The economics of Direct Mail

Direct mail companies in the Hispanic and mainstream markets face significant business costs. To send out a million pieces of mail a direct mailer pays between 19 and 21 cents for postage (US $190,000 to US $210,000 for a million pieces). In addition, labelling and printing can cost between $140-160,000. Most of the approximately $350,000 (mailing) must be paid upfront. Since very few advertisers pay more than US $30 (CPM) or US $30,000 per million pieces (only large national advertisers), direct mail companies must fill envelopes with at least 12-15 advertising flyers.


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