Direct Mail Increasing with Automotive Dealers

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June 10, 2014

A recent report from the National Automobile Dealers Association (NADA) indicates that franchised new car dealerships in the US spent 11% of their 2013 advertising budget on direct mail. That figure represents direct mail’s largest portion of a dealership’s ad spend since 1991 and has increased each year since 2010. Automotive dealers depend on their advertising to generate traffic and they are increasing their direct mail spend. So if it’s a digital world, why would they be doing this? Considering the fact that auto dealers are huge marketers, they must be on to something.

Response is still strong
When it comes to B2C marketing, direct mail is still the king and it’s going through a renaissance of sorts. According to Direct Mail News, the average response rate for direct mail was 4.4% for both business-to-business and business-to-consumer mailings—considerably higher than industry expectations, and surging past electronic mail’s response rate of just 0.12%. Direct Mail can really help the dealers stand out because consumers are bombarded with digital messages that they don’t want. The least crowded inbox these days is most definitely your mailbox.

Target Marketing Magazine’s 2013 Media Usage Forecast shows that 80% of marketers surveyed plan to invest in direct mail in 2013. 28% reported increases in their direct mail budget. Additionally, according to Print Drives Commerce 2013, U.S. advertisers spend $167 per person on direct mail to earn $2,095 worth of goods sold; a 1,300% return.

The bottom line is that every marketing campaign these days should incorporate multiple channels in order to reach your audience right where they are. Next time you are considering a campaign, make sure to remember what the auto dealers already know, that direct mail generates business, and that’s all that really matters.

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