Broadcasting and Search are great ways to market but what about direct marketing? Is it really dead or, as some people describe it, "Advertisings Ugly Step Sister"?
Have a look at just how direct marketing has grown over the last few years, and how a well planned direct marketing campaign can produce extremely good responses, profit and return on investment!
5. Broadcasting 80’s
Broadcast
• TV
• Radio
• Cinema
• Newspapers
• Billboards/Signage
• Print (offset, large volume, static)
– Communication guaranteed
– Loud and consistent message = sales
– One way communication
– Spray and hope advertising
– No measurable responses
6. Broadcasting Now
Broadcast
• TV - Digital Terrestrial, Satellite, IP (online, viral)
• Radio – Analogue, Digital, Online
• Websites
• Newspapers – Online
• Social Media
– Networks:
– Blogging:
– Newsfeeds:
– IP Media:
7. Broadcasting Now
Broadcast
– Online/Social Media allows for Two way communication
– Searchable
– Measurable responses
– Communication isn’t guaranteed (Many channels - Fragmented)
• Are they subscribed to your channels?
• Are they “tuned” into your broadcast?
– Media costs down, but time and labour costs up
8. Broadcasting Now
Broadcast - Online
“The problem with online is that many of the [media] costs are so much lower that
it’s dragging everything down. But for agencies, the irony is that their costs are
so much higher online than they were on television. That eats into their profit
margins.” - Robert Shaw, a professor at London’s Cass Business School.
“Because the internet audience is more fragmented, every pound spent on
advertising space online costs almost three times more, in terms of time and
labour, than it would if you spent it on traditional media.” - Quentin George, chief
digital officer at Interpublic’s Mediabrands.
“The traditional time-based billing model is tough to uphold when developing online
campaigns, says Rich Silverstein, co-founder of Goodby, Silverstein & Partners,
an agency owned by Omnicom, the global marketing giant. “The internet is so
deep it’s like drilling for oil,” he says. “So far, I don’t think we’ve really charged for
all the time we’ve put into it.”
9. How do you reach people
who aren’t tuned into you?
Search – “They find you”
and
Direct Marketing – “You find them”
10. Search 80’s
Search
• Yellow Pages
• Directory Listings
• Trade Industry Publications
• Trade Industry Events
– They find you
– Positioning
– Some measurable responses
– Very easy type of marketing
11. Search Now
Search
• Search Engine Optimisation
• Digital Asset Optimization
– Global search now available
– Global Positioning/Ranking
– Full measurable responses
– Not as easy, constant monitoring
12. Direct Marketing 80’s
Direct Marketing
• Telemarketing
• Sales Calls
• Face to face
• Relationship Management
• Direct Mail
• Direct Gifts
– You find them!
– You choose your clients.
– You understand their needs.
– Seen as too hard
– Seen as unglamorous
13. Direct Marketing 80’s
Direct Marketing
• Telemarketing
• Sales Calls
• Face to face
• Relationship Management
• Direct Mail
• Direct Gifts
– You find them! BUT...
– You choose your clients. DM is seen by many to
be either dead, or is
– You understand their needs. “advertising’s ugly
step sister”.
– Seen as too hard
– Seen as unglamorous
14. Direct Marketing Now
Direct Marketing
• Database driven
• Personalisation Software
• Digital Print
• Email
• PURLS
• Barcodes
• Mobile Phone Advertising – TXT/SMS, QR Codes, MMS
• Web and Mobile Phone Applications
“In many people’s minds Direct marketing is under appreciated and under valued in our current world
which focuses on all things social (networking, media).
That's because successful DM is hard work and doesn't have the glamour of Twitter, blogs, wikis,
YouTube etc.
Today's hiring managers are caught up in shiny objects that distract management from pursuing
actions that have a long history of generating significant amounts of profitable revenue.”
- Pat McGraw, McGraw Marketing
15. Direct Marketing Now
Direct Marketing
– Creativity in real world applications
– Allows for cross-media campaigns
– Strategic – a well designed plan of action
– One good strategy – Run many times
– Very good return on investment
– Set yourselves apart from competition
– Fully measurable responses
– Reaches where broadcasting can’t
16. The Common Factor in 2009?
BROADCASTING
(Online)
DIRECT MARKETING
SEARCH
Databases
17. Tools of Direct Marketing
• Database
– Segmented Marketing
• Geographic – region, country, climate, area density
• Demographic – age, gender, ethnicity, language,
socioeconomic, education
• Psychographic – personality, lifestyle, value, attitude
• Behavioural – purchasing history, loyalty
George S. Day (Professor of Marketing at the Wharton School of Business,
Pennsylvania, USA) describes two models of segmentation
• the top-down approach: You start with the total population and divide it into
segments.
• the bottom-up approach: You start with a single customer and build on that
profile.
“Create a list of people you want to do business with.”
18. Tools of Direct Marketing
• Personalisation Software
– XMPie
• Image and Graphic Personalization
• Data-Driven Charts & Graphs
19. Tools of Direct Marketing
• Digital Print
• Short run
• Fast turn around
• Variable
• Email
• PURLS
23. Case Studies
• Agricultural
Nufarm Limited
– NuFarm Limited sells its products through distributors
– Promote two products to the North American market
– Raise company and product brand awareness
• Personalised, three dimensional mail to 1000 distributors
•One thousand distributors received a box
•Labelled “We’ve got your back mate”
•a back scratcher
•PURL to a landing page
24. Case Studies
• Agricultural
Nufarm Limited
• Personalised postcard to prospective end users
•More than 9,000 current and prospective
end users received a postcard that used
the same imagery and slogan
•PURL to a landing page
25. Case Studies
• Agricultural
Nufarm Limited
• Offers used to drive people to the landing page
– a chance to win a prize valued at $2,500
– a chance to win an instant prize of merchandise worth $25 to $500
– Once they visited the personalized URL, they were notified if they were
an instant prize winner or entered into the Grand Prize drawing for the
$2,500-valued prize
• 46% response rate out of the 1,000 boxes sent to distributors
• 6.7% response rate out of 9,000+ cards
• 1,162 unique visits to personalized URLs
• 1,078 of those 1,162 site visitors (93%) completed all pages of the
• personalized URL
28. Case Studies
• Retail - loyalty
QUALITY STORES THANKQ PROMOTION
• Increase sales in existing customer base for promoted
merchandise.
• Drive sales into other categories through cross-shopping offers.
• Mother’s Day promotional flyer was
sent to male customers
• Newsletter contained promotional
offers selected based on the customer’s
purchase history
• Promoted merchandise had a 51% lift
in sales per name mailed.
• 18% incremental lift in average dollars
spent per customer.
29. Case Studies
• Retail - loyalty
Sainsbury's Personalised Birthday Greeting
• Improve shoppers relationship with store
• Provide a free gift in keeping with buying habits
• Personalise images as well as copy
• Increased redemption rate to more than 50%, which is 50% higher than previous
methods had generated
30. Case Studies
• Retail - loyalty
Shoe Carnival
• Connect with customers who had not visited a Shoe Carnival store
in sixty days or more
• Offer inactive customers an incentive to shop within a fixed period of
time
• Response rate of more than 26%
•Net sales (after discounts) of more than $200,000
31. Case Studies
• Retail - loyalty
Specialty Retailers
• Retain customers after they move to new locations
• Communicate with the customer within the first 30 to 60 days in his
or her new location
• Coupon redemption rates as high as 42%
•Repeat foot traffic in stores from new movers after the initial coupon redemption
32. Case Studies
• Online Retail
ebay
– Personalised direct mail to eBay’s top clients
– PURL address provided
– PURL launched a web app that built a personalised page
– Increased auction sales
www.ebayfaves.com/mpanaggio
33.
34. Footnotes
• Direct Marketing with VDP doesn’t replace the need for good
copywriting. In many cases it requires more effective copy.
• People always buy for personal, selfish reasons.
• Copy that speaks to them about what matters to them.
• Always offer incentives for the clients to make the next step on the
direct marketing path.
