The Contribution of Direct Mail Advertising to Average Weekly Unit Sales
By Marla Royne Stafford, Eric M. Lippold, C. Todd Sherron
"Media synergy is the ideal when planning advertising. This study shows the lift that direct mail, when used with national TV advertising, can provide"
Source: Journal of Advertising Research, 2003, 43(02), pgs. 173-179.
Type of Promotional Material/Activity Tested: Direct mail used independently and in conjunction with national and local television and radio.
Sample: Consumer sales at 10 pizza shops (part of a national franchise) in one metropolitan area.
Method: Field study
Metrics: Econometric analysis of 121 weeks of average weekly unit sales (1999-2001) of advertising media purchased and distributed in various combinations/forms. Top Line Results:
One type of direct mail piece incorporating editorial matter (commonly referred to as a “shopper”), was found to contribute significantly to sales when used independently. It is supposed that consumers may find the editorial content of interest and then look beyond that to the advertisements. When combined with national or local advertising, however, the contribution level of the shopper decreases.
- The most powerful combination leading to the highest predicted sales was the use of primary direct mail (single envelope featuring many individual advertising inserts) and national advertising together. In fact, results show that this latter combination of direct mail with national advertising contributes more to average weekly unit sales than any other combination.
Take-Away: Media synergy is the ideal when planning advertising. This study shows that the most powerful combination is when direct mail is used in combination with national TV advertising. The broadcast TV keeps the franchise at the top of the viewer’s mind and the direct mail delivers the call to action to take advantage of the promotion within a certain period of time (e.g., two for one deal if redeemed by XX date.)
Complexity rating of original source: 2
(Complex statistical analysis scale: 1= none, 2= moderate, 3 = difficult)
Source: The Contribution of Direct Mail Advertising to Average Weekly Unit Sales