Spam vs. Opt-in

Many people still believe spam or bulk email is the way to advertise a product or service because it's cheap, and it's possible to reach millions within hours. What many don't realize is spam mailings return very low response rates compared to direct email marketing in which all subscribers are opt-in. Opt-in mailings on average return a 1-3% response, while with spam an average response rate is a fraction of a percent. And, among the spam responses most will be hate mail, undelivered email, and remove notices. This is no way to market if you want effective results while keeping your organization in good name.

The bottom line: yes you can send to millions for practically nothing, but your organization will receive a bad name for an unproductive and clumsy marketing strategy.

Postal Mail vs. Opt-in

Postal mail is practically obsolete when comparing it to opt-in email. Postal costs more, takes longer, and can only be sent and received at certain times and limited number of days. Opt-in email can be sent anywhere in the world within seconds any hour any day of the week. There is usually only one flat rate to send opt-in email, which is considerably less than a postage stamp, and recipients can view more information instantly by clicking on a hyperlink within the announcement.

If you use postal mail as a marketing strategy simply take a fraction of that budget and invest into an opt-in marketing plan. Then you will be able to compare the results for yourself. Review the comparison chart below to get some solid figures.

Compare Direct Email Marketing Postal Mail
Start-up cost $0 $85 - includes a permit number and a collection of rubber bands and stickers
Annual Fee $0 $85
Mailing List cost $10 to $250 CPM around $60 CPM
Postage per piece $0 up to $0.33 for an average letter (1 oz.)
Paper Cost $0 $0.10 per sheet for average paper
Printing Costs $0 $0.25 to $2 per piece
Assembly Fee $0 about $50/K
Delivery Speed Instantaneous to 12 hours. Dependent on size of list. Two to three days
Fulfillment No need for software, address collection, sorting of lists, or deliver. These procedures are standard with E-target.com's service. MANUALLY print labels/addresses, sort by five digit zip code, then by three digit zip code, then by AADC code, bundle with rubber bands and mark with stickers, place letters in trays according to zip code, drive to post office, wait in line to drop off mail and pay the postage, go back to the office and wait to start replying to responses one by one
Response Options for Recipient Convenience = quick results, and a better response rate! Since they are already online, links within your ad can take them directly to your website or they can simply hit "reply" to ask questions or place an order! Difficulty = waste!
Recipients have to put added effort into responding to your message when calling you on the phone, getting online to go to your site or email you, and sending the pre-paid envelope back to you.
Cost Comparison Direct Email Marketing Postal Mail
Total cost for the first month $3000 based on 30,000 individual email addresses at .10 per email. $21,572 based on $85 for the start-up cost + $7 for 1/12 of the annual fee + $1,800 for 30,000 addresses + $7,680 for postage + $3,000 for paper + $7,500 for printing + $1,500 for assembly
Total cost for each additional month $3000 possible discount for repeat customer up to 15% $21,487
Total cost for the first year $36,000 to $30,600 $257,929
Annual savings over postal mail $221,929 N/A



Search Engines vs. Opt-in

Search engines are the number one way to market a site, but opt-in email is closing in. A study done in July '98 by WebCMO.com showing what marketing methods were the most popular revealed search engines at 3.35 and opt-in at 3.34 on a 1 - 5 scale, 1 being the lowest 5 being the highest. At this rate search engines will become the second most popular marketing method within a few months.

This is not an attempt to belittle search engines; engines are and will continue to be a very important part of any organization's marketing strategy, but they are not as effective for the average marketer. An effective search engine strategy is a very time consuming process and an on going one. It takes months of practice and marketing knowledge to make a submission even halfway valuable. If done improperly you just become another lost URL in cyberspace. You have to hope you're targeting the correct keywords, plus you must find original and uncommon keywords and phrases so you aren't listed among thousands of others. You must also place within the top 40 listings to create enough traffic to your site to compensate for your time and effort.

If your time is worth more than your money you should probably look into an opt-in direct email marketing service, namely E-target.com.

Banner Campaigns vs. Opt-in

Banner campaigns are like billboards they have been around so long people are beginning to ignore their existence. Banner advertising is also very expensive compared to opt-in email. Banners campaigns are billed by the impression, which means they are just displayed some where on the web page along with many other pieces of info and possibly other banners and competitors with the hopes that some one will click to visit the advertiser. Opt-in email avoids the "hoping process" and shovels the announcement directly into a subscriber's email box, which requires their undivided attention.

 

Some opt-in mailings are priced as low as 1¢ per email address. 32¢ less than a postage stamp, more responsive than banner ads, and as popular as the #1 marketing method on the Internet. Send your announcement to thousands that are actually interested, cut costs, and target an audience unlike any other marketing method on or off the Internet!

Contact us about your project.