3. DM Discovery 7: No campaign without DM
Discovery 1:
Growing your Business with DM
(2006)
Discovery 2/3:
Get the Max out of your mix
(2007)
Discovery 4/5:
DM brand relationship (2007)
Discovery 6:
P loves E (2008)
Discovery 7:
No campaign without DM (2009)
2
4. Increasing shift to interactive, one-to-one, proximity media
Total Marketing & Communication Expenditure (full costing)
- Belgium 2007: € 7.40 billion
Unaddresssed mail,
6%
Other, 18% Direct Mail, 12% € 2.86 bn.
€ 1.35 bn.
Direct Marketing
Online (e-mail;
internet; paid search) ,
represents 39 %
8% of total media
investments
Telemarketing, 6%
Classic media, 50%
Classic media, 43% Clasic media with
response mechanism,
€ 3.18 bn. 7%
Data: All values in € bn - those costs include both external and internal costs
Base: All companies with a turnover of at least € 0.25m /year: Universe: 128,376 companies (n=1,027)
Source: IPC survey – 2008 – 1027 interviewed companies (IPSOS)
3
5. Despite the crisis, DM investments have increased in the 1st
Semester ‘09 by 2,4% compared to 1st Semester ‘08
Gross investments (in mio eur, 2008)
1800 -4,1%
1600
1400
1200
1000
800
600
400 +2,4%
1st Semester 2008
200
1st Semester 2009
0
Mass Media DM
Source: DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)
4
6. Advertisers consider Direct Mail as the most efficient media
mainly for short-term sales and retention
Retention
80%
60%
40%
Short-term Sales Acquisition
20%
0%
Product Advertising Brand Image
E-Mail Marketing Addressed Direct Mail Internet Site
Print with response Unaddressed Mail TV with response
Data: All values in %
Base: All companies using the specific direct marketing medium
Source: IPC Direct Marketing Intelligence 2008 – IPSOS 1027 belgian companies
5
7. DM scores among customers as the preferred informative
communication channel in most sectors.
Which communication channel do you prefer?
%
100 1 1 3 3 4 3 4
1 1 2 5 3
9 2 10
7 4 5
1 2 8
4 3
4 7 5 5 7 8
80 1 2 2
4 4 2
12 6
15
13 11 13
10
60 8 11
15 22 13 13
5 11 11
7 14 13
40
45 43 42
20 39 36 36
0
Mail order sales Beauty products Banks & Insurances Home equipment: Automotive (n=158) Press (n=165)
(n=171) (n=120) (n=184) furniture, DIY, garden
(n=127)
DM Print D2D TV Radio POS Internet E-mail SMS none dk
6
8. Retailer and Mail order are already heavy users
Gross ATL media & DM investments in retail (in mio eur, Total 2008)
354
Mail order:
286
273
215
172
160
109 105
73
57 53
36
8 9 4 9 5 5 2 2
Retailer Media Automotive Bank & Leisure, Telecom Publishing Tourism Care-pharma Public
Finance entertaining
Mass Media (source: Cim-MDB, Mediaxim) Direct Mail (source: DM pige-Mediaxim)
Sources: DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)
7
9. Retailer and Mail order are already heavy users
Gross ATL media & DM investments in retail (in mio eur, Total 2008)
354
RETAILER
286
273
215
172
160
109 105
73
57 53
36
8 9 4 9 5 5 2 2
Retailer Media Automotive Bank & Leisure, Telecom Publishing Tourism Care-pharma Public
Finance entertaining
Mass Media (source: Cim-MDB, Mediaxim) Direct Mail (source: DM pige-Mediaxim)
Sources: DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)
8
10. But DM is still a small player in most sectors
Gross ATL media & DM investments in Top 10 mass-media sectors
(in mio eur, Total 2008)
354
286
273
215
172
160
109 105
73
57 53
36
8 9 4 9 5 5 2 2
Retailer Media Automotive Bank & Leisure, Telecom Publishing Tourism Care-pharma Public
Finance entertaining
Mass Media (source: Cim-MDB, Mediaxim) Direct Mail (source: DM pige-Mediaxim)
Sources: DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)
9
11. The Post has run extensive research with > 45.000 interviews
(BtoB – BtoC)
Generic media surveys (e.g., Mail moment,
E loves P, How direct are women?)
20 Multi-media surveys
>40 DM impact surveys
> 250 response rates - benchmark data base
10
12. What are the most frequent barriers to the DM use?
Inspiration
I don’t know how/when to use it
Would my customers remember it?
My company is too small
Effectiveness
DM seems complicated
How does it work?
How to measure the effective impact?
DM takes time & resources
Database
My database isn’t qualitative enough
Where can I rent adresses?
11
14. Important criteria to consider when evaluating a Media Mix
Reach
Gross cost
per contact
IMPACT ON BRAND:
- Awareness
- Equity
- Loyalty
+
IMPACT ON SALES
ROMI
Source: DM Consultancy team analysis
13
15. Important criteria to consider when evaluating a Media Mix
Attention
Reach
Gross cost
per contact
IMPACT ON BRAND: Exposure
Duration / depth
- Awareness
- Equity
- Loyalty
+
IMPACT ON SALES
ROMI
Source: DM Consultancy team analysis
14
16. The Mail Moment remains unique
97%
opens mailbox Consumers
every day spend
1’52’’ per
mail
… but
receives
only 2
DM/ week
… and behind
every letterbox
78% is a unique
is person
opened you can target
15
17. Important criteria to consider when evaluating a Media Mix
Attention
Reach
Gross cost
per contact
IMPACT ON BRAND: Exposure
Duration / depth
- Awareness
- Equity
- Loyalty
+
IMPACT ON SALES
Saturation
ROMI
Source: DM Consultancy team analysis
16
18. Consumers don’t feel overwhelmed with Direct Mails
With regards to advertising in the following media, would you say there is …?
TV (n=1122) 1% 22% 77%
Internet (n=747) 3% 44% 54%
Door-to-door bundle 4% 44% 41% 11%
Radio (n=1058) 2% 59% 39%
Free press (n=991) 3% 61% 37%
Magazines (n=1046) 3% 62% 36%
Dailies (n=981) 3% 71% 26%
Cinema (n=678) 5% 70% 25%
E-Mails (Averages) 12% 68% 20%
Paper mail (averages) 8% 74% 18%
0% 20% 40% 60% 80% 100%
not enough enough too much No pub sticker
Source : “E loves P” study – 2007 – TNS Dimarso -1100 respondents
17
19. Important criteria to consider when evaluating a Media Mix
Attention
Reach
Gross cost
per contact
IMPACT ON BRAND: Exposure
Duration / depth
- Awareness
- Equity
- Loyalty
+
IMPACT ON SALES
Saturation
ROMI
Personnalisation
Source: DM Consultancy team analysis
18
21. Important criteria to consider when evaluating a Media Mix
Attention
Reach
Gross cost
per contact
IMPACT ON BRAND: Exposure
Duration / depth
- Awareness
- Equity
- Loyalty
+
IMPACT ON SALES
Saturation
ROMI
Involvement
Personnalisation
Source: DM Consultancy team analysis
20
22. Consumers feel closely involved when receiving Direct Mail
Avg.
This media can give me the
DM other
feeling of …..
media
… rewarding me as a customer 73% 19%
… being connected to the brand 63% 8%
… acknoweldgement / appreciation 57% 8%
… being important for that brand 57% 7%
… being unique 51% 7%
Source : Synovate Censydiam – DM Brand relationship model – fashion sector - 2007
21
23. Important criteria to consider when evaluating a Media Mix
Attention
Reach
Gross cost
per contact
IMPACT ON BRAND: Exposure
Duration / depth
- Awareness
- Equity
- Loyalty
+
Environmental
IMPACT ON SALES
Impact
Saturation
ROMI
Involvement
Personnalisation
Source: DM Consultancy team analysis
22
24. DM represents ONLY 2% of total consumption of paper in Belgium
The post “consumes” 0,08% (2.808
Global Belgian paper consumption = tons) of that for its own needs and
3.692.000 tons / year “transports” around 6% (around 220.000
tons) of the total paper produced yearly
in Belgium
the Post own
Other consumtion
93,97% 0.08%
Paper
transported
by the Post
5,96%
DM = about 1/3rd of the yearly paper tonnage transported by the Post
23
25. Direct Mail helps boosting ROI of most campaigns (UK)
Average RROI of Different Media
6.4
5.9 5.8
4.6 4.5
Average ROI
4.1
3.4 3.4
3.1 3.1
2.7 2.7
2.5
2.3 2.3
2.1
1.4
1.2
Retailer Media Automotive Bank & Leisure, Telecom Publishing Regional retail Tourism
Finance entertaining
Medium
With DM Without DM
Source: Omnicom UK – Brand Science 2008
24
26. Integrated to the Media Mix, DM boost ROI by min 20%
1 2 3 4
RECALL RATE BRAND PERCEPTION SALES ACTIVATION LOYALTY BUILDING
2->20 x higher > 50% 15 up to 200% > 25%
+ min. 20%
NET MARGIN ROI
SHORT TERM
on incremental
if integrated
sales into media mix
LONG TERM DM COSTS
on « lifetime » Database
sales
Creation
Production
Fulfilment
Source: Post – 15 DM pilot surveys N: > 25.000
25
27. Knowing that, would you imagine ….
User share of cross media campaign
Only 21% of 79
Belgian
advertisers 21
are “cross
media” Among them …
Internet + Print 9%
DM + Web 7%
DM + Print 7%
DM + Email 6%
Source: IPC survey – 2008 – 1027 interviewed companies (IPSOS)
26
