What costs are involed in direct mail you ask?

As with any business proposition, the cost associated in a direct mail campaign is usually an important factor that is considered by advertisers before they opt for it. The cost that a direct mail advertising campaign might incur depends on a lot of variable factors ranging from the kind target list of addressees that is to be procured to the quality of paper that is used to print the advertising on.

Some of the main variables on which the cost of a direct mail campaign depends on are:

1. The list of recipients that is procured from a direct mailing list broker – The cost of such a list could vary from 20 USD per thousand addresses to around 200 USD. This is a very important factor on which corners shouldn’t be cut for the sake of reducing costs as the success of the campaign is directly linked to the kind of audience which is targeted. If the targeted recipients have no use for the particular product that the advertiser seeks to sell, then the whole purpose of the direct mail campaign is lost. For example, it won’t be a successful investment to procure a list of recipients who are singles without issues for a campaign intending to sell baby food, and baby products as most of these singles would not be interested in the product.

2. Quality of the direct mail campaign – If you intend to send out letters or catalogs that are printed on glossy paper with colorful designs and pictures on them, the cost might be much greater than a simple paper mail with printed words on cheap paper. Since most postal services charge on the basis of the size of the mail or its weight, with the costs increasing corresponding to the increase in size and weight of the mail package, it would be prudent to go in for sleek and to the point direct mail ad campaigns, that can reduce the costs considerably.

3. Postage – Postage makes up the bulk of the campaign cost but can be as low as 12.7 cents.

Direct mail marketing is a costly form of advertising campaign that can be embarked upon and yet is the most successful. The cost incurred from start to finish after considering the above factors would be anywhere between fifty cents to a dollar per direct mail. The thing to look out for is the return on the investment that you could get, even if you end up spending a lot of money on the campaign.

If on an average, a thousand mails would generate 20 leads and each of the leads significantly covers the cost of the campaign as well as generates the envisioned profit margin, then it is worth going for such a mode of advertisement. Most postal services offer reduced rates for direct mail campaign permits that allow the advertiser to cut costs on this front. The US postal service offers many direct mailing packages that a prospective advertiser could choose from, depending on his needs.

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