When it comes to direct marketing media strategies, email remains king among advertisers while social media is gaining ground and running a close second, according to a new ANA study.
Data in the study, Response Rate Report 2021: Performance and Cost Metrics Across Direct Media, showed that email was the most used medium in all campaign types (B2B, B2C, and split B2B/B2C), averaging an 82% usage rate among respondents. Social media came in second at 74%.
Beyond email and social media, the report included overall findings for paid search (51 percent), digital display advertising (42%), direct mail (38%), and SMS (18%).
Although email was the top media choice chosen by marketers, its usage has declined 6% since the last Response Rate Report was issued in 2018 while social media advertising scored the most significant shift in reported usage, up 17% since the last study.
In terms of return on investment (ROI), survey respondents indicated that while they certainly make use of modern technology in their direct marketing efforts, traditional methods such as sending messages in a letter-sized envelope via the U.S. Post Office can be remarkably effective. Those who did so reported a 112% ROI, followed closely by SMS at 102% and email at 93%.
The mail format that produced the best ROI to “house” lists was postcards (92%). The mail format that produced the best ROI to “prospect” lists was letter-sized envelopes (112%), the highest of all formats. Other notable formats to prospect lists include dimensional and oversized envelopes, both of which eclipsed 90 percent ROI.
The study “demonstrates that traditional forms of direct marketing continue to be powerful engines for accelerating brand growth,” said ANA CEO Bob Liodice. “The findings will help marketers plan and optimize their marketing mix and drive sustainable long-term growth.”
Survey respondents also said that overall, they plan to increase use of email (53%), paid search (52%), social media (50%), and SMS (50%) during the next 12 months. Of all media types covered, marketers said they were least likely to anticipate that social media usage would decline.
The study was based on self-reported data collected in an online survey fielded from February through July 2021. More than 1,250 responses were collected, and 581 were qualified and sufficiently complete to be included in the report, according to the ANA.
Here’s an overview of results:
— B2C campaigns were the most frequent type (42%), followed by B2C (31%) and split campaigns (27%).
— Marketers comprised 65 percent of respondents, followed by other (15%), suppliers of marketing services (11%), and agencies (10%).
— The largest industry segment in the survey was technology and communications (23%), followed by B2B products and services (20%) and health care (10%).
— Most respondents came from small companies with annual revenues of $25 million or less (56%), 24% from medium-sized companies (between $26 and $500 million in annual revenue), and 20% came large companies (more than $500 million in annual revenue).
— Some 65% of respondents reported revenue growth at their organizations in the most recently completed fiscal year.
The study was conducted by the ANA’s Data and Analytics Practice. This unit is critical to help members improve their personal and organizational acumen and to build capabilities to become a data-inspired marketing force. The full report can be accessed here.
