Direct mail and catalogs are still effective marketing channels despite the rise of e-commerce. While online shopping is growing, direct mail volumes have rebounded after declining during the recession. Direct mail is seen as more measurable and effective than digital channels alone. Companies are taking multi-channel approaches, using direct mail and catalogs to drive customers to their websites and reinforce their online presence. Traditional media continues to support online channels as consumers remain cross-channel in their purchasing behaviors.

1. ONLINE IN, DM OUT? Data, trends, cases Bratislava - 28 September 2011 Aad Weening

2. Global B2C e-Commerce IMRG/IMRWorldforecast

3. E-retail E-travel Global B2C e-Commerce IMRG/IMRWorldforecast

4. E-Commerce Sales: USA – Japan - Europe 144 TOTAL 263 483 In billion euro

5. Trends in Global e-Commerce All countries with big population and emerging economies will grow relatively more and faster than others. Mobile internet will grow more and faster than fixed internet. m-Commerce will be a (fast) growing part of e-Commerce Social networks and YouTube like sites wil play an ever increasing role, in mouth-to-mouth, customer support and in sales. Online coupons will boost e-Commerce In certain areas/countries B2C is faster growing than C2C (Turkey, India, China etc). Traditional media to support online

6. The Leaders 2001

7. World’sLeading online retailers 2010

10. USA: Direct & Digital Ad Spending 2011 – ☝6.2% 2010 – ☝2.7 % 2009 – ☟12.3%

11. Ad Spending USATrends in 2011 ☛Direct mail willgrowsignificantlydue to financial services, retail and automotive ☛Email willjump 18.2% ☛Search willincrease 18% ☛Social media to grow 35% ConclusionWinterberry: direct mail is notcool, butitworks as part of a multichannelcampaign, that’swhyitcame back!

12. Research indicatesthatdespiterisingpostalcosts and other issues catalogers face, the catalogmarket is healthierthanonemightexpect. During the past decade, the role of the catalogchangedsubstantially, from a direct response vehicle to onethat drives customers to the web to place an order. Thischangeimpacted the volume and nature of printedcatalogs. Buton the positiveside, itsecuredtheir place as anessential part of anintegrated, multi-channel marketing program. PRIMR Study: Trends and Future of Direct Marketing

13. UK: Mail Volumes and response rates • Finance has been the largest sector for Direct Mail in each of the past fiveyears, followedbyretail. • Direct Mail volumes fellduring the recession in 2008 butrebounded to 1.73bn in 2010. • June and September are the two most prolificmonthsfor direct mail with 9.4% each. December only 5.5% Publishedby Mail Media Centre – Royal Mail

14. UPU Market Research Bratislava - 22 September 2011 UPU Research

15. Mail Order Distance Selling Multi Channel Retail

17. “Customers are cross-channel, theyincreasinglyuse multiple channels to maketheirpurchase” Andrea O’Donnell, John LewisCustomerDemand “The customer is more price-conscious, soaddingvaluethrough the addition of deliveryoptionsmeans the customer is prepared to pay more,” Colin Jeffrey, Head of Multichannel Deloitte UK We have much more techniquesavailable, butthosegoodold direct marketing principles and practices have migrated online just as consumers have also. In addition, thoseold disciplines of data maintenance and addresshygiene have actuallyincreased in value becausesomuch more merchandise is nowbeing delivered to thoseaddresses. Charles Prescott, formervice-presiden DMA USA

18. Café Express - USA The mission: Café Express, a Texas-owned restaurant chainwith 17 locations, had recentlyexpandedinto the Dallasarea and wanted to increaseawareness of its brand locally and drive customersintoitsnewlocation, specificallyduringbreakfasthours. Channelsused: Direct Mail (20,000 pieces), Social Media (Facebook, Twitter) Result: 26.64% response

19. COOLBLUE Bratislava - 22 September 2011

20. Pixmania

21. From From Mail Order to e-Retailer wehkamp.nl: largest e-retailer of the Netherlands Revenue: 380 million euro (e)

22. AN Post Ireland Bratislava - 22 September 2011 IRELAND: These days, every cent counts (and is counted) and a growingshare of marketing budget is shifting to measurable media, with 45% of Irish marketers agreeingthat Direct Mail is more measurablethananyother marketing channel and 31% of Irish marketers planning to increasetheir Direct Mail spend in the next 12 months

23. Catalogue.ie

24. Bratislava - 22 September 2011 Browsing GI InsightStudy: UK consumerstakemultichannelapproach: browse online butmanystill shop in stores Purchasing 46% preferpurchasing online 47% preferpurchasing in a store 3% buybycatalogue

25. bPost: Why companies should use DM

26. From: E-Commerce in the Nordics 2011

29. Bratislava - 22 September 2011

30. USPSEvery Door Direct Mail Direct Mail continues to be one of the most effective ways to reach customers. And now with Every Door Direct Mail (EDDM) service, it's even easier and more cost-effective to get your message out.

31. Recent study Swiss Post ☛ Letters and promotional mailings have a greater impact than electronic mail.☛ 76% like to have their reminders on paper, 71% were in favour of paper invoices and 67% like to receive their salary statements in paper form.☛ 68% consider a company that sends physical promotional mailings to be reputable, whereas only 27% believe this of companies that advertise via e-mail.☛ 97% of companies surveyed send their correspondence by mail.☛ Swiss Post is convinced that the letter business will remain a core business and thus a strong pillar of the company going forward. Swiss Post will continue to make huge investments in the letter business.

32. IKEA Apps IKEA: Founded in 1951 2012 cataloguelaunched 09/2011 175 million copies Total sales 2010: €22bn 127,000 employees 280 stores 26 countries

33. Google jumpsinto mobile catalogs The mobile software giantdebutsanAppforcustomers to shop 50 catalogsfromsuch heavy hitters as Crate & Barrel, L.L. Bean, Patagonia and Williams-Sonoma. And it'senabling retailers to addtheircatalogsfor free.

34. Google CatalogsApps

35. Bratislava - 22 September 2011 Quod Erat Demonstrandum: Online is deeply penetrated in our society and has proven to be a major driver for the economy Traditional media like catalogues and direct mail are playing a new role: to support and reinforce online media and websites

36. Thank you for your kind attention Any questions? Email: aad@weening.biz or aad.weening@imrg.org