Definition of direct-mail advertising

form of advertising that utilizes the mail to get a communication directly into the hands of a prospective customer or business recipient. Direct-mail advertising is designed to generate a response to the communication, such as an order, a donation, a request for additional information, or a visit to a place of business. The success of direct-mail advertising relies upon an efficient postal system. Direct-mail advertising includes fliers, letters, brochures, reprints, circulars, and other material sent through the mail. In direct mail, specific markets can be pinpointed with precise selectivity, and results can easily be measured in terms of cost-perorder or cost-per-response. However, a direct-mail campaign that generates as little as a 5% response is usually considered a great success. In addition to targetability, a strength of direct-mail advertising is that variations in the offer and package can easily be tested, and there are few limitations in terms of content and format. Virtually all types of businesses can successfully utilize direct-mail advertising. In 1998, direct-mail advertising was the largest single medium, reaching $39.3 billion, or 34% of total national advertising budgets, and was expected to grow at 7.1% annually. Consumers and businesses spent in excess of $421 billion in response to direct mail in 1997. Direct mail is the only advertising medium that has the potential to reach virtually every U.S. household.