Most retailers still see digital advertising as a growing focus of their spending, and many continue to cut back on traditional print ads as well as mailers. But more are also experimenting with new ways to send out deals on paper, sometimes mining online behavior or databases of shopper trends to improve their so-called junk mail.
PebblePost, a New York City marketer, uses online browsing and buying data from retailers and brands to send relevant coupons and ads to homes within a few days. For example, it might send a printed offer for free shipping if a shopper browsed a site without buying, said Lewis Gersh, chief executive of the firm.
At Jet.com, the e-commerce site that Wal-Mart Stores Inc. bought in 2016, direct mail makes up 10% of the media budget and is the online retailer’s largest offline marketing expense. Jet sent around 35 million paper coupons and mailers last year, which are effective in reaching new and repeat shoppers as the company tries to attract more urban, affluent shoppers, said Emily Frankel, senior director of digital marketing.
Annual spending on newspaper circulars, coupons, direct mail and catalogs hit about $76 billion in 2017, slightly lower than the previous year but up 85% versus 2012, according to Borrell Associates, a media consulting firm. The firm expects spending on some forms of mailed ads to fall as the U.S. Postal Service raises rates in coming years, said Kip Cassino, executive vice president at Borrell.