• on Apr 20th, 2015 in Delivery & Collection | 1 comment

    Are all mailboxes equal? Not when it comes to advertising mail, which seems to invoke three critical factors normally associated with real estate – location, location, location.

    It costs the U.S. Postal Service less to deliver mail to curbside mailboxes or neighborhood cluster boxes than to your door. That’s why there’s been talk of possibly eliminating door-to-door delivery as Canada Post has recently announced. But the move could cut more than costs; it could also cut the effectiveness of ad mail, which provides about $16 billion of revenue annually to the Postal Service.

    We worked with the market research firm InfoTrends in surveying 5,000 households across the country to determine how much people engage with advertising mail. What we found was intriguing: People with to-the-door delivery had a much higher “read-and-response” rate to ad mail than people with curbside or cluster box delivery. A related trend: People with to-the-door delivery are less likely to throw their ad mail away than those who collect their mail at the curb or cluster box.

    It’s all detailed in our new white paper, Modes of Delivery and Customer Engagement with Advertising Mail, in which we suggest that the Postal Service and ad mailers work together to understand these delivery trends, which could have a critical impact on how much mail advertisers continue to send.

    In the meantime, tell us your experience: Do you have to-the-door, curbside, or cluster box delivery, and how much time would you say you spend with ad mail? If you have experienced a change from one type of delivery receptacle to another, did your behavior change? If so, how?

  • on Jun 2nd, 2014 in Products & Services | 1 comment

    If your favorite catalog looks more like the Sports Illustrated swimsuit edition or even an issue of Life magazine, there’s a good reason. These high-end photo displays and glossy spreads help retailers sell products online. Retailers are pouring more money into catalog design, including expensive photo shoots, because they find this drives online and in-store sales. Catalogs and other hard copy advertising act as bait to lure the customer into online or brick-and-mortar shopping.

    So it would seem that physical stores and hard-copy ads are not dead; they are evolving to complement a retailer’s digital presence. As a Wall Street Journal article noted, the catalog is like “a store window display, and a source of inspiration, the way roaming through store aisles can be.” Bonobos, a menswear store that advertises better-fitting pants, started to dabble in catalog mailings and found they had a significant impact on sales. The company found that 20 percent of its new customers had received a catalog, and those that do get catalogs spend 1.5 times as much as new shoppers who don’t receive a catalog.

    But the convergence of digital and physical shopping goes beyond the continuing popularity of catalogs. Retailers can no longer view online sales and sales at physical stores in isolation. Customers are browsing and shopping using both mediums jointly. These days many consumers use online research before they make a purchase in a physical store, what is known as webrooming. They also browse physical merchandise in stores before buying an item online, a practice called showrooming. According a report by Accenture, 78 percent of survey respondents have used webrooming and 72 percent of respondents have used showrooming.

    Clearly, the Postal Service benefits from more catalogs in the mail and ensuing parcel fulfillment. But it would also benefit from a surge in advertising directed at both the physical and online presence simultaneously. For example, at the most recent PostalVision 2020 conference, retailers showed how they are embedding digital advertising into physical objects. Marks and Spencer is producing a catalog that customers can scan and go directly to the company’s online catalog where they can make purchases. Ikea has a catalog that allows customers to see what furniture would look like in their house. Advertisers could embed digital coupons into advertisements that allow recipients either to use the coupon in the physical store or scan it and go directly to the website with the discount code activated.

    What do you think? Will embedding digital advertising into physical mail help to maintain or stem the decline in advertising mail? What other opportunities could the Postal Service benefit from related to the convergence of digital and physical shopping?

  • on Dec 11th, 2013 in Ideas Worth Exploring | 3 comments

    Wouldn’t it be nice to receive only the advertising mail that interests you? Information about products and services you like or want to learn about, and nothing else? And wouldn’t it be nice for advertisers to know more about what recipients think about their ads? Is an offer appealing, but the timing is not right, or is a recipient completely uninterested?

    Creating a system to share this information is a possibility, and the U.S. Postal Service could play a key role in making it happen. That’s the concept of a new white paper released by the Postal Service Office of Inspector General today. Strengthening Advertising Mail by Building a Digital Information Market highlights the importance of maintaining and strengthening advertising mail by enabling more direct communication from mail recipients ultimately back to the advertiser.

    Ad mailings could then be targeted with almost pinpoint accuracy, increasing revenues for advertisers and reducing recycling for everyone. The system would benefit the Postal Service, too, by making ad mail even more relevant and valuable.

    One potential approach starts with using a smart phone or tablet to scan a digital code on the front of a piece of ad mail you receive, and then accessing an interactive system into which you can record your advertising preferences. In return, you are sent a coupon redeemable for merchandise from a variety of vendors, and in the future you would receive ads tailored to products and services of interest to you. Participation would be strictly voluntary, and privacy guidelines would be established.

    Tell us what you think! Do you think customers would be inclined to access an interactive system to record advertising preferences if it meant special offers or more targeted mailings in the future?