The short answer is yes, leaflet dropping does work. It is estimated that about 48% of people who visit a new store, do so as a result of the information they got via a leaflet drop campaign.
Do flyer drops work?
For the most part, while letterbox drops can and do elicit an immediate response, sometimes this can take at least a couple of weeks, if not more. Beyond that, your response rate will dramatically increase on subsequent campaigns.
Are letter box drops effective?
Real estate letterbox drops are usually 'successful' because the value per lead is so high, and it may only take a few responses to make a worthwhile return on investment. On the other hand, a local cleaning or lawn mowing business will need a much higher response rate to break even on a letterbox advertising campaign.