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Electronic Retailer Magazine, Itv Story

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In this technology-focused issue of Electronic Retailer magazine, I am featured in a story discussing ITV, along with leaders at Discovery Communications and Comcast who are also pioneering ITV as a …

In this technology-focused issue of Electronic Retailer magazine, I am featured in a story discussing ITV, along with leaders at Discovery Communications and Comcast who are also pioneering ITV as a new form of advertising available to enhance engagement with TV Viewers.


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  • 1. +DR DisruptionSocial and Over-the-Top television are revolutionizing the way Bienvenido a Miami! Page 32people view and interact with content across platforms andnetworks. Direct marketers must learn these new trends if Interactive TV:they hope to survive TV’s brave new world. Just a Click AwayPage 28 Page 36
  • 2. Through conceptionThrough developmentThrough promotionThrough protectionThrough success
  • 3. Vol. 9, No. 2 | February 2012 tableofCONTENTS FEATURES 28 DR Disruption Social and Over-the-Top television are revolutionizing the way people view and interact with content across platforms and networks. Direct mar- keters must learn these new trends if they hope to survive TV’s brave new 28 Social and Over-the-Top world. By Sarah Sain TV are revolutionizing the way people view 32 programming. Bienvenido a Miami! The Great Ideas Summit 2012 returns to Florida, where ERA members andDEPARTMENTS RESEARCH direct-to-consumer industry leaders will gather for education, networking 7 Calendar of Events 16 eMarketer Research and fun in the sun. Upcoming Industry Events Who is the U.S. Hispanic By Sarah Sain February through May Market?11 Industry Reports 18 IMS Retail Rankings 36 Interactive TV: Connect, Collaborate and The Top 25 Shows and Spots Just a Click Away Discover with MyERA 20 Jordan Whitney’s Learn how both viewers and the52 Member Spotlight Top Categories direct marketing industry will reap The Top 5 Shows and Spots the benefits of interactive television’s54 Advertiser Spotlight and the Top 3 Categories rapid growth in 2012. Highlighting This By Jacqueline Renfrow Month’s Advertisers 22 Lockard & Wechsler’s Clearance & Price Index55 Bulletin Board 40 Index for 30, 60 and What Your Consumer Says DG and Discovery Launch 120 Seconds About You Matters Digital Distribution System The marriage of customer55 Advertiser Index testimonials and social media is56 Classifieds unveiling legal issues that the FTC and the industry must quickly balance in order for direct response to maintain its integrity. By Peter Marinello4 electronicRETAILER | February 2012
  • 4. EVOLVE. With the advent of the technology era, keeping up with the fast changing information world can be a real challenge. Fortunatelly for you, we love challenges. InfoShare, our in-house designed software, coupled with state of the art computers from IBM, MFLS provides a large base of reports and services giving your business a brand new way of getting the total picture. • Advanced "click and drag" GUI system allows for ease of use and flexibility to reporting • Customized landing page allows our clients to see what is important to them at first glance • Dozens of filters to extract the data you need • Easy export of information to your spreadsheets … and MUCH MORE! EXPERIENCE INFOSHARE FIRST HAND. CALL US TODAY AT (909) 517-2200 AND FIND OUT WHY WE CAN BE A GREAT ASSET TO YOUR COMPANY. RETAIL DISTRIBUTION MFLS award-winning LogistiShare Program offers our clients real time access to our advanced warehouse management solutionDIRECT RESPONSE FULFILLMENT offering solid performance and reliability, developed to enable unlimited scalability• 24-Hour FDB Web Access and flexibility, assuring compatibility with• Continuity and Installment Programs our clients.• Save the Sale/Upsale Programs • Full EDI and XML Integration• 88 Customer Service Stations • Daily shipments to all major retailers• Secure Electronic Communications • Full electronic access to daily shipments• Negotiated Postage and Freight Discounts • 4PL supply chain management• Shipping warehouses in California and • 24-hour shipping and inventory access other locations across the country. • Lowest negotiated freight rates 36 years MOTIVATIONAL FULFILLMENT & LOGISTICS SERVICES 15820 Euclid Ave. • Chino, CA 91708 Tel (909) 517-2200 • Fax (909) 517-1570 R www.mfals.com © 2012 Motivational Fulfillment & Logistics Services
  • 5. The TABLE OF CONTENTS DRTV 36 Fulfillment iTV allows viewers to request information, learn about local deals or buy Leader new products with a click of the remote. Visit www.MoultonLogistics.com/demo for a free demo and learn why the biggest names in DRTV have chosen Moulton. COLUMNS CHANNEL CROSSING R RTV Specialists Direct-to-consumer and Retail Fulfillment 8 Your Association, 49 DRTV Your Bottom Line Supporting Retail: Is This A Time for Community the Answer? and Conversation By Dick Wechsler By Julie Coons 14 FTC Forum 50 Fulfillment Bi-coastal Locatio Bi coastal Locati ns t tions Contact Center Contact Center Where the FTC Says Are You Delivering a Great Facebook Went Wrong Customer Experience? By Lesley Fair By Yolanda Kokayi 24 Ask the Expert 51 Teleservices Who Says Kids’ Products Real time DRTV Real-time Don’t Sell on DRTV? Stop Losing Thousands Analytics of Leads Timothy Hawthorne By Scott Richards 26 From the Executive’s Desk Create the Complete Package By Steven Feinberg 44 Guest Viewpoint For Hispanic Vote, the DRTV Software Suite Developed Campaign is On In-house by Moulton By Marcelino Miyares Jr. 46 Guest Viewpoint Own Your Own Online Media By Jaffer Ali 58 Rick Petry MINI Me By Rick Petry 888-765-Moulton www.moultonlogistics.com Celebrating 40 years of integrity and service. Proud to be the first in the electronicretailermag.com direct response ©2012 Electronic Retailing Association. All rights reserved. Published by Naylor, LLC. No part marketing industry for of this publication may be reproduced or transmitted in any form or by any means, electronic real-time DRTV analytics or mechanical, including by photocopy, recording or information storage and retrieval system, and total transparency. without permission in writing from the publisher. Reprints of articles are available. Visit www.naylor.com, click on “Client Support” and select “Article Reprint.”525237_moulton.indd 1 4/11/11 8:15:07 AM 6 electronicRETAILER | February 2012
  • 6. CALENDAR FEBRUARY-MAY 2012 INDUSTRY EVENTS Online Marketing Summit 2012FEBRUARY 2012 | VOLUME 9 • NUMBER 2 Feb. February 6-10, 2012Electronic Retailing Association2000 North 14th Street, Suite 300 6-10 Hilton San Diego Bayfront San Diego, Calif.Arlington, VA 22201Toll Free: (800) 987-6462 | Phone: (703) 841-1751 For more information, visit www.onlinemarketingsummit.comFax: 703-841-8290www.retailing.org Social Media Strategies Summitinfo@retailing.org Feb. February 7-9, 2012We’re moving! Look for ERA’s new address at www.retailing.org. 7-9 Mirage HotelPresident and CEO: Julie Coons Las Vegas, NevadaExecutive Director, ERA Europe: Marcel Avargues For more information,Chief Financial Officer and Chief Operating Officer: Kevin L. KellyVice President, Government Affairs: Bill McClellan visit www.socialmediastrategiessummit.com/2012vegasVice President, Marketing and Content: Dave MartinVice President, Sales and Group Show Director: Evan Shubin The Great Ideas Summit 2012 Feb.Electronic Retailer magazine is 27-29 Presented by ERApublished for ERA by February 27-29, 2012Naylor, LLC5950 NW 1st Place Fontainebleau Miami BeachGainesville, FL 32607 Miami, Fla.Toll Free: (800) 369-6220 | Phone: (352) 332-1252Fax: (352) 331-3525 For more information, visit www.eragreatideas.orgwww.electronicretailermag.comEDITORIALSenior Editor: Sarah Sain Feb. Washington in Miami –ssain@naylor.com | (352) 333-6020Managing Editor: Elaine Richardson 28 A Networking Reception to Benefit the ERA PACelaine@naylor.com | (800) 856-8092 Presented by ERALayout and Design: Barry Senyk 6:00 p.m.-7:30 p.m. February 28, 2012Photography: Brian DavisMarketing: Kaydee Currie Fontainebleau Miami BeachContributing Writers: Peter Marinello, Jacqueline Renfrow Miami, Fla.Contributing Columnists: Jaffer Ali, Lesley Fair, Steven Feinberg, For more information, visit www.retailing.org/eventsTimothy Hawthorne, Yolanda Kokayi, Marcelino Miyares Jr.,Rick Petry, Scott Richards, Dick WechslerEditorial Submissions eMetrics Marketing Optimization SummitSend press releases and other data to ssain@naylor.com March March 4-9, 2012ADVERTISING 4-9 Marriott Marquis San FranciscoPublisher | Charles Poppercpopper@naylor.com | (888) 404-6154 San Francisco, Calif.Publication Manager | Heather Ciocca For more information, visit www.emetrics.org/sanfranciscohciocca@naylor.com | (352) 333-3463Publishing Consultant | Gina Mullins-Cohen Merchant Risk Council’s 10th Annual e-Commercegcohen@naylor.com | (949) 276-2346Publication Director | Matthew Yates March Payments & Risk Conferencemyates@naylor.com | (352) 333-6014 27-29 March 27-29, 2012Sales Representatives | Pam Blasettiblasetti@naylor.com | (352) 333-3423 Wynn Las Vegas| Shaun Greyling Las Vegas, Nev.sgreylin@naylor.com | (352) 333-3385| Scott Pauquette For more information, visit www.merchantriskcouncil.orgspauquette@naylor.com | (352) 333-3446 ad:tech San Francisco| Jessica Semoninjsemonin@naylor.com | (352) 333-3357 April April 3-4, 2012MAGAZINE ADVISORY BOARD 3-4 Moscone Center WestMAB Chairman: Dick Wechsler, Lockard & Wechsler Direct San Francisco, CaliforniaHal Altman, Motivational Fulfillment & Logistics ServicesBrendan Condon, REVShare For more information, visit www.ad-tech.comDanette Dickerman, R2C GroupStacy Durand, Revenue Frontier/Media Design Group April 2012 ERA Hong Kong SeminarMarty Fahncke, FawnKey & Associates Presented by ERAEdward Glynn, Venable LLP 20 April 20, 2012Harry Hill, Oak Lawn Marketing GroupMaria Kennedy, Discovery Communications Hong Kong Convention & Exhibition Centre (CEC), 1 Expo DrivePeter Koeppel, Koeppel Direct Wanchai, Hong KongGary Latz, a2b Fulfillment Inc. For more information, visit www.retailing.org/eventsCollette Liantonio, Concepts TV ProductionsRobert Logie, Studio ModernaKen Musante, Direct Response PaymentsRick Petry, Creative Writer, LLC May Government Affairs Fly-InJoan Renfrow, Onyx Productions Direct Inc. 7-8 Presented by ERAGene Silverman, Hawthorne Direct May 7-8, 2012Anthony Sziklai, Moulton Logistics ManagementJeff Tuller, Savvier Washington, D.C.Dan Zifkin, Zephyr Media Group For more information, visit www.retailing.org/eventsSUBSCRIPTIONSEmail Jerry Rozario, JRozario@retailing.org Please send your upcoming industry event listings to Sarah Sain at ssain@naylor.com.Published February 2012 ERA-M0212/6655 Note: Dates and locations are subject to change. February 2012 | electronicRETAILER 7
  • 7. YOUR ASSOCIATION, YOUR BOTTOM LINE BY JULIE COONS A Time for Community and Conversation tThere’s been a lot of buzz surrounding The Great Ideas Summit 2012. And much of that excitement is attrib- uted to our return to Miami – a favorite destination for many. We’ll be rolling out the red carpet at the Fontainebleau Miami Beach and gearing up for three days of high-powered networking and deal making. Aside from the receptions, exhibits and special events on our agenda, we also have assembled a great educa- tion program that will include the Keynote Presentation along with long-form and short-form sessions located right on the Show Floor. On February 28 and 29, ERA will present education featuring four Panel Discussions (hour-long sessions) and eight Lightning Sessions (12-minute presentations). ERA staff, the ERA Education Committee and more than 300 ERA members voted on these final 12 sessions via • The Multichannel Marketing Advantage – Learn how to leverage all marketing channels from digital to direct mail to DRTV so that you can maximize sales at the lowest possible cost. • Create Meaning ful Consumer Connections by Integrating Mobile with DR – How to build and implement an effective mobile and direct response strategy to build meaningful customer connections, and increase ROI and customer loyalty. • How A Virtual Store Leads to More Sales – Understand how a 3D store with augmented reality allows customers to have an in-store experience from home. • Don’t Run Your DR Campaign by the Seat of Your Pants: Have a Plan! – The 20 elements of a good DR plan, which include market opportunity, independent research, demographics and legal substantiation. a crowd-sourcing initiative. Thank you to the Education On Tuesday, February 28, I encourage all of you Committee for, once again, supporting this initiative. to attend this year’s Keynote Presentation titled “DR The 12 sessions include: Disruption – What You Need to Know About Social • 10 Profound Marketing Secrets That Produce Big Profits and Over-the-Top TV.” I will be moderating this panel – Industry experts will reveal 10 of the most profound discussion and joined by leading experts Brendan hidden secrets you can use to accelerate your results! Condon of REVShare, Andrew Gordon of Direct • Which Came First – Retail or DRTV in Seeking the Impact Group and Ben Mendelson of the ITV Alliance Golden Egg? – Hear from major players in the industry to learn more about these technologies and the impact as they compare and contrast the direct marketer mold that social and OTT TV might have on our industry. from the start to retail outlet modeling to incorpora- As you can see, we’ve put together an assortment of tion of DRTV. sessions designed to not only provide our attendees with • The Real Men and Women of Madison Avenue – valuable information, but also to serve as a conduit for Understand the three things that you must do to create conversation. It’s an opportunity to get people talking a memorable, lasting, results-driving brand campaign. about the topics and issues affecting our business today. • The Road to Retail – A Superhighway with Many Exits! We want to keep the communication going between – Attendees will learn which path leads to increasing our speakers and attendees long after The Great Ideas ROI and the shortest route to success. Summit concludes. That’s why we invite ERA members • Apparel – The HOT Category for DRTV – Learn more to participate in our online community, MyERA, at about these popular apparel products and how you myera.retailing.org and start a dialogue. This custom- can market the next “must have.” ized social networking tool puts you in touch with our • Positive Reputation = Revenue: Increasing Your Online industry’s thought leaders, and gives us – ERA staff – Market Share – This online reputation management direct feedback on the types of educational content you session will teach DRTV marketers and service pro- would like to see at future conferences. viders how to navigate their online market share. Finally, be sure not to miss ERA’s Washington in • For the Hispanic Vote, the Campaign is on! – Discover Miami, a high-powered networking reception to help why ignoring the Hispanic electorate in 2012 could raise funds for the association’s E-Retail Political Action be at your peril! Committee. • Deal of the Day Sites: A Game Changer – Learn how For more information about The Great Ideas Summit to immediately capitalize on this new segment by 2012 or to register, please visit www.ERAGreatIdeas.org educating them about industry players, success stories, or retailing.org. roadblocks and the economics of the deal. I look forward to seeing you in Miami!8 electronicRETAILER | February 2012
  • 8. GREAT I D E A S ATC-LEVELT H E G R E AT I D E A S S U M M I T R E T U R N S T O M I A M I .For 2012, we’re back in the hottest, coolest city on the planet. The Great Ideas Summit is at Miami’sfabulously reimagined, modernly luxurious Fontainebleau Miami Beach. Get the chance to shakehands with nearly 800 decision makers, fill your brain with the latest selling strategies, and raiseyour glass (and the roof)! It’s ERA’s Access2 with the right people and everything you need to grow …all under the golden Florida sun. Register now and we’ll C you there. ERAGreatIdeas.orgF EBR UARY 27-29, 2012 | MI AM I , F L | F ON TAI N E B LE AU M I AM I B E AC H
  • 9. INDUSTRY REPORTSConnect, Collaborate and Discover with MyERAARLINGTON, Va. – The  Electronic with fellow members and the industryRetailing Association (ERA) gave its at large.”members an early holiday present with The MyERA website, myera.retailing.the launch of its new online networking org, is a powerhouse tool for network-community, MyERA. ing and collaboration. By logging into MyERA is a user-friendly online net- the community and creating a profile,working community that allows ERA both members and non-members canmembers to easily connect with one Dave Martin, vice president of market- get access to personalized contentanother, find new business leads, share ing and content at ERA, says MyERA is alerts, exclusive info from the ERAideas and content and much more. It’s a valuable resource that offers members Knowledge Center, easy access to con-the direct response industry’s leading new ways to think about and do business. nect and network directly with eliteresource for actionable content. The com- “We’re very excited to provide our leaders in the direct response industry,munity is also where ERA’s committees members with this new and excit- start discussions with your peers andand councils are managed and also where ing community,” Martin says. “We much more.ERA members can gain access to special encourage users to utilize MyERA as For more information about MyERA,members-only information, including a business social networking tool that contact Dave Martin at dmartin@retail-eMarketer reports and best practice briefs. will help them stay closely connected ing.org or visit myera.retailing.org. Brandenburg Gate, the show will feature inventor or a service provider to theRegistration Now many of the same elements that made industry, this conference is the placeOpen for ERA Europe Stockholm such a success. to go.” “The standard was set high with “We want people to come to the con-Conference Stockholm, but Berlin has its own ference and do great business and haveBRUSSELS, Belgium – Registration flavor,” says ERA Europe Executive a great time. That’s what it’s all about.is now open for the 2012 Electronic Director Marcel Avargues. “The busi- You can meet all the right people inHomeShopping Conference. After a ness should be more active; the edu- Europe in one location,” says Conferencerecord-breaking 2011 show in Stockholm, cation sessions are to be on the right Director Nancy Barkan.the ERA Europe Conference continues its track.” When asked why people should For more information about the 2012travels, making its next stop in Berlin. attend, he explains, “People will meet Electronic HomeShopping Conference Taking place on June 24-26 at the entire core of the industry in Europe or to register, visitthe Marriott Hotel near the famous here. Whether you’re a vendor, an www.e-homeshopping.org. As Seen on TV Inc. Completes $15 Million in Equity Financing CLEARWATER, Fla. – As Seen On TV Inc., parent company of TVGoods Inc., recently received $12,155,000 in equity financing, bringing the total raised in recent months to $15 million. The transaction provides the capi- tal necessary to accelerate market- ing and promotional efforts for a variety of products, as well as for the development of products to be introduced during the beginning of 2012. Management intends to use the majority of the net proceeds from the offering for purchasing product inven- tory for AsSeenOnTV.com, producing February 2012 | electronicRETAILER 11
  • 10. INDUSTRY REPORTS Read Electronic Retailer Magazine Online! The latest editions of Electronic Retailer are available in our new digital format at www.elec- tronicretailermag.com. Also, browse back issues from the last five years, all online and at your fingertips. The new digital format is available as well via your smartphone or iPad and has a host of interactive features, including offline download, bookmarking and sending of pages to social networking sites. new infomercial projects, building out Canis Launches the retail distribution, media buying, and expanding global distribution and UK’s First Shopping marketing of its products. Radio Network According to Chairman of the Board Kevin Harrington, “We are gratified LONDON, England – Canis Media that investors are showing support for has teamed up with WRN Broadcast our expansion plans and recent inno- to launch the UK’s first shopping radio vations. In this economy, we realize it station, Shop Radio. can be difficult to raise capital to help Shop Radio will be broadcast on the facilitate growth but we are succeeding Sky platform 22 hours a day, seven days with this strategy, which can help the a week and can also be found on the company, our partners and inventors web at www.shopradio.com. achieve their goals.” This new radio station will be the first of its kind in the UK to bring radio listeners the same quality products that TV viewers have had access to for more than a decade. Ed Hall, chief executive of Canis Media, says, “I have been looking for the right partner to launch Shop Radio for nearly 10 years. WRN Broadcast is a great distributor of radio stations, and a combination of our market knowledge and experience and WRNB’s history in radio seems like a winning combina- tion to me.” Swipe Solutions’ Rapid Response Team a Success LOS ANGELES, Calif. – Swipe Payment Solutions announces the success of its new Rapid Response Team. The five- person team responds to client requests, support issues, proposals or any needed action immediately. Manned with the technology, more than 75 years combined banking and Glossary Link payment processing experience and 20 domestic banks518998_InfoCision.indd 1 525177_EM.indd 1 12/16/11 9:41:58 AM 12 electronicRETAILER | February8:39:27 PM 3/19/11 2012
  • 11. for our customers, Vice President of industry, has moved into its new cor-Business Development Curtis Kleinman porate headquarters. The newly con-says the company is proud of the team’s structed building doubles Cannella’ssuccessful July launch and of it has space to 9,600 square feet in order toaccomplished in the months since. accommodate a significant staff expan- The Rapid Response Team can sion necessitated by record growth forrespond within minutes and hours to the company.nearly all requests. It is also available to The new address for Cannellahelp its priority e-commerce and direct Response Television is 848 Libertyresponse customers during off-hours, Drive, Burlington, WI 53105. The com-including evenings and weekends. pany’s main phone number, (262) 763- For more information, visit www. 4810, remains the same.swipellc.com “We have been eagerly anticipating this day since we broke ground on ourCannella Response new building in June,” says Frank Cannella, founder and executive directorTelevision Moves to of Cannella Response Television. “OurNew Headquarters new headquarters is testament to our continuing growth, our standing asBURLINGTON, Wis. – Ca nnel la DRTV industry leaders and, most sig-Response Television, the largest info- nificantly, to the people here who mademercial media company in the DRTV it all possible.” STATWATCH 10-30 second videos, BY IRV BRECHNER using existing footage that you’ve already shot, repurposed for a differ- ent purpose. One might be “See how it works” with animation of the product’s operation. Another might be “See what a professional says” with one or more video testimonials. Or “Hear what the inventor says” with a video interview of the products’ inventor. Think short and sweet “video bursts” that take advantage of our insa- tiable appetite for video. Chances As video takes over the web (180 are good your online conversion million Americans watched online rate will benefit. video in a single month**), having extensive video on DRTV product *MarketingExperiments quoted in websites is a no-brainer. SeeWhy Webinar, 11/8/11; Internet While many DRTV advertisers Retailer, 4/10/11 do indeed have their short- or long- **BizReport, 10/26/11 form commercials on their websites, that’s often where it ends. With all Irv Brechner is EVP and creator the video footage marketers have, of Acquirgy’s Customer Acquisition there’s an opportunity to take it to IntelCenter and can be reached the next level. at irv@acquirgy.com. Look for an Let video do the selling instead extended version of StatWatch in of dense text. Think a slew of the ERA Knowledge Center. 562725_Dial.indd 1 11/30/11 9:45:28 AM February 2012 | electronicRETAILER 13
  • 12. INDUSTRY REPORTS FTC ForumWhere the FTC SaysFacebook Went WrongBY LESLEY FAIRIt’s no surprise the FTC’s proposed privacy settlement withFacebook has attracted industry attention. The terms of aparticular order apply only to the company in question,of course. But savvy retailers use FTC cases as compliancechecklists to help them stay off the law enforcement radarscreen. Where did Facebook go wrong, and what tips canyour business take from the case? The FTC’s complaint charges eight separate violations ofthe law. According to the FTC, Facebook falsely promisedthat people could restrict their information to a limited audi-ence, but then went ahead and shared it with users’ friends’apps. In addition, the FTC says that when Facebook changedits privacy practices in December 2009, it overrode users’existing privacy choices in a way that was both deceptiveand unfair. What’s more, says the FTC, Facebook deceivedpeople about how much of their information was shared Electronic retailers who do business in Europe understandwith apps they used. the significance of Facebook’s promise that it complied with What about Facebook’s promise that “We don’t share your U.S.-EU Safe Harbor Framework, a mechanism by whichinformation with advertisers unless you tell us to”? The FTC American companies can transfer data consistent withsays that in many instances, Facebook shared with advertisers European law. But according to the FTC, Facebook’s pledgethe user ID of people who clicked on ads. The complaint also wasn’t truthful.charges that before awarding apps the company’s “Verified What does the future look like for Facebook’s privacy practices?App” seal, Facebook promised to put them through a “detailed The order includes a broad ban on deception and a violation kicksreview process.” But according to the FTC, Facebook really in substantial financial penalties. Furthermore, when Facebookdidn’t do anything different to check out the security of those offers privacy settings on its site, it has to honor them. What ifapps. The FTC also says Facebook made deceptive claims Facebook wants to share certain broad classes of informationabout its photo and video deletion policy. “When you delete in a way that exceeds the privacy settings a user has alreadyan account, it is permanently deleted from Facebook,” the chosen? Facebook will have to clearly and prominently disclosecompany claimed. But even after users followed Facebook’s what it wants to do and then get each user’s affirmative expressprocedure for deactivating or deleting an account, Facebook consent. What about just changing the privacy policy? No dice.still served up their photos and videos to anyone who accessed That’s not “clear and prominent” under the order.them via the content URL. The company also has agreed to a comprehensive overhaul of its privacy practices, including regular audits by independent outsiders for the next 20 years. The program has to address According to the FTC, Facebook privacy risks posed by existing products and new ones that falsely promised that people right now are just a fleeting thought in a Facebook developer’s imagination. To ensure compliance, the order imposes strict could restrict their information monitoring and reporting requirements. to a limited audience, but then Looking for tips to help keep your company on the right side of the law? Visit the Privacy & Security portal at went ahead and shared it with business.ftc.gov. users’ friends’ apps. Lesley Fair is an attorney with the FTC’s Bureau of Consumer Protection. 14 electronicRETAILER | February 2012
  • 13. The DRTV Experts ThatDrive Multi-Channel SalesAt Koeppel Direct we start by thinking inside the box to deliversales outside the box. Why? Because direct response television(DRTV) is a powerful hub that educates buyers and drives salesacross all channels.The Koeppel Direct team, led by Wharton MBA Peter Koeppel,offers superior media planning strategies, and proprietary researchand analytics, combined with buying clout – all designed to ensureyour success. Christena Garduno, Chief Media Strategist and Peter Koeppel, PresidentMeet Us At ERAs Great Ideas Summit, 2/27-2/29/12, Fontainebleau Miami Beach, contact us at 972-732-6110 or visit www.koeppeldirect.com.
  • 14. EMARKETER RESEARCHWho is the U.S. Hispanic Market? The U.S. Hispanic population is booming, and eMarketer estimates that by the end of this year 66 percent of it will be online.As the number of Hispanics and their spending power continue to increase, so will the role of digital media in their daily lives. Marketers who want to reach them have a number of factors to consider. Language is only one of the issues to address.While English may be many Hispanics’ primary language, they often still rely on Spanish to get information they trust. Technology and media usage are also key. Hispanics are early adopters of many of the latest devices, including smartphonesand tablets. They are heavy consumers of digital media and participate in a wide range of content activities as they make thedesktop and mobile internet an integral part of daily life.U.S. Hispanic Adult and Child Population, 2000 & 2010 (millions and % change) 0% 50.5 43. 35.3 33.3 2% 45. 23.0 8% 17.1 12.3 38. 2000 2010 Children (<18) Adults (18+) Total Note: numbers may not add up to total due to rounding Source: Pew Hispanic Center, “Census 2010” 50 Million Latinos,” March 24, 2011U.S. Buying Power*, by Race/Ethnicity, 1990, 2000, 2010 & 2015 (billions) 1990 2000 2010 2015 White $3,788.7 $6,349.6 $9,439.3 $11,841.3 Black $316.3 $600.2 $957.3 $1,247.4 Asian $115.4 $274.4 $543.7 $775.1 Multiracial $0.0 $59.6 $115.5 $164.6 American Indian $19.6 $40.0 $67.7 $90.3 Total $4,239.9 $7,323.7 $11,123.5 $14,118.7 Hispanic (can be of any race) $210.0 $499.0 $1,036.0 $1,482.0 Note: numbers may not add up to total due to rounding; *defined as disposable personal income, meaning the share of total personal income available for personal consumption, personal interest payments and savings Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, “The Multicultural Economy 2010,” Dec. 1, 2010 16 electronicRETAILER | February 2012
  • 15. U.S. Hispanic Internet Users and Penetration, 2009-2015 (millions and % Hispanic population) 42.1 39.8 37.0 34.9 32.2 30.1 73% 27.7 71% 66% 68% 63% 58% 61% 2009 2010 2011 2012 2013 2014 2015 Hispanic internet users % of Hispanic population Note: can be of any race; individuals of any age who use the internet from any location via any device at least once per month Source: eMarketer, January 2011U.S. Hispanic Mobile Phone Users, by Age and Gender, 2009 & 2010 (% of respondents in each group ) 2009 2010 Gender Male 80% 80% Female 71% 73% Age 18-29 81% 90% 30-44 80% 80% 45-59 73% 73% 60+ 58% 50% Note: 2009 n=1,754; 2010 n=1,375 Source: Pew Hispanic Center, “Latinos and Digital Technology, 2010,” Feb. 9, 2011Actions Taken After Seeing an Ad According to U.S. Hispanic vs. Non-Hispanic Internet Users,October 2010 (% of respondents) Search the internet for product/brand information 43% 37% Comparison shop for lowest price 39% 31% Shop in physical stores for product/brand 38% 36% Talk about it with friends/family 36% 31% Read product reviews 30% 23% Shop online retailers 20% 16% Nothing 13% Note: ages 13+ 17% Source: comScore, Inc., Conectados!: Understanding the U.S. Hispanic Online Consumer,” provided to eMarketer, Nov. 19, 2010 Hispanic Non-Hispanic February 2012 | electronicRETAILER 17
  • 16. RETAIL RANKINGS RETAIL INFOMERCIAL RANKINGS BY MEDIA FOR DECEMBER 2011 LONG-FORM PRODUCTS SOLD ON TV Based solely on media spending for programs aired on national cable networks monitored, media index and web activity. Rank Product Marketing Company Category Price 1 NuWave Oven Hearthware Kitchen Three payments of $39.99 plus $29.95 S&H 2 Shark Steam Pocket Euro-Pro Household Four payments of $39.95 plus S&H 3 My Pillow LifeBrands Household 60-day risk-free offer Computers & 4 MagicJack MagicJack 30-day free trial Electronics 5 Total Gym Total Gym Fitness Health & Fitness 30-day trial for $49.95 6 Meaningful Beauty Guthy-Renker Beauty $39.95 plus $5.99 S&H 7 Ninja 1100 Euro-Pro Kitchen Four payments of $39.95 with free S&H 8 Zumba Zumba Fitness Health & Fitness Three payments of $29.95 plus $15.95 S&H 9 Brazil Butt Lift Beachbody Health & Fitness Three payments of $19.95 plus $12.95 S&H 10 Wen Guthy-Renker Beauty $29.95 plus $5.99 S&H 11 Insanity Beachbody Health & Fitness Three payments of $39.95 plus $24.95 S&H 12 Genie Bra Tristar Products Fashion $59.99 plus $9.99 S&H 13 NInja Pulse Euro-Pro Operating Kitchen Four payments of $37.50 with free S&H 14 Nopalea TriVita Health & Fitness Free bottle; pay $9.95 S&H 15 Sensa Sensa Products Health & Fitness 30-day trial for $9.95 with free S&H 16 Shark Navigator Lift Away Euro-Pro Household Four payments of $49.95 plus $45.90 S&H 17 Food Lovers Fat Loss System Provida Life Sciences Health & Fitness Six payments of $19.99 plus $19.99 S&H 18 Miracle Fireplace Heat Surge Household $298 plus $49 S&H 19 InStyler Tre Milano Beauty 30-day trial for $14.99 plus $19.99 S&H 20 Tria Laser Tria Beauty Beauty Lead generation 21 10-Minute Trainer Beachbody Health & Fitness Two payments of $39.95 plus $9.95 S&H 22 OrGreenic Telebrands Kitchen $19.99 plus $6.99 S&H 23 P90X Beachbody Health & Fitness Three payments of $39.95 plus $19.95 S&H 24 no!no! Radiancy Beauty Three payments of $89.95 plus $14.95 S&H 25 CarMD CarMD Automotive Three payments of $39.95 plus $14.95 S&H© Copyright 2012 Infomercial Monitoring Service Inc.™ All rights reserved. IMSTVOnline.com. Satellite 2, 810-812 Park Way, Philadelphia, PA 19008. Phone (610) 328-6902. Fax:(610) 328-6791. Email sam@imstv.com. IMS is a research and publishing company that tracks both long-form infomercials and short-form DRTV spots on national cable, broadcastand satellite networks. IMS Rankings are for December 2011. Rankings for each month are based on long-form infomercial media and short-form spot frequency of programsaired on networks monitored. IMS database and video library services involve all aspect of the DR industry. IMS provides weekly and monthly reports, rankings, verifications,evaluations, research, consulting, film and video production and post production. No part of any IMS reports may be reproduced or transmitted in any form electronic ormechanical, including photocopy, or any information storage and retrieval system without permission in writing from IMS. IMS is not responsible for any loss due to errors oromissions in information provided, or for any loss of service due to technical or other difficulties. Please visit IMSTVOnline.com for more information. 18 electronicRETAILER | February 2012
  • 17. SPOT RANKING BY FREQUENCY FOR DECEMBER 2011 SHORT-FORM PRODUCTS SOLD ON TV Based solely on frequency of programs aired on national cable networks monitored. Rank Product Marketing Company Category Price S&H 1 Proactiv Solution Guthy-Renker Beauty $19.95 $0 2 Perfect SitUp Perfect Fitness Health & Fitness $59.95 $14.95 3 Mint Evolution Robotics Household $199.99 $0 4 Vibration Tri-Phoria Church & Dwight Co. Personal $0 $0 5 Pajama Jeans Hampton Direct Fashion $39.95 $7.95 6 Pro-Form Ab Glider ICON Health & Fitness Health & Fitness $14.95 $0 7 Slice-O-Matic Telebrands Kitchen $19.99 $6.99 8 Lipozene Obesity Research Institute Health & Fitness $29.95 $0 9 Ahh Bra Ahh Bra Fashion $19.99 $0 10 Salon Express Ontel/Spark Innovators Beauty $10 $6.99 11 Flex Seal Flex Seal Household $19.99 $9.95 12 Forever Lazy Allstar Products Group Fashion $29.95 $7.95 13 Kobalt Double Drive Kobalt Household $19.98 $0 14 Plaque Blast Telebrands Pet Products $10 $6.99 15 PajamaGram The PajamaGram Co. Miscellaneous $0 $0 16 Chef Basket Telebrands Kitchen $10 $6.99 17 Grout Bully Harvest Direct Household $10 $7.95 18 Gray Away Qbeauty Beauty $19.99 $13.98 19 InstaHang Product Trend Household $14.99 $7.95 20 EZ Moves Allstar Products Group Household $19.99 $7.95 21 Twin Draft Guard Hampton Direct Household $19.99 $7.95 22 2012 Gold Buffalo Coin National Collectors Mint Crafts & Hobbies $9.95 $4.95 23 Pro-Form TDF ICON Health & Fitness Health & Fitness $0 $0 24 OrGreenic Telebrands Household $19.99 $6.99 25 Eggies Allstar Products Group Kitchen $10 $7.99© Copyright 2012 Infomercial Monitoring Service Inc.™ All rights reserved. IMSTVOnline.com. Satellite 2, 810-812 Park Way, Philadelphia, PA 19008. Phone (610) 328-6902. Fax:(610) 328-6791. Email sam@imstv.com. IMS is a research and publishing company that tracks both long-form infomercials and short-form DRTV spots on national cable, broadcastand satellite networks. IMS Rankings are for December 2011. Rankings for each month are based on long-form infomercial media and short-form spot frequency of programsaired on networks monitored. IMS database and video library services involve all aspect of the DR industry. IMS provides weekly and monthly reports, rankings, verifications,evaluations, research, consulting, film and video production and post production. No part of any IMS reports may be reproduced or transmitted in any form electronic ormechanical, including photocopy, or any information storage and retrieval system without permission in writing from IMS. IMS is not responsible for any loss due to errors oromissions in information provided, or for any loss of service due to technical or other difficulties. Please visit IMSTVOnline.com for more information. February 2012 | electronicRETAILER 19
  • 18. JORDAN WHITNEY’S TOP CATEGORIES JORDAN WHITNEY’S TOP INFOMERCIAL CATEGORIES FOR DECEMBER 2011 FITNESS RANK SHOW NAME PRODUCT PRICE DISTRIBUTOR 1 Insanity Exercise program $119.85 Beachbody 2 The Firm Express Fitness program $89.85 Gaiam Americas 3 Total Gym Home gym $49.95 trial Total Gym Fitness 4 P90X Fitness DVDs $119.85 Beachbody 5 Zumba Fitness DVDs $89.85 Zumba Fitness SELF-HELP RANK SHOW NAME PRODUCT PRICE DISTRIBUTOR 1 Free Money Book $29.95 QSN Direct 2 Humana Medicare Medicare Advantage plan Lead generation Humana 3 Brainetics Math/memory training $14.95 trial Launch Pad 4 Total Transformation Parenting program Lead generation Legacy Parenting 5 Life Lock Identity theft protection Lead generation Life Lock BEAUTY RANK SHOW NAME PRODUCT PRICE DISTRIBUTOR 1 Lifestyle Lift Face lift procedure Lead generation Lifestyle Lift 2 Wen Hair care products $29.95 Guthy-Renker 3 Genie Bra Seamless bra $59.99 Tristar Products 4 Meaningful Beauty Skincare $39.95 Guthy-Renker 5 Tria Laser Hair removal device $445 Tria BeautySource: The Jordan Whitney “Greensheet,” published by Jordan Whitney Inc., Tustin, Calif. For information about the “Greensheet,” Jordan Whitney’s consulting, tapelibrary or category specific research reports, contact Clare Kogler at Jordan Whitney Inc. Voice: (714) 832-3353; fax: (714) 832-4422; email: greensheet@cox.net or visit ourwebsite: jwgreensheet.com. ©Jordan Whitney Inc. 201220 electronicRETAILER | February 2012
  • 19. JORDAN WHITNEY’S TOP TRADITIONAL SHORTFORM CATEGORIES FOR DECEMBER 2011 HOUSEWARES RANK SPOT NAME PRODUCT PRICE/OFFER DISTRIBUTOR 1 Slice-O-Matic Manual Slicer $19.99 Telebrands 2 Flex Seal Rubber spray sealant $19.99 Swift Response 3 Kobalt Double Drive Screwdriver set N/A Lowe’s 4 Furniture Fix Support panels for furniture $14.99 Hampton Direct 5 Space Bag Vacuum storage bags $19.95 ITW Space Bag PET PRODUCTS RANK SPOT NAME PRODUCT PRICE/OFFER DISTRIBUTOR 1 Plaque Attack Dental spray for pets $19.95 Exceptional Products 2 Shed-Pal Dog grooming tool $19.95 Telebrands 3 Tagg Pet Tracker Pet tracking device $14.95 trial Qualcomm 4 Pet Rider Car seat throw for pets $14.99 Telebrands 5 Comfy Control Harness Restraint system for dogs $10 Telebrands TOYS RANK SPOT NAME PRODUCT PRICE/OFFER DISTRIBUTOR 1 Pillow Pets Stuffed animal pillow $19.95 CJ Products/Ontel 2 Wuggle Pets Plush toy making kit $19.99 IdeaVillage 3 Happy Nappers Stuffed pillow for kids $19.99 Merchant Media 4 Fushigi Ball Magic ball toy $19.99 IdeaVillage/Zoom TV 5 Criss Angel Magic Magic kit $29.98 IdeaVillageSource: The Jordan Whitney “Greensheet,” published by Jordan Whitney Inc., Tustin, Calif. For information about the “Greensheet,” Jordan Whitney’s consulting, tapelibrary or category-specific research reports, contact Clare Kogler at Jordan Whitney Inc. Voice: (714) 832-3353; fax: (714) 832-4422; email: greensheet@cox.net or visit ourwebsite: jwgreensheet.com. ©Jordan Whitney Inc. 2012 February 2012 | electronicRETAILER 21
  • 20. LOCKARD & WECHSLER’S CLEARANCE & PRICE INDEX BY EDDIE WILDERSThe Price and Clearance Indices are based on a 52-week moving average, dating back to the first week of January2011. The Index is calculated by dividing current week clearance percentage or CPM over the most recent 52-weekaverage clearance or CPM. Trends are now compared to those of 2010. CLEARANCE INDEX The very soft marketplace that advertisers were enjoying The end of the holiday season brought us into presi- through the beginning of the quarter lasted right into dential primary season with Iowa and New Hampshire the final week of the year. The higher percentages dur- kicking off the festivities. Local broadcasters will be in ing December brought each length above 2010 levels. full political blackout windows, and inventory will be The 30-second clearance increased from 28 percent to extremely difficult to secure. 31 percent, while 60-second clearance rose from 25 The soft marketplace continues to afford direct percent to 28 percent and 120-second clearance jumped response inventory on both syndication and network. from 15 percent to 21 percent in 2011. Early indications Programming such as The Price is Right and the Today of the 2012 marketplace show that this softness of the show are prime locations for DR advertisers, and 2012 inventory should be around through at least the end should continue to afford these opportunities, if the of the first quarter. price is right. 3 0 -s econd Clearance 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Week 1 Week 4 Week 7 Week 10 Week 13 Week 16 Week 19 Week 22 Week 25 Week 28 Week 31 Week 34 Week 37 Week 40 Week 43 Week 46 Week 49 2010 2011 Week 52 6 0 -s econd Clearance 2.50 2.00 1.50 1.00 0.50 0.00 Week 1 Week 4 Week 7 Week 10 Week 13 Week 16 Week 19 Week 22 Week 25 Week 28 Week 31 Week 34 Week 37 Week 40 Week 43 Week 46 Week 49 Week 52 2010 201122 electronicRETAILER | February 2012
  • 21. 1 2 0 -s econd Clearance 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Week 1 Week 4 Week 7 Week 10 Week 13 Week 16 Week 19 Week 22 Week 25 Week 28 Week 31 Week 34 Week 37 Week 40 Week 43 Week 46 Week 49 Week 52 2010 2011PRICE INDEXStrong December viewership helped curb the 2011 price index, as the year finished strong. Stations such as Hallmark,Fox News and WGN continue to be direct response mainstays. USA, AMC and ESPN remained at the top of the view-ership mountain, while also allowing for a stronger DR presence in select dayparts. With the return of network primeprogramming, the NFL playoffs and the political season starting in January, viewership promises to increase once again. CPM 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 Week 1 Week 4 Week 7 Week 10 Week 13 Week 16 Week 19 Week 22 Week 25 Week 28 Week 31 Week 34 Week 37 Week 40 Week 43 Week 46 Week 49 Week 52 2010 2011 February 2012 | electronicRETAILER 23
  • 22. ASK THE EXPERT BY TIMOTHY R. HAWTHORNE Who Says Kids’ Products Don’t Sell on DRTV?a Armed with an insatiable appetite for the unique, pretty, soft and cuddly, today’s kids want more toys, dolls, art kits, pillows, music and entertainment than ever. They don’t even have credit cards yet, but their voices and buying habits are already being heard – and heeded – in many households. Answering the call is a group of manufacturers and mar- keters who have their fingers on the pulse of the children’s market. They work in a category that hasn’t historically ranked high on the DRTV charts despite the fact that it racks up millions of unit sales annually. Targeted to toddlers, preteens, teenagers and their par- ents, fun and educational products often translate into suc- cessful retail, web and catalogue plays. That not only helps extend brand life – Kidz Bop, for example, is currently in its 14th version – but also ensures that the products reach the bottom of the toy box. “The key is to produce and advertise quality products that truly excite the child,” multiple generations of children over time. says Miller, who calls DRTV the “jumping off point” for Market research firm Packaged Facts reports that the all other distribution channels. “DRTV toy commercials kids’ market reached more than $21 billion in disposable have evolved from simply introducing products to creating income in 2010 and that families spent more than $115 bil- categories that everyone jumps in on.” lion on kids in key consumer areas such as food, clothing, Robert Yusim, president of Product Counsel DRTV in personal-care items, entertainment and reading materials. Winnipeg, helped bring to market DRTV products Moon The fact that kids have a lot to say about how that money Sand, Moon Dough, Air Hogs and Vectron Wave. He is spent translates into major opportunities for marketers says the most successful children’s DRTV shows center on who get into the minds of these young buyers and figure fun creative treatments that include the appropriate bal- out what they want. ance of product demonstrations, fun displays and “magic Sometimes the answer lies in the simplest of ideas. Bees, transformations” that ooh and ah the young audience. ladybugs, dogs and unicorns took on new identities in 2003 “Getting kids to react and then lobby their parents is the when Doug Fowkes introduced the world to Pillow Pets. hardest part,” Yusim says. “You can only do that through The folding stuffed animals have since morphed into an compelling creative.” entire line of plush products that includes blankets, hats and The momentum established by the many children’s even bedroom slippers. The concept of an animal-shaped products that left their mark on the DRTV world has pillow is simple enough, but it took Fowkes’ marketing opened doors for companies seeking a direct channel for genius and a boost from DRTV to turn these products their youth-oriented products. Both infomercials and short- into a real goldmine. form commercials have proven themselves effective ways John Miller, a pioneer who helped build the kids’ to sell kids’ products and to create brand awareness and category with Better Blocks, Floam, Bendaroos and desire among a diminutive but influential component of Pixos, is current president and creative director at today’s households. Hutton-Miller in Boca Raton, Fla. Miller says those early products – plus newer innovations like Happy Timothy Hawthorne is founder, chairman and executive Nappers and the Gyro Bowl – have all helped to drive creative director of Hawthorne Direct, a full-service the children’s category. DRTV and new media ad agency founded in 1986. “We realized early on that success in this category Since then, Hawthorne Direct has produced or managed depended on how excited children got over the products, more than 800 direct response TV campaigns. Tim is a and whether they could get their parents to pick up the co-founder of the Electronic Retailing Association and is phone and place orders,” Miller says. “We call it ‘pester the author of the definitive DRTV book The Complete power’ and it works very well with kids’ products.” Guide to Infomercial Marketing. Tim was honored However, the children’s category can be fickle: Kids with the prestigious Lifetime Achievement Award by the sniff out inferior products quickly and jettison them to Electronic Retailing Association in 2006.24 electronicRETAILER | February 2012
  • 23. FROM THE EXECUTIVE’S DESK BY STEVEN FEINBERG Create the Complete Packagei In marketing parlance, a “whole” was a smart one. There is nothing product is one that contains every- extraneous in the packaging – it thing a consumer needs to succeed in is Spartan by design. Lift the easy- fulfilling the product’s promise. One to-open interior packaging and the might think of the whole product as ta-da moment occurs as you behold the base product that acts as a kind of the phone itself. You turn it on and it hub that the ancillary items or sweet- works as advertised – imagine! You’re eners in an offer configuration sur- not overwhelmed by manuals; instead, round like so many spokes, but that set-up instructions are step-by-step would be a misnomer. Instead, mar- and easy to follow. The pleasure is keters should view their entire offer immediate. And yet, even while the – from top to bottom – as a whole iPhone is an ideal whole product, it product. Every aspect of that product also represents a seemingly infinite – from packaging and instructions, to after-market dream. for a mental health program had the base product and all additional The attention to detail that Apple all sorts of psychological maladies items, should work in unison to puts into their packaging is one of the emblazoned on the box. While the exceed your consumer’s expectations. things that has contributed to making words were in fact the conditions Ideally, it is the entire package or it the world’s most valuable brand. As the product helped remedy, they were “kit” itself that should facilitate your many of the recent obituaries for Steve not the sorts of things a buyer would buyer’s ability to achieve success, for Jobs have attested, creating a prod- want their friendly UPS deliveryman that success will create brand loyalty, uct as seemingly organic as Apple’s to know about. and lay the foundation for an endur- typically are is an arduous process Once your box is opened, the faster ing relationship. The goal then is for that requires tremendous attention the consumer can engage with the every aspect of an offer to create to detail. Yet even direct marketers product, the better. You can’t imagine consumer delight, for it is delight who may not have an Apple’s internal Apple would ever package anything that fuels positive word-of-mouth resources can work with experts in in a clamshell that requires a circular that will accelerate the trajectory of offer design and packaging that can saw to open, would you? Paying atten- your business. help them create a wow factor that tion to such nuances is what separates To understand how this is done will perpetuate consumer delight. good brands from great ones and well, let’s examine Apple’s ubiquitous Since many As Seen on TV prod- teaming up with a value added offer iPhone, a product that has the distinc- ucts are purchased on an impulse and packaging professional, who can tion of being the most googled search basis, the sooner buyers engage with help you think outside the box – liter- term of the past year. Even the play your product, the more likely they ally – is vital to presenting your on scarcity that Apple orchestrates are to use it, keep it and not return product is its best possible light. with each new release of the iPhone it. This initial entrée is the bridge to is designed to create favorable sensa- getting them to join your community Steven Feinberg is the CEO tions on the part of the consumer. and build a greater lifetime value with of SF Global Sourcing (www. Simply put, once one has their hands the individual consumer. Therefore, sfglobalsourcing.com) and the on the newest iPhone, a buyer feels the marketer’s initial stick rate is Chairman of the ERA Board of as though they are holding something key because it ultimately lowers your Directors. His company specializes special – something to be revered and customer acquisition cost and enables in global sourcing of intellectual coveted, and that will set them apart. you to sell more products to the same property via CDs and DVDs, value- And the darned package hasn’t even parties over time. Consequently, the added packaging, and all of the been opened yet! box that you send a product in should elements that comprise an offer – The tactical sensation one gets be part of your branding, and when from books to hair razors to Yoga from the box itself, with a sleek fin- executed with care, it can reaffirm mats – by leveraging a worldwide ish and embossed cover, even down the buyer’s commitment to owning partner network. Steven can be to the swoosh as the lid is removed, it. If attention is not paid, this can reached at 1-855-SF-GLOBAL or reinforces that the purchase decision backfire. For example, one marketer steven@sfglobalsourcing.com.26 electronicRETAILER | February 2012
  • 24. CELEBRATING ERA MEMBER ANNIVERSARIES ERA is comprised of nearly 480 companies from 40 countries. Thank you to the following members celebrating their ERA membership anniversaries in the month of January.19 Years 6 Years 2 YearsHSN ERA Europe Home Shopping Service – Best of Shopping Anderson Manning Associates Engagem3nt Inc.17 Years DRTV Products (PTV) Limited BDirect Inc.Thane Direct Live Link TV Advantone Inc. Callzilla Fosina Marketing Group13 Years TC Exports IncTouch Marketing 5 Years Listen Up Espanol9 Years MicahTek Incorporated CallAssistant LLCTelestar Direct Marketing SA Google VoiceGenixVitaquest International Quality Fulfillment & Distribution IncZephyr Media Group 4 Years Nutri-Health Supplements, LLC Brainstorming Store S.L. Sport Elec8 Years Home Shopping Express S.A. Full Service MarketingManatt Phelps & Phillips LLP Argo Marketing Group Inc.New Day Marketing Ronco Holdings Inc. 1 Year Rick Petry, Creative Writer LLC Valmark Associates LLC7 Years Max Concept Technology LTDConvergys Corporation 3 Years Premier BPOAllstar Products Group KSL Media Downpat Music Weisblott Media Thor AssociatesAttention New Members!Join ERA now and receive a FREE registration toany of our domestic conferences, including TheGreat Ideas Summit 2012 in Miami! Foradditional information, visit www.retailing.org oremail membership@retailing.org.
  • 25. DR DisruptionSocial and Over-the-Top television are revolutionizingthe way people view and interact with content acrossplatforms and networks. Direct marketers must learn thesenew trends if they hope to survive TV’s brave new world.aBY SARAH SAINAsk any five people how they most often in today’s evolving television landscape.watch television, and you’re likely to get Social television and Over-the-Topfive different answers. (OTT) TV are relatively new trends One person pays for and watches that could have lasting implications fortraditional cable at home, while another how the DR industry markets products.subscribes to Netflix and watches over But what exactly are social and OTThis Xbox. A third person views Hulu television, and why should DR mar-Plus over a streaming player connected keters pay close attention to these newto his flatscreen, and a fourth buys technologies?shows over iTunes to view on her iPad. REVShare CEO Brendan Condon,Finally, the last person uses her laptop Direct Impact Group President Andrewto see full episodes online. Gordon and Interactive Television As new trends and technologies Alliance President Ben Mendelsonemerge, consumers are changing the recently sat down with Electronicway they view and interact with content Retailer to discuss these trends andacross a range of platforms. Gone are the explain what they could mean for TVdays when the family gathered around viewers and direct marketers.the one household TV to watch a liveprogram in primetime. Today’s view- What are Social and OTT TV?ers want to watch their favorite shows Traditional television was created towhen they want, where they want and be a social experience, Gordon says.how they want. When TVs were introduced in major Content providers, advertisers and cities, some of the first sets were locateddirect marketer must learn to connect in bars so crowds of people couldwith viewers across a variety of touch watch sporting events. When televisionpoints if they hope to survive and thrive sets made their ways into individual DR Disruption – What You Need to Know About Social and Over-the-Top TV Join ERA President and CEO Julie Coons at 4 p.m. Tuesday, February 28 at The Great Ideas Summit 2012 as she moderates the Keynote Presentation with leading experts Brendan Condon of REVShare, Andrew Gordon of Direct Impact Group and Ben Mendelson of the Interactive Television Alliance. The panel will examine social television and over-the-top TV and how marketers can leverage these evolving technologies to not only take their marketing to a higher level, but also to broaden their audience reach. 28 electronicRETAILER | February 2012
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  • 27. DR DISRUPTIONhouseholds, they found a comfortable which has also become more affordable. A study from IPG Media Labs andhome in the most social room of all: “With the wide distribution and YuMe confirmed the long-feared beliefthe living room. Families and neigh- faster speeds of broadband and then that viewers are tuning out duringbors gathered to watch programming the rise of HD TVs, it got so much commercial breaks. The study foundmeant for all ages, and the act became easier to stream video,” Condon says. 94 percent of viewers used some forma cultural ritual. “Then you add tablets into that, and of “companion media” while watching Eventually, Gordon notes, as society now as price points are dropping, the TV and online video. During ads, view-progressed and cable gained in popu- timing is just right for consumers to ers shifted their attention to the otherlarity, TV became more of a personal become more engaged in programming media at a level three times higher whenexperience as family members within on multiple platforms. They actually watching TV vs. online video.the same household would watch TV expect it now.” What this shift has done is causedin different rooms of the home. The A recent study by The Diffusion advertisers – both brand and direct – toincrease in cable channels geared toward Group illustrates just how much Over- look for traditional and non-traditionalspecific demographics – MTV for young the-Top video use has skyrocketed ways to reach audiences.adults, Nickleodeon for kids and ESPN among viewers. It showed that 106 Take Pepsi, for example. The softfor men – also promoted individual million households used OTT video drink producer and official sponsorviewing. However, there has always been services in 2010. And what’s more of Fox’s “The X Factor” jumped headthe watercooler effect as people gathered impressive: That number is expected to first into social TV and launched twoat work to discuss programs and televi- grow to 250 million by 2016. platforms for fans of the hit reality com-sion events of the previous night. “Originally, it looked like interactive petition. Sound Off is a social network “Social TV has really now become a television would quickly proliferate where fans of the show can gather onlineglobal real-time watercooler,” Gordon through cable and satellite, since they and earn Pepsi rewards, while Pulse issays. “It really has made TV a social had the set-top boxes and controlled the an aggregator of tweets and Facebookexperience again.” TV technology in the home,” Mendelson posts about the show. But what exactly is social TV? It’s says. “But the cable and satellite com- Then there’s what CBS did duringthe convergence of television and social panies held back, not wanting to invest fall sweeps. The network complementedmedia. More specifically, it’s when view- money and not wanting to mess with the its sweeps programming with a super-ers utilize social media to engage with business model. That left opportunities charged social media plan in which starsprograms, advertisers and each other for Apple, Google, Roku, Boxee and all and CBS Sports anchors took over theto connect, promote, generate buzz … the screen manufacturers, particularly Facebook pages and Twitter accountseven raise ratings. Samsung, LG, Sony and Vizio, and even for their shows and interacted with Social TV has grown quickly in large gaming consoles to get into the business fans. Ratings increased for many of thepart due to the technology becoming so of delivering TV through the internet. network’s shows.easily accessible in the last few years. Cable and satellite has responded with NM Incite, a joint venture betweenToday, Nielsen estimates that roughly the ‘TV Everywhere’ initiative, and they Nielsen and McKinsey, was among40 percent of tablet and smartphone still control the majority of TV in the the first to discover the relationshipowners in the U.S. use their devices home, but OTT is here to stay.” between social media buzz and ratings.daily while watching TV. It found that among 18- to 24-year-olds, Over-the-Top has become an essen- A New Approach to a 9 percent increase in online chattertial part this brave new television Advertising in the weeks before a show’s premiereworld for many of the same reasons As consumers demand more online correlates to a 1 percent ratings increase.that social television experienced its video and search out ways to engage Condon notes that, more than any-rise. OTT is when video and program- with programming via social network- thing, this conscious move by viewersming are delivered via the internet to ing, content providers and advertisers away from traditional television adver-TVs, laptops, gaming stations, tablets are beginning to see the benefits of this tising has forced marketers to get moreand mobile phones – think Netflix or potentially lucrative market. inventive with their creative.Hulu, for example, two of the biggest While TV viewing is at an all-time “What marketers are looking at hereOTT providers. high, Gordon notes that these added is a chance to really heighten the level “I like to think of it as leapfrogging devices can have a negative effect for of creativity and engage with their con-your cable box,” Condon says. advertisers and marketers. sumers,” he says. “And with this new He explains that while OTT TV has “People can be distracted with this Over-the-Top technology, you can getbeen available for a few years, it’s now second screen experience,” he says. them directly to your website with littlegaining real traction as consumers get “People are not necessarily watching the extra work and have a captive audiencesavvier when it comes to technology, commercials or engaging with them.” who’s ready to buy.” 30 electronicRETAILER | February 2012
  • 28. But what about metrics? Well, there instantly ‘click and buy’ or or click to ads on TV now,” he says. “For DRTV, it’sare a number of companies currently visit a website, those are powerful tools all about getting the consumer to pickworking on that. New ratings systems to interact with the customer.” up the phone or call or text or visit yourare being developed by companies such But, as Condon stresses, since viewers specific URL. Now, consumers expect toas Bluefin Labs, which has created can be watching at any time, it is impor- be the ones choosing when and how tomeasurements for how viewers respond tant for DR companies to be ready 24/7 contact you. You have to be ready foronline to TV. with support services for consumers the consumer.” Simply put, Bluefin’s technology who aren’t watching live programming. Condon closes: “At the end of theplatform, Bluefin Signals, watches every- “Consumers are so much more day, it raises the bar for marketers tothing (or almost everything – its data sophisticated about how they navigate keep up.”covers 115 TV networks, 11,000-plus TVshows and 346,000-plus TV telecasts)on TV and recognizes all social mediaconversations about the programming.It then gives each show a response levelrating on a scale of 1 to 10. There is also Trendrr.tv’s TotalActivity, which monitors social mediaactivity including tweets, publicFacebook posts, GetGlue check-insand Miso check-ins. “It’s the Wild West right now,”Gordon says. “There needs to be somekind of best practices or standards,some form of actionable measurementthat can help the industry start toexamine patterns and behaviors acrossmultiple screens so we can see how tobetter engage audiences.”Time to Get on Board All the experts agree that now is thetime for DR marketers to learn aboutthese technologies and start makingchanges for the future. “The DR industry needs to becomefamiliar with the new television land-scape that’s connecting television to theweb,” Gordon says. “As marketers, wecan’t just be tied to traditional televi-sion, where a lot of our industry stillhas their heads. As TV has changedand evolved, we have to as well. Thesmart ones are going to use this socialphenomenon to market products ingeneral beyond DR.” Mendelson adds that DRTV is a natu-ral fit for social TV, OTT and interactiveTV, in general. “All of those technologiesare about interacting, and so is directresponse TV. These technologies providea way to greatly enhance the transac-tional experience by making it simplerand more immediate. The ability to 565843_Kingstar.indd 1 12/22/11 1:00:04 PM February 2012 | electronicRETAILER 31
  • 29. Bienvenido a Miami!The Great Ideas Summit 2012 returns to Florida, where ERA membersand direct-to-consumer industry leaders will gather for education,ynetworking and fun in the sun.BY SARAH SAINYou could call it a homecoming. new contacts beginning Monday at the After two extraordinary years in the Meet & Greet Lounge. The idea for theheart of New Orleans, The Great Ideas lounge originated at last year’s GreatSummit 2012 returns to Miami this Ideas Summit and was a huge successFebruary for three days of education, at D2C in September. Other networkingnetworking and fun in the Florida sun. events and receptions, including freeNearly 800 attendees and 25 exhibi- networking breakfasts and lunches, astors will gather February 27-29 at the well as the Business Club and ExpoFontainebleau, one of the most his- Zone, located right on the Show Floor,torically and architecturally significanthotels on Miami Beach. will follow throughout the show. The Great Ideas The theme of this year’s show is Education Day Summit 2012“Great Ideas at C-Level,” which ERA Education sessions will take placePresident and CEO Julie Coons says throughout the day Tuesday and The Elec tronic Retailingbrings together the industry’s most Wednesday at The Great Ideas Summit. Association will host The Greatrespected thought leaders and key ERA again employed a crowd-sourcing Ideas Summit 2012 Februarydecision-makers all in one place. initiative in which the entire member- 27-29 at the Fontainebleau Miami “Miami will serve as the ideal setting ship voted for the final 12 sessions that Beach. For more information andfor The Great Ideas Summit 2012. This will be featured at the show. Topics will to register for the show, visitis the place where ERA members and cover a variety of direct-to-consumer www.ERAGreatIdeas.org. Signother industry professionals, for many topics and offer audience members a up before February 24 to takeyears, have enjoyed visiting, and we plan number of valuable best practices. advantage of discounted rates.to make this year’s mid-winter event a This year’s education program willmemorable one,” Coons says. include Panel Discussions (one-hour ses- Attendees will have the opportunity sions) and Lightning Sessions (12-min- Sessions include:to conduct meetings and network with ute presentations). • 10 Profound Marketing Secrets That Produce Big Profits • Which Came First – Retail or DRTV in Seeking the Golden Egg? • The Real Men and Women of Madison Avenue • The Road to Retail – A Superhighway with Many Exits! Lightning Sessions are as follows: • Apparel – The HOT Category for DRTV • Positive Reputation = Revenue: Increasing Your Online Market Share • For the Hispanic Vote, the Campaign is On! • Deal of the Day Sites: A Game Changer • T he Mu lt icha n nel Ma rke t i ng Advantage 32 electronicRETAILER | February 2012
  • 30. The Great Ideas Summit Schedule of EventsMonday, February 27, 20128:00 a.m.-6:00 p.m. Meet & Greet Lounge Open8:00 a.m.-9:30 a.m. Finance Committee Meeting10:00 a.m.-11:30 a.m. Executive Committee Meeting9:00 a.m.-11:00 a.m. Electronic Retailer Magazine Advisory Committee Meeting9:00 a.m.-12:00 p.m. ERA Europe Board of Directors Meeting11:00 a.m.-12:00 p.m. Exhibitor Advisory Committee Meeting12:00 p.m.-1:00 p.m. Asia Committee Meeting12:00 p.m.-6:00 p.m. Registration Open1:00 p.m.-2:00 p.m. Membership Committee Meeting1:30 p.m.-5:30 p.m. Nominating Committee Meeting2:00 p.m.-3:00 p.m. Education Committee Meeting2:00 p.m.-6:00 p.m. Exhibitor Move-In3:00 p.m.-4:00 p.m. Government Affairs Committee Meeting4:00 p.m.-5:00 p.m. New Member Reception (invitation only)5:00 p.m.-6:30 p.m. Opening Reception6:30 p.m.-8:00 p.m. Diamond Partner Reception (invitation only)Tuesday, February 28, 20128:00 a.m.-5:00 p.m. Registration Open8:00 a.m.-9:00 a.m. Committee and Council Chairman Breakfast9:00 a.m.-10:00 a.m. FREE Networking Breakfast9:00 a.m.-5:00 p.m. Show Floor Open (Expo Zone, Business Club and Learning Lounge)9:30 a.m.-10:30 a.m. Panel Discussion11:00 a.m.-12:00 p.m. Panel Discussion12:00 p.m.-1:00 p.m. FREE Networking Lunch1:30 p.m.-2:30 p.m. Lightning Sessions4:00 p.m.-6:00 p.m. Keynote Presentation and Reception5:00 p.m.-6:00 p.m. CEO Summit (invitation only)6:00 p.m.-7:30 p.m. Washington in Miami – A Networking Reception to Benefit the ERA PAC Wednesday, February 29, 20128:00 a.m.-12:00 p.m. Registration Open9:00 a.m.-10:00 a.m. FREE Networking Breakfast9:00 a.m.-5:00 p.m. Show Floor Open (Expo Zone, Business Club and Learning Lounge)9:30 a.m.-10:30 a.m. Panel Discussion11:00 a.m.-12:00 p.m. Panel Discussion12:00 p.m.-1:00 p.m. FREE Networking Lunch1:30 p.m.-2:30 p.m. Lightning Sessions5:00 p.m.-6:30 p.m. Closing Reception5:00 p.m.-8:00 p.m. Exhibitor Move-Out* Schedule as of January 11, 2012. 566298_TwoD.indd 1 1/4/12 3:11:07 PM February 2012 | electronicRETAILER 33
  • 31. BIENVENIDO A MIAMI! • Create Mea ni ng f u l Consu mer Ben Mendelson will join Coons for a Connections by Integrating Mobile panel discussion titled “DR Disruption with DR – What You Need to Know About Social • How a Virtual Store Leads to More and Over-the-Top TV.” Sales Coons says, “This hour-long discus- • Don’t Run Your DR Campaign by the sion will enlighten our audience about Seat of Your Pants: Have a Plan! these two emerging technologies, what’s Also on Tuesday, three of the driving this shift and how they might industry’s leading voices in televi- impact our industry in the near future. sion advertising will take the stage for I hope this will inspire further dialogue the Keynote Presentation. REVShare within our community beyond what’s CEO Brendan Condon, Direct Impact addressed during the keynote.” laid-back and relaxed Happy Hour to Group President Andrew Gordon and discuss the day’s events before heading Interactive Television Alliance President Can’t Miss Events over to Washington in Miami, a network- Special events are one of the high- ing reception to benefit the ERA PAC. lights of The Great Ideas Summit, and The event, formerly the ERA Leadership this year will be no exception. Event, is back in full force. Previously The Opening Reception on Monday held at the D2C Convention, the event night will feature heav y appetiz- has changed venues to The Great Ideas ers, music, a themed drink bar and Summit. Join high-powered special high-powered networking with direct guests to help raise funds for ERA’s response colleagues. Eat, drink and E-Retail Political Action Committee, the dance the night away in Miami. most important advocacy effort in the On Tuesday, following the Keynote direct-to-consumer marketing industry. Presentation, join colleagues for a Then all good things must come to an end Wednesday. Join old and new friends for the Closing Reception – it’s the last opportunity to seal the business deals and make the connections that can fuel your 2012 business year. For those who have not yet registered for The Great Ideas Summit, there is still time. Visit www.ERAGreatIdeas. org for more information on the show and to register today. Members and non-members have until February 24 to take advantage of discounted rates. “I look forward to reuniting with our ERA members, as well as meeting new faces in the industry,” Coons says. “The Great Ideas Summit 2012 in Miami is the perfect way to start off the New Year.”523463_Jordan.indd 1 3/23/11 6:14:26 PM 34 electronicRETAILER | February 2012
  • 32. Why fast? Speedy fulfillment reduces customer cancellations, lowers customer service costs, and shortens thecontinuity cycle. All lead to happier customers. a2bs standard for years has been shipping same-day. Now itsguaranteed. FREE STORAGE and SAME DAY GUARANTEE have made a2b Fulfillment famous. We nowoffer expanded service capabilities including Order and Continuity Management, Customer Service, CanadianFulfillment and our new innovative "Returns to Profit" program. Your profits are sure to BLAST OFF!866-843-3827 www.a2bf.com See us in Miami
  • 33. Interactive TV: Just a Click Away Learn how both viewers and the direct marketing industry will reap the benefits of interactive television’s rapid growth in 2012. BY JACQUELINE RENFROW‘i “Imagine a world where people could companies, with cooperation from is collecting valuable information for get almost anything without ever leav- major broadcast communication com- target marketing. ing their homes,” says Maria Kennedy, panies, are beginning to offer interac- senior vice president of direct response tive advertising on television, or iTV. Multiple Engagements and paid programming at Discovery iTV allows viewers to request informa- Gone are the days when the audience Communications. tion, learn about local deals, purchase a would sit and passively watch television. When looking down the road at product or watch a movie trailer – just Today most viewers are simultaneously interactive television, this vision stands to name a few – just by clicking their shopping online, texting a friend, tweet- to become a reality sooner than later. remotes while watching a television ing about a program and watching TV Today, more and more technology program. All the while, the advertiser at the same time. This growing number 36 electronicRETAILER | February 2012
  • 34. of multiscreen viewers – people work- have embraced VOD so much this year Other technology offered by Comcasting on laptops, mobile or some other that the increase in viewership has kept includes Remind Record, where a pro-interactive device while watching tele- some networks from canceling some motion for a program pops up andvision – is contributing to the success primetime programs.” In some cases, reminds a viewer to watch or recordof iTV. Also, the availability of iTV is audiences have increased 4 percent for that program. “This is valuable forspreading to more service operators some primetime broadcasts. programmers because their success isthrough cable set-top boxes. So while measured on ratings; plus, this couldconsumer interest grows, availability Technology Update spark a growth in audience and scal-grows and technology advances, the What is in store for the future of iTV? ing,” says Kevin Smith, vice presidentdays of ordering a product through the A lot of it depends on the developments of digital media at Comcast Spotlight.television – without the need of a phone in iTV technology in 2012. One com- In addition, Comcast offers VODT,or internet – are drawing closer. pany at the forefront of iTV technol- or video on demand telescoping, “Eventually people will be able to do ogy is FourthWall Media. FourthWall which is when the viewer can thenalmost anything through their televi- makes the interactive software that opt to link to a longer format piecesion sets,” Kennedy says. “T-commerce exists in set-top boxes. Currently, the that includes interviews, trailers andwill become more prevalent and net- company is a provider for millions of exclusive footage while watching aworks could become like mini shopping homes and contributes to iTV in three linear spot. Though all of this tech-channels.” ways, the first being the delivery of nology is still in the early stages, One of the major players in mak- interactive applications. The second Comcast is already running hundredsing iTV possible is Canoe Ventures. role FourthWall plays is producer of of campaigns for advertisers in allCanoe, founded by the six largest bound – inserted into a broadcast – or categories including entertainment,cable companies in the country – Cox unbound – completely independent of automotive and retail. But Smith seesCommunications, Cablevision, Time the programming – AdWidgets. In addi- these new applications as “the heartWarner Cable, Charter Communications, tion, the company collects data from the of convergence” between traditionalComcast and Bright House Networks – set-top box for more targeted marketing. television advertising and DRTV.is combining the impact and reach of FourthWall Executive Vice President On the advertising end of the tech-traditional TV with new technologies Patrick Peters sees iTV as a way for nology, Canoe is prepared to expand inand marketing solutions that will better television to catch up with the successful two ways in 2012. First, the number ofconnect consumers with brands. The data collection that has historically only homes in which iTV technology is avail-idea behind Canoe and interactive TV been available for web ads. “Once we can able will expand – it’s currently at 51is “to enhance TV so experiences on track usage the way we do on the internet percent of the digital cable households inTV could be expanded and more deeply now, everything is more accountable and, the country. The footprint will get largerimmersive for the viewer,” says David therefore, more effective,” he says. This is as more networks are added, offeringGrabert, vice president of marketing good news for direct response marketers, advertisers a wider reach of viewers.communications at Canoe. The company who depend on metrics. The second expansion will be towardsis accomplishing this task by offering “What we’re working towards in 2012 in-program interactivity. Canoe isrelevant advertising as part of the experi- is a universal TV buy button, so regard- testing out interactivity such as triviaence. The company’s model is to sell the less of content, I can insert the button and polling. For example, if a viewertechnology to programming networks, into a basketball game or something is watching a cooking show describingwho then sell advertisement time to the like that,” Peters says. Then, with just how to make pasta, advertisers couldmarketers and advertisers. Through this the click of a button, the viewer will be participate in polling that pops up andcollaboration, Canoe’s footprint in the easily and seamlessly able to purchase asks, “What’s your favorite pasta sauce?”interactive television arena reaches 23 a product. “It’s a more immersive experience, andmillion households nationwide. More than 15 million households it can be up to the network, but it can Control is a growing trend among are currently exposed to the interac- be done with or without sponsorship,”television viewers. Kennedy believes that tive TV landscape through Comcast Grabert says. The game could end withvideo on demand (VOD) is a format Communications. Right now, a lot of a clickable coupon or offer.that will take off in 2012 as a viable Comcast’s advertisers are using what is Grabert says all of this iTV technol-vehicle for DRTV advertisers. VOD is known as the request for information ogy is paving the way for the future ofa part of the increase in appointment (RFI) application, in which the viewer is television advertising. It’s easier for theviewing, meaning consumers are pick- exposed to a traditional 30-second spot consumer, and it’s easier for the adver-ing what to watch and when. Discovery and, in the middle, a graphic overlay tiser. “It’s a whole level of measurementCommunications reaches more than 45 comes up and asks if the viewer would that advertisers are not used to gettingmillion households via VOD networks. like more information on a product or with a broadcast ad,” Grabert says. “This “Many networks have free VOD service. Then, that RFI is filled through is a truly competitive DM tool and TVservices for their most popular pri- snail mail with a coupon or brochure has an advantage that other platformsmetime programs,” she says. “Viewers as indicated by the advertiser. don’t have.” February 2012 | electronicRETAILER 37
  • 35. INTERACTIVE TV: JUST A CLICK AWAY Effects on DRTV change is that direct marketers will be in progress. It is a collaboration being So what does all this new technology able to make offers during actual tele- worked on by networks, broadcasters mean for the future of DRTV? vision programming, which is timely and marketers. Peters says technology will change considering the growth of product “The marketplace will agree on a the face of DRTV in three ways in placement in television programs. And value, like any other medium, over 2012. First, ad time will be made more finally, the opportunity will present the next few years,” Smith says. He effective through iTV. “I may run a itself for consumers to click and buy is sensitive to working with direct generic ad but using this technology, immediately in the unbound category. response marketers who are familiar I can localize the offer, making the ad The model of how iTV time will be with putting a price on the value of buy more effective,” he says. The second bought by DR marketers is still a work an order or lead, so he realizes that working to find the right prices will take a lot of feedback and fine-tuning. “We’re smart enough not to create this in a vacuum. We will get feedback and insights and expertise of leading advertisers and DR advertisers.” Working Out the Kinks One possible speed bump in the iTV revolution is the question of how product purchases and RFI’s will be fulfilled. FourthWall currently works with PayPal, American Express and large fulfillment houses that have dealt with these kinds of demands before when testing out advertisements. “It’s pointless to recreate a wheel,” Peters says. “Billions of products WE’RE PLACING THE SPOTLIGHT are being sold directly every day.” Companies such as Amazon are already ON CARD SECURITY experts at filling requests without a warehouse. So the missing link is going to be learning how to connect these FOR YOU AND YOUR CUSTOMERS factors for iTV with direct response fulfillment houses and customer ser- Litle Vault one of the first platform-integrated vice agencies. tokenization solutions engineered exclusively for Now integrated with card-not-present commerce is a 2011 Stevie® Still, the future of iTV is strong and PayPage to completely Award winner for New Product & Service its benefits for viewers, advertisers and eliminate merchant innovation. cable networks only seem to be growing. exposure to card data “People just love to watch TV, and during the online Litle Vault removes sensitive card data and it’s one of the best places to deeply acceptance process. replaces it with tokens for all payment transactions, including authorizations, deposits and engage with a brand,” Grabert says. To learn more about chargebacks. Reducing your scope of PCI “Not only is it effective as a DM tool, whether Tokenization is compliance, Litle Vault allows you to safely remove but it has a positive impact on brand the right fit for you, stop by cardholder data from your system in a way that’s awareness, brand opinion and purchase transparent to customers. Booth #100 at the ERA intent.” With the average person watch- Great Ideas Summit 2012 To set up a personal consultation on Tokenization, ing 146 hours of television per month, visit Booth #100 or email us at vault@litle.com that’s a lot of time and people to reach, he says. And with the 100 million people in the United States who are 1.800.LITLECO paying for television, whether it be www.litle.com through cable, satellite, video providers THE PEOPLE BEHIND YOUR PAYMENTS. or phone companies – it’s a channel that cannot be missed.566732_Litle.indd 1 23/12/11 10:33 AM 38 electronicRETAILER | February 2012
  • 36. ERA ADVANCES MARKETING’S BEST SELLERS. A SupERAchiever is an industry powerhouse who’s used their ERA membership to get to the top. They know we’ve got their backs in four key ways: Advocacy. We maintain positive relationships worldwide with legislatures and the regulatory agencies charged with protecting consumers. Self-Regulation. We make electronic retailing better by establishing honest business standards, policing the industry and stopping poor practices before they spread. Wisdom. We help members benefit from the hard- earned wisdom shared by industry peers including best practices, case studies and Electronic Retailer magazine. Access 2 . We connect members to electronic retailing’s movers and shakers like no one else can to grow their businesses at lightning speed. Look for SupERAchiever success stories here in these pages and learn more about how ERA supports members at retailing.org. (We’re behind you all the way)SUPERACHIEVERS ACCESS2 WISDOM ADVOCACY SELF-REGULATION
  • 37. What Your ConsumerSays About You MattersThe marriage of customer testimonials and social media is unveilinglegal issues that the FTC and the industry must quickly balancein order for direct response to maintain its integrity.BY PETER MARINELLOIIn the 1980s, the advertising industry first took notice of landscapes of up to 30 minutes in which to tell a compellinghow infomercial and short-form direct response marketing story and, not incidentally, sell their product.broadcasts could be game-changers with respect to how Of course, with this greater creative expanse came the conun-advertisers communicate with their target audience. As cable drum of utilizing it in a way that would engage and retain viewerstelevision began proliferating in homes, networks working in as well as convince them of the usefulness of the products andthe deregulated environment welcomed this new advertising services. Predictably, it didn’t take very long for savvy marketersmedium into their programming repertoire as a means to fill to incorporate the most effective and time-tested technique tolate-night and early morning hours with programming that sell their products – that is, have a satisfied customer talk aboutwas kitschy and inexpensive. Similarly, creative marketers sud- his or her experience to a captivated audience.denly found themselves free from the traditional constraints Sure, the question of whether the “customer” who talksof the 30-second canvas and, instead, were presented with about the product is actually an authentic user of the product 40 electronicRETAILER | February 2012
  • 38. is a relevant and germane issue – and one that necessitated close proximity to the triggering claim, has always been aenough clarity that the Federal Trade Commission issued its challenge for even the most creative marketer in traditionalGuides Concerning the Use of Endorsements and Testimonials in advertising, one of the great conundrums for marketers isAdvertising, also known as the FTC Guides in 1980. However, ascertaining what exactly constitutes “adequate disclosure.”it is the perpetuity and effectiveness of the technique that is After all, just what is the most effective method of disclos-most fascinating to those in the industry and what makes ing material information in an emerging advertising mediumtestimonials the skilled marketer’s Rosetta Stone. where the communication landscape is limited and at a pre- The consumer testimonial prospered in the early days mium (think: Twitter’s 140 character max).of print advertising, flourished when radio ruled the roost Mary Engle is the associate director for advertising prac-and experienced a rebirth with television advertising. The tices at the FTC, and since the implementation of the guides,consumer testimonial has made more comebacks than Brett she has done her share of the yeoman’s work of publicallyFavre. So, should we really be that surprised that the consumer explaining the applicability of the agency’s changes to con-testimonial is again wreaking havoc – from the perspective cerned marketers.of sales effectiveness and legal uncertainty – in yet another Engle notes, “Marketers should keep in mind that theirplatform of product sales? In fact, when compared to almost ads should give consumers an accurate picture of what toall previous advertising paradigms, it can be argued that the expect with their products or services. And when makingmarriage of the consumer testimonial and social media will disclosures, you can’t go wrong if you present the informationbe the most prevailing of all. as though you really want consumers to get what you’re say- In characterizing the relationship between the consumer ing, not as if you’re hiding it or hoping it will go unnoticed.testimonial and social media, the iconic television commer- … Clear and conspicuous disclosures are possible in almostcial for Reese’s Peanut Butter Cups from the 1970s comes to any medium, although some platforms may present moremind. For those old enough to remember, the commercial challenges than others.”showed a guy walking down the street eating a chocolate We have seen several interesting disclosure innovationsbar. Walking down another street is a girl enjoying a jar of that have provided marketers who utilize social media somepeanut butter. They run into each other on the corner, their assistance to abide by the rules of the road. For example, CMP.peanut butter and chocolate get mixed together and they LY offers technology that monitors and documents a com-learn it is a delicious combination. Similarly, as is the case pany’s social media interactions and automatically publisheswith any compulsory marriage, we have watched curiously as disclosures in the form of “badges” within status updates andthis serendipitous collaboration of the consumer testimonialvia social media has progressed from its hopeful courtingphase to now having to confront those bothersome pedanticissues such as the disclosure of material connections or thetypicality of the depicted product performance. In late 2009, in rode the FTC, which announced a helpfulrevision to its FTC Guides in order to address this new worldof social media. The revised guides reflected three basic truth-in-advertising principles:1. Endorsements must be truthful and not misleading;2. If the advertiser doesn’t have proof that the endorser’s experience represents what consumers will achieve by Marge Groves using the product, the ad must clearly and conspicuously disclose the generally expected results in the depicted circumstances, and; PCI COMPLIANT3. If there’s a connection between the endorser and the mar- • Virtual Operations Management keter that would affect how people evaluate the endorse- • Declined Order Recovery ment, it should be disclosed. Jeffrey Greenbaum, one of the nation’s leading practitionersof advertising law and a partner in the advertising, marketingand public relations group at Frankfurt Kurnit Klein & Selz, Turning Your TRASH Into CA$HPC, believes, “The critical issue right now is transparency … Since 1997You can’t trick consumers into thinking that they are seeing • Fighting Your Chargebacks • Customer Service Trainingindependent editorial content when what they are seeing is and Monitoringactually advertising. And if you are paying consumers to speakon your behalf, or if you have other material connections with Contact The Marginator®endorsers that aren’t obvious, you need to make that clear.” Phone: 847-277-7857 Cell: 847-778-5285 marge@profitmarginsinc.com While the notion of disclosing pertinent information in a 1354 Carlisle Drive Barrington, IL 60010 www.profitmarginsinc.commanner that is “clear and conspicuous,” not to mention in 563575_Profit.indd 1 12/8/11 5:04:28 AM February 2012 | electronicRETAILER 41
  • 39. WHAT YOUR CONSUMER SAYS ABOUT YOU MATTERS blog posts. It also provides short URLs Perhaps the FTC case that resonated had deceptively offered free and dis- to include in tweets. most loudly in the industry in 2011 counted products to Facebook users Not surprisingly, some of the most involved advertising for Legacy Learning who “liked” the company’s page, and useful guidance has been provided by Systems. Legacy Learning advertised its that the number of “likes” presented the FTC itself through its announce- Learn and Master Guitar DVD series by to investors through press releases ments of several high-profile investi- recruiting “review ad” affiliates to pro- had been fraudulently obtained. NAD gations in new media. The findings mote the product through “articles, blog determined that the display of the total and conclusions in these matters have posts and other online editorial material, number of “likes” on Coastal’s Facebook certainly become part of the legal ver- with the endorsements appearing close page conveyed a general social endorse- nacular for practitioners in the industry. to hyperlinks to Legacy’s website.” These ment. Because actual consumers “liked” One of the earliest investigation affiliates received “substantial commis- the Coastal page, and those consumers involved advertising for clothing manu- sions,” which they did not disclose, for who participated in the promotion facturer Ann Taylor. The retailer had each sale resulting from referrals and received the benefit of the promotion, invited bloggers to preview its Loft generated more than $5 million in sales NAD determined that Coastal does, in division’s summer 2010 collection, of Legacy’s courses, according to the FTC. fact, have the general social endorsement offering a “special gift” and promising The company agreed to pay $250,000 to that the “likes” convey. that those posting coverage from the settle charges with the Commission. It is clear that uncertainty regarding event would be entered into a “mystery Regulatory agencies are not the the use of consumer representations on gift card drawing” in which they could only ones keeping an eye on how websites and other social networking win between $50 and $500. The invite companies are utilizing social media forums are not going away soon. In explained that bloggers must submit to promote products and services. fact, as more marketers use consumer posts to the company within 24 hours Self-regulatory programs such as the endorsements to promote products in order to find out the value of their Electronic Retailing Self-Regulation through social media, it’s inevitable that gift card. The FTC was concerned that Program (ERSP) and the National new issues such as “like-gating” in the the marketer failed to disclose that Advertising Division of the Council of Coastal Contacts case will continue to the bloggers received gifts for posting Better Business Inc. (NAD) have brought arise. Often, self-regulation forums such content about the event. Although forth inquiries involving the disclosure as ERSP and NAD are on the front line the agency decided not to take action of material information in social media. with respect to resolving and explain- against Ann Taylor, the warning flare More recently, in late 2011, NAD ing such issues. As Engle notes, “ERSP to marketers had been fired that the reviewed advertising for Coastal and NAD have the advantage of being FTC has its antenna up regarding issues Contacts. A competitor of the adver- able to respond more quickly to trends of material disclosure online. tiser contended that Coastal Contacts in marketing and advertising than the government sometimes can.” One last thing to note is that unlike in other traditional marketing venues, brand promotion may very well be Telemarketing is Evolving. occurring within social media without marketers’ knowledge, and people are Why don’t you? discussing brands to third parties unbe- knownst to the advertisers. While there Progressive. Responsive. Adaptable. is continuing uncertainty about an advertiser’s responsibility for third-party Now you can have the best of the best in your content, the bottom line is that market- telemarketing center. Take your campaign to ers want to – and should be – tracking the next level with superior service and results. what is being said about their brands Categories in which on social media in order to manage and Experience the Evolve difference, where custom we excel: maintain the brand integrity they’ve Program management yields superior results! > Fitness worked so hard to establish. > Supplements > Health and beauty Peter Marinello is director of the > Household goods Electronic Retailing Self-Regulatory Program (ERSP). He can be reached at (212) 705-0126 or via email at pmarinello@narc.bbb.org.561368_Evolve.indd 1 11/15/11 2:24:24 AM 42 electronicRETAILER | February 2012
  • 40. ADVOCACY SUPERACHIEVER CHRIS GASSETT ERA PROTECTS AND GROWS MARKETING’S BEST SELLERS. For 20 years, ERA has been a steadfast advocate by maintaining productive working relationships with governing legislative bodies and regulatory agencies to effect change for the greater good. HSN is among the many members that regard advocacy as one of ERA’s most valuable attributes. HSN, a longtime member, sheds light on some of the legal issues that have created the biggest challenge in its day-to-day operations, and discusses how ERA’s in- volvement with advocacy has made a significant impact on its overall business. retailing.org/superachieversSUPERACHIEVERS ADVOCACY Chris Gassett, HSN ACCESS2 | WISDOM | ADVOCACY | SELF-REGULATION
  • 41. GUEST VIEWPOINT BY MARCELINO MIYARES JR.For Hispanic Vote, the Campaign is OnyYou don’t need to pick sides in the 2012 elections to beinterested in the process and the outcome. In fact, for theHispanic community this is likely a defining election in termsof power, key market strategies and momentum. Ignore theHispanic electorate in 2012 at your peril, from national officesto key local races. A national election can come down to one state’s electoralvotes. A state election can come down to one county, andthe power shift in Congress can come down to just a hand-ful of districts. Any one of these scenarios can be affectedby Hispanics in several swing and highly contested states.Believe what you will, it is simple math. Any marketer who has observed the evolution of market-ing to Hispanic audiences, especially through TV and radio,already knows this as fact. What remains to be seen is whetherpoliticians pay this audience its due respect, or if they continue 17 percent. There is no doubt that any TV spots in these markets, which serve as an example of the growth being seen in almost a dozen states and major markets, will reach Hispanics whether a campaign intends to or not. The question then becomes, “Does a candidate, campaign or issue want to be ubiquitous with its messaging vis-à-vis Latinos or remain conspicuously absent. Rapid population growth has helped fuel Latinos’ increasing electoral participation. According to the Census Bureau, 50.5 million Hispanics were counted by the 2010 Census, up from 35.3 million in 2000. Over the same decade, the number of Latino eligible voters – adults who are U.S. citizens – also increased, from 13.2 million in 2000 to 21.3 million in 2010. Who says that voting represents the only political influence wielded by a community? Economic power and labor participa- tion are two other key indicators of participation. Automotive,to pay it only lip service. My marketing experience and avail- retail, soft drink, beer and packaged advertisers have targetedable data shows lip service won’t cut it anymore in politics this market for years. But now even Wall Street is taking noticethan it does in business. at the Hispanic community’s impact beyond the financial. The lip service politician will say that these markets and According to the Huffington Post on Oct. 9, 2011, recogniz-this audience do not produce enough registered voters to be ing the power that Latinos represent in the global marketplacea real political factor. Critical mass in politics is a matter of as a vibrant market of 50.5 million strong with a $1 trillionperception, and perception is starting to shape a new reality. in buying power growing at an impressive 347 percent rateMore than 6.6 million Latinos voted in last year’s election in the last decade, a group of banking, Wall Street and other– a record for a midterm – says data by the Pew Hispanic major corporate professionals recently discussed the need forCenter. Latinos represented a larger share of the electorate in action. “We’re here tonight to talk about America’s future2010 than in any previous midterm election, representing 6.9 ... the country needs a diverse pipeline of leaders to movepercent of all voters, up from 5.8 percent in 2006. our country forward,” said Michael Cavanagh, JPMorgan It is true that a significant share of voting age Latinos are Investment Bank CEO of Treasury & Securities. “Latinos arenon-citizens – 22.4 percent vs. just 1.4 percent, 4 percent and the key to reaching these goals.”24 percent of whites, blacks and Asians, respectively. But factor I could give you Census data here. But let’s look a littlethis out and you still have 21.3 million eligible voters. This deeper. Minority spending power spiked over the last 10represents about 12 percent of all eligible voters in the U.S. years, according to the University of Georgia Terry CollegeBut do they vote? In 2008, 63.6 percent turned out to vote. of Business. The percentage gains in buying power during theAnd the research and polling organization Latino Decisions past decade have varied considerably by race and ethnicity:estimates that Hispanics will likely represent as much as 9.5 108 percent for Hispanics, 98 percent for Asians, 69 percentpercent of registered voters in the 2012 general elections. for Native Americans and 60 percent for African-Americans. Let’s look at this from a geo-political perspective. If I asked The study projects that minority markets will continue to growyou to identify some of the key states for the upcoming national much faster than the majority market, and sooner or later thiselection at either the presidential or congressional levels, you will translate to tens of thousands of $5-$25 contributions.would probably list California, New York, Florida, Illinois Now let’s talk issues – the two key vote drivers are unem-and Texas, among others. These are not only the states in ployment and immigration. Although discretionary spend-which Hispanics have the highest populations, but they also ing and a seat at the financial table are available now for ahave the highest local TV market shares. Latinos comprise large percentage of Hispanics, they want more. According to33 percent of LA’s TV households. New York checks in at the Pew Research Project, the spread of poverty across the 44 electronicRETAILER | February 2012
  • 42. United States that began at the onset of the Great Recession the Hispanic electorate for granted, then expect nothingand accelerated last year hit one fast-growing demographic back – votes or contributions.group especially hard: Latino children. • Reach out to the market in both English and Spanish. More Latino children are living in poverty – 6.1 million According to Latino Decisions, one-third of Latino votersin 2010 – than children of any other racial or ethnic group. are predominantly reliant on Spanish-language media,This marks the first time in U.S. history that the single largest one-third on English-language media and one-third ongroup of poor children is not white. For Latinos, this negative both equally.milestone is a product of their growing numbers, high birth • Think direct response. Nothing beats long-form advertisingrates and declining economic fortunes. Among Hispanic chil- for education, contributions and driving traffic to events,dren living in poverty, more than two-thirds (4.1 million) are websites, rallies, meetings and other measurable politicalthe children of immigrant parents, while the other 2 million activity.are the children of parents born in the U.S. • Use TV, radio, internet and mobile media. All are critical To make matters ever more emotionally charged, 53 percent for reach and engagement. Do not over-depend on digitalof Latino registered voters have undocumented immigrant media just yet. Beware the digital divide.friends or family. At least a quarter of Latino registered vot- • Targeting the Hispanic electorate is not a question of howers know someone who is facing immigration enforcement. much, but where. According to 2010 Census data, there are Don’t make the mistake, however, of believing that Hispanics 118 existing congressional districts in which more thanwill line up as a block on these issues. There are several other one-fifth of the population is Hispanic. Ninety-three ofissues that shape our political spectrum such as access to those districts are in California, Texas, Florida and Neweducation, social values, crime and the military. York – the four states with the most 2012 electoral votes. It Momentum, power and key markets: Those are the three is likely that Latinos will shape the electoral landscape inthings at stake for Hispanic voters. According to the Radio these states and other emerging Hispanic television marketsAdvertising Bureau, between $4.8 billion and $5.6 billion in Ohio, Pennsylvania, Wisconsin, Nevada, Colorado, Iowawill be spent on political advertising in 2012. This should be and New Mexico.enough to start investing in the Latino electorate. Now some The election is less than a year away. The issues are now.thoughts on how to measurably sway Latino voters in 2012: The spending season has already begun. Politicians are mak-• Start by allocating an effective share of your broadcast ing important choices in how and where they spend their and digital spend to the Hispanic electorate. If you take resources. It is time they address the Hispanic vote. 562387_Concepts.indd 1 11/30/11 9:01:33 AM February 2012 | electronicRETAILER 45
  • 43. GUEST VIEWPOINT BY JAFFER ALIOwn Your Own Online MediaiIf you are presently marketing products even go there, or sell it for pricesvia television, you make your living previously mentioned.buying television advertising and sell- You see, as technology has advanceding products. The same goes for print. and we have become an “on demand”Buying media is what you are really world, few people are demanding ads –good at, especially buying media at in fact, they are well equipped to avoiddistressed rates. Of course, direct mar- them. Avoiding ads either throughketing flourishes in unsold inventories. technology or attention, online adver- So it is natural to view the online tising has become a prime example ofspace through a similar lens. When you advertising evasion. I exempt searchlook at the online media ecosystem, you from this avoidance, but that workscould start licking your chops at the on existing intent and does not cre-fact that nearly 75 percent of advertis- ate demand.ing inventories lay fallow. This is a What follows is not a secret topolite way of saying the inventory goes anyone reading: Advertising is becom-unsold. Much of it goes unsold because ing less effective and the response toit is worthless. declining efficiencies in the entire Facebook generated more than 1 ecosystem has been to increase thetrillion ad impressions for 2011. That’s number of ads. The increase in adsright, a TRILLION. These impressions everywhere has the net effect of exac-can be purchased for as low as $.03/M. erbating the problem. We are spawn-Theoretically, that is just 3 cents to be in ing a generation that has developedfront of 1,000 people. I say theoretically blindness to most advertising. Believe me, this is a special audiencebecause it is overwhelmingly obvious But not all media is created equally. – and a very valuable audience.that most folks on FB do not actually Did you know what the fastest growing In August of 2011, my company“see” the ads. Quickly, try to recall the part of Amazon.com’s business is? The PulseTV.com put a 300 x 250 bannerlast banner you saw. company is selling advertising. Amazon on every page of our e-commerce At 3 cents to reach a thousand people, is one of the largest media owners on site. We split the impressions 50-50I am of the opinion that this is as close the planet. between Advertising.com and rotatedto worthless as can be imagined. Buying The point is that every marketer banners for our own offers. Our ownthis media at any price is not likely to needs to move beyond buying worth- offers performed three times betterwork for anyone except for the company less media and emulate Amazon. This than Advertising.com’s revenue, andselling you billions of impressions. entails understanding that you own by November, we were just rotatingAnd, at that price, I am not sure it is a considerable media assets when it comes our own product banners and nowwindfall for Facebook either. But if you to online space. Let’s take a look at have eliminated outside ads and arewant to spend a quick $30 to “reach” a what owning your own online media utilizing all ad inventory for ourmillion people, be my guest. looks like. own offers. This resulted in an extra I can see the wheels turning in It is my contention that every mar- $30,000 to our coffers in one monthyour head already. Let’s do PI (CPA keter who has a presence online owns with only 500,000 page views. Thatin online terminology) with the likes considerable media. Let’s start with your is $6/M in revenue if you are count-of Yahoo! and Facebook. These folks website. How much traffic are you gen- ing and should be contrasted withalready know their media is close to erating? Each visitor represents a very buying Facebook advertising for 3worthless and know the unsold space special audience. It is an audience that cents per thousand impressions. Ourwill yield such a pitiful return with is interested in some way in becoming own media is worth 200 times thatrevenues shares that they rather not a consumer. of Facebook media. 46 electronicRETAILER | February 2012
  • 44. If you find yourself not having enough and you capture the email address, you utilizing this media for other offers. Itproducts to rotate in your ad inventory, have the right to send that person addi- helps overall conversions as the morethen by all means sell those impressions. tional offers. Each person is an actual people buy online from anyone, theRemember, your audience is special buyer and represents a golden oppor- more likely they are to purchase frombecause each individual has reached tunity to engage in an ongoing dialog. you. It is a bit counterintuitive, but ityour site at least initially interested in When you send someone a catalog, is true.buying your product or service. this is media. When you send someone Another way to own your own media This is one example of how valuable an email, this is media. And the cost to is to create or license content and getyour own media really is. You own deliver an email is extremely low. Using subscribers. In this way, you give sub-those views as opposed to renting a PulseTV as an example, we have more scribers value via daily jokes, recipes,theoretical impression. Plus, there is than 6 million email addresses and send random facts or articles for the rightno click fraud. A dirty little secret in out daily offers. This is like owning our to include your advertising. These areonline media is that almost 20 percent own broadcast station as we “reach” 6 called e-zines or newsletters. Overof clicks are fraudulent. Online media million people daily. I put “reach” in the years, PulseTV.com has alternatedsellers are not aggressive in ferreting out quotation marks because not everybody between selling advertising to compa-fraud because fraud makes them more opens their email daily so emails that nies inside these e-zines and selling ourmoney rather than less. Their goal is to are not read are like banners that are own products.keep fraud at a manageable level just to not viewed. The difference here is that When you own your own media, youkeep folks buying it. this is your own media and you can have a great dea l of f lex ibi lit y. So owning your own media eliminates communicate with your audience daily. Understanding your online media assetsfraud and will perform several times The email address is the most important and using those for cross-marketingbetter than any display advertising you piece of data you own. In the online products or selling the space to otherwill ever buy. But is your website traffic world, data becomes media. folks is not a replacement for buyingthe only media you own? In addition to mailing your own online media. You can do both. But first The greatest media asset you own is offers, more and more marketers are you need to understand that the mostyour customers’ email addresses. When contracting with third parties to deploy effective media you can possibly find isa customer buys something from you offers. They augment their revenue by right in your own backyard. Your Business Partner in Direct Response. Advanced Track Technology TRACKING & ANALYTICS Lifetime Optimizes Value Media INTERNET SHIP TO HOME 3rd party database DATA MINING mining to enhance target customer MOBILE DEVICES profiles TELEVISION CALL CENTER YOUR PRODUCT TARGET AUDIENCE CONSUMER Demographic & Psychographic Use the power of direct Analysis response media to drive, RADIO support and track retail sales. SHIP TO RETAILER PRINT Complementing our media expertise, Chief is at the forefront of media results technology. We’ve developed intuitive tracking systems—TMO, our online visit and order tracking system which allocates (based on multi-level variables) unique web visits and orders back to each traditional media airing, allowing for a full analysis of media effectiveness and CONTINUUM customers against the original media source. Chief Media represents cutting edge, proprietary technology and unparalleled 554155_chief.indd 1 9/28/11 2:49:24 AM February 2012 | electronicRETAILER 47
  • 45. BY DICK WECHSLER Supporting Retail: Is This the Answer?CHANNEL CROSSING: DRTV Here’s one big question often asked by many direct pointed out. The first is that this is a great product. response television marketers: How much advertis- People really like it. The second is that the creative is ing do I need to run to support retail? This is a clear and compelling. No amount of media is likely to tough question to answer because retail support help an undesirable product with ineffective creative. often occurs after a successful DRTV campaign has The test looked specifically at the impact of com- enjoyed its greatest scale and efficiency. Scott Boilen, mercial length and media weight on retail sales for president of Allstar Marketing once explained that this product in specific markets as compared to the the company advertised Snuggies to support retail national average at that same time. Daily sales data sell-through. Scott admitted that they didn’t know came from Wal-Mart. how much to spend, but that they erred on the side Flight One involved running 50 TRPs a week in of spending more, rather than less. They simply three markets with a 60-second unit. Almost immedi- didn’t want too little advertising to be the cause of ately, daily sales of the product in Wal-Marts in these poor sales. Whether or not the advertising had an markets exceeded weekly sales in all other markets. In impact on sales remains unknown. fact, stores in these markets ran out of inventory. The Recently, we’ve been working with a marketer planned three-weekly media flight was canceled after interested in learning if and how much media was two weeks because of too much success. needed to stimulate retails sales of a product that Flight Two involved running 25 TRPs a week in one enjoyed broad retail distribution, no brand aware- market with the same 60-second commercial. Weekly ness and that had never before been advertised. In sales in Wal-Mart stores more than doubled compared other words, we had the opportunity to understand to the national average. the direct impact of advertising on retail sales. Here Flight Three included running 25 TRPs a week in are the significant learnings: one market with a 15-second commercial. The results 1. The results were immediate! Advertising started on were identical to the second flight. Sales in Wal-Mart Day 1 and sales jumped on Day 1. stores more than doubled compared to sales in Wal- 2. Sales improved dramatically and equally whether Mart stores that received no advertising support. a 60- or 15-second commercial ran. It’s important Can 25 TRPs a week with a 15-second commercial to note that in this case, product benefits could be effectively support retail for a DRTV product? If the completely communicated in a 15-second spot – no commercial were clear and compelling, this test would easy feat. indicate yes. The fact that the weekly cost of media 3. Far less media weight than expected was needed would be $43,750 compared to P&G’s $1 million makes to increase sales. the findings of this test all the more interesting. The results of this test run against prevailing conven- The nature of local broadcast media is another factor tion and may provide an empirical foundation from that needs to be considered. It’s easier to achieve share which to answer the question, “How much media is of voice in a local market than it is to do so nation- necessary to support retail for a DRTV product.” For ally. And the ABC, NBC, CBS, Fox and independent example, a packaged goods company like Procter & stations that make up local buys, reach a different Gamble would support a brand with 150 gross ratings audience composition than national cable networks. points (GRPs) a week. It likely would target women The key, when applying the local lessons nationally, 35-64, so it’s really a targeted ratings point (TRP). is to make every effort to replicate the day parts and Each GRP or TRP represents 1 percent of the TV media types used in each local market cell. That audience. A company like P&G might run the cam- means including syndication and broadcast networks paign anywhere from three to 10 weeks. If each TRP into the media plan. for a 30-second unit costs $7,000, the weekly budget So, “How much media is necessary to support retail?” exceeds $1 million. That is too rich for even the most According to a test we just completed, 25 TRPs a week successful DRTV advertiser. with either a 60- or 15-second commercial, just might What we learned with this recent test is that an do the trick. effective media spend might be significantly less and prove to be reasonable for many DRTV advertisers. Dick Wechsler is president and CEO of Lockard & There are, however, two variables that need to be Wechsler. February 2012 | electronicRETAILER 49
  • 46. BY YOLANDA COLEMAN KOKAYI Are You Delivering a Great Customer Experience?CHANNEL CROSSING: FULFILLMENT The customer experience: It has become more than just an industry term. It is what some would argue inspires brand loyalty. As marketers strive to build and grow their brands, delivering a great customer experience is mission critical. Consumers today hold their brands to a high stan- dard. Every touch point within the customer experience must exceed their expectations. The Customer Journey In the DRTV world, we often hear about the lifecycle and journey of a product from concept to creation. But what about the customer journey? How does the customer experience your brand when they call to place an order? What about when they finally receive their much anticipated package? After marketers have worked to develop a product Companies that approach customer satisfaction by and invested in marketing and promotions, there comes confining the customer experience to the product alone, a point when the baton is passed. Brand marketers now overlooking after-sale services such as packaging and have to rely on their fulfillment partner for the last accurate shipping run the risk of damaging their brand mile. Order processing, how customers are informed value. After a customer has taken the time to respond of order/return status, save the sale efforts and how to the call to action and placed the order, only to have complaints are handled are all critical processes that the box arrive late, poorly packaged and containing impact the perceived quality of a customer’s brand the wrong item, does not make for a happy customer. experience. So how do marketers ensure they are really With the power of Twitter, Facebook and blogging, delivering a great customer experience? Pay attention a single consumer’s point of view can go viral in a to the back end details. matter of minutes. Managing brand impressions at every stage has never been tougher. Fulfilling Expectations Creating consumer loyalty must be a core value of When the Product Leaves Your Hands a fulfillment partner. Quality has to be more than a Today, teams of organizations partner to deliver slogan on a banner inside the warehouse. This is the products to the end customer hoping to create brand last leg and consumers expect excellence. loyalists and eventually brand advocates. It is a huge Marketers can ensure delivery of a great customer multi-faceted process with several details to consider. experience on the back end by working with their But in the mind of the customer, the most important fulfillment partner to ensure that there is: thing is getting the right product as soon as possible • A commitment to quality from senior management and in perfect condition. • A documented quality assurance process • A commitment to investing in technology • A system of training and testing employees Companies that approach customer • A system that operates based on the marketer’s satisfaction by confining the business rules • Internal and external auditing customer experience to the product • A system for improvement implementation alone, overlooking after-sale • A feedback communication loop to clients The result: a great customer experience delivered services such as packaging and right to your customer’s front door. accurate shipping run the risk of Yolanda Coleman Kokayi is the marketing manager damaging their brand value. of Innotrac. Yolanda can be reached at (678) 459- 8425 or ykokayi@innotrac.com50 electronicRETAILER | February 2012
  • 47. BY SCOTT RICHARDS Stop Losing Thousands of LeadsCHANNEL CROSSING: TELESERVICES You could be losing thousands of precious inbound As the phone was answered and I began to explain telephone leads a year and not even know it. The I was looking for the ASPCA, the person on the other reason? Misdials. The vast majority of misdials are end launched into an anguished rant about how my due to callers automatically dialing 800 when another inquiry was a wrong number. After clarifying my real prefix such as 866, 877 or 888 was advertised. This purpose, they explained that they were a family busi- is a problem that is easily remedied and can result in ness of jewelers who forwarded their calls to their home substantial increases in response and sales. on weekends and holidays. On a regular basis, they were awoken by misdials in the middle of the night The 800-Prefix is Programmed from distraught pet owners who had misdialed their in Peoples’ Brains 800 number rather than the ASPCA’s 888 number. How can misdials possibly be so prevalent when adver- You may wonder, wouldn’t callers simply redial the tisers go out of their way to communicate the proper toll- correct number? No doubt, in the case of a poisoned free number to call both visually and aurally? Because the pet. But what about a scenario where someone has 800-prefix is already programmed in peoples’ brains. The decided to call about a product on impulse? They may problem lies with the sheer amount of information that go online and begin price shopping or even checking out consumers are trying to process. Pundits estimate that the the competition instead of placing an order. Marketers average consumer receives more than 6,000 advertising need to strike while the iron is hot, and the solution to and marketing messages on a daily basis. As a result, they this problem is easy. look for shortcuts to assimilate and compartmentalize an overwhelming amount of data. So when a consumer Big Rewards for Pennies hears the term “toll-free,” his or her shortcut or default The simplest way to correct this problem is to only is to assume that the number being advertised is an 800 use 800-prefix toll-free numbers when advertising. In number. Simply put, 800 is to toll-free what dot-com is most instances, the incremental cost is pennies on the to the internet. Want proof? Ryan Seacrest, the host of dollar compared to what you will recoup in leads and American Idol repeats the number to call and vote – (866) sales. Direct marketers are constantly striving to improve IDOLS-02 – about five times per show. Nevertheless, as their results through offer and creative testing, telemar- reported in the New York Times, about 250,000 viewers keting scripting, media planning and buying and the accidently dialed the wrong number, (800) IDOLS-02, like – so why wouldn’t you optimize the ability for your significantly skewing the voting outcome. consumer to recall and accurately reach you? As the The problem of misdials exists not only in broad- saying goes, the numbers do not lie. In the end, it is cast media. Below are just a few examples of monthly the marketers’ decision and using 800-prefix numbers misdial activity pulled from our database. exclusively is simply the right call. Multiply the number of misdials a month by a year’s worth and the problem compounds into Scott Richards is CEO of Dial800, specialists in tens, even hundreds of thousands of potentially marketing optimization. Dial800’s tool suite includes lost leads annually. RapidRecall, the industry’s largest bank of numerically memorable 800 numbers and AccuRoute, state-of-the- Take Misdialing for a Test Drive art intelligent call routing. He can be reached at 1-800- One agency head questioned this assertion regarding DIAL-800 or at scott.richards@Dial800.com. the superiority of 800-numbers, so I put it to the test: I chose Trying to Number Called Correct Monthly one of the agency’s clients, the Reach? Product (Misdial) Number Misdials ASPCA’s Animal Poison Control Center. Its website says: “If you SmartTalk Pre-Paid Cell (800) 430-CELL (877) 430-CELL 64,000 Phone think that your pet may have ingested a potentially poisonous Frontier Phone Communications Company (800) FRONTIER (888) FRONTIER 4,866 substance, call (888) 426-4435.” I purposely called the 800 num- Metro Healthcare (800) 780-7000 (806) 780-7000 1,510 ber, (800) 426-4435, not the 888 Healthcare number, to see who answered. Ebay Shopping (800) 540-3229 (866) 540-3229 1,326 February 2012 | electronicRETAILER 51
  • 48. MEMBER SPOTLIGHTThe following companies are members of the Electronic Retailing Who:Association and have been chosen to be spotlighted this month.Read on to better understand the different types of companiesthat comprise this vibrant, fast-paced, growing industry.Who: What: Euro RSCG Edge is the world’s largest vertically inte- grated direct response agency. Edge is an innovator in every aspect of DR success: creative strategy and execution, channel agnostic customer touchpoint mapping, offer creation as well as online/offline media planning, buying and optimization. Clients include both Fortune 500 enterprises and entrepre- neurs who are bringing their first products to market. Edge delivers success to clients and their business models based on its philosophy to “Build the business, build the brand, in that order,” and its maniacal focus on metrics and results.What: The infomercial business is getting tougher every day. Where: San Diego, Calif. (headquarters); Boston, Mass.; LosAnd while it’s great to get a successful infomercial up and Angeles, Calif.; Portland, Ore.; London, Englandrunning, not making the most of that success is an absolute Web: www.eurorscgedge.comshame. That’s why some of the top infomercial makers in Why ERA: “Edge has consistently garneredthe world have turned to Vintage Marketing. We find ways significant benefits from our ERA participa-to improve the effectiveness of your efforts. We do it based tion and membership. The caliber of talenton years of experience in direct marketing. We do it through and access to expertise provided by ERAproprietary systems for making the most of every response. are unmatched and the annual conferencesAnd we do it through some old fashioned digging and hard are a major driver of innovation within thework. The process varies client by client, but the bull’s eye is industry and our agency.”always a sizable boost to your bottom line. – Steve Netzley, CEO As an international, award-winning direct marketing pro-fessional, Eileen Fraser has created direct marketing programsduring the last 29 years for brands that include Chevrolet, Who:Princess Cruises and Mattel. For the past 10 years, she hasfocused exclusively on helping infomercial and short-formmarketers maximize sales and improve profits.Where: Santa Monica, Calif.Web: www.vintage-marketing.com Why ERA: “ERA helps all my clients. In considering what to give that special client, What: Swipe provides payment processing Check 21 and what better way to show my sincere thanks ACH solutions for e-commerce, MOTO and retail business.  than joining ERA myself!” Swipe offers more than 30 domestic and international – Eileen Fraser, President and CEO banking choices. Rapid Response is Swipe’s award-winning five-person support team providing 24/7 service. Each team member has between five and 20 years of direct response and e-commerce experience. Rapid Response is knowledge- able, accessible, responds quickly and shows great to detail. We also help customers during evenings and weekends with issues within our control and capabilities.  Swipe is fully integrated with DR and e-commerce’s leading media buyers, call centers, fulfillment houses and CRMs, as well as other payment processors and banks. Behind Swipe’s customers is a management team with more than 75 years of experience in banking and payment processing. Swipe can facilitate high-volume processing offering detailed report- ing, multiple gateway solutions, stable banking partners, chargeback management and account updater for high processing volume capability. Curtis Kleinman is a 27-year banking veteran with a service-oriented mentality. Curtis 52 electronicRETAILER | February 2012
  • 49. has a large world-class client list including many Fortune Who:100 companies.Where: Los Angeles, Calif.Web: www.swipellc.com Why ERA: “The Electronic Retail Association does a great job of bringing education and world leaders together in a fun setting. You What: Results Producers doesn’t just produce infomercials have been great listeners and helped me to and short-form spots for its clients, it produces revenue— well achieve my goals quicker. The Moxie over half a billion dollars in the last 20 years. It has created Awards were moving and amazing. Through winners for clients ranging from entrepreneurs such as the ERA, my visibility and sales have gone Aerobed and Smart Chopper to brand names including Sony, through the roof. Thanks, ERA.” Norelco and Royal Caribbean Cruise Lines. Executive Producer– Curtis Kleinman, Vice President of Business Development Pat Finn has produced more than 400 DRTV and network television programs, and he personally oversees all of Results Producers projects from creative concept and production toWho: final post-production. The veteran team at Results Producers does high-quality, high-definition productions without the high price. Where: Los Angeles, Calif. Web: www.resultsproducers.com Why ERA: “We joined ERA to help minimize the risk and maximize profits for our clientsWhat: Downpat Music is the leading original music provider by collaborating with other industry leaders.serving the DRTV industry. Many of our soundtracks have ERA is the trade association for all seriousstayed on air for more than 10 years – themes like Carleton companies in the DRTV industry.”Sheets, SMC, OxiClean, The Juiceman, The George Foreman – Pat Finn, CEO and Executive ProducerGrill and many more. We compose memorable music thatDRTV producers use to help brand their infomercials, prod-uct videos and online videos. Working online, producerspost their infomercial and the music is created for the show.Within days your infomercial will have a custom musicsound adding dramatic impact to your product and makingit stand out from the rest. We have composed music for majorbrands that use DRTV such as 3M, Cuisinart, Oreck, Procter& Gamble and, most recently, Remington for the RemingtoniLight Pro infomercial.Where: Danville, Calif.Web: www.downpatmusic.com Why ERA: “After one year of membership we totally see the benefit of membership as we have developed new business relation- ships directly related to the ERA networking events held throughout the year.” – Pat Rickey, President February 2012 | electronicRETAILER 53
  • 50. Advertiser Spotlight PLUG a2b Fulfillment Inc. Motivational Fulfillment YOURSELF INTO see our ad on pages 35, 56 150 Stewart Parkway & Logistics Services see our ad on page 5 THE ELECTRONIC Greensboro, GA 30642 Contact: Gary Latz, VP Marketing 15820 Euclid Avenue Chino, CA 91708 RETAILING INDUSTRY Phone: 706-454-0195, ext. 210 Contact: Hal Altman, President 281-466-2914 alternate office Phone: (909) 517-2200 THROUGH Email: gary@a2bf.com Fax: (909) 517-1570 ADVERTISING Website: www.a2bfulfillment.com Email: hal@mfals.com Website: www.mfals.com Speed matters. Same day processing of OPPORTUNITIES orders – guaranteed or its free! Reduce your per package costs by shipping from Motivational Fulfillment & Logistics Services is a full-service, direct-to-consumer and retail WITH ERA our strategic Eastern location. Turnkey service offering including warehousing, fulfillment center operating out of more than 800,000 square feet in Chino, Calif. We assemble, orderfulfillment, continuity management, package and ship tens of thousands of packages discounted shipping, customer service, each day to individual consumers and major retail kitting, assembly, returns processing and chains. MFLS is PCI compliant and EDI capable. product refurbishment. Moulton Logistics Management Dial800 see our ad on pages 6, 56 see our ad on page 13 7850 Ruffner Avenue 9911 West Pico Blvd., Suite 1200 Van Nuys, CA 91406 Los Angeles, CA 90035 Contact: Joel Crannell, Contact: Scott Richards, CEO Vice President Sales Phone: 1-800-DIAL-800 Phone: 818-997-1800 Fax: 1-800-FAX-LINE Fax: 818-442-0310 Email: scott@dial800.com Email: Joel@moultonlogistics.com Website: www.dial800.com Website: www.moultonlogistics.com Dial800 empowers direct marketers Moulton Logistics Management is the industry’s Electronic Retailer is the premier and agencies with powerful tools that leading direct-to-consumer fulfillment publication for the electronic retailing optimize conversion and sales. You’ll have company. For 42 years, Moulton Logistics has marketplace. With 93% of readers unparalleled insight into call volumes, provided technology and logistical solutions being C-Level executives or higher, buyer demographics, even the ability to some of the biggest names in marketing advertising in this publication to listen to calls. We make complex call and publishing. Our services include direct-to- connects you directly to the heart of routing simple and can show you how to consumer order management and fulfillment, the industry. turn memorable toll-free numbers into retail distribution and customer service contact unforgettable sales. center. Our automated operations, state-of-the- In addition to print, your message is art web reporting and bi-coastal distribution brought to life in a fully interactive centers will lower the cost of bringing your digital edition of the magazine. Lockard & Wechsler Direct product to market. Readers will receive each issue in their see our ad on the inside back cover inboxes and can virtually flip through Two Bridge Street, Suite 200 the pages and click on ads to redirect Irvington, NY 10533 SF Global Sourcing to advertisers’ websites. Contact: Dick Wechsler, CEO see our ad on the outside back cover Phone: 914-591-6600 1000 Sansome St., Suite 280 For more information Fax: 914-591-6652 San Francisco, CA 94111 on customizing your Email: rwechsler@lwdirect.com Contact: Steven Feinberg, President advertising program with Website: www.lwdirect.com Phone: 1-855-SF-GLOBAL ERA, contact: Fax: 415-288-9410 Maximizing every plan, every buy, every Email: steven@sfglobalsourcing.com Matthew Yates opportunity. Driving exceptional results. Website: www.sfglobalsourcing.com Naylor, LLC | Project Director Building and enhancing brands. Raising (800) 369-6220, ext. 6014 | awareness. Maximizing acquisition. The global sourcing process just got easier: myates@naylor.com Revolutionizing tools and technology. Simply contact SF Global Sourcing for a free, no Integrating digital and direct to build obligation consultation. We specialize in direct- scale and improve efficiencies. Developing marketed consumer goods with a specialty breakthrough, response-driven creative. in intellectual property distributed CDs, DVDs This is what defines us and helped us grow and printed material. At SF Global Sourcing, into a nationally acclaimed, full-service we source all ancillary product to complete an direct marketing agency with more than offer. And we do this for companies ranging $450 million in annual billings. from multinational brands to start-ups looking for a leg up in today’s hyper-competitive marketplace.54 electronicRETAILER | February 2012
  • 51. ADVERTISER INDEX BULLETIN BOARDa2b Fulfillment Inc.www.a2bf.com .............................................35, 56Allstar Products Groupwww.allstarmg.com..........................................25 PERSONNELApplied Perceptions REVShare, the TV advertising network that brings the accountability ofwww.apcrc.com.................................................... 9 internet advertising to television, has hired three new salespeople toChief Mediawww.chiefmedia.com/er ......................... 47, 57 assist in the expansion of its targeted ad sales business. Joining theConcepts TV Productions company as account executives are Stephen Hurd, Gregg Brinin andwww.conceptstv.com ......................................45 Logan Connolly.Dial 800www.dial800.com ..............................................13 Daryl Buttrick recently joined Media Design Group’s outstanding teamDiray TV of long-form media buyers. A powerhouse in the industry, Buttrick previ-www.diraytv.com...............................................57 ously bought media at Mercury Media and Strategic Media.E&M Media Groupwww.emtvsales.com ........................................12 KPI Direct, an integrated direct marketing and brand managementElectronic Retailerwww.electronicretailermag.com .................54 agency, has hired Nida Lopez as marketing assistant.Electronic Retailing Associationwww.retailing.org..........................10, 27, 39, 43Evolve Tele-Services, Inc.www.evolvetsi.com...........................................42Global Infomercial Services Inc.www.giservices.tv .............................................57 COMPANY NEWSIMS-Infomercial Monitoring Service Inc. DG, a leading provider of digital have created the industr y’s f irstwww.imstv.com..................................................55 media solutions and technology to completely digital distribution sys-InfoCision Management the advertising, entertainment and tem t hat w i l l deliver long-formwww.infocision.com .........................................12 broadcast industries, and Discovery infomercial programs to DiscoveryJordan Whitneywww.jwgreensheet.com .................................34 Communications, the world’s num- on a daily basis with never-before-Kingstar Media ber one nonfiction media company, achieved efficiency.www.kingstar.tv .................................................31Koeppel Direct Inc.www.koeppeldirect.com ................................15Litle & Companywww.litle.com .....................................................38Lockard & Wechsler Directwww.lwdirect.com ..............inside back coverMotivational Fulfillment & Logisticswww.mfals.com .................................................... 5Moulton Logistics Managementwww.moultonlogistics.com ..................... 6, 56Newton Mediawww.newtonmedia.com ................................57Northern Response (International) Ltd.www.nresponse.com .......................................56Oak Lawn Marketing Groupwww.oaklawn.co.jp/english ...................inside front coverOmni Direct Inc.www.omnidirect.tv ...........................................48OrderMotionwww.ordermotion.com...................................56Profit Marginswww.profitmarginsinc.com ...........................41SF Global Sourcingwww.sfglobalsourcing.com................ outside back coverSKO Brenner Americanwww.skobars.com .............................................56Swipe Payment Solutionswww.swipellc.com ............................................57Two-D Productionswww.two-d.com ................................................33Venable, LLPwww.venable.com ............................................... 3William Sullivan Advertisingwww.williamsullivanadvertising.com ........56 523324_IMS.indd 1 3/21/11 3:21:20 PM February 2012 | electronicRETAILER 55
  • 52. CLASSIFIED DIRECTORY Electronic Retailer Online Classifieds can be found at www.electronicretailermag.com/ classifieds. For more information on advertising contact Matt Yates, myates@naylor.com, (800) 369-6220, ext. 6014 (+1-352-333-6014). ADVERTISING AGENCY FULFILLMENT To learn more, call Bill Sullivan @ 973-214-4447 or email @ bsullivan@jlmedia.com A Division of JL Media www.williamsullivanadvertising.com539173_William.indd 1 545514_a2b.indd 1 7/5/11 7:43:57 PM 8/9/11 12:58:25 PM Logistics Management COLLECTION SERVICES A Complete Range of Ful llment Services Full Call Center • Full Service Direct Mail • Real-time Online Inventory Reports • Database Management Continuity Programs • EDI for Retail Ful llment • Drop Shipping for Shopping Channel Clients 1-888-765-MOULTON www.moultonlogistics.com SKO BRENNER AMERICAN YOU PAY FOR 561552_Moulton.indd 1 11/30/11 8:49:15 PM PERFORMANCE NOT PROMISES! www.paymentsmarket.com/booth/skobrenner INFOMERCIAL DEVELOPMENT & PRODUCTION WE FIX BROKEN PAYMENT PLANS OF SOFT, EASY-PAY & CONTINUITY OFFERS • Customer Retention • Speed Revenue • Billing Resolution • Increase Profits • Collections 928.777.8813540232_SKO.indd 1 8/8/11 4:55:55 PM 519051_Order.indd 1 3/22/11 8:37:21 AM DISTRIBUTION & FULFILLMENT SERVICES555277_Northern.indd 1 10/4/11 11:20:45 AM 56 electronicRETAILER | February 2012
  • 53. INTERNATIONAL DISTRIBUTION PAYMENT PROCESSING info@giservices.tv www.giservices.tv Oak Lawn Marketing Group Company Curtis Kleinman 708.229.2424 26 year banking exp. V.P. Business Development International Distribution Direct Access to the Largest Overseas E-Commerce Specialist Markets Digital Per Inquiry Media Strategic Product Planning Tel 310-573-9019 Individualized Customer Service curtis@swipellc.com most Internet Direct Response The Domestic/International MOTO Anti-Aging545913_Global.indd 1 8/8/11 10:58:38 PM Solutions to help your business thrive Fitness Continuity w/Trial Swipe Payment Solutions Retail Locations Educational Los Angeles, CA Swipe Payment Solutions is a registered ISO/MSP of HSBC Bank USA National Association, Buffalo, NY and First National Bank MEDIA BUYING & PLANNING of Omaha, NE, Meridian Bank of Devon, PA and BMO Harris Bank, N.A., Chicago, IL 557286_Swipe.indd 1 11/2/11 3:15:30 AM518980_Chief.indd 1 3/22/11 3:07:43 PM ADVERTISE HERE556293_DirayTV.indd 1 10/12/11 3:45:23 PM Electronic Retailer classifieds put your products and services front and center to the audience you want to reach.546565_Newton.indd 1 8/12/11 7:21:21 PM Contact Matthew Yates, (800) 369-6220, ext. 6014, myates@naylor.com February 2012 | electronicRETAILER 57
  • 54. RICK PETRY b MINI Me Brands matter and here is why: Everyone is a brand shrapnel. Oh, I dutifully sat in every gas-guzzling SUV comprised of a mosaic of singular attributes – from and luxury sedan knowing full well that in the end quirky personality characteristics to physical appear- we would do exactly what we did: We bought another ance, our circle of friends and especially the consumer Honda Odyssey Minivan. Soccer moms rock their own items we surround ourselves with. The latter might be brand patina; it’s just that their idea of a tailgate party called our brand patina, and it ranges from the shoes is when the tailgate opens automatically. we wear to the vehicle we drive to the books we cozy Yet it was at that very auto show that I fell in love up to at night. Conscious or not, we make instantaneous again – with a MINI Cooper S. Here was a line that decisions about whether something is going to enter the spoke to me: British racing heritage, over a million consideration set of our brand patina in the flick of a customizable variations, nothing short of irreverence dismissive or accepting blink. It occurs on an almost on four wheels. And the gas mileage – so good I was subliminal level where a product’s aesthetic appeal or able to construct a carbon-footprint argument to sway lack thereof determines the ultimate outcome of our the better half on how rational a decision it was to buy relationship with it. It doesn’t matter if we’re talking a convertible in a city where it rains 167 days a year. about hangers (plastic = yuck) or hamburgers (cheese, However, that first encounter at the convention center please); this merciless Caesarian-like thumbs up/thumbs was just the beginning of a brand seduction that has down is an immutable law that drives the marketplace. continued to flourish. For a MINI isn’t just a car – it’s So what is a marketer to do? Pay attention. a culture, and the company does a phenomenal job of That attention is best focused on 1) designing and cultivating its buyers. The welcome package I received manufacturing a product that is beautiful, functional contained an array of materials all designed to inspire and easy to use, and 2) spending the time, money and positive feelings about the purchase decision – including care to portray that product in its most aspirational a cheeky motoring manual, a MINI luxury magazine, light. There is a reason that the average 30-second stickers to affix on your visor, even a smiley face ball branded television commercial costs $323,000 according for your antenna. But perhaps the cleverest item of all to the 4A’s Television Production Cost Survey: Tender was the “Chief Motorist” welcome card affixed with loving care requires legal tender. Yet even when certain a paperclip in the silhouette of – what else – a MINI products are gussied up in primetime on, say, the likes Cooper. What may seem like the most insignificant of American Idol, they still fail the personal branding detail proved that with the right touch, even the tiniest litmus test. Hence, no amount of light-hearted frolicking feature is capable of communicating passion. by ham-fisted finalists around a Ford Focus can save it Achieving this sort of brand affinity is no easy task. from the chop shop known as the brand patina guil- A marketer has to buy into it heart and soul. It requires lotine. That may sound elitist, but the same principle imagination, a lot of trial and error, and the ability to applies to the size of the curd in your cottage cheese see beyond the associated costs. But in those moments – we know what we like and we like what we know. when an advertiser is vying for attention, it is these Everything else is a no. sorts of nuances that can help win the war to capture Hence a recent trip to the annual automobile show an audience’s fancy. They say the devil is in the details, to find a replacement for my wife’s Honda Odyssey but when rendered right, it is those devilish details Minivan felt like a game of Mortal Combat where vehicle that can cause a chorus of angels to erupt. That is the after vehicle was reduced to smoking metaphorical soundtrack of success, as consumers reach for their wallet, their brand patina awash in a vivid new color; For a MINI isn’t just a car – it’s a color brought to life by the brilliant brushstrokes of a marketer’s ingenuity. a culture, and the company does a phenomenal job of Rick Petry is a freelance writer who specializes in direct marketing and is a past chairman of ERA. He cultivating its buyers. can be reached at (503) 740-9065, online at rickpetry. com or on Twitter at http://twitter.com/thepetrydish.58 electronicRETAILER | February 2012
  • 55. NINE RULES FOR DRTV SUCCESSSince 1967, Lockard & Wechsler has been planning, buying and analyzing direct-response campaigns 6 W tffor major corporations and fast-growing startups alike. In that time, we’ve established nine proven a f tmethods to make DRTV make money – no matter what product you’re selling, no matter what medium R dyou’re using. When every minute matters, these are the rules for success. n f 1 Make empirical, not emotional, decisions. And base them on cold, hard facts. f 2 Numbers lie. But they do have to be handled by experts so they give up their secrets and They don’t are everything. a provide meaningful direction. f 3 Programshands, results canthe afirst time, everynot enough to resuscitate In the right should work always be improved, but time. a program that’s dead on arrival. 4 FrequencyRisVthe benefithelp you run a successful campaign fosuccess. An expert DRT agency will of success, not the key to f f r all it’s worth and advise you not to throw more money to the dogs. 5 Never forceknowing what theucycles arebeatgoing with the flow. The key is in anything. Yo can’t Y and a down cycle. 6 Don’t wasteagency will be able to identify them and pounce on your behalf. A great media time. Opportunities are fleeting. f f 7 DRTV is with the winners. Cut your losers will leadAlwaytotake advantage of all Run hard a science. The discipline ruthlessly. you success. as the analytical tools and expertise available to you. a 8 Teststoffearly and and media from wait forbeginning. There’stoalways room for improvement. T Te T ffer, creative often. Don’t f the very a campaign weaken. a f 9 The Internet adds effithe Internet as a singleVchannel. to The Internet. r T Treat DRTV and f ciencies to DRTV, and DRT adds scale R V RTTo give your campaign its greatest chance for success, come to an agency that knows the rules for success. f fWWith Lockard & Wechsler, you’ll benefit from decades of DR experience including short-form and long- W r f tffform TV, radio, direct mail, FSIs and print. Your media will be V Yplaced by senior people with the experience and the long-termrelationships necessary to get the best deals.And, your business will grow with an agency who actuallybelieves in direct response ads like this, rather than one thatreverts to awareness ads to promote itself. a fFor additional information call Dick Wechsler now at f W(914) 250-0250 or visit www.LWDirect.com Irvington, NY Media Buying • Creative • DRTV • Infomercials • Print • Radio • Hispanic DRTV
  • 56. HOW YOU GET TOW WWhen your consumer receives your product everything about itshould WOW them. At SF Global Sourcing we specialize in creatingthe highest perceived value with the lowest cost of goods possible.Contact us today to put the power of WOW to work for you. Offer Development | Sourcing | Packaging | Delight Meet Us At ERAs Great Ideas Summit, 2/27-2/29/12, Fontainebleau Miami Beach