How Much Does Automotive Direct Mail Marketing Cost?
Last Updated: April 25, 2023
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Who wouldn't like to sell more cars? A direct mail campaign is a great way to get new customers to your lot, increasing sales and profits. The only thing that might suffer with a successful direct mail marketing campaign is your inventory.
Direct mail is a particularly popular advertising tool among auto dealers. According to the most recent survey by the Direct Marketing Association, auto retailers spent $7.3 billion on direct marketing campaigns in 2007. That translated to $248 billion in sales, a return on investment of $33.81 for every dollar spent.
Direct mail is also a versatile marketing tool. It can be used to:
- Promote seasonal or year-end clearance events
- Make new model announcements
- Generate leads
- Advertise customer loyalty programs
- Announce tax refund events, holiday sales, credit events or gas savings promotions
- Send service reminders
Automotive Direct Mail Marketing Average Costs #
Automotive direct mail can be anything from a simple black-and-white 4X6 postcard to a multi-part flier or letter kit in full color. Prices range from $.30 per piece for the former to $2.50 or more for the latter. Usually, the cheaper pieces are used to generate leads while the more expensive ones are used to entice current and former customers to come back.
A popular choice with auto dealers are the mid-sized, two-sided postcards in full color. On average, you can expect to pay anywhere from $.50 to $1.50 for those. However, most companies offer volume discounts, dropping the price-per-piece for large orders.
The biggest advantage to direct mail over other forms of advertising is that it produces measurable results. You can opt for a response tracking mechanism like a special 1-800 number on the mailing or tear-off reply cards to find out exactly how many customers responded to your offer. With TV advertising, it's difficult to track customer response.
Choosing an Automotive Direct Mail Marketing Company #
The goal of direct mail marketing is to get the right information about sales, promotions and special offers to the right kind of people - people who are interested in buying a car. A seasoned direct mail marketing company knows just how to analyze the needs of your dealership and the local market.
The most important thing to consider when choosing a direct mail marketing company is return on investment. If you're going to spend money on advertising, you want to make sure that effort is paying off in sales. Be sure to ask any company you're considering to demonstrate the results they've generated for other dealerships.
Look for a company that customizes your direct mail, not one uses a cookie cutter approach. The company should ask for your input and incorporate your logo, as well as photos and graphics that you like. A professional direct mail marketing company should also be able to customize the mailing list to target the kind of customers you're hoping to attract.