Royal Mail Rates Direct Mail Effective “Post-Modern” Way to Reach

While COVID-19 has certainly shaken up the digital marketing space—not least in the real estate industry—reflecting the considerable shift in consumer behavior towards online activity, a new report by Royal Mail and the World Advertising Research Centre (WARC) has found that 35% of marketing campaigns that employ direct mail recorded higher return on investment (ROI).

1. Direct mail engages senses in way that online marketing can’t

The report, “Driving Effectiveness with Direct Mail”, surveyed 218 U.K. marketing campaigns in which companies used direct mail as the lead media, or in the marketing mix, find that direct mail – custom-printed leaflets, postcards, self-mailers, brochures, letters, catalogues, etc. – is an “unexpectedly post-modern” method to reach, attract and keep the potential customers and clients’ attention the senses in a way that online marketing can’t.

What’s more, the research finds that “Gen Z”—the generation born between 1997 and 2012—is more likely to engage with direct mail marketing campaigns, and that physical mail is the most popular form of marketing for this generation. The reason given for this is that Gen Z came of age with digital communication almost exclusively, so for this group, physical, printed material presents as something new and unique, offers more credibility and reaches more people.

90% of participants in the survey said that a blend of physical and digital marketing is preferable, and 42% said that they went on to search for a brand, product, or service online having initially received an item of direct mail. Averaging an engagement rate of 95%, the physicality of direct mail is cited as a key driver of success, with those surveyed saying that printed material captures both the sensory and intellectual attention of readers.

“Direct mail is alive and well,” said Dan Jury, senior media planner at Royal Mail’s MarketReach division in a press release. “It has undergone significant digital transformation of its own, remains the third-largest media channel in the U.K., integrates powerfully with other channels to support full-funnel strategies, is a proven driver of business growth and ROI, and is highly trusted—particularly with Gen Z.”

          2).  Good news for real estate sector

This is good news, meanwhile, for the real estate sector, which continues to value high quality direct mail marketing designed to reach older, but also the new generation of property buyers who is now entering the market alike. This is essential for house buyers because as humans, they need special attention and especially this way of marketing, the traditional one, not only interacts with a greater number of people, but also establishes a personal relationship and connection with them. 

The property market has been shielded from the worst effects of coronavirus-triggered volatility, owing to low mortgage rates and direct payments of up to $1,400 to millions of Americans which saw to increased consumer borrowing and buying power respectively.

According to the monthly National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI), builder sentiment for newly built single-family homes came in at 84 in February 2021, in comparison to 83 in January 2021, and way up in April 2020’s figure of just 30. Any number above 50 is considered positive, signaling confidence in the market.

So, as the Real Estate market is developing, the house demand is growing and the digital marketing is getting more and more powerful, a successful Real Estate Agent should also think about attracting customers through an old, but still “original” way most young people do not expect anymore: traditional marketing.