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Why Does Google Use Direct Mail?
(Posted on 22/08/17)
Why Does Google Use Direct Mail?
In February 2016, Google briefly overtook Apple to become the most valuable company in the world – worth more than $500bn (£350bn). In 2016, Google's revenue amounted to 89.5 billion US dollars. And most of that revenue, (67.39 billion), comes from advertising revenue.
AdWords, Google's advertising platform, makes it possible for businesses to display brief ads to web users, as they search for information of every variety. Businesses ranging from international corporations to start-up businesses pay Google of billions of pounds each year as they battle it out, endlessly trying to convert impressions into clicks, and ultimately, customers.
So why does a tech and advertising giant, like Google, use direct mail?
What possible advantage could such an "old-fashioned" marketing channel, like direct mail, possibly have over Google's own digital options? The answer is simple: DIRECT MAIL IS A HUGELY SUCCESSFUL MEANS OF CONNECTING WITH POTENTIAL & CURRENT CUSTOMERS.
Direct mail is:
- Highly targeted (data is more targeted than ever)
- Measurable (use a code or special call to action to monitor response rates)
- Flexible (Postcards, letters, offers, coloured/branded envelopes can all be beneficial)
- Cost effective (often cheaper than you thin, from 26p per mail piece)
If you've ever listed your business on Google, you probably received a printed direct mail piece (postcard) with a great offer. Via a special offer code, Google offers to match the first £150 you invest into their AdWords platform.
Google knows that once a business starts using AdWords, it’s potentially a customer for years to come. Adwords as mentioned in the opening paragraph represents a huge proportion of Google’s revenue. That's why Google deploys vast marketing efforts to drive new advertiser acquisition and retention. And the best way to do so, according to overwhelming data, is through direct mail.
- Direct Mail Gets The Best Response Rates: direct mail household response rate is 5.1% (compared to .6% email, .6% paid search, .2 online display, .4% social media). This is the highest response rate the DMA has ever reported, since coming out with the Response Rate Report in 2003.(1)
- Direct mail requires 21% less cognitive effort to process than digital media, suggesting that it is both easier to understand and more memorable. (2)
- Direct mail offers “strong return on marketing investment,” with an average ROI of 15% to 17%. They also note that oversized mailers, such as postcards, have the best response rates, at up to 4.25%, with a targeted mailing list. (1)
Google uses direct mail to deliver millions of marketing postcards to current and prospective advertisers every year. If you think your business could benefit from the use of direct mail marketing please give our friendly team a call on 01948 831000 or contact us, and we will be willing to provide you with a quote.
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