EDDM vs Purchased Lists: Which Drives Better Response Rates?

When planning a direct mail campaign, one of the first decisions you’ll face is how to choose your audience. Two of the most common options are Every Door Direct Mail (EDDM) and purchased mailing lists.

Both approaches can work — but they serve very different goals, budgets, and targeting needs.

This guide explains what EDDM is, how purchased lists work, the pros and cons of each, and how to decide which strategy fits your campaign.

What Is EDDM (Every Door Direct Mail)?

EDDM is a USPS program that lets you mail to every address within specific carrier routes — without needing names or a mailing list.

With EDDM, you choose:

• ZIP codes or carrier routes

• residential or business routes

• mail quantity by route

Your piece is delivered to every mailbox on that route.

EDDM is popular for:

• local businesses

• grand openings

• neighborhood promotions

• restaurants and retail

• brand awareness campaigns

It’s simple, fast, and requires no data management.

What Are Purchased Mailing Lists?

Purchased mailing lists are targeted databases of names and addresses built using consumer or business data.

With purchased lists, you can filter by:

• age

• income

• homeownership

• property value

• household size

• new movers

• business industry

• job title

• company size

This allows you to mail only to people who closely match your ideal customer profile.

If you’re new to buying data, Your Ultimate Guide to Purchasing Marketing Lists is a great place to understand how list buying works.

Key Differences Between EDDM and Purchased Lists

Pros and Cons of EDDM

✅ Pros

• No list needed

• Simple setup

• Lower upfront complexity

• Broad neighborhood reach

• Good for brand exposure

❌ Cons

• No demographic targeting

• Cannot personalize mail

• Higher waste

• Lower average response rates

• Limited audience control

EDDM works best when your offer appeals to almost everyone in an area.

Pros and Cons of Purchased Lists

✅ Pros

• Highly targeted audiences

• Personalization with names and offers

• Better response rates

• Less waste

• Easier ROI tracking

• Supports niche campaigns

❌ Cons

• Requires list selection

• Slightly higher upfront planning

• Data must be kept clean and current

The better your data quality, the better your results — which is why Understanding the Importance of Data Quality in Marketing Campaigns is so important when using purchased lists.

When Should You Use EDDM?

EDDM makes sense if:

• you’re targeting a tight geographic area

• your offer is broadly relevant

• you’re focused on awareness over leads

• you want a simple campaign setup

• personalization isn’t critical

• budget is very tight

Examples:

• pizza shops

• local gyms

• salons

• community events

• retail promotions

When Should You Use Purchased Mailing Lists?

Purchased lists are ideal when:

• you want higher response rates

• your offer fits a specific demographic

• you’re selling higher-ticket services

• you want personalization

• you need to reduce waste

• you want predictable ROI

Examples:

• home improvement

• insurance

• solar

• financial services

• real estate

• B2B services

To see how data improves results, review Direct Mail Targeting: How Data Improves Response Rates.

How Data Improves Purchased List Performance

With the right data partner, you can:

• target only homeowners

• filter by income or property value

• reach new movers or new homeowners

• layer age-based criteria

• refine by household composition

If your internal list is incomplete, enrichment can help. Learn more in What Is Data Enrichment? Turn Raw Data Into Sales Conversations.

And if your list has gaps, updating it through Comprehensive Data Append Services can dramatically improve accuracy before you mail.

Cost Comparison: EDDM vs Purchased Lists

EDDM Costs

• USPS EDDM postage per piece

• Printing costs

• No list cost

Best for high-volume, low-cost mailers.

Purchased List Costs

• List cost per record (varies by targeting)

• Standard postage

• Printing

While purchased lists add list cost, they often reduce total spend by:

• mailing fewer pieces

• increasing response rates

• improving ROI per piece

Which Should You Choose?

There’s no universal “best” option — it depends on your goals:

• 👉 Choose EDDM for broad local awareness.

• 👉 Choose purchased lists for precision targeting and lead generation.

Many successful marketers actually use both:

• EDDM for brand exposure

• Targeted lists for high-conversion campaigns

If you’re evaluating providers, Understanding Gemstone Data’s Top Competitors in the Data Industry can help you see what separates high-quality data from low-value sources.

Final Thoughts

EDDM and purchased mailing lists are both powerful — when used for the right purpose.

EDDM casts a wide net. Purchased lists deliver precision.

Understanding your audience, your budget, and your campaign goals will guide you to the right choice — and help you get the most from every direct mail piece you send.