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THE PRIVATE
LIFE
OF MAIL
JUST BECAUSE IT
FOLDS DOESN’T MEAN
IT’S SHIT
The Private Life of Mail
Direct mail in a digital world
Les Binet & Peter Field
Surely direct mail is dying?
18 Months of Research
• 12 Ethnography households
• 14 focus groups
• 99 depth interviews
• 213 Neuroscience / biometric p...
Summary of the Report
• When used in integrated campaigns, it can provide a measurable media
multiplier effect
• Mail deli...
Why are these findings so interesting?
Salesupliftoverbase
Time
Marketing can work in two ways
Sales activation
Targeted, rational
Short term sales uplifts
Brand...
Rational communications work hardest in the
short term
0%
5%
10%
15%
20%
25%
30%
35%
40%
Emotional campaigns Fame campaign...
But emotional campaigns work
harder in the long term
0.0
0.1
0.2
0.3
0.4
0.5
0.6
Emotional Rational
ESOV Efficiency
Fame campaigns are the most efficient
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
Fame campaigns Other campaigns
ESOV Efficiency
4...
The two effects work in synergy
0%
5%
10%
15%
20%
25%
30%
Brand buiding Both Sales activation
Profiteffect
Campaign object...
Direct mail is mostly used as an activation
channel
Impact on short-term response
41%
31%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Used Direct Mail No Direct Mail
%reportingvery...
Impact on sales over the short and long terms
60% 57%
35%
48%
0%
10%
20%
30%
40%
50%
60%
70%
Short-term 1-6m Long-term >6m...
Direct Mail is best as part of a multi-channel brand-
building campaign
2.8%
6.4%
2.4%
2.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
...
So far this model has worked well
Direct mail has boosted
effectiveness considerably
Average market share increase
4.9%
2.4%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Used Direct Mail No Direct Mail
AnnualisedSOMgr...
Direct Mail boosts efficiency
0.96
0.33
0.00
0.20
0.40
0.60
0.80
1.00
1.20
Used Direct Mail No Direct Mail
AnnualisedESOVe...
Direct mail boosts ROMI
1158%
320%
0%
200%
400%
600%
800%
1000%
1200%
1400%
Used Direct Mail No Direct Mail
Returnonmarket...
So what’s the problem?
The growing challenge faced by direct mail
Digital activation channels are closing the
performance gap
1366%
960%
203%
374%
0%
200%
400%
600%
800%
1000%
1200%
1400%
...
Digital activation channels have closed the
activation gap
44% 41%
21%
41%
0%
10%
20%
30%
40%
50%
1998-2004 2005-2014
%rep...
Direct mail needs to strengthen its
long-term effects
1.6 1.5
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
Used Direct Mail No ...
What does the report reveal about the long-
term effects of mail?
• Mail is kept longer and shared more widely than we
kne...
Direct mail needs to strengthen its
long-term effects
• Long-term effects enhanced by stimulating formats and
production
•...
A broader approach to direct mail
Designing-in long-term effects
Optus – business roaming charges
us business travellers to use Optus
nal roaming.
iness travellers with Optus. Some
aming,...
Comparethemarket.com – acquisition incentive
EE – mobile data allowance
Evaluating mail in the digital age
Evaluating mail used to be easy
But the internet changed all that
Source: Dunham & Company 2014
Exposure to
activity
Direct
responses
Indirect
responses
Direct sales
Indirect
sales
Incremental
sales
Non-
incremental
No...
8% 11%
92% 89%
Brand A Brand B
%totalsaleseffect
Direct response effect Other sales effects
Source: DDB Matrix econometric...
Direct responses can be strategically misleading
0%
5%
10%
15%
20%
25%
30%
35%
Rational Combined Emotional
Very large prof...
“The more you tell, the more you sell”
• “Give actual figures, state
definite facts”
• “Brilliant writing has no
place in ...
Claude Hopkins was (partly) wrong
• Creative ads are more effective.
• Creative ads are 11 times more efficient.
• Emotion...
Salesupliftoverbase
Time
Direct responses
Indirect responses
Econometrics
Test & Control
Source: Binet & Field 2013
Long a...
5%
10%
14%
38%
No support TV ads only Direct mail only TV and Direct Mail
AveragesalesupliftinAsdaduringtestperiod
Source:...
Econometrics can measure both effects
0%
20%
40%
60%
80%
100%
120%
1
8
15
22
29
36
43
50
57
64
71
78
85
92
99
106
113
120
...
The ultimate long term metric: price elasticity
0%
2%
4%
6%
8%
10%
12%
0 1 2 3 4+
%Reportingverylarge
pricesensitivityredu...
The future for mail
• Like other “legacy media”, mail is not dying, but changing.
• Mail still plays an important activati...
The Private Life of Mail at Advertising Week Europe - A critique by Les Binet & Peter Field
The Private Life of Mail at Advertising Week Europe - A critique by Les Binet & Peter Field
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The Private Life of Mail at Advertising Week Europe - A critique by Les Binet & Peter Field

If you attended Advertising Week Europe 2015, you will have heard Les Binet, Head of Effectiveness, adam&eveDDB, and Peter Field, renowned author on media effectiveness, critique the results of The Private Life of Mail; 18 months of unprecedented research into mail in the home, heart and head.

Insights into how the digital age impacts on mail integrating effectiveness, measurement and planning. Everything you thought about mail, may not be true. Learn what they think this means for the way mail is planned and measured in the digital age.

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The Private Life of Mail at Advertising Week Europe - A critique by Les Binet & Peter Field

  1. 1. THE PRIVATE LIFE OF MAIL
  2. 2. JUST BECAUSE IT FOLDS DOESN’T MEAN IT’S SHIT
  3. 3. The Private Life of Mail Direct mail in a digital world Les Binet & Peter Field
  4. 4. Surely direct mail is dying?
  5. 5. 18 Months of Research • 12 Ethnography households • 14 focus groups • 99 depth interviews • 213 Neuroscience / biometric participants • 401 BrandScience’s ‘Results Vault’ cases • 416 IPA Effectiveness Databank cases • 1,000+ academic articles reviewed • 9,504 respondents across our telephone and online quantitative surveys 7
  6. 6. Summary of the Report • When used in integrated campaigns, it can provide a measurable media multiplier effect • Mail delivers top-ranking sales and acquisition growth and efficient market share growth • Mail drives successful return on investment • Mail brings a brand into the home where it is kept, displayed, and/or shared • Its tactile qualities have powerful emotional and rational impact that can be identified and proven • Mail makes your message more memorable
  7. 7. Why are these findings so interesting?
  8. 8. Salesupliftoverbase Time Marketing can work in two ways Sales activation Targeted, rational Short term sales uplifts Brand building Broad reach, emotional Long term sales growth Source: Binet & Field 2013
  9. 9. Rational communications work hardest in the short term 0% 5% 10% 15% 20% 25% 30% 35% 40% Emotional campaigns Fame campaigns Rational campaigns Short-termactivationeffects Direct mail is often rational
  10. 10. But emotional campaigns work harder in the long term 0.0 0.1 0.2 0.3 0.4 0.5 0.6 Emotional Rational ESOV Efficiency
  11. 11. Fame campaigns are the most efficient 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 Fame campaigns Other campaigns ESOV Efficiency 4:1
  12. 12. The two effects work in synergy 0% 5% 10% 15% 20% 25% 30% Brand buiding Both Sales activation Profiteffect Campaign objectives Can mail play here?
  13. 13. Direct mail is mostly used as an activation channel
  14. 14. Impact on short-term response 41% 31% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Used Direct Mail No Direct Mail %reportingverylarge activationeffects
  15. 15. Impact on sales over the short and long terms 60% 57% 35% 48% 0% 10% 20% 30% 40% 50% 60% 70% Short-term 1-6m Long-term >6m %reportingverylargesales growth Campaign duration Used Direct Mail No Direct Mail
  16. 16. Direct Mail is best as part of a multi-channel brand- building campaign 2.8% 6.4% 2.4% 2.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 7 or less total media more than 7 total media AnnualisedSOMgrowth Used Direct Mail No Direct Mail
  17. 17. So far this model has worked well Direct mail has boosted effectiveness considerably
  18. 18. Average market share increase 4.9% 2.4% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Used Direct Mail No Direct Mail AnnualisedSOMgrowth
  19. 19. Direct Mail boosts efficiency 0.96 0.33 0.00 0.20 0.40 0.60 0.80 1.00 1.20 Used Direct Mail No Direct Mail AnnualisedESOVefficiency
  20. 20. Direct mail boosts ROMI 1158% 320% 0% 200% 400% 600% 800% 1000% 1200% 1400% Used Direct Mail No Direct Mail Returnonmarketing investment
  21. 21. So what’s the problem? The growing challenge faced by direct mail
  22. 22. Digital activation channels are closing the performance gap 1366% 960% 203% 374% 0% 200% 400% 600% 800% 1000% 1200% 1400% 1600% 1998-2004 2005-2014 ReportedROMI Used Direct Mail No Direct Mail
  23. 23. Digital activation channels have closed the activation gap 44% 41% 21% 41% 0% 10% 20% 30% 40% 50% 1998-2004 2005-2014 %reportingactivationeffects Campaign duration Used Direct Mail No Direct Mail
  24. 24. Direct mail needs to strengthen its long-term effects 1.6 1.5 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Used Direct Mail No Direct Mail Numberofbrandeffects reported
  25. 25. What does the report reveal about the long- term effects of mail? • Mail is kept longer and shared more widely than we knew: – 17 days – 23% shared • Mail’s tactile qualities imbue it with emotional ‘system 1’ potential • Mail therefore encodes long-term memory more powerfully than we knew • Not just an activation medium: long-term effects too
  26. 26. Direct mail needs to strengthen its long-term effects • Long-term effects enhanced by stimulating formats and production • Mail that only communicates information (‘activation’ mail) does not maximise long-term effects To thrive mail needs to exploit its emotional & fame potential
  27. 27. A broader approach to direct mail Designing-in long-term effects
  28. 28. Optus – business roaming charges us business travellers to use Optus nal roaming. iness travellers with Optus. Some aming, some don’t. gh-impact DM piece delivering the u can roam with Optus worry-free”. standard letter vs. (control) Bill MS. PACKING. es a mystery, just not when it comes lls. We sent an unmarked box to ss customers. It opened to reveal a ptor and wallet-sized roaming guide. er roaming rates and Optus Travel travellers will need to charge their LITTLEPLUGMADEABIGIMPACT- L P G M G
  29. 29. Comparethemarket.com – acquisition incentive
  30. 30. EE – mobile data allowance
  31. 31. Evaluating mail in the digital age
  32. 32. Evaluating mail used to be easy
  33. 33. But the internet changed all that Source: Dunham & Company 2014
  34. 34. Exposure to activity Direct responses Indirect responses Direct sales Indirect sales Incremental sales Non- incremental Non- incremental 1,000 extra direct salesBut 1,000 were going to buy anyway 40,000 of those bought something 2,000 of those bought direct 20,000 responded to it 1,000,000 got a mailing 400,000 went to shop or website later But 20,000 were going to buy anyway20,000 extra indirect sales Direct response analysis overestimates direct effects and totally neglects indirect effects. The direct response paradigm was always flawed
  35. 35. 8% 11% 92% 89% Brand A Brand B %totalsaleseffect Direct response effect Other sales effects Source: DDB Matrix econometrics Direct responses can underestimate effectiveness by a factor of 10
  36. 36. Direct responses can be strategically misleading 0% 5% 10% 15% 20% 25% 30% 35% Rational Combined Emotional Very large profits 0% 10% 20% 30% 40% 50% Rational Combined Emotional Very large direct effects
  37. 37. “The more you tell, the more you sell” • “Give actual figures, state definite facts” • “Brilliant writing has no place in advertising” • “Never seek to amuse” • “Ads are not written to entertain” • “Don’t try to show off” • “Include a coupon”
  38. 38. Claude Hopkins was (partly) wrong • Creative ads are more effective. • Creative ads are 11 times more efficient. • Emotional engagement is the key Source: “The link between creativity and effectiveness” Peter Field, 2010
  39. 39. Salesupliftoverbase Time Direct responses Indirect responses Econometrics Test & Control Source: Binet & Field 2013 Long and short term measurement
  40. 40. 5% 10% 14% 38% No support TV ads only Direct mail only TV and Direct Mail AveragesalesupliftinAsdaduringtestperiod Source: Cravendale case study, cited in "Marketing in the Era of Accountability" (Binet & Field, 2007) The value of controlled tests: Cravendale
  41. 41. Econometrics can measure both effects 0% 20% 40% 60% 80% 100% 120% 1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 127 134 141 148 155 162 169 176 183 190 197 204 211 218 225 232 239 246 253 260 267 274 281 288 295 302 309 316 323 330 337 344 351 358 365 %ofinitialresponse Days after exposure Typical Brand-Response Effect Indirectresponses throughotherchannels Direct responses Small, but easyto measure Large,but hardto measure
  42. 42. The ultimate long term metric: price elasticity 0% 2% 4% 6% 8% 10% 12% 0 1 2 3 4+ %Reportingverylarge pricesensitivityreduction Number of very large brand effects recorded
  43. 43. The future for mail • Like other “legacy media”, mail is not dying, but changing. • Mail still plays an important activation role. • But contrast with digital is revealing strengths that we took for granted. • May lead to a bigger brand role for mail, and less emphasis on direct response. • Regardless of role, evaluation must change. • Go beyond linear response • Look at indirect effects and longer time periods • Use test and control, econometrics • More research into long term, brand effects? Thank you

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