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Social Media versus Direct Mail

Comparison of Statistics about Direct Mail and Social Media

Angela Johnson

on 14 July 2014

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Transcript of Social Media versus Direct Mail

Billions strong and still growing, it is not difficult to imagine the impact and significance that social media can bring to a business wanting to sell to a large audience. With the right message and target campaign you can instantly turn a small business into a booming success - practically overnight.

As global and impactful as social media can be- there is a downside. The ability to capture and keep a large global audience is almost as difficult as herding together a group of wild cats. Simply put - social media is unpredictable and within a very short period of time your booming success has dwindled down to a mere few hits a month.

The key to keeping the global attention is through continuous attention- which means 24 hour customer service, a stream of online content daily, keeping up with your client base's needs, and checking and rechecking the stats of your activity to remain current.
Social Media
Otherwise known as "traditional marketing"- direct mail had been around for practically FOREVER. Direct mail is predictable, careful and not to mention "measurable". Traditional marketing is not as ambiguous as social media- almost every function can be tested and measured. It is at best precise and loyal - arriving almost everyday directly to its location [with exception of Sundays, of course].

Direct marketing has its negative drawbacks too, a mail campaign needs careful planning and at times much, much more expensive than social media. The process is not for those of which want the instant gratification that social media delivers. The costs of mailing, even at the discounted EDDM rate can be too high for smaller companies and start ups.

Direct Mail
of customers
in the United States own a mobile device
devices are capable of surfing the net
of Americans have a profile on a social networking site
of Facebook’s users check their account five or more times EVERY DAY
32% engaging on social media on a daily basis compared to 52% on the B2C side.

B2B Statistics
More than half of marketers currently use social media as part of their marketing strategy, up from 45% in 2009
36% of B2B executives report that there was low executive interest in social media in their company

Nearly half of the B2B marketers using social media view LinkedIn as an effective channel, while only one in three say the same of Facebook.
Social Media
B2B Statistics
of Professionals consider direct mail to be "effective" or "very effective."
of households surveyed- say they are more likely to purchase based on direct mail promotions rather than e-mail offers
Direct mail can be an important part of a larger marketing strategy, connecting email marketing, direct mail marketing, and website marketing through personalized URLs and custom content
of consumers bring in their mail the day it is delivered with 77% then sorting through it immediately

Direct Mail
Time To Process A Mailing
Time To Upload An Ad
Cost Per Click
Expected Rate of Return
Cost Per Mailing
Expected Rate of Return
Social Media
Direct Mail
It is clear how social media can be used to positively impact business but how does it compare against traditional direct mail.

In this presentation there will be statistics and pros and cons about how each medium best effects businesses and the audience they are targeting.
Direct mail does not have that "instant gratification" that social media offers but this tried and true method of marketing has an impact on the audience it reaches.

However, it can be costly to produce - it takes a precise marketing plan, engaging design, and accurate data to be truly effective.
However Pay Per Click Advertising can be a little "tricky"
A Step-by-Step Guide to Calculating a Profitable AdWords Budget

Research Tools

Numbers You Need to Know

Step-by-Step Calculation
Research Tools
Select specific research keywords that relate to what your business
offers and determine on average how much it will cost to bring a visitor
to your website.

You can find a number of keyword research tools online. When
calculating an AdWords budget, start with Google's Keyword Tool.

Once you have a solid list of relevant keywords, use the Google
Traffic Estimator to get an idea of how much a click will cost on

Step 1: Select your location, language and network

Step 2: Enter your keyword(s)

Step 3: Enter your Max CPC (the maximum cost you are willing to pay per click)

Set the Max CPC where the average ad position falls between 1.5 and 3.0.

If you set your average CPC too high, Google could provide an estimate for a click in position 1, which might not be necessary for your business.

Numbers You Need to Know
Read more: http://www.searchenginepeople.com/blog/how-much-should-you-spend-on-ppc-advertising.html#ixzz378Icgo85
Website conversion rate:

The percentage of visitors to your website who take an action you consider
valuable to your business. Popular actions include a visitor signing up for a
newsletter, buying something or filling out your Contact Us form.

A Digital Marketing firm can provide insight on this metric if you don't know.

Let's assume 1 out of every 10 visitors to your website fills out the
Contact Us form. Your website's conversion rate is 10%.
Impressive…must be that great content!!

The percentage of leads that turn into a sale.

Let's assume 1 in every 4 leads turns into a sale.
Your average closing rate is 25%. Equally as

Average closing rate from leads:
A quick walk through of the Traffic Estimator:
Let's assume the Traffic Estimator projected a $5 average CPC.

Cost per visitor (Average CPC): $5

We determined your website converts at 10%.

1 lead / 10 visitors = 10% conversion rate

Since you will still have to pay for the 10 visitors, it will cost $50 per

$5 per visit x 10 visitors = $50 per lead

Step-by-Step Calculation
Let's assume your sales team has the capacity to handle 100 leads per month. Your online advertising budget should be $5,000 per month.

100 leads x $50 per lead = $5,000 budget

Now that you have your budget, plug in your average closing rate and calculate how
many leads you could turn into sales.

100 leads @ 25% closing rate = 25 sales

Finally, calculate how much revenue you could make.
Let's assume each sale is worth $1,000.

$1,000 x 25 sales = $25,000 in revenue

Cost-per-click (CPC) bidding means that you pay for each click on your ads. For CPC bidding campaigns, you set a maximum cost-per-click bid - or simply "max. CPC" - that's the highest amount that you're willing to pay for a click on your ad (unless you're setting bid adjustments, or using Enhanced CPC).

Your max. CPC is the most you'll typically be charged for a click, but you'll often be charged less -- sometimes much less. That final amount you're charged for a click is called your actual CPC.

If you enter a max. CPC bid and someone clicks your ad, that click won't cost you more than the maximum CPC bid amount that you set.

You'll choose between manual bidding (you choose your bid amounts) and automatic bidding (let Google set bids to try to get the most clicks within your budget).

CPC pricing is sometimes known as pay-per-click (PPC).

Cost-per-click (CPC)
Effective Pay Per Click Advertisements
Pay Per Click
Pay-per-click advertising can only succeed if you’re bidding on the right keywords. PPC advertising can be extremely profitable if done correctly, but in order to succeed, you need to know which keywords will bring you the best results
Must Have A Precise Marketing Plan based on a formula of website knowledge and analytics
Website Optimization
The process of making changes to your website so that it will appear higher in search engine results pages
Website Analytics
Web analytics provides information about the number of visitors to a website and the number of page views. It helps gauge traffic and popularity trends which is useful for market research
At the end of the day- you will need to take a steady and disciplined approach to PPC
If you set off based on opinion or guesswork, then your results will be mediocre
$1 $12.
For Every
For Your Investment
Direct Mail Marketing
The "Right" Message
Most poeple want to know "what's in it for me?" and if your message does not include your audience in a special offer or message then you will be wasting your investment.
Requires careful strategy to be successful which includes attention to design, precise marketing, and accurate data
The "Right" Data
Once you have the "message" created, you will need to focus on getting a list of addresses and take the necessary steps to ensure that the same addresses are correct and up to date.
The Right Time
The ‘call-to-action’ is a critical component of the campaign; otherwise your postcard is just a pretty piece of junk mail. What you want your targets is important, but if a ‘when’ is involved, properly planning your campaign is of even greater significance.
Your direct marketing plan needs to both reach your audience and engage your audience
The rate of return for your investment depends 100% on your message's ability to get attention
The design process usually takes one to two days to get finalized- most agency/printing companies also have resources for finding lists of addresses for your targeted audience.
That means your customers should receive your Direct Mail piece in about 7 to 10 business
After that, the overall production/fulfillment process usually takes about five business days.
You can get highly-detailed product information or samples right into the hands of the people who want it.

Advantages of Direct Mail Services
Target ability
You can aim for specific consumers by location, product interest and previous purchases.
You can contact nearly every household in your potential market.
You can build a great relationship with your customers — and prospects — with personalized direct mail solutions.
You can tally responses with coupon redemption and response cards.
You don't need high-level skills or computer equipment to participate in social media. The average person with a standard computer should have no difficulty
Advantages of Using Social Media
Find out what customers think of your business
Social media can reach millions of people all around the world
It's Personal
Social media allows you to communicate on a
personal basis with individual customers and groups
You can quickly distribute information to many people
You don't need high-level skills or computer equipment to participate in social media. The average person with a standard computer should have no difficulty
Advantages of Using Social Media
Find out what customers think of your business
Social media can reach millions of people all around the world
It's Personal
Social media allows you to communicate on a
personal basis with individual customers and groups
You can quickly distribute information to many people
Disadvantages of Using Social Media
Wasted time and money for little or no tangible return
Social media can reach millions of people all around the world
Bad Reviews
The rapid spread of the wrong kind of information about your business (e.g. incorrect information accidentally posted by you, negative reviews posted by others)
Security Risk
Social Media also attracts an element of potential risks to identity theft
SOURCE: http://www.grantthornton.com
How Companies
Use Social Media
Most consumers refer to direct mail as "junk mail" – and they have an even lower opinion of the most cost-efficient mail-merge packages that combine pieces from a number of different advertisers in one envelope.
Disadvantages of Direct Mail Services
Examples of “one shot” mail marketing does not produce desired results. Multiple mailings over a period of time are the norm, and the accumulation of mailing costs can climb quickly
Low Response
If the offer does not initiate a response, then it may take multiple campaigns to be successful.
It is important to make your guidelines clear right from the start and be aware of your objectives. If there is absence of communication and knowledge then your advertising strategy will not be effective. Plan your budget and timetable before hand to avoid any later misunderstandings.

Allows for customization of direct mail during the printing process based on your customer database, allowing you to send the right message to the right person.
Variable Data Printing
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Approved Within One Business Day
Such Social Media online ads have to o through an approval process before "Going Live"
This is different for other Ads promoted on other social media outlets: Facebook are uploaded on the same day.
However Social Media online ads need to be interesting enough to gain your audience's attention
Full transcript