrease that USPS reported in its Marketing
49、Mail class during the second quarter of calendar 2023,as compared to the same period last year.In a diverse mix of dedicated and shared functional expenses(supporting DM campaigns typically requires marketers to invest in materials,printing and mailing services,licensed data/mailing lists,data manag
50、ement,predictive analytics,creative development and other functions)those cost increases are being offset,to an extent,by the advent of technology-enabled efficiencies that are allowing brands to better manage the costs associated with data licensing,campaign management and even production.But as po
51、stage and materials typically represent the largest components of DM budgets,higher costs in those categories are now being reflected in a rebalancing of spending across the entire channel.In 2023,for example,postage will represent 48.4 percent of total DM expendituresup from 45.7 percent as recentl
52、y as 2019.8U.S.DIRECT MAIL EXPENDITURESIN SUMMARYWHATS STANDING IN THE WAY?U.S.DIRECT MAIL SPENDING,2019 VS.2023E,POSTAGE AND NON-POSTAGE EXPENSEWinterberry Group(2023)POSTAGE 45.7%OTHER 54.3%U.S.Direct Mail Spending,2019Postage vs.Other ComponentsPOSTAGE 48.4%OTHER 51.6%U.S.Direct Mail Spending,202
53、3EPostage vs.Other Components+2.7%OTHER:includes production,materials&logistics;agency services;data management/hygiene;licensed/third-party data;predictive analytics&campaign measurement9TRENDS 2023The origins of the marketing concept we now call“omnichannel”stretch back decades.Some tie the concep
54、t to growth of the first global agency holding companies in the mid-20th century which stitched together firms of diverse capability in an effort to drive buying efficiencies(and better alignment of content and tactics)on clients behalf.Others look to the world of retail and the advent of the e-comm
55、erce channel,where building a unified merchandising and fulfillment infrastructure was just as important as maintaining a fresh and consistent consumer-facing brand.No matter what its origins,brands today are broadly aware of“omnichannel”and even more closely aligned with its underlying premise:mark
56、eting performance can be optimized when brands orchestrate a range of channels and tactics to support desired objectives.Brands are definitely taking a more omnichannel approach to their efforts,seeking ways to be more nimble and consumer-minded,”said the vice president of client engagement of one a
57、udience data provider.“If they were doing so previously,theyve definitely gone all-in on the strategy over the last few years.”Direct mail has proven to be a particularly good teammate to omnichannel strategiesparticularly when brands are looking to:Drive customer acquisitionEngage audiences of sign
58、ificant scale(which might be otherwise difficult to achieve using online media alone)Convert prospects whove otherwise been highly qualified or known to be exploring a potential purchase,and/orSupport transactions that happen predominately via e-commerce channels.(The emerging practice of direct mai
59、l retargetingwhereby brands leverage digital identifiers to generate on-demand direct mail pieces targeted to in-market shoppersis practical embodiment of how omnichannel drives clear,meaningful advantage relative to less-integrated approaches to deploying media).Not surprisingly,brands are all-in o
60、n the omnichannel opportunity.Nearly 60 percent of surveyed marketers said theyre taking steps to better align their DM efforts with other channel initiatives,for example.And the same panel said“improved ability to activate omnichannel campaigns”is the single most impactful factor driving their over
61、all investment in the channel.Brands have come to widely embrace the“omnichannel”philosophy,emphasizing the integration of all marketing channels,both digital and traditional,in a diverse media mix.TRENDS 2023WHAT FACTORS ARE DRIVING INVESTMENT IN THE DIRECT MAIL CHANNEL?10Winterberry Group Survey(2
62、023)HOW IS THE ROLE OF DIRECT MAIL CHANGING IN YOUR ORGANIZATION?We are taking steps to better integrate direct mail with other marketing channels,and are seeing benefits from doing soWe are taking steps to better integrate direct mail with other marketing channels,but are not(yet)seeing benefits fr
63、om doing soWe are leveraging online identifiers to drive direct mail targeting,and are seeing benefits from doing soWe are leveraging online identifiers to drive direct mail targeting,but are not (yet)seeing benefits from doing soWe are taking steps to dissolve organizational silos in internal teams
64、,technology platforms and other resources historically used to manage separate channelsWe are interested in increasing our use of online and offline markers to support direct mail targetingWe are increasing our efforts to personalize and target all addressable channelsWe have not pursued significant
65、 changes in the service of omnichannel alignment39.0%20.2%19.2%9.8%4.0%3.8%3.6%0.4%But challenges in leveraging DM as a full partner in the omnichannel effort still persist.In many marketer organizations,omnichannel strategies and infrastructureencompassing underlying workflows,technology and the bu
66、dgets that power all of the abovehave been developed with an understanding that only fully digital channels need be integrated to drive desired outcomes.The result:some brands are making great progress in standing up teams to support a complex,coordinated weave of interconnected customer-facing digi
67、tal media,all while maintaining parallel silos(often underfunded and seen as ancillary to the core marketing effort)to support direct mail and other legacy media.Increasingly,marketers are waking up to the critical importance of building infrastructure to support omnichannel execution.Early-stage,di
68、rect-to-consumer product brands and retailers are particularly progressive in this respect(potentially because they dont have to wrestle with the added challenge of transforming“legacy”operating structures),though brands across virtually all DM verticals are increasingly recognizing the inherent urg
69、ency of that evolution.“One significant challenge our clients are facing is figuring out how to integrate direct mail with their efforts across other channels,”said the vice president of product of a major marketing services provider.“Were in a particularly difficult time right now,because legacy or
70、ganizational gaps and issues reconciling audience identity still persist,making it difficult for marketers to understand how to incorporate direct mail into their omnichannel approach.”TRENDS 2023Marketers are increasingly prioritizing performancethe ability to achieve specific,incremental objective
71、s with respect to customer acquisition,sales and other outcomesover other use cases.11TRENDS 2023SURVEY HIGHLIGHTOF MARKETERS SAY THAT THEIR IMPROVED ABILITY TO ACTIVATE OMNICHANNEL CAMPAIGNS WILL BE A CORE DRIVER OF THEIR INCREASED DIRECT MAIL SPEND OVER THE NEXT YEARTHE MOST CITED OF ANY FACTOR37%
72、Late in the 20th century,progressive marketers started seeing their postal efforts as supporting a broader,more strategic purpose.“Direct mail”explained only a narrow application of what brands were looking to achieve in harnessing data,targeting offers and measuring results.The name of their discip
73、line would have to change to reflect a broader marketing remit and the incorporation of other addressable channels into the effort.The practice of direct marketing was thus born.Fast-forward a few decades,and the nomenclature evolved yet again.“Direct marketing”once may have symbolized how brands we
74、re looking to optimize one-to-one marketing communicationsbut its also a term rooted in an era when digital channels werent even yet in their infancy,much less central to the practice of customer engagement.Once cutting edge,the term has thus been dropped from the names of trade associations,industr
75、y publications and marketing departments all over the world.But a funny thing happened while direct marketers began to consider the need to rename their own discipline.Corporate leadershipempowered with better data and the tools to measure performance across an expanded array of functional areasbega
76、n holding their marketing teams accountable for results that supported corporate growth objectives.Marketing could no longer afford to see themselves exclusively as the engine behind“campaigns,”but enablers of direct and quantifiable business outcomes.trend is a significant factor in driving DM inve
77、stment/strategies trend is a factor in driving DM investment/strategies,but does not predominate trend plays little/no role in driving DM investment/strategiesRETAIL (predominately brick-and-mortar/catalog)RETAIL/CONSUMER PRODUCTS (predominately direct-to-consumer)TRAVEL&HOSPITALITYINSURANCEPOLITICA
78、LNOT-FOR-PROFITAUTOMOTIVEB2B SERVICES&TECHNOLOGYFINANCIAL SERVICESHOME SERVICESMEDIA&TELECOMMUNICATIONSBRANDS HAVE COME TO WIDELY EMBRACE THE“OMNICHANNEL”PHILOSOPHY12Winterberry Group Survey(2023)WHICH OF THE FOLLOWING IS THE MOST IMPORTANT USE CASE DIRECT MAIL FULFILLS FOR YOUR ORGANIZATION?Custome
79、r acquisition(at scale and/or among specialized target audiences)Win-back of lost customersRe-targeting customersDriving prospects to our storeGeneral customer retention/loyaltyDriving prospects to our websiteBrand awarenessTransactional communications45.4%18.0%11.8%7.8%5.6%4.8%3.4%3.2%Nowhere is th
80、at mandate more evident today than in the widespread embrace of performance media and marketing use cases as a central area of marketing focus.Though the term itself is a creation of digital marketers(who had to distinguish between campaigns intended to elevate brand awareness from those that were e
81、xpected to drive specific and quantifiable results),the concept perfectly encapsulates the key attributes that have long characterizedand differentiatedthe direct mail channel.For many former“direct marketers,”in fact,the embrace of performance has required little change in their tactical approach t
82、o building and executing campaigns;direct mail,after all,has long been the tool of choice for brands looking to leverage data to support audience segmentation,offer targeting,personalization and other means of optimizing marketing outcomes.And for an emerging generation of quantitatively-focused,“di
83、gitally-native”marketing leaders,incorporating DM which brings a higher average return on investment than any comparable marketing channel,according to the Association of National Advertisers is typically easy to rationalize once old preconceptions are put aside.Source:Association of National Advert
84、isers,2022 Response Rate ReportDirect mail is due for a re-branding,”said the vice president of predictive solutions at an enterprise-focused data provider.“Much of the benefit to utilizing mail as a performance channel has been lost in the morass of misunderstanding about what is and is not direct
85、marketing.But direct mail isnt the problem;perceptions are.Direct mail continues to be one of the best tools to drive performance.”Looking ahead to the future,it seems inevitable that marketers will continue to emphasize performance-oriented objectivesand look to channels,technologies and supply cha
86、in partners that can show how they deliver incremental results relative to other approaches.That should position DM well to continue playing its traditional role so long as stakeholders across the brand organization understand its true impact.TRENDS 2023RETAIL (predominately brick-and-mortar/catalog
87、)RETAIL/CONSUMER PRODUCTS (predominately direct-to-consumer)TRAVEL&HOSPITALITYINSURANCEPOLITICALNOT-FOR-PROFITAUTOMOTIVEB2B SERVICES&TECHNOLOGYFINANCIAL SERVICESHOME SERVICESMEDIA&TELECOMMUNICATIONS13TRENDS 2023 trend is a significant factor in driving DM investment/strategies trend is a factor in d
88、riving DM investment/strategies,but does not predominate trend plays little/no role in driving DM investment/strategiesMARKETERS ARE INCREASINGLY PRIORITIZING PERFORMANCEGrowing costs and challenges associated with the addressability of data-driven digital media are leading many marketers(and digita
89、lly native direct-to-consumer brands,in particular)to test alternative channels,like direct mail,in support of their growth ambitions.The prevailing wisdom in advertising circles over the last few decades would suggest that digital media is the great budgetary share eaterperpetually clawing dollars
90、away from TV,print and other traditional channels to ensure messages reach consumers increasingly tethered to their smartphones and other connected devices.Certainly,that trend foots to a host of data(and the unfortunate learned experience of newspaper publishers,linear TV networks and others).But w
91、hat would happen if digitals growth werent quite so predestined?What if the same free-market dynamics that impact other channels were to finally set their sights on online advertisers(and the vast network of agencies,adtech companies and other intermediaries who support those campaigns)?Over the pas
92、t 18 months,the marketing community has begun to see answers to those questions materialize.Though aggregate digital spending continues to pace the broader advertising and marketing services marketplaceboth in the U.S.and globally a confluence of unique factors has diminished the once-unimpeachable
93、performance of digital as an advertising platform,particularly with respect to online ads that are dependent on the sharing of third-party identifiers to support audience segmentation and targeting.Whats happened to all that data?Several factors are at work,including:Heightened public/regulatory scr
94、utiny of online data collection,sharing and use(as most clearly seen through the introduction of federal and state-level legislation curtailing brands ability to use such data without explicit consent)Ongoing preparations(among both brands and third-party adtech providers)to accommodate Googles long
95、-anticipated deprecation of third-party tracking cookies;andChanges in the policies of certain large technology platforms (most visibly including Apple,through the introduction of its App Tracking Transparency protocol)that require consumers to affirmatively“opt-in”to the sharing of data for adverti
96、sing purposes.14TRENDS 2023To brands hungry to drive performance,the result of these developments has been straightforward:diminished data availability has taken a huge bite out of“targetable”digital ad inventory,heightening the price of the inventory that remainsand leading brands on a search for a
97、lternative channels that offer a combination of reach and performance they need to meet their growth objectives.“We expect that privacy regulation will only continue to tighten,”said the CEO of one agency.“And that will only intensify brands focus on finding new ways to drive results.”“The current p
98、rivacy and data sharing regulations in the market,whether proposed or in effect,are much more highly focused on digital applications than those applied in the direct mail world,”added the CEO of one marketing technology developer.“That supports the sustainability of direct mail and should present an
99、 ongoing tailwind for the channel as a whole.”Increasingly,direct mail is filling the gap where targeted digital advertising is no longer able to deliver the kind of performance marketers had grown to expect.Though the channel will likely never substitute entirely for the low-cost,easy-to-access eye
100、balls proffered by Meta,Google and other digital walled gardens,DM competes well on a cost-per-acquisition basis with virtually all other media,positioning itself to support the efforts of enterprise brands(who will have budgets large enough to drive tests of meaningful scale)and those with sophisti
101、cated measurement and attribution capabilities(who will be best able to look past DMs high upfront cost to understand its true impact on bottom-line results).“Were seeing a huge influx of brands expanding into direct mail for the first timeeither because of declining paid digital traffic,or having e
102、xhausted the opportunities available via other digital media,”said one agency CEO.“Many of these are emergent,direct-to-consumer brands that were historically focused only on Facebook,Google and other digital offerings.”“Weve launched 300 brands over the last five years into direct mail for the firs
103、t time,”added the CEO of an analytics-oriented consultancy.“These are DTC or e-commerce brands that are digitally native online retailers and wholesale brands that have exhausted their ability to grow through digital.”15DM GROWING MORE COMPETITIVE GIVEN GROWING COST,CHALLENGES ASSOCIATED WITH ADDRES
104、SABILITY OF CERTAIN DIGITAL MEDIARETAIL (predominately brick-and-mortar/catalog)RETAIL/CONSUMER PRODUCTS (predominately direct-to-consumer)TRAVEL&HOSPITALITYINSURANCEPOLITICALNOT-FOR-PROFITAUTOMOTIVEB2B SERVICES&TECHNOLOGYFINANCIAL SERVICESHOME SERVICESMEDIA&TELECOMMUNICATIONS trend is a significant
105、 factor in driving DM investment/strategies trend is a factor in driving DM investment/strategies,but does not predominate trend plays little/no role in driving DM investment/strategiesImprovements in the integration of data and creative content,coupled with the advent of less expensive and more cap
106、able marketing technologies,are allowing direct mailers to achieve long-promised value from on-demand production,personalization,trigger-driven programs,retargeting and other innovations that capitalize on intent signals in the buying cycle.Even as they work to activate the transformative growth tha
107、t should come from better orchestration of direct mail and other touchpoints in their omnichannel mix,brands are already seeing improved returns from their DM investment through the activation of data-enabled innovations that allow them to capitalize on the channels inherent differentiator:the abili
108、ty to deliver relevant,timely and compelling offers directly into the hands of a target consumer.In most cases,these advances reflect the maturation of technology and process that have been long available in nascent formbut now benefit from better workflow or output hardware,data software (allowing
109、for seamless data integration,segmentation and targeting)and better general understanding of the use cases theyre positioned to support.Today,these innovations include:Digital/on-demand printing:where lower hardware costs,faster production speeds and higher quality output have allowed for richer lev
110、els of targeting and content personalization(at more palatable cost economics)enabling a paradigmatic shift away from generic,high-volume campaignsRetargeting and other trigger-driven programs:where the availability of rich,actionable digital and terrestrial identifiersand growing brand focus on dep
111、loying technology-centered solutions to integrate this vast trove of data,whether originated independently(“first-party”),provided by partners and via cooperative data solutions(second-party)or sourced from outside entities(“third-party”)is providing insight into consumer intent and life stages that
112、 allow brands to engage audiences likely to be“in market”for various products,spurring deeper consideration and purchase activityInformed Delivery:providing an additional digital touchpoint for the mailer and another potential indicator of audience engagement(as well as improved postage pricing,in s
113、ome cases,via USPS promotions);andPostal optimization:enabling more economical fulfillment of shorter-run campaigns.TRENDS 202316Adoption of these innovations,many added,will have the added benefit of promoting a virtuous cycle of sorts with technological advances in data management,retargeting,trig
114、ger-driven marketing technology and integrated print production enabling the sorts of performance gains that will ultimately spur investment from a diverse range of marketers:first those leading-edge brands who are already astute managers of their return on marketing investment(ROMI)and customer lif
115、etime value(CLV),then enterprise marketers with responsibility for supporting the growth of billion-dollar-plus product lines,and finally the smaller and more emergent corps of brands who may come to represent the next generation of direct mail innovators.TRENDS 2023SURVEY HIGHLIGHTOF MARKETERS ARE
116、SHIFTING TO MORE PERSONALIZED CONTENT OVER THE NEXT YEAR53%SURVEY HIGHLIGHTOF MARKETERS CITE ENHANCED TARGETING ABILITY AND 34%CITE INCREASED PERSONALIZATION ABILITY AS CORE DRIVERS FOR INCREASING DIRECT MAIL SPEND OVER THE NEXT YEARCOMING IN JUST BEHIND OMNICHANNEL ACTIVATION AT 37%OF MARKETERS36%T
117、he Top 8:Direct Mail Innovations Marketers Say Offer Most Potential to Drive Improved Performance Over Coming Years“The innovation that were seeing across the direct mail ecosystem is driven by a need for cost efficiency and greater ability to target specific audiences increasingly leveraging trigge
118、rs and retargeted mail based on behavioral attributes,”said the vice president of one consumer data provider.“The long-term trend is really about moving away from the notion of direct mail being a bulk,impersonalized advertising vehicle,”said the CEO of one marketing technology developer.“Were makin
119、g great progress,but there is much to do to drive more and more impactful personalizationand optimize the timing of campaigns to get the most out of the channel.”INCREASED MATCHBACK ATTRIBUTION CAPABILITIESINCREASED ABILITY TO DRIVE AUTOMATED BEHAVIORAL OR EVENT-TRIGGERED CAMPAIGNSABILITY TO RETARGE
120、T CUSTOMERS LEVERAGING ONLINE IDENTIFIERSINCREASED PERSONALIZATION OF CONTENTINCREASED USE OF UNIQUE/DIMENSIONAL DIRECT MAIL FORMATSABILITY TO MANAGE DIRECT MAIL CAMPAIGNS (I.E.,MANAGE/SEGMENT DATA,ENGAGE PRODUCTION SUPPLIERS)VIA MARKETING AUTOMATION PLATFORMSUSPSS INFORMED DELIVERY PRODUCTDATA HYGI
121、ENE EFFORTS FOCUSED ON SUPPRESSING LIKELY UNREACHABLE AUDIENCE MEMBERSWinterberry Group Survey(2023)1.2.3.4.5.6.7.8.17TECH-DRIVEN INNOVATIONS ALLOWING DIRECT MAILERS TO ACHIEVE LONG-PROMISED VALUERETAIL (predominately brick-and-mortar/catalog)RETAIL/CONSUMER PRODUCTS (predominately direct-to-consume
122、r)TRAVEL&HOSPITALITYINSURANCEPOLITICALNOT-FOR-PROFITAUTOMOTIVEB2B SERVICES&TECHNOLOGYFINANCIAL SERVICESHOME SERVICESMEDIA&TELECOMMUNICATIONS trend is a significant factor in driving DM investment/strategies trend is a factor in driving DM investment/strategies,but does not predominate trend plays li
123、ttle/no role in driving DM investment/strategiesThe continued robust availability of licensable third-party databacked by a mature supply chain ecosystemrepresents the foundation upon which brands responsibly orchestrate their direct mail programs at scale.Without question,marketers interested in pu
124、rsuing direct mail innovation have a number of options at their disposalwhether grounded in better use of data,emergent technology or simply more modern format design and architecture.But the true foundations of direct mails capability and differentiation(relative to other marketing channels)have no
125、t changed much in decades.They include:A vast array of licensable,third-party data assets that may be used to assemble,segment and target audiences;andA diverse supply chain of providers that support program execution and serve as a safeguard to ensure that DM campaigns(and the data that support the
126、m)are deployed in ways that are responsible,ethical and in the best interests of both brands and consumer audiences.Critically,those factors differentiate direct mail from more emergent channelsand even from how DM is practiced in other countries(where strict regulatory guidelines often require affi
127、r-mative consumer opt-in to the kinds of marketing programs that are addressable,via DM,across the broad consumer marketplace in the U.S.).These factors also help contrast DMs strong executional foundation against the digital landscape,where the burgeoning supplier and technology platform network is
128、 extensive and maturing rapidlybut also all too often subject to the malign influence of fraudsters,data thieves and other bad actors.All of the above reinforce the need to safeguard data and use it responsibly,but also to look out for interests of the data ecosystem itself,given the critical role i
129、t plays in enabling DM and the vast economic activity that it drives.TRENDS 202318ROBUST DATA AVAILABILITY,MATURE SUPPLY CHAIN SUPPORT DM PROGRAMSRETAIL (predominately brick-and-mortar/catalog)RETAIL/CONSUMER PRODUCTS (predominately direct-to-consumer)TRAVEL&HOSPITALITYINSURANCEPOLITICALNOT-FOR-PROF
130、ITAUTOMOTIVEB2B SERVICES&TECHNOLOGYFINANCIAL SERVICESHOME SERVICESMEDIA&TELECOMMUNICATIONS trend is a significant factor in driving DM investment/strategies trend is a factor in driving DM investment/strategies,but does not predominate trend plays little/no role in driving DM investment/strategiesSe
131、eking to manage the vast complexity inherent in modern marketing,brands are looking to media channels and supply chain partners that provide for flexibility,scalability and the ability to rapidly adapt to changing needs.Trends like“omnichannel”and“performance”are dominant today because they deliver
132、clear-cut benefits and represent natural solutions to long-standing marketer challenges(with better technology and more abundant data helping power the kind of orchestrated campaigns that once would have been impractical).But these initiatives bring with them an ancillary cost:complexity.In an era w
133、hen macroeconomic conditions are evolving fast(and budget priorities,consumer preferences and merchandising needs changing right along with them),it should then come as no surprise that brands today are prioritizing media channels and supply chain relationships that provide for flexibility,scalabili
134、ty,modularity and maximum adaptability to changing need.Such qualities have long been hallmarks of most digital marketing channels.But the physical nature of direct mail (and its corresponding requirements with respect to package design,workflow management,production and fulfillment)have long been k
135、nown to add precious time,cost and risk to the execution of marketing campaigns,diminishing the appeal and,in many cases,the viabilityof the channel relative to its contemporary counterparts.“On the digital side,marketers tend to have greater ability to negotiate pricing and flexibility to scale or
136、shrink budgets to maintain performance,”said the president of one agency.“Direct mail budgets,by contrast,are essentially fixed upfront.The brand basically takes on risk once they sign on to a campaign.”But many brands say that dynamic needs to changeand tomorrows DM leaders will be those who lean a
137、ggressively into process and workflow innovations geared to:Adopting shorter-run,“always-on”programsoften driven by a continuous feed of data triggersHeightened focus on mail tracking,workflow optimization and alignment with other media channels;andEstablishing internal process and supply chain rela
138、tionships focused on aggregating a host of audience data inputsfrom both structured and unstructured sources,both“traditional”and“digital.”TRENDS 202319BRANDS ARE LOOKING TO MEDIA CHANNELS AND SUPPLY CHAIN PARTNERS THAT PROVIDE FOR FLEXIBILITY,SCALABILITY AND THE ABILITY TO RAPIDLY ADAPT TO CHANGING
139、 NEEDSRETAIL (predominately brick-and-mortar/catalog)RETAIL/CONSUMER PRODUCTS (predominately direct-to-consumer)TRAVEL&HOSPITALITYINSURANCEPOLITICALNOT-FOR-PROFITAUTOMOTIVEB2B SERVICES&TECHNOLOGYFINANCIAL SERVICESHOME SERVICESMEDIA&TELECOMMUNICATIONS trend is a significant factor in driving DM inves
140、tment/strategies trend is a factor in driving DM investment/strategies,but does not predominate trend plays little/no role in driving DM investment/strategiesTRENDS 202320LOOKING AHEADFor the most part,the channel appears well positioned to keep doing so.After navigating the rocky economic waters of
141、 2023,U.S.marketers say they expect that their direct mail spending will largely hold steady through the foreseeable futurebuoyed by a combination of improved economic conditions and general refocus on growth(backed by performance-oriented marketing investments)in the corporate c-suite.And,of course
142、,DMers will benefit from innovations with respect to format,content personalization,campaign workflow/process optimization,supporting technology and delivery logisticsall reinforced by the continued focus and advocacy of a multi-billion-dollar supply chain with deep investment in the channel and its
143、 future.So what factors should brands be considering as they think about the role of direct mail in the not-too-distant future?And what innovations are on the horizon?The possibilities are vast,but many industry participants have stressed the likelihood that:Deeper integration of direct mail with en
144、terprise martech platforms will support more seamless campaign management,orchestration and reporting(assuming martech platforms continue evolving to support DM integration,embracing its natural role in the omnichannel mix)The rapid maturity of AI and machine learning applications will impact how DM
145、 programs are conceptualized,built and executed.As with other marketing disciplines,innovation in this respect is more likely than outright disruption,with new generative AI tools showing great promise as a means to automate certain manual composition and workflow functions.Over time,the technology
146、may grow to power more granular(and faster-paced)predictive segmentation,personalization and cross-channel messaging applications,as wellMeasurement will continue to represent the keystone to campaign optimization.Brands will need to go“beyond the offer code”to better incorporate DM in their multich
147、annel attribution strategieswith the aim of better understanding how the channel impacts a range of desired actionsTechnology will play a more prominent role in facilitating faster campaign turnarounds,vendor coordination and other core functionsall essential if DM is going to continue playing a cen
148、tral omnichannel role alongside digital media that seem purpose-built to support speed and targetability;andLegacy preconceptions of direct mail will continue to give way as more brands embrace its role as a dynamic performance media channelsubstantiating,in turn,the business cases needed to dissolv
149、e legacy operating silos,pursue deeper integration of DM in omnichannel strategies and build even more robust marketing infrastructure geared to drive desired outcomes,honor consumer preferences and safeguard data in accordance with changing regulatory standards.If“omnichannel”is truly the way of th
150、e marketing future,then direct mails future,as with that of other channels,will hinge upon its ability to support marketers performance objectives.LOOKING AHEADTHE FUTURE OF DIRECT MAIL IN THE U.S.21METHODOLOGYMETHODOLOGYThe conclusions in this report are grounded in an intensive primary research ef
151、fort,originally commissioned by the United States Postal Service and substantially completed by Winterberry Group between November 2022 and March 2023(with updates completed between May 2023 and August 2023).This research included a series of thought leader interviews with several dozen senior execu
152、tives from major U.S.mailers and companies in the direct mail supply chain(including agencies,data providers,marketing technology developers,commercial printers,mailing service companies and others),as well as a survey that elicited responses from more than 500 enterprise and middle-market marketing
153、 and agency executives that leverage direct mail to support their companies promotional efforts.Approximately what was your companys marketing budget focused on direct mail last year?Do you currently work for a marketing agency or as an in-house marketer?AGENCIES,24%MARKETERS,76%Approximately,what i
154、s the annual revenue for the company for which you work?$5 MILLION TO$25 MILLION,25%$1 TO$5 MILLION,5%MORE THAN$500 MILLION,3%$100 TO$500 MILLION,25%$25 TO$100 MILLION,42%$100 THOUSAND TO$1 MILLION,25%$25 TO$100 THOUSAND,3%$10 MILLION OR MORE,5%$5 TO$10 MILLION,8%$1 TO$5 MILLION,59%Which of the foll
155、owing marketing and advertising functions aligns most closely with your current role?MARKETING LEADERSHIP,31%MARKETING OPERATIONS/SUPPLIER MANAGEMENT,20%BRAND MANAGEMENT,15%PRODUCT MARKETING,15%DIGITAL PERFORMANCE MARKETING,12%OTHER,7%Which of the following best describes the industry for which you
156、work?RETAIL:MULTI-CHANNEL(CATALOG/ECOMMERCE),16%AUTOMOTIVE,14%CONSUMER PACKAGED GOODS,9%FOOD/BEVERAGE/RESTAURANTS,8%TRANSPORTATION,8%FINANCIAL SERVICES(BANKING/INVESTING/LENDING),8%RETAIL:TRADITIONAL (BRICK AND MORTAR),7%AGRICULTURE,7%HEALTHCARE/MEDICAL/PHARMACEUTICALS,6%TRAVEL/HOSPITALITY,6%OTHER,1
157、2%22ABOUT OUR SPONSORSABOUT OUR PRESENTING SPONSOR,THE UNITED STATES POSTAL SERVICEABOUT OUR PREMIER SPONSORSABOUT ALLIANTAlliant is trusted by thousands of brands and agencies as an independent partner bringing a human element to modern data solutions.The Alliant DataHubbuilt on billions of consume
158、r transactions,an expansive identity map,advanced data science and high-performance technologyenables marketers to execute omnichannel campaigns with responsive consumers at the center.Data security and privacy have been core values since day one,and we continually validate our people,processes,and
159、data through meaningful certifications such as SOC2,IAB Tech Lab Data Transparency,NAI Membership,NQI certification from Neutronian,and quarterly quality scoring with Truthset.For more information,visit .The United States Postal Service is an independent federal establishment,mandated to be self-fin
160、ancing and to serve every American community through the affordable,reliable and secure delivery of mail and packages to nearly 165 million addresses six and often seven days a week.Overseen by a bipartisan Board of Governors,the Postal Service is implementing a 10-year transformation plan,Deliverin
161、g for America,to modernize the postal network,restore long-term financial sustainability,dramatically improve service across all mail and shipping categories,and maintain the organization as one of Americas most valued and trusted brands.The Postal Service generally receives no tax dollars for opera
162、ting expenses and relies on the sale of postage,products and services to fund its operations.For more information,visit .ABOUT WILANDWiland,Inc.is the marketing data and audiences company that thousands of brands trust to help them develop and maintain more customer relationships that produce higher
163、 revenue,less advertising waste,and more profit.The companys products are informed by the largest set of detailed,individual-level spending signals ever assembled.Wilands AI-enabled response prediction platform analyzes this vast information to deliver powerful insights and solutions that enable cli
164、ents to market more profitably across all addressable channels.The company has long served as an industry innovator whose targeted marketing solutions have their foundation in consumer data ethics and privacy protection.For more information,visit .23ABOUT OUR SPONSORSABOUT OUR SUPPORTING SPONSORSABO
165、UT PATH2RESPONSEPath2Response is a data-driven marketing company that helps businesses and nonprofit organizations reach responsive audiences and improve their marketing ROI.We combine an experienced team with untapped data sources,the latest open source technology,and leading edge data science to d
166、eliver transformative results.Our transformational cooperative data platform powers customer acquisition and retention in both offline and online channels.We are based in Broomfield,CO,and we serve businesses and organizations of all sizes across the United States.For more information,visit .ABOUT F
167、REEDOMFreedom is one of the largest privately held direct mail companies in the United States with four manufacturing facilities strategically located throughout North America.Specializing in the production of data-driven direct mail programs integrated into omni-channel marketing campaigns,Freedom
168、offers a wide range of services,from strategy and format design through mail deployment,creating a single source solution for direct marketers.With its robust certifications in data security,Freedom has been enabling the imagination of direct marketers for over 37 years,developing customized solutio
169、ns for the financial services,insurance,healthcare,telecommunications,and non-profit marketing verticals.For more information,visit .ABOUT NAVISTONENaviStone is the proud inventor of a revolutionary marketing channel,Digitally Powered Mail.Our marketing technology platform allows brands to acquire n
170、ew customers by using online intent data and delivering high-response personalized direct mail within 24 hours.As marketers experience major disruptions to digital programs including loss of third party cookies,ad blockers and Apple IOS changes,brands are looking for new ways to reconnect.At NaviSto
171、ne,we turn bits and bytes from the digital world into tangible marketing with ink and paper.The result?A marketing product that helps brands grow their business and makes their customers smile.We understand the importance of privacy in this day and age.NaviStones approach and secure technology ensur
172、e consumer privacy every step along the way.For more information,visit .ABOUT LS DIRECTLS Direct is the industry leader in harnessing the power of intent-based postal retargeting.Through our cutting-edge Boomerang direct solution,we utilize your valuable first-party data to craft highly targeted and
173、 personalized direct mail campaigns that effectively drive conversions for customers who have already engaged with your website.Our innovative marketing tech-stack seamlessly merges the online and offline realms,making us your go-to provider for your direct mail needs.Trusted by top brands,retailers
174、,catalogers,and more,we are here to support you at every stage of the customer journey,from attracting new customers to nurturing existing ones and reactivating past buyers.With our data-first approach and advanced predictive analytics,we empower your campaigns to achieve a provable and predictable
175、ROI.For more information,visit .Winterberry Group is a specialized management consultancy that offers more than two decades of experience and deep expertise in the intersecting disciplines of advertising,marketing,data,technology and commerce.Offering a range of growth strategy,collaborative activat
176、ion,mergers&acquisitions and market intelligence solutions,Winterberry Group helps brands,publishers,marketing service providers,technology developers and information companiesplus the financial investors who support these organizationsunderstand emerging opportunities,create actionable strategies a
177、nd grow their value and global impact.Growth StrategyCorporate strategy that drives growth is at the heart of what we do.We work with clients to identify core competencies,evaluate strategic alternatives and build comprehensive,actionable growth plans.Collaborative ActivationWe guide brands and mark
178、eting practices through business process planning efforts aimed at helping them achieve lasting competitive advantage.Mergers&AcquisitionsWe leverage our industry knowledge to help financial investors make sound,value-driven investment decisions.Market IntelligenceWe maintain an active research and
179、publishing practice that gives our consultants direct access to insights from senior industry executives and complements our client engagements.24ABOUT WINTERBERRY GROUPABOUT WINTERBERRY GROUPWINTERBERRY GROUP SERVICESCONTACT USBruce BiegelSenior Managing PJonathan MarguliesManaging PBrittany MeeksEngagement D 61 Broadway,Suite 1030 New York,NY 10006