Diving into “Terra Incognita” : The Direct Mail

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Key facts about Direct Mail investments and efficiency.

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  • A dive in “Terra Incognita”: The Direct Mail (ou plongée en “Terra Incognita”, le Direct Mail) Très longtemps le Direct Mail, ou courrier publicitaire, est resté absent des mesures ou outils medias auxquels vous êtes familiers. Et pourtant, depuis quelques années, des etudes comme la pige du Direct Mail ou les DM Barometer apportent un nouvel éclairage sur le poids et l’efficacité de ce média. Pour une transition vers une mesure élargie des medias …
  • Ancien monde – nouveau monde Aujourd’hui dans une partie moins connue
  • Un voyage en 3 étapes
  • Un voyage en 3 étapes
  • Les consommateurs, préfèrent toujours le support papier. Et lorsqu’ils préfèrent la recherche d’informations sur un site Internet, la complémentarité-le support d’un papier (sous la forme d’un catalogue) se révèle souvent indispensable. Dans la toute nouvelle étude TNS-La Poste (E loves P), il y a 2 parties. D’une part, une partie qualitative, basée sur une enquête faite auprès 1.150 personnes (cfr présentation complète imprimée dans le book) et d’autre part, une partie quantitatif, basée sur les résultats de nos pilotes DM Boost. Les informations de ce slide sont ceux de cette 2ème partie
  • Un voyage en 3 étapes
  • Cinema (film 30 sec.) 0,70 Télévision (spot 30 sec.) 0,15 Magazines (1 page quadri) 0,10 Radio (message 30 sec.) 0,05 Affichage (20 m² urbain) 0,02
  •   Cinéma 75 %  TV 15 %  Affichage 9,5 %  Presse Magazine 10 %  Radio 5 %
  •   Cinéma 75 %  TV 15 %  Affichage 9,5 %  Presse Magazine 10 %  Radio 5 %
  • Diving into “Terra Incognita” : The Direct Mail

    1. 1. Diving into “Terra Incognita” : The Direct Mail Frédéric Jadinon DM Media Expert
    2. 2. Direct Mail … ..
    3. 3. <ul><li>Measuring the “total picture”: IPC Survey </li></ul><ul><li>Zoom into the Direct Mail investments: “the DM pige” </li></ul><ul><li>Standard measure of the impact of DM: “the DM Barometer” </li></ul>
    4. 4. What is the real “share of wallet” ?
    5. 5. IPC ran extensive international study to beter understand the media ‘usage’ <ul><li>What is the media spending in Belgium and the media usage rate ? </li></ul><ul><li>How are the different media perceived by advertisers </li></ul><ul><li>1,027 interviews in companies with a turnover of more than 0.25m € per year </li></ul><ul><li>Senior executives with Marketing & Communication expenditure responsibility, managing directors or business owners </li></ul><ul><li>IPSOS, 2008 </li></ul><ul><li>Results weighted and extrapolated to represent total universe of companies in Belgium </li></ul>OBJECTIVES METHODOLOGY
    6. 6. Media Channels covered: a way to consider the 360° Direct Marketing Online Marketing Classic Media with Response <ul><li>E-Mail Marketing </li></ul><ul><li>Internet Site </li></ul><ul><li>Banner Advertising </li></ul><ul><li>Paid Search </li></ul><ul><li>Events </li></ul><ul><li>Promotional Campaigns </li></ul><ul><li>Loyalty Magazines </li></ul><ul><li>Fax Advertising </li></ul><ul><li>Print with response </li></ul><ul><li>Insert with response </li></ul><ul><li>Outdoor with response </li></ul><ul><li>TV with response </li></ul><ul><li>Radio with response </li></ul><ul><li>Cinema with response </li></ul><ul><li>Print </li></ul><ul><li>Insert </li></ul><ul><li>Outdoor </li></ul><ul><li>TV </li></ul><ul><li>Radio </li></ul><ul><li>Cinema </li></ul>Other Media Classic Media Traditional Direct Marketing <ul><li>Addressed Mailings </li></ul><ul><li>Unaddressed mail </li></ul><ul><li>Outbound Telemarketing </li></ul><ul><li>Inbound Telemarketing </li></ul><ul><li>Mobile Marketing </li></ul>
    7. 7. Internet has the highest usage rate, followed by print advertising, trade fairs & Direct mail Data: All values in % Base: All companies with a turnover of at least 0.25 m €/year; N=128,376 companies (n=1,027) Media penetration (%) 1 2 3 4 Direct Marketing : Internet Site Direct Mail E-Mail Unaddressed mail Banner advertising Telemarketing Inbound telemarketing Outbound telemarketing Paid-search Mobile Marketing Classic Advertising (with/without response) : Print advertising Inserts Outdoor Radio TV Other Advertising : Trade fairs Customer magazines Promotional camp. Couponing Fax advertising Overall With response mechanisms
    8. 8. Direct Marketing accounts for 39% of all advertising expenditure 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) Total Marketing & Communication Expenditure (full costing) - Belgium 2007: € 7.40 billion Direct Marketing represents 39 % of total media investments € 2.86 bn. € 3.18 bn. € 1.35 bn.
    9. 9. Only 21% of Belgian advertisers are “cross media” User Share of Cross-Media Campaigns  User of cross-media campaigns  Non-User of cross-media campaigns Number of campaigns: 112,393 campaigns Ø number of campaigns per company: 4.9 campaigns/ year 2 media 3 media 4 media or more Often 2 media, very few with 3 or more medias in their campaigns Data: All values in % Base: All companies with a turnover of at least €0.25 m /year and which are doing direct marketing; Universe:108,595 companies (n=913)
    10. 10. Only 21% of Belgian advertisers are “cross media” User Share of Cross-Media Campaigns  User of cross-media campaigns  Non-User of cross-media campaigns Often 2 media, very few with 3 or more medias in their campaigns DM + Web DM + Print DM + Email 7% 7% 6% Internet + Print 9% Among them, when DM involved, … Internet + Email 6% Print + TV 4% Data: All values in % Base: All companies with a turnover of at least €0.25 m /year and which are doing direct marketing; Universe:108,595 companies (n=913)
    11. 11. Advertisers consider DM as most efficient mainly for short-term sales and retention Data: All values in % Base: All companies using the specific medium Source: IPC Direct Marketing Intelligence 2008 – IPSOS 1027 belgian companies
    12. 12. <ul><li>Measuring the “total picture”: IPC Survey </li></ul><ul><li>Zoom into the Direct Mail investments: “the DM pige” </li></ul><ul><li>Standard measure of the impact of DM: “the DM Barometer” </li></ul>
    13. 13. Before 2009, lot of questions without answers … MDB (Mediaxim) Highly detailed analysis on media investments Weight of Direct Mail in my mix ??? Evolution of Direct Mail pressure in my sector ???
    14. 14. The Post, in collaboration with BDMA, initiated a survey project to measure Direct Mail pressure <ul><li>Survey objectives are: </li></ul><ul><ul><li>To track gross expenditures of Addressed Direct Mail </li></ul></ul><ul><ul><li>To develop a trustworthy and recognised tool which builds information similar to other media (Cim-MDB) </li></ul></ul><ul><li>Project developped based on feedback from the market: </li></ul><ul><ul><li>Different work – information meeting with BDMA and UBA </li></ul></ul><ul><ul><li>Official support of UBA </li></ul></ul><ul><li>Preference for Mediaxim as operator: </li></ul><ul><ul><li>Expertise </li></ul></ul><ul><ul><li>Willingness to be complementary to CIM-MDB, not to build another standard </li></ul></ul>
    15. 15. How to build a strong “tool” without reinventing the wheel
    16. 16. Starting with the DM universe: which direct mail does it cover ? <ul><li>Addressed paper mails using the ‘direct mail’ tariff of the Belgian post: </li></ul><ul><ul><li>No international DM </li></ul></ul><ul><ul><li>No advertising mail using another tariff </li></ul></ul><ul><ul><li>> 500 pieces </li></ul></ul><ul><li>Using a ‘deposit’ in one of the 26 sorting Center (ie 97% of DM value) </li></ul><ul><li>With a proven “advertising” purpose (Mediaxim check) </li></ul>
    17. 17. The key steps of this project Information collection Information Treatment Valorisation Access
    18. 18. Step 1 All material is sent to Mediaxim Information collection Information Treatment Valorisation Access Transactional information needed to calculated gross value + Daily transfer All DM Specimen Unique key (deposit identifyer) + Regular transfer from 27 sorting centre
    19. 19. Step 2 Mediaxim identifies sector and sender Information collection Information Treatment Valorisation Access DM specimen arriving at Mediaxim DM scan Visual Identification Sorting: Economical group – Sector – Sub sector AdvertiserGroup - Advertiser – Brand
    20. 20. Step 3 Valorization is based on official tariff grid Information collection Information Treatment Valorisation Access <ul><li>274 different prices in function of volume, sorting type, format, weight: from 0.383 to 2.727 (1 to 7) </li></ul><ul><li>Revision currently in discussion </li></ul>
    21. 21. Step 4 Information is made accessible Information collection Information Treatment Valorisation Access Subscription through Mediaxim In a separate environment
    22. 22. Diving into some results
    23. 23. In addition to mass media (Cim), Direct Mail represents about 10% of gross media investments Gross Media investments 2009 (in mio eur) Sources : DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media) Mass Media (CIM MDB) Direct Mail (Pige DM) 9,9%
    24. 24. In a “turbulent” communication market, Direct Mail hold relatively a good position Gross Investments evolution per media Jan-dec 2009 vs. Jan-dec 2008 - 6,1% +1,2% + 1,2% + 7,5% - 0,8% - 0,9% - 5,2% + 3,5% In millions eur DM Pige CIM-MDB - 8,2% 3.168,9 3.164,4 + 0,1% - 12,1% -7,6% + 6% - 5,7% - 11,7% -2,0% + 9,2% - 9,8% -1% Sources : DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)
    25. 25. 75% of gross investments are concentrated in 5 sectors Direct Mail Gross investments, 2009 29,5% 28,2% 9,4% 3,2% 2,5% 2,4% 1,9% 1,7% 1,6% 1,5% 1,5% 1,4% 1,1% 1,0% 0,9% 12,2% Source: DM Pige Mediaxim-Post In millions eur in %
    26. 26. Most key sectors grew, except Finance – Car +0,9% +1,2% -8,8% +21,9% -2,7% +7,1% -1,3% +10,9% -10,4% +2,9% +14,1% +23,3% +2,5% +3%% +35,1% Source: DM Pige Mediaxim-Post Variation of Direct Mail Gross investments vs. 2008 (Jan-Dec 2009 vs. 2008, in key sectors representing about 85% total inv.) In millions eur in %
    27. 27. But for those 2 key declining sectors, DM increased its weight Automotive Banking - Finance -3% -9% DM Gross Investments +6% DM index compared to Cim-MDB +5% All other sectors +2,5% - Sources (03/02/2010): CIM-MDB, Mediaxim (Mass Media); DM Pige Mediaxim-Post (Direct Mail)
    28. 28. This tool reveals also that penetration of DM varies strongly across sectors Gross ATL media & DM investments in Top mass-media sectors (in mio eur gross, Total 2009) Sources: DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)
    29. 29. <ul><li>Measuring the “total picture”: IPC Survey </li></ul><ul><li>Zoom into the Direct Mail investments: “the DM pige” </li></ul><ul><li>Standard measure of the impact of DM: “the DM Barometer” </li></ul>
    30. 30. A ‘quest’ for a kind of ‘beta’ for Direct Mail: The « DM Barometer » <ul><li>Standardised post-test surveys (5 days after drop date, during 3 days) </li></ul><ul><li>Key measures </li></ul><ul><ul><li>Recall campaign and content </li></ul></ul><ul><ul><li>Behaviour: opening and reading rate </li></ul></ul><ul><ul><li>Campaign evaluation </li></ul></ul><ul><ul><li>Intention of purchase / action </li></ul></ul>
    31. 31. Our 44 DM barometer show a high recall rate for Direct Mail * Conversion rate average is an average of different conversion rates and doesn't correspond to conversion rate between average Recall having received it Opened it Recall content (content or message) Intent to act “ Do you remember receiving a DM?” “ What did you do with the DM?” “ Can you describe the DM?” “ Do you have intention to react?” Read it Average N= 44 cases 69 41 37 24 46 Conversion rate(AVG)* N= 44 cases 65 89 88 61 DM B2C High recall content when opened High reading rate
    32. 32. Scores are strongly lower for unaddressed mail 36 14 9 2 19** 47 62 55 22 Distripost door to door folders * Conversion rate average is an average of different conversion rates and doesn't correspond to conversion rate between average ** Opening vs recall rate calculated on 7 D2D cases with envelope Recall having received it Opened it Recall content (content or message) Intent to act “ Do you remember receiving a DM?” “ What did you do with the DM?” “ Can you describe the DM?” “ Do you have intention to react?” Read it Average N= 19 cases Conversion rate(AVG)* N= 19 cases
    33. 33. The Post has run extensive research with > 45.000 interviews (BtoB – BtoC) <ul><li>Generic media surveys (e.g., Mail moment, E loves P, How direct are women?) </li></ul><ul><li>20 Multi-media surveys </li></ul><ul><li>>80 DM impact surveys </li></ul><ul><li>> 330 response rates - benchmark data base </li></ul>
    34. 34. Transition implies a broadening of our understanding of the media landscape <ul><li>Transition into an ‘helicopter view’ of total “out of pocket”: </li></ul><ul><ul><li>Direct Marketing accounts for about 40% </li></ul></ul><ul><ul><li>How do ALL (?) Touchpoints work together </li></ul></ul><ul><li>Transition towards broader possibilities of Media Mix analysis: DM pige is a step in this direction </li></ul><ul><li>Transition with media specific but complementary impact standards </li></ul><ul><ul><li>Eg DM ‘beta’ to be defined, combining recall (69%) and recall content (37%) </li></ul></ul><ul><ul><li>DM opening rate (post-test based: 65%; diary based: 78%) </li></ul></ul>
    35. 35. Transition
    36. 36. Thank you Presentation available on www. DMPlaza .be [email_address] 0479 429 159

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