What is Below the Line (BTL)?

Below the Line (BTL) is a marketing communication strategy that uses targeted, direct channels to reach specific audiences rather than mass media advertising.

What is Below the Line (BTL)?

Below the Line marketing encompasses promotional activities that target specific consumer segments through direct, controlled channels. Unlike Above the Line (ATL) advertising that uses mass media to reach broad audiences, BTL focuses on measurable, personalized communications that allow brands to track engagement and conversion rates more precisely.

BTL activities include several key channels:

• Direct mail campaigns
• Email marketing
• Trade shows and events
• Sponsorships
• Point-of-sale displays
• Sampling programs
• Telemarketing
• Digital marketing (social media advertising and search engine marketing)

These channels enable marketers to customize messages for particular demographics, geographic regions, or behavioral segments.

Measuring BTL Campaign Success

The effectiveness of BTL campaigns can be measured using specific conversion formulas. For direct mail campaigns, the response rate formula is:

Response Rate = (Number of Responses ÷ Total Pieces Mailed) × 100

For example, if a company sends 10,000 direct mail pieces and receives 300 responses, the response rate equals (300 ÷ 10,000) × 100 = 3%. Industry benchmarks suggest direct mail response rates typically range from 1-5% depending on the target audience and offer quality.

BTL marketing costs are generally lower than traditional advertising, with better targeting capabilities. While a television commercial might cost $300,000 to produce and $500,000 to air during prime time, a targeted email campaign reaching the same number of qualified prospects might cost under $50,000 including creative development and distribution.

Below the Line (BTL) in Practice

Red Bull’s Experiential Marketing

Red Bull demonstrates BTL excellence through its experiential marketing approach. The energy drink company spent approximately $2.3 billion on marketing in 2022, with roughly 70% allocated to BTL activities including extreme sports sponsorships, events, and content creation.

Their Stratos space jump campaign generated over 52 million live stream viewers and 8 million YouTube views within 24 hours, achieving a cost per impression significantly lower than traditional television advertising.

Coca-Cola’s Personalization Strategy

Coca-Cola’s “Share a Coke” campaign shows successful BTL personalization. The company printed 250 popular names on bottles and cans across 80 countries, generating 998,000 hashtag mentions and increasing consumption among young adults by 7% in the United States.

The campaign cost approximately $25 million globally but generated an estimated $200 million in additional revenue through direct consumer engagement.

Amazon’s Data-Driven Approach

Amazon uses sophisticated BTL strategies through its recommendation engine and targeted email campaigns. The company sends over 300 million personalized emails weekly, achieving open rates of 25-30% compared to industry averages of 18-22%.

Their recommendation system drives approximately 35% of total sales, showing the revenue impact of targeted BTL communications.

Sephora’s Loyalty Program Success

Sephora’s Beauty Insider loyalty program showcases BTL relationship marketing effectiveness. The program has 25 million active members who spend 15 times more than non-members annually.

Through personalized product recommendations, exclusive offers, and targeted communications, Sephora achieves a customer lifetime value of $2,700 compared to the cosmetics industry average of $1,200.

Why Below the Line (BTL) Matters for Marketers

BTL marketing provides superior measurement capabilities compared to traditional advertising methods. Marketers can track specific metrics including click-through rates, conversion rates, cost per acquisition, and return on investment with greater precision. This data enables continuous campaign optimization and budget reallocation to highest-performing channels.

The targeting precision of BTL activities allows brands to maximize marketing efficiency by reaching consumers most likely to convert. Geographic targeting, demographic segmentation, and behavioral analysis help reduce waste and improve message relevance. Companies typically achieve 20-30% higher conversion rates through targeted BTL campaigns compared to broad-reach advertising.

BTL strategies build stronger customer relationships through personalized communications and direct interaction opportunities. These deeper connections increase customer loyalty, lifetime value, and word-of-mouth recommendations. Brands using integrated BTL approaches often report 25-40% higher customer retention rates than those relying primarily on mass media advertising.

Related Terms

• Above the Line (ATL) – Mass media advertising that reaches broad audiences through traditional channels like television and radio.
• Direct Marketing – Promotional communications sent directly to targeted consumers through mail, email, or phone.
• Integrated Marketing Communications – Coordinated approach combining ATL and BTL channels for consistent messaging.
• Customer Relationship Management – Systems and strategies for managing customer interactions and data throughout the lifecycle.
• Conversion Rate – Percentage of prospects who complete desired actions like purchases or sign-ups.

FAQ

What is the difference between BTL and ATL marketing?

BTL marketing targets specific audiences through direct, measurable channels like email and events, while ATL marketing uses mass media like television and radio to reach broad audiences. BTL offers better targeting and measurement capabilities, whereas ATL provides greater brand awareness and reach.

How do you measure BTL campaign effectiveness?

BTL campaigns are measured through direct response metrics including conversion rates, click-through rates, cost per acquisition, and return on investment. Marketers track specific actions like purchases, sign-ups, or downloads to calculate campaign performance and optimize future efforts.

What are the most effective BTL marketing channels?

The most effective BTL channels vary by industry and target audience, but email marketing, social media advertising, direct mail, and experiential events consistently deliver strong results. Digital channels typically offer better tracking capabilities, while physical channels like events and sampling create stronger emotional connections.

How much should companies budget for BTL activities?

Companies typically allocate 30-60% of their marketing budgets to BTL activities, depending on their industry and target market. B2B companies often spend 70-80% on BTL due to their focused target audiences, while consumer brands with mass market appeal may allocate 40-50% to BTL and the remainder to ATL advertising.