In the cases of independent media agencies and HoldCo shops alike, endeavoring to introduce “direct mail” as an area of discussion is like trying to convince King Kong to simmer down. Such attempts are often met with the response of, “We don’t handle that,” or, “No client is currently asking for that,” if not determined refusal to engage at all. These dismissals can be heard from investment roles, partnership roles, account roles, practice area leads, and more. Simply put, a majority of the time the default posture is close-mindedness. Why? It could be a function of non-familiarity / lack of general education regarding direct mail. It could be a reflexive defensiveness - protecting turf, as it were. It could just be some manner of subconscious conditioning that has developed over two decades of “digital-itis.” Whatever the case might be, there is a pervasive determination by media agencies (many – not all) to hold fast to a pattern of othering direct mail; ultimately to their own detriment.
As we go through a new period of significant technological disruption, the agency instinct to only tighten the methodological grip when confronted with uncertainty is proving, in real time, to be self-defeating. Now, perhaps more than ever, is a time that calls for the flexible reinvention of the agency operating model. A track in that process includes finding new, more effective, and more dependable ways to get the performance train from point A to point B. Modern direct mail is one refreshingly straightforward – and potent – mechanism that can materially move the performance needle and provide client-pleasing innovation, albeit dressed in legacy clothes. To unlock this ironically novel upside and embrace a new spirit of direct mail open-mindedness, agency operators first have to fully embrace three key thought patterns.
This one is more of a commonsense tautology (or at least it should be). However, over a decade of ecosystem advances for the ecosystem’s own sake has created a good degree of fog and distrust where means have become celebrated as ends. Clients are awakening to this bug (feature?) and applying real scrutiny to the stewardship of their budgetary assets by their agency partners. CTR is the classic villain in this type of story but there are numerous examples of vanity metrics or empty calorie dashboard callouts that have, for too long, served as illegitimate proxies for bottom line success.
“Did this tactic move the needle in pursuit of real business metric X?” is the only question that should matter. The more closely it is applied as a yes / no binary, the better. Agencies that embrace such a principle of parsimony will, by design, have an innate hunger to experiment and be flexible in pursuit of dynamic, credible and, most importantly, client-relevant performance.
File this one under “general education.” If the agency has stipulated thought pattern number one above and is earnestly pursuing the best possible media mix to deliver value to the client, the research-based facts related to direct mail should have every planner aggressively reallocating budget.
Are major media agencies aware that the response rate of, for instance, direct mail retargeting is often upwards of 10x stronger than that of programmatic display retargeting? Layer in meaningful personalization, which is easier than ever in modern workflows, and that advantage can rise to 20x with response rates of 9% and higher (Amsive).
In an era where every day brings revelations about the extent of fraud and invalid traffic, has the major media agency stopped to think about the fact that modern direct mail is, de facto, impervious to such budgetary leeching?
Have they taken note of behavioral shifts among the highest spending cohorts – GenZ and Millennials – 85% of whom engage with direct mail (MediaPost) and 67% of whom make a purchase or sign up with a service after receiving direct mail (MarTech Edge)? Or that there is an average open rate within these groups of 80-90% compared to email’s 20-30% (Aradius Group)?
Factoring in that modern direct mail operational characteristics allow for straightforward incrementality testing and the stunningly superior performance statistics should no longer be ignored.
If the first of three thought patterns is about commonsense ratification and the second is about awareness (and the embrace) of objective realities, the third would likely represent a true epiphany for the agency planner or investment lead. Modern direct mail – particularly as leveraged in direct mail retargeting – IS digital as it involves activation of digitally-derived audiences. Just as is the case with Display, CTV, Social, Paid Search, etc. Yes, the downstream delivery medium is physical in nature but this conveys the massive advantage that comes along with the proven neuro-connection of traditional media. Furthermore, delivery is made via first class mail within 24 hours. As a consequence the client benefits from the agencies combining the best of digital (signal and currency) with the best of traditional (emotional connection). This is why this time-tested, but evolved, capability can effectively be construed of as “Connected Direct Mail.”
Once the agency embraces this epiphany, direct mail assumes its deserved position within the omnichannel planning picture. Rather than being the “other” that lives on an island out of sight and mind of the agency, it becomes integrated as perhaps the most potent performance driver, at its best when operating alongside and complementing the “other” digital channels that make up the media mix while allowing for truly holistic yield optimization.
The agency business reality never lacks for excitement. Turbulence, pressure, skepticism, and frenzy come with the territory. With all of those forces and more accelerating in the era of AI, seizing upon a proven winner to create room for stable and durable growth is a recipe for agency longevity. Finding that path is possible by putting the client goal at the center of everything, awakening to the statistical upside of integrating direct mail into the mix, and accepting that modern, connected direct mail, IS digital.