Direct Marketing InitiativeDenver Newspaper Agency
Plan of Action• Objective:• Increase Printing and Distribution by $5.5 million• To achieve this objective one of our action plans is to offer Direct Marketing at the DNA. This will enable the DNA to : – Offer strategic solutions to help our advertisers increase sales and be more competitive – Take control of both newspaper and direct marketing budgets for our advertisers – Partner with advertisers to build lasting relationships
2002 Projected Denver Ad Spending OTHER 5.9% OUTDOOR 1% $246 million was Source: 2002 Midyear Ad Audit AdSpend ReportDIRECT MAIL Newspaper 30.9% spent on direct 13.1% mail in Denver in 2002 CABLE TV Besides TV, 4.7% Direct mail is our largest competitor for Denver advertising OTHER PUBS dollars. 7.9%BROADCAST TV 21.5% RADIO YELLOW PAGES 2002 TOTAL: 6.7% 8.2% $1,882,793
Print and Distribution Product Portfolio• Custom Publishing – Selling, creating, and implementing promotional materials for all types of companies.• Inserts – To subscribers by zip code – Post-It Notes – Poly-bags• TMC – Inserted in newspaper to subscribers and mailed to non- subscribers at the zip code level. AND NOW……..• Solo Mail – Household specific targeting by geographic or demographic targeting.
DNA Direct Mail Advantages• Existing relationships – Advertisers already trust us with their advertising and we are their primary media relationship, so they are willing to trust us with additional channels.• Dollar Volume Contracts – Direct Marketing revenue is counted toward any Dollar Volume contract• Postal Discounts – Advertisers get the benefit of postal discounts because DNA capabilities enable the advertiser to receive the lowest USPS discounts.• One stop shopping – Advertisers advertising needs are accomplished with one rep and one bill
DNA Direct Marketing Capabilities• Database – Market Analysis – List Selection – Data Processing – Data Housing• Production – Creative – Printing – Mailing/Distribution Services – Response Analysis
Database Marketing or “The List”• The mailing list is the foundation of a successful marketing campaign, accounting for 40% of your advertiser’s success. – Direct mail lists are compiled in hundreds of ways from numerous sources. – We have two ways of procuring lists: • using our internal database, which includes $100,000 of current, relevant information from numerous sources • buying outside lists from a list broker
The DNA Database• Denver Post and Rocky Mountain News subscriber data• Private party classified data• Equifax demographics and lifestyles• Axciom’s PERSONICX clusters• Claritas PRIZM codes• Voter registration data• New mover data• Subscriber data: Denver Post, Rocky Mountain News, NY Times, WSJ, Barron’s, Investors Business Daily, Financial Times, USA Today• Colorado DO-NOT-MAIL list
Data Sources: Equifax• Equifax, a 103-year-old S&P 500 company, is a leader in information technology.• Equifax supplies us with demographic and lifestyle information for the state of Colorado.
Available Demographic DataDEMOGRAPHIC SELECTIONS AGE Length of Residence Household Code Home Ownership 18 - 24 One Year or Less Married with Children Owner 25 - 34 Two Years or Less Married without Children Renter 35 - 44 3 - 6 Years Male with Children 45 - 54 7 - 10 Years Male without Children Marital Status 55 - 64 11 - 14 Years Female with Children Married 65 - 74 15 Years or More Female without Children Single 75 + Household Income Occupation Education Gender Less than $15,000 Clerical/White Collar Attended High School Male $15,000 - $19,999 Craftsman/Blue Collar Attended College Female $20,000 - $29,999 Homemaker Attended Graduate School $30,000 - $39,999 Military Veteran Attended Technical School $40,000 - $49,999 Professional/Technical $50,000 - $74,999 Retired Children SuperNiches $75,000 - $99,999 Sales/Service Age 0 - 2 Lifestyle Clusters $100,000 - $124,999 Student Age 3 - 5 $125,000 and Above Administrative/Managerial/Supervisor Age 6 - 10 Doctor Age 11 - 15 Lawyer/Judge Age 16 - 17 Proprietors
Available Lifestyle DataLIFESTYLE SELECTIONS Interest Group Composite Lifestyles Tennis Home Video Games Recreational Vehicles Outdoors Golf Home Video Recording Crafts Athletic Snow Skiing Self Improvement House Plants Fitness Camping/Hiking Stock/Bond Investments National Heritage Domestic Hunting/Shooting Real Estate Investments Walking Good Life Fishing Collectibles Casino Gambling Cultural Bicycling Community Activity Dieting Blue Chip Sailing Bible Reading Charitable Causes Do-It-Yourself Motorcycling Grandchildren Military Veteran Technology Photography Needlework Knitting Dog Home Workshop Sewing Cat Gardening Sweepstakes Contests Power Boating Electronics Pets Sailing Politics Science/New Technology Home PC Antiquing Wildlife Cable TV Travel USA Running/Jogging Sports TV Foreign Travel Stamp/Coin Collection Science Fiction Cultural Events Home Furnishings/Décor Book Reading Health Foods Fashion Gourmet Cooking Wines PRIZM Lifestyle Codes from Claritas (ZIP+4 level) PERSONICX Lifestyle Clusters from Axciom (household level)
Data Sources: PRIZM• Claritas founded the first geodemographic industry when it launched the first PRIZM segmentation system in 1974.• PRIZM is the original and most widely used neighborhood target marketing system in the U.S.• PRIZM codes are assigned at the ZIP+4 (block-face) level.• Claritas taps into over 1,600 government and private sources to develop current year estimates and five year projections of hundreds of demographic variables.• Claritas focuses on domains of affluence and settlement density to create its unique clusters.• We own PRIZM codes for the entire state of Colorado
Urban Midscale Latino AmericaElite Suburbs Blue Blood Estates Second City Ctrs. Middleburg Mgrs.Elite Suburbs Winners CircleElite Suburbs Executive Suites Second City Ctrs. Second City Ctrs. Boomtown Singles Starter Families PRIZMElite Suburbs Pools & Patios Second City Ctrs. Sunset City BluesElite Suburbs Kids & Cul-de-SacsUrban Uptown Urban Gold Coast Second City Ctrs. Ex-Urban Blues Towns & Gowns New Homesteaders ClustersUrban Uptown Money & Brains Ex-Urban Blues Middle AmericaUrban Uptown Young LiteratiUrban Uptown American Dreams Ex-Urban Blues Red, White & BluesUrban Uptown Bohemian Mix Ex-Urban Blues Military Quarters Country Families Big Sky Families2nd City Society2nd City Society Second City Elite Upward Bound Country Families New Eco-topia Urban2nd City Society Gray Power Country Families River City, USALanded Gentry Country Squires Country Families Shotguns & PickupsLanded Gentry Gods Country Urban Cores Single City Blues SuburbanLanded Gentry Big Fish, Small Pond Urban Cores Hispanic MixLanded Gentry Greenbelt Families Urban Cores Inner CitiesThe Affluentials Young Influentials Second City Blues Smalltown Downtown CityThe Affluentials New Empty Nests Second City Blues Hometown RetiredThe Affluentials Boomers & Babies Second City Blues Family ScrambleThe Affluentials Suburban Sprawl Second City Blues Southside City TownThe Affluentials Blue-Chip Blues Working Towns Golden PondsInner Suburbs Upstarts & Seniors Working Towns Rural IndustriaInner Suburbs New Beginnings Working Towns Norma Rae-VilleInner Suburbs Mobility Blues Working Towns Mines & Mills UrbanInner Suburbs Gray Collars Heartlanders Agri-BusinessUrban Midscale Urban Achievers Heartlanders Grain BeltUrban Midscale Big City Blend Rustic Living Blue HighwaysUrban Midscale Old Yankee Rows Rustic Living Rustic EldersUrban Midscale Mid-City Mix Rustic Living Back Country FolksUrban Midscale Latino America Rustic Living Scrub Pine Flats
Data Sources: PERSONICX• ACXIOM Data Corporation is a world leader in customer and information management solutions, specializing in advanced data integration and tools for managing customer relationships.• PERSONICX is a new tool in consumer segmentation that places each U.S. household into one of 70 segments based on its specific consumer and demographic characteristics.• PERSONICX data is applied at the individual household level, enabling greater precision in targeting and marketing.• PERSONICX is driven by Acxiom’s InfoBase household data, known as the most accurate, current source of consumer data in the industry.• PERSONICX is based on the concept that households share more consumer similarities if they share the same life stage and similar socio-economic characteristics.
Household JUMBO FAMILIES - KIDS & CLOUT Group Names Cluster Names JUMBO FAMILIES - TOTS & TOYS JUMBO FAMILIES - COUNTRY COMFORT JUMBO FAMILIES - SOCCER & S.U.V.S BEGINNINGS - EARLY PARENTS JUMBO FAMILIES - BEGINNINGS - FIRST DIGS BOOMER SINGLES - CITY MIXERS BEGINNINGS - COLLEGIATE CROWD BOOMER SINGLES - SOLO AND STABLE BEGINNINGS - YOUNG WORKBOOTS BOOMER SINGLES - MODEST WAGES BEGINNINGS - ROLLING STONES BOOMER SINGLES - BEGINNINGS - MIXED BOOMERS - RURAL PARENTS TAKING HOLD - MARRIED SOPHISTICATES MIXED BOOMERS - METRO PARENTS TAKING HOLD - CHILDREN FIRST MIXED BOOMERS - RURAL ROVERS MIXED BOOMERS - TAKING HOLD - CAREERS BUILDING BOOMER BARONS - SUMMIT ESTATES TAKING HOLD - SPOUSES & HOUSES BOOMER BARONS - SKYBOXES & SUBURBANS TAKING HOLD - BOOMER BARONS - LEVERAGED LIFESTYLES TRANSITION BLUES - OUTWARD BOUND BOOMER BARONS - TRANSITION BLUES - TRUCKS & TRAILERS FLUSH FAMILIES - SOLID SINGLE PARENTS TRANSITION BLUES - HOME COOKING FLUSH FAMILIES - APPLE PIE FAMILIESTRANSITION BLUES - FLUSH FAMILIES - GEN X SINGLES - FIRST MORTGAGE TRUE BLUES - BLUE COLLAR BUNCH GEN X SINGLES - STILL LANDLORDED TRUE BLUES - FARMLAND FAMILIES GEN X SINGLES - LOW-RENT DIGS TRUE BLUES - GEN X SINGLES - OUR TURN - COUNTRY SINGLE OUR TURN - FUN & GAMES GEN X PARENTS - CARTOONS & CARPOOLS OUR TURN - MID AMERICANA GEN X PARENTS - KIDS & RENT OUR TURN - DOWNTOWN BOOMER COUPLES GEN X PARENTS - OUR TURN - URBAN TENANTS MIXED SINGLES - URBAN SCRAMBLE OUR TURN - MIXED SINGLES - MORTGAGE WOES MATURE WEALTH - ESTABLISHED ELITE MIXED SINGLES - ON THE EDGE MATURE WEALTH - CORPORATE CLOUT MIXED SINGLES - MATURE WEALTH - CASH & CAREERS - SHOOTING STARS AGING UPSCALE - CAREER CENTERED SINGLES CASH & CAREERS - HARD CHARGERS AGING UPSCALE - COUNTRY WAYS CASH & CAREERS - DYNAMIC DUOS AGING UPSCALE - ACRED COUPLES AGING UPSCALE - CASH & CAREERS - SAVVY SINGLES MODEST MEANS - WORK & CAUSES CASH & CAREERS - MODEST MEANS - COMMUNITY SINGLES JUMBO FAMILIES - KIDS & CLOUT JUMBO FAMILIES - TOTS & TOYS JUMBO FAMILIES - COUNTRY COMFORT JUMBO FAMILIES - SOCCER & S.U.V.S JUMBO FAMILIES - BOOMER SINGLES - CITY MIXERS BOOMER SINGLES - SOLO AND STABLE
Business to Business Data: DUN & Bradstreet• Dun and Bradstreet is a premier source of business data lists in the U.S.• We have access to their U.S. database of businesses• Lists can be selected by: – type of company – number of employees – revenue/sales – location (ZIP, county, radius) – year the business was started• Information provided includes: – name and address of company – key decision makers – phone numbers – latitude and longitude• Price quotes available on request
Database Marketing Services• List Selection • Your client can choose the list they want to deliver to based on the variety of data in our comprehensive, up-to-date database containing 2.1million addresses in Colorado
Database Marketing Services• Market Analysis • Customer database profiling – Basic demographics – Lifestyle codes • Customized database development and management – Development and housing of customer database
Example of Customer Database Analysis CUSTOMER ANALYSISRecords Received 37,985 Age Records %Predominant Age Group 45 - 54 18 - 24 2,563 11.68%Predominant Household Code Married w Children 25 - 34 3,784 17.25%Predominant Estimated Education Level College 35 - 44 3,652 16.64%Predominant Occupation Prof/Technical 45 - 54 6,789 30.94%Predominant Estimated Income $40,000 - $49,999 55 - 64 3,596 16.39%Predominant Marital Status Married 65 - 74 1,258 5.73%Predominant Gender Male 75 + 299 1.36% Total 21,941Occupation Records % Household Income Records %Clerical/White Collar 1,420 7.96% Less than $15,000 1,549 4.85%Craftsman/Blue Collar 1,236 6.93% $15,000 - $19,999 1,145 3.58%Homemaker 236 1.32% $20,000 - $29,999 3,298 10.32%Military Veteran 1,547 8.68% $30,000 - $39,999 5,247 16.42%Professional/Technical 5,652 31.70% $40,000 - $49,999 6,897 21.58%Retired 895 5.02% $50,000 - $74,999 5,214 16.31%Sales/Service 2,356 13.22% $75,000 - $99,999 3,699 11.57%Student 251 1.41% $100,000 - $124,999 1,254 3.92%Admin./Manag./Supervisor 3,397 19.05% $125,000 and Above 3,659 11.45%Doctor 124 0.70% Total 31,962Lawyer/Judge 89 0.50%Proprietors 625 3.51% Household Code Records % Total 17,828 Married with Children 6,874 37.13% Married without Children 4,895 26.44%Gender Records % Male with Children 1,142 6.17%Male 14,908 59.22% Male without Children 1,420 7.67%Female 10,265 40.78% Female with Children 1,197 6.47% Total 25,173 Female without Children 2,987 16.13% Total 18,515Marital Status Records %Married 10,986 55.66% Education Records %Single 8,752 44.34% Attended High School 9,658 37.98% Total 19,738 Attended College 8,796 34.59% Attended Graduate School 5,321 20.93% Attended Technical School 1,652 6.50% Total 25,427Note: Differences in Total counts represent differences in the amount of data available by demographic category. Example - more data is available on "Household Income" than "Household Code".
Database Marketing Services• Data Processing • List hygiene and address standardization (CASS certification) • Merge/purge of multiple lists
Denver Newspaper Agency Database Pricing Up to 7,501- 10,001- 15,001-# of Records 7,500 10,000 15,000 50,000 50,000+ Price per thousand records on purchased listListsBase Price (includes one demo or geographic select) $ 45 $ 40 $ 35 $ 30 $ 25Additional Demographic Selects (each) $ 5 $ 5 $ 5 $ 5 $ 5Lifestyle Selector (self-reported, approx. 10% match, chooseup to 3) $ 20 $ 20 $ 20 $ 20 $ 20PRIZM Codes $ 15 $ 15 $ 15 $ 15 $ 15PERSONICX Codes $ 20 $ 20 $ 20 $ 20 $ 20Data Processing and Database Management Price per thousand records on your customer listCustomer Profile: Includes demographic and geographicprofile of your customers, PRIZM code AND PERSONICXcode analysis, and all data processing needed for entire job.(Processed first week of each month*) $ 195 $ 160 $ 140 $ 110 $ 75Data Processing Only (free with customer profile): Dataappend, merge/purge, data hygiene and addressstandardization (processed first week of each month*) $ 120 $ 90 $ 75 $ 50 $ 30 Minimum Order: $975 (no minimum on list purchase only) *Rush charge $ 975Other services quoted per job, including business lists, third party lists, customized database development or warehousing.
Rep Name: ____________________________ Ext.: ________________________________________ Todays Date: ___________________Advertiser: ____________________________ Advertiser Phone # ______________Target Project Date: _____________ Date Proposal/Count Needed: ____________________________Type/purpose of mailing:Select all that apply: YesDoes the advertiser have their own customer list? (quantity)Do they want a profile of their current customers?Does their list need to be cleaned- duplicate addresses and bad addressed deleted, etc.Do they want to mail to an additional prospect list? (quantity) Their list Our list Total desired mail quantityTarget Quantity + =Describe the target group the advertiser needs to reach. Specify all appropriate criteria below:A. GeographyZips/City/CountiesB. DemographicsIncome/Age/Children/Interests/Marital Status/EthnicityC. Lifestyle or Lifestage Clusters from PRIZM and/or PERSONICXD. Business to BusinessSIC Code/Type of Businesses/Employees/SalesE. Other information desiredAny additional information that may help us develop a list for them:
Work Flow Database: Client Meeting: Sales rep and Rep fills out list request.DM rep and DB person (if needed) DB determines quantity and pricing Proposal:meet with client to determine goals for list. DM rep develops printand complete needs questionnaire. proposal Printing/Mailing: DM rep gets bids from mail houses/printers Database: 2nd Client Meeting: Mail House: Advertiser provides list. Rep presents proposal Printing DB generates list, analyzes and and gets written approval. Assembling exports customer database. Addressing Mail Preparation Creative: Rep works with client to identify Production : Postage offer. Creative dept creates art Rep completes production or it is outsourced. order and confirmation Billing
Training• All P&D AE’s will attend Direct marketing Basic Training, Postal Forums and tours of all cooperative facilities and departments, including database, creative houses, print shops and mail houses and the post office.• Training Curriculum will include: • Direct marketing overview & manual • DNA benefits and advantages • Developing a DM proposal • Database - Available data & Department process • Printing - soliciting print bids • Mailing options • Post office • Margin Worksheet • Billing procedures
Initial Projects• Coldwell Banker Premier Properties Magazine• John Atencio Jewelers• Automotive Avenues Profile• National Jewish
John Atencio Jewelers• Target: Prospective customers for expensive, custom jewelry• They supplied us with a list of 35,000• We profiled their customers using PRIZM codes and then identified 15,000 additional for them with similar characteristics• Lessons learned: Pricing was revised from a flat fee based on their input. Also acquired Colo. Do-not-mail list after this mailing due to complaints they received.
Coldwell Banker• Target: 15,000 prospective buyers of million dollar homes• They were to supply realtor lists and we were going to add to it• The SEQ:( ( NO ( COLDWELL.ID > 0 ) ) OR ( ANY ( PERSONICX.CLUSTER IN ( "01" , "03" , "02" ) ) AND ANY ( ADDRESS_MASTER.PRIZM_ZIP4 IN ( "01" , "02" , "06" ) ) AND ANY ( DEMO.INCOME_PREDICTOR IN ( "9" , "a" ) ) ) OR ( ANY ( ADDRESS_MASTER.PRIZM_ZIP4 = "14" ) AND ANY ( ADDRESS_MASTER.COUNTY_CODE = "069" AND ADDRESS_MASTER.STATE_CODE = "08" ) ) AND NO ( DONOTMAIL.ID > 0 | FALSE ) )• Lessons learned: Don’t depend on realtors to supply you with their lists. Save your stuff and run your export as soon as possible. Keep notes.
Automotive Avenues• Hesitant to use us for direct mail, but interested in a profile• Target: Profiled their different credit union customers that flow into their database, so they could use different creative for each group• Lessons learned: Client loved the profile and is now considering us to do their printing and mailing. Good way to get our foot in the door.
National Jewish Hospital• Target: People with asthma or other respiratory disorders for studies• Had to go outside for the list• Results: Loved presentation, impressed with list. Recommending a direct mail buy to all departments.• Lessons learned: Clients often don’t know how to obtain lists on their own.