The perceived value of direct mail advertising in small retail firms: Threat to local newspapers?

Abstract

This exploratory study contributes to an overlooked area of direct marketing research—the small local retail view of direct mail as an advertising medium. Traditional wisdom has indicated newspaper advertising as most appropriate for local retail firms, however, recent literature challenges that perspective. Data gathered from 187 small local retail firms in 41 states indicated that direct mail is perceived as a valuable advertising medium. Moreover, analysis suggests that direct mail is seen as significantly more valuable than weekly/community and daily newspapers—media that historically have been mainstays in the small retailer promotional mix. However, the data do reveal several significant differences in media perceptions between various retail sectors. Because of increased advertiser pressure for measurable results from advertising, and challenges facing the newspaper industry, it appears that direct mail may pose a significant threat to newspapers.