Ecommerce Direct Mail Breaks Through The Digital Clutter

//Ecommerce Direct Mail Breaks Through The Digital Clutter

Ecommerce Direct Mail Breaks Through The Digital Clutter

We’ve Listened To Smart Home Ecommerce Premium Brands and Created a Shared Cost Direct Mail Solution For Premium Ecommerce Brands

Reach The Ideal Smart Home Consumer For Pennies Per Home With The “Tech Deck

The Challenge 

Pay Per Click
Negative Net Effect Approaching Choke Point

Pay Per Click, in it’s nature, has a compounding negative net effect.  The more advertisers there are, the more expensive it becomes for all parties.  Wordstream reports the most expensive click at $50 per click.

As more advertisers join, the bidding price rises, approaching a bottleneck choke point where advertiser eventually choke on the cost of a click. To make matters worse, all advertisers bidding for the same keyword share the same search results page (SERP).  This leads to an even further race to the bottom as each advertiser begins to compete on price, lowering their price to acquire the lead while the lead or the person searching backs out of each link to compare offers and take the biggest discount.

If you’re in a growth industry this gets exponentially worse by the year.

There is an inherent cannibalism happening here.  The next logical step is that each advertiser has to raise their prices to afford the marketing which all points back to the only beneficial party being the search engine.

Digital marketing is a necessary evil.  The evil is that your budget can disappear in the intangible ether leaving you to wonder if anything actually happened outside of numbers on an adwords graph, click fraud.

Click fraud is a type of fraud that occurs on the Internet in payperclick (PPC) online advertising. … Fraud occurs when a person, automated script or computer program imitates a legitimate user of a web browser, clicking on such an ad without having actual interest in the target of the ad’s link – Wikipedia

The Solution

Peer Funded Direct Mail Packs
Positive Net Effect Approaching $0 Cost

Shared cost direct mail has a compounding positive net effect.  The more advertisers there are, the cheaper it becomes for all parties, approaching $0 cost or even pays you back.

A cooperative mailer is nothing new but consider a technology twist to it and watch how the crowd funding principles augment it to create a positive net effect that approaches $0 cost and as more advertisers join your cause, advertisers can actually profit from the ad spend of other advertisers.

For arguments sake, let’s say the fixed cost of the mail pack is $1 and there are 2 advertisers, each advertisers pays $.050 each. Then a third advertiser joins, now the cost is down to $0.33 per advertiser. It’s exponentially cheaper. The more advertisers that join, the less each advertiser pays, approaching zero cost!

Ie, the more advertisers that buy into the direct mail pack, the less your shares cost because the overall price of the pack is fixed.

Once it’s paid for, your ad can essentially approach free as more advertisers enter your space.

In PPC, the more competitors that bid on your keyword, the more you pay for the click and if you’re like most premium brands, that cost is increasing year over year and approaching a choke point.

Definition of a “choke point”: The cost of acquiring a customer exceeds the profit. Hypothetically, one click for your main keyword today, let’s say “custom closets” costs upwards of $5 per click which is 10x what is costs a decade ago and that cost is increasing exponentially by the year. Let’s say it takes 100 clicks to acquire a paying customer and your profit per customer is $500. 100 clicks costs you $500 and your profit is $500, netting you zero. As time goes by the cost per click reaches $6 per click and you have now reached your choke point. You spend more than you make.

Direct mail costs are fixed, not variable, and exclusive to competition, not the same space on a page as your competition which is always growing.

Google is not held to any third party verification standard, proving who clicks, so who you are targeting, really?

How many third party sites in the ad network use bots to fake clicks to get payment for display ad clicks? How do you know you’re really getting your target audience?

With mail, you know who you’re targeting, there are standards that prove you’ve gotten something for your payment, other than digital numbers on a graph that may or may not accurately depict your traffic.

The amount of advertisers in your space is always growing if you’re in a growth industry so PPC costs are guaranteed to increase as time goes by, the only clear winner in this scenario is the search engine.

The Cost Debate

Direct mail costs are fixed, they don’t rise as more advertisers join, they fall – the opposite of PPC.

The problem in the past was the hard costs of printing vs. digital used to be lower, not anymore.

Shared cost is 1/10 the cost of solo mailers. For instance, an online custom closet retailer combined with a premium direct-to-manufacturer online furniture retailer (non-competing exclusivity) share the cost of the pack, let’s say $1. They pay $.050 each. Then a third advertiser joins, let’s say a wine club, now the cost is down to $0.33 per advertiser. You all want a similar audience, high income, online shopping, lavish spenders with credit cards on file online.

The Targeting Debate

 Imagine the crowdfunding principles applied to a direct mail pack where each pack of advertisers that were bundled together were complimentary, not competitive and the targeting wasn’t just demographics but purchasing behavior.

The targeting options of keywords that indicate purchasing intent used to be limited to browser behavior and search terms… not anymore!

We’ve partnered with cloud solution to append our data and create predictive analytics, much the same way that Facebook appended their user base information with the same data, but we created a shared cost monthly solution that allows premium brands to target millions of tech savvy, high income, online shopping consumers per month by combining many complimentary brands in one mail pack that share the cost, getting it down to pennies per impression and never increases in cost, only decreasing as more complementary advertisers join the pack making it a more appealing pack to the consumer who demonstrates a purchasing behavior that indicates interest in your products.

  A pack is a dozen or so advertiser with offers in one envelope sent to their chosen target audience creates a single pack.

Once you get over 10 advertisers you have a very attractive advertising vehicle 😉 

The Tech Deck was created to provide an affordable, shared cost direct mail solution for technology companies and premium brands to reach the perfect audience without drowning in the digital ocean of competitors.  E-commerce direct mail targets smart homeowners. See the “Tech Deck” targeting options

Click Here For Custom Targeting
What kind of customers can I expect? 
Average Age: 35  |  Average Income: $161K  |  Average Length of Residence: 8  |  Percent with Kids: 21%
What kind of homes will my customers reside in? 
The households in this niche are extremely upscale, with respect to their earnings, their tastes and their propensity to spend. The household typically consists of two adults between the ages of 25 and 34 with a below average presence of children (dual income, no kids [DINKs]). They own their homes, worth an average value of $276,800, and they are likely to have lived there for 8 years. They are highly educated, with most completing college or graduate school.
 What kind of profession will my customers be involved in? 
The majority of Already Affluent households are employed in professional, technical, managerial, and sales/service occupations. They own credit cards, and they are known to be mail responsive—purchasing items through the mail, while being equally retail friendly. They purchase more electronics than the average population, and they are very enthusiastic about investments and spending disposable income.
 What do they spend money on? 
These households typically spend on home decorations, high-ticket apparel, arts /crafts, and children’s merchandise, with nearly $4,000 of discretionary income spent in catalog and retail channels recently. These households enjoy the pleasures of high society. Their interests include shopping online, travel, sports/recreation, gourmet food, and pets. They are extremely fitness conscious. This niche enjoys active sports such as running and jogging. They also enjoy cruise ship travel, as well as travel in the U.S.
 What kind of vehicle do they drive? 
Already Affluent households are more likely than average to own luxury subcompact and luxury compact crossover utility vehicles (e.g., BMW 1M and Mercedes-Benz B). These households are also overrepresented in the luxury mid-size SUV segment. They are more likely than the national average to own new vehicles, and they contain higher concentrations in model years 2005 forward.

Smart mail breaks through the clutter of your inbox, and ideal customers get to hold it in their hands. For business, marketing with a postcard or printed materials is being rediscovered by many companies. In a client’s recent B2B marketing campaign, we combined emails and printed materials so that if our emails get caught in the spam filter, at least our physical post cards land on our audience’s desk

By the end of 2017, Strategy Analytics estimates that roughly 30% of all households in the United States will own one or more smart home devices. To continue to grow, companies must better understand the customers who make up the Early Majority – that is, the customers most likely to adopt smart home products and services in the near term – including their attitudes, behaviors, and lifestyles. This report sheds light on those consumers with findings from Strategy Analytics 2017 Smart Home Consumer Survey.
– StrategyAnalytics.com

Use The Smart Homeowner Rooftop Targeting Tool

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By | 2017-09-17T21:39:41+00:00 November 3rd, 2014|ecommerce direct mail|2 Comments

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2 Comments

  1. Mike Jorgen November 11, 2014 at 6:46 pm - Reply

    I completely agree except for one point: Volume.
    Yes, you can attract a higher quality customer base with direct mail vs random searching public. That much is hard to argue, but matching the volume of leads from ppc, with a descent conversion rate, is hard to beat with direct mail without major volume which gets costly.

    • Jason Tropf September 14, 2017 at 12:30 am - Reply

      Hey there Mike 🙂
      I share your concern, which is why we have a shared cost solution so it’s 1/10 the cost of doing it solo and it has a positive net effect that compounds your savings as more advertisers join. For arguments sake, let’s say the fixed cost of the mail pack is $1 and there are 2 advertisers, each advertisers pays $.050 each. Then a third advertiser joins, now the cost is down to $0.33 per advertiser. It’s exponentially cheaper, more advertisers the more you approach zero cost! Plus, the costs are fixed, they don’t rise as more advertisers join, they fall – the oppisite of PPC. Ie, the more advertisers that buy into the direct mail pack, the less your shares cost because the overall price of the pack is fixed. Once it’s paid for, your ad can essentially approach free as more advertisers enter yoru space. In PPC, the more competitors that bid on your keyword, the more you pay for the click and if you’re like most premium brands, that cost is increasing year over year and approaching a choke point. Where one click for your main keyword today, let’s say “custom closets” costs upwards of $5 per click which is 10x what is costs a decade ago and that cost is increasing exponentially by the year. Just look over the last 10 years, it’s 10x in 10 years. Google is the only winner there. Direct mail costs are fixed, not variable, and exclusive to competition, not the same space on a page as your competition which is always growing. Aslo, Google is not held to any third party verification standard, proving who clicks, so who you are targeting, really? How many third party sites in the ad network use bots to fake clicks to get payment for display ad clicks? How do you know you’re really getting your target audience? With mail, you know who you’re targeting, They own a home and they earn upwards of $150k, there are 7 million in your range, for example. There are standards we must meet to prove you’ve gotten something for your payment, other than digital numbers on a graph that may or may not accurately depict your traffic. The amount of advertisers in your space is always growing if you’re in a growth industry so PPC costs are guarenteed to increase, the only clear winner in this scenario is the search engine.

      We’ve created a shared cost monthly solution that allows premium brands to target millions of tech savvy, high income, online shopping consumers per month by combining many complimentary brands in one mail pack that share the cost, getting it down to pennies per impression and never increases in cost, only decreasing.

      For instance, an online custom closet retailer combined with a premium direct-to-manufacturer online furniture retailer (non-competing exclusivity) share the cost of the pack, let’s say $1. They pay $.050 each. Then a third advertiser joins, let’s say a wine club, now the cost is down to $0.33 per advertiser. You all want a similar audience, high income, online shopping, lavish spenders with credit cards on file online. Once you get over 10 advertisers you have a very attractive advertising vehicle 😉 Hope that helps!

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