The Resurgence of Direct Mail: Boosting Engagement and ROAS

In a digital-first world, marketers are constantly battling rising ad costs, declining engagement, and increasing consumer fatigue. While digital advertising has long been the go-to strategy, new research suggests that direct mail is making a strong comeback.

Dr. Jonathan Zhang, an Associate Professor of Marketing at Colorado State University, recently presented groundbreaking research on how direct mail drives higher engagement, long-term customer loyalty, and a stronger return on ad spend (ROAS) compared to digital channels. Here’s what marketers need to know about this resurgent strategy.

The Resurgence of Direct Mail

Many leading brands, including Restoration Hardware, Amazon, and luxury retailers, are reinvesting in direct mail. Why? Because it delivers superior response rates, enhances brand recall, and fosters deeper emotional connections compared to digital ads.

While digital advertising offers immediate metrics, direct mail provides something intangible but powerful: a tactile experience that consumers physically interact with, leading to stronger brand engagement and purchase intent.

Key Research Findings: Why Direct Mail Works

Dr. Zhang’s study leveraged multiple research methods, including neuroscience, executive interviews, consumer surveys, and large-scale campaign data. The findings paint a compelling picture of direct mail’s effectiveness:

1. Neuroscience Proves the Power of Touch

• Physical mail triggers deeper brain engagement and memory retention than digital ads.

• The “endowment effect” makes consumers feel a sense of ownership when holding direct mail.

• Mail remains in homes longer than digital ads remain on screens, reinforcing brand exposure over time.

2. Consumers Prefer Direct Mail for Purchase Decisions

A survey of 260 consumers revealed:

• 70% found direct mail “very useful” in purchase decisions (compared to 50% for digital ads).

• 75% kept mail for later use, and 60% acted on a postcard immediately.

• 80% used direct mail to research a brand further online.

3. Campaign Performance Data Supports Direct Mail’s Effectiveness

• • Analysis of 50+ campaigns across apparel, furniture, and outdoor brands showed that increasing mail volume led to proportional growth in orders and revenue.

  • Peak-season campaigns (November-December) saw 35% higher response rates than off-season efforts.

  • Apparel brands saw the highest order volume growth, reinforcing direct mail’s role in repeat purchases.

Direct Mail vs. Digital Ads: Which Delivers Better ROAS?

A field study comparing direct mail with Google Ads, Amazon Ads, and Facebook Ads for a beauty e-commerce brand found:

Key Takeaways:

1. Direct mail had the highest ROAS (55%), proving it to be more profitable over time despite upfront costs.

2. Direct mail-acquired customers had a higher lifetime value, spending more per purchase and engaging across multiple product categories.

3. Digital ads are still useful, but they serve different roles:

   • Google Ads → Best for high-intent searches.

   • Amazon Ads → Good for transactional sales.

   • Facebook Ads → Effective for brand awareness but has the lowest ROAS.

Overcoming Barriers to Direct Mail Investment

Despite its proven success, some marketing executives remain hesitant about direct mail. Dr. Zhang’s research uncovered three key concerns:

1. Measurement & Attribution Challenges – Marketers struggle to track direct mail performance as easily as digital ads.

2. Budget Allocation & Cost Perception – Direct mail is often seen as expensive upfront, even though it delivers higher ROAS.

3. Generational Divide – Younger marketers often view direct mail as “old-school” and are less familiar with its effectiveness.

   • Many younger marketing professionals have grown up in a digital-first world, where social media, PPC, and email marketing dominate the conversation.

   • They may lack direct experience with direct mail campaigns, leading to skepticism about its effectiveness.

   • Digital channels offer instant analytics and automation, which can make direct mail seem outdated or cumbersome in comparison.

   • However, companies that educate younger marketers about the power of tactile engagement, neuroscience-backed retention benefits, and new tracking technologies (like QR codes and PURLs) can bridge this gap and create more integrated marketing strategies.

However, advancements in tracking technology—like QR codes, personalized URLs (PURLs), and Informed Delivery—are making direct mail more measurable than ever.

The Future of Marketing: Blending Physical and Digital

The most effective marketing strategies will seamlessly integrate direct mail with digital channels. Direct mail isn’t just making a comeback, it’s proving to be an essential part of the modern marketing mix. For brands looking to break through the digital noise, it’s time to embrace the tactile advantage.