The value of mail: what planners and marketers need to know
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The value of mail: what planners and marketers need to know
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The value of mail: what planners and marketers need to know
- 1. Tuesday 29 September The Royal Society of Chemistry @DMA_UK #dmaadmail The value of mail: what planners and marketers need to know Sponsored by
- 2. Welcome from the Chair Charles Ping, Chief Executive, Fuel @Charles_Ping @FuelUK Sponsored by
- 47. Mike Colling and Company Ltd 30 Gresse Street, London W1T 1QR Tel 020 7307 6100 Fax 020 7307 6111 www.mcand.co.uk Mail in the media mix: Rethinking the rules of execution Author: Jamie Cregan Date: 27th September Contact: jamie@mcand.co.uk / 020 7307 6108
- 48. TODAY – RETHINKING THE RULES FOR MAIL EXECUTION • The value of time and place • The value of great creative • The value of integration 48
- 49. 49
- 50. 50
- 51. 51
- 52. IN THE LAST FEW YEARS RM HAVE TAKEN US ON A JOURNEY 52 What value does a media channel offer consumers? What commercial value does a media channel offer business? The rules for execution
- 53. TODAY TO CREATE SUSTAINABLE GROWTH WE HAVE TO UNDERSTAND HOW TO CREATE VALUE FOR BOTH ADVERTISERS AND CONSUMERS IN THIS NEW WORLD 53 Value
- 54. OUR STARTING POINT IS TO UNDERSTAND THAT OFTEN THE MOST VALUABLE JOURNEYS START AND FINISH OFFLINE 54
- 55. IT IS IN THE OFFLINE WORLD PEOPLE ARE MOST LIKELY START A RELATIONSHIP WITH YOU 55 83% of media consumption is offline Source: Touchpoints 2014 * Media consumption defined as TV, Radio, Cinema or Press consumption, Social networking, YouTube excludes Outdoor media
- 56. AND IT IS OFFLINE THEY ARE MOST LIKELY TO PURCHASE YOU 56 Source: http://www.retailresearch.org/onlineretailing.php
- 57. 57 A TECHNOLOGY NOT JUST A MEDIUM A network Create Reach Sell Listen
- 58. THE OPPORTUNITY NOW 58 What value does a media channel offer consumers? What commercial value does a media channel offer business? Re-thinking the rules for execution?
- 59. IN A DATA RICH WORLD… 13
- 60. THE VALUE OF TIME AND PLACE 60
- 62. SO DOES PLACE - IT IS IN THE HOME THEY ARE MOST LIKELY TO RESEARCH YOU 62 77% of time researching products online is in the home and only 20% of this is done alone
- 63. TIME AND PLACE FUNDAMENTALLY SHAPE CONSUMER BEHAVIOUR 45% of everyday behaviours are repeated in the same location almost every day 63
- 64. MAIL GIVES US BRILLIANT ACCESS TO TIME AND PLACE 64 Moment in day Pre- purchase Post- purchase Life stage Day of the week = Message relevance
- 65. A RECENT EXAMPLE CLOSE TO HOME USING CLASSIC TACTICS 65
- 66. AND AN AREA RIPE FOR EXPERIMENTATION £ Level of content engagement determines re- contact investment and messaging Offline and online media drive people to the website Profiling of audience type from website source determines re-contact investment and messaging Cost per contact media are selected on basis of investment potential – we can match cookie to address and so mail the most valuable prospects and donors The journeys created can have multiple outcome goals 66
- 67. 67
- 68. THE VALUE OF GREAT CREATIVE 68
- 69. GREAT CREATIVE CAN DEFINE A BRAND AND DOMINATE A CHANNEL 69
- 70. GIVING YOU COMMERCIAL ADVANTAGE 70 Source: Les Binet, Peter Field ‘The Long and Short of it” (IPA/ThinkBox)
- 71. IT’S THE SAME FOR MAIL Invest in quality mail production and reciprocate commercial value 71 £0 £20 £40 £60 £80 £100 £120 Media costProduction cost Total cost Response rate Income ROI Control pack Small pack
- 73. AT PRESENT ITS NOT GOOD ENOUGH 73
- 74. THE RM RESEARCH SHOWS THE POTENTIAL IMPACT OF GREAT INTEGRATION 74
- 75. WHEN TIMED RIGHT MAIL ACTIVATES CAMPAIGN MESSAGES Source: Royal Mail Neuro-Insight 2013
- 76. AN EXAMPLE: THE SALVATION ARMY 76 £- £500,000 £1,000,000 £1,500,000 £2,000,000 £2,500,000 £3,000,000 £3,500,000 £4,000,000 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 2007 2012 £ (Volume000) Cold Mail volume Cold mail income Revenue growth maintained with volume growth Source: MC&C / Salvation Army 2014 +
- 77. AN EXAMPLE: GROWTH FROM MAIL AND TV 77 0 100000 200000 300000 2008 2009 2010 2011 2012 (Donations) From 100k to 217k donations from cold activity Source: MC&C / Salvation Army 2014 +
- 78. MAIL IN THE MEDIA MIX – RETHINKING THE RULES 78
- 79. THE OPPORTUNITY 79 Realise the value of time and place Harness the value of integration Create great creative
- 80. THE POWER OF Jonathan Harman Managing Director, Royal Mail MarketReach MAIL IN THE DIGITAL AGE 29 September 2015 80
- 81. OUR BELIEFS 81 POWER OF 1 TO 1 MARKETING WE ONLY WIN WHEN MAIL USERS WIN VALUE IN PARTNERSHIP
- 82. INSIGHT PROGRAMME 82 MAIL & EMAIL PRIVATE LIFE OF MAIL WANT TO TALK TO ME? THIS TIME IT’S PERSONAL TRANSACTIONAL MAIL THE FUTURE OF MAIL
- 86. WHAT NEXT? 86 MEASURING IMPACT OF DIRECT MAIL PROGRAMMATIC NEW PRODUCT PRICING FOR CATALOGUES MAILSHOTS ONLINE MORE INSIGHT CATALOGUE CRITIQUE
- 87. WORKING WITH ROYAL MAIL 87 PLANNING DATA INSIGHT INNOVATION MARKETREACH MEDIA SPECIALISTS
- 89. THANK YOU 89 07979 000 887 jonathan.harman@royalmail.com Freepost MarketReach @jonathanharman
- 90. Panel discussion Gavin Hilton, Strategy Partner, VCCPme @gavinhilton @VCCPme Jamie Cregan, Research & Planning Director, MC&C @MCandC Jonathan Harman, Managing Director, Royal Mail MarketReach @jonathanharman @MarketReachUK Sponsored by
- 91. Closing comments Charles Ping, Chief Executive, Fuel @Charles_Ping @FuelUK Sponsored by
Editor's Notes
- Hello I’m Jamie Cregan – Research and Planning Director at MC&C Today I want to talk about mail in the media mix – and suggest how the latest RM research helps us rethink the rules for mail And I’m going to suggest the three great places to start doing this are when we consider The value of time and place The value of great creative The value of integration When it comes to mail
- But before we begin, we need to consider the media mix
- In some ways the changes in media can feel like they’re the equivalent of jumping from buddy holly
- To Orbital – from guitar to electro – in a disorientating way if your not careful
- But in the last few years RM have taken us on a journey – whereby they’ve helped remind marketers of some core principles That to understand the media mix you have to understand the value a media channel offer consumers And we’ve seen some brilliant insights in regards mail in this respect And then as marketers we have to understand the commercial value we get in return from a media channel as a result And again we’ve seen strong evidence that mail in the media mix helps grow business
- SO this emphasis on value to consumers and business - is something we as an agency intrinsically buy into Only by understanding how to create Value for both advertisers and consumers in this new world can we create growth
- And our starting point is to understand that often the most valuable journeys start and finish offline
- Because we know that it is in the offline world people are most likely start a relationship with you
- And It is offline they are most likely to purchase you
- But one of the strengths of the digital revolution is that it has transformed what we think a medium can be It is a technology not just a medium A network that enables business to create, to reach consumers, and to sell to them But perhaps most revolutionary it allows us to listen - to learn who, how, when and what to communicate with people and what’s the right level of investment
- By recognising this we can recognise the opportunity that has presented itself To begin to rethink the rules of mail execution – building from the core principles RM’s research has reminded us of
- And applying them in a data rich world – against our three ingredients
- So firstly looking at the value of time and place
- Put simply time matters As a planner I know it is a constant in consumer’s life’s – we have 168 hours in a week with which we have to communicate with consumers 168 hours with which they organise their lives. As a result it also helps me to understand consumers better I know for instance that today consumers sleep less on average than 100 years ago – from an average of 8 hours a night to under 7 I know that today estimates suggest consumers are hit by more than 3,500 commercial messages per day And so I know that consumers have less time than ever before – that reaching them and communicating with them is perhaps harder now than it once was And when seen in this context – media stacking (two screening) is a natural attempt by consumers to reclaim precious time Knowing this helps me know how best to communicate with them
- But I also know so does place 77% of time researching products online is in the home and only 20% of this is done alone
- Brining time and place together - helps explain the majority of habitual forms of behaviour we see within consumers
- Mail gives us brilliant access to time and place And we can do this through a number of routes – based on when your message is most timely And the latest research RM shows – personal relevance creates value for consumers
- A recent example of this happened for me upon moving into my new flat….
- And it is an area we increasingly experimenting with as an agency
- IN this media mix – mail becomes a silver bullet powered by digital data
- Secondly, the value of great creative
- As we’ve seen with creative such as John Lewis classic Christmas adverts Great creative can define a brand and dominate a channel
- And great creative has been shown to link directly to commercial advantage – here evidenced from the work of Binet and Field and the impact of fame on share of voice efficiency
- But what we need to recognise is that it’s the same for mail Here’s an example from one of our clients – where the media cost was unchanged but we invested in higher quality production The result across the board show greater commercial return Mail shouldn’t be an exercise in racing to the bottom on cost
- Finally, we need to recognise the value of integration
- At present put bluntly its not good enough Like this picture clearly there are attempts but we’re not quite there
- What the RM research shows is that even statements and bills can be highly valued by consumers There is huge potential here for businesses to better integrate messaging and overall comms to use these moments more effectively
- And we know that this integration can work across channels When timed right mail activates campaign messages This means when used with broadcast media (in this case TV), mail can deliver both short and long-term Short-term in terms of engagement and emotion Long-term in terms of memory encoding TV therefore has a priming effect on the mail message
- An example of this can be seen with our work with the Salvation Army The Salvation Army used mail as the linchpin of their cold recruitment activity They have successfully grown their cold mailing volume since 2007 and maintained revenue growth
- They’ve been able to do this by getting mail and TV to work together By adding TV what they have been able to do is to increase the volume of their mailings (warm and cold) to increase income This is because TV has primed response to mail – increasing the RR% and enabling a greater volume of mailings
- So bringing this back home – rethinking the rules of mail in the media mix
- The opportunity for marketers is simple We have a great medium Which can now do new and great things By embracing the digital world we can Realise the value of time and place Harness the value of integration And create great creative
- TGI Consumer research panel which provides insight by advertiser product into life stages, events, demographics, product and service consumption, attitudes and values and media preferences Touchpoints Consumer focused, multi media planning tool providing a detailed view into consumer behaviour around cross media usage MediaTel Info Tool for media agencies: Aggregator of media data including marketplace trends, consumer behaviours, revenue and forecasts Nielsen and Ebiquity Advertising spend, volumes, creatives by product and client across media. (digital info weak) Data and Insight regarding advertising communications which helps advertisers & agencies understand who is advertising, where they’re advertising, what they’re saying and how much they’re spending Mintel Data, Market Research and intelligence on the consumer landscape by market sector- to help advertisers & agencies understand market size, consumer behaviours and opinions, future growth and innovation