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Direct Response is
Dead: long live
Connected Response
What’s
in
store
today
The DR model is broken
Brand and Direct are
outdated terms
But there’s a new way…
In Short, Direct Response Advertising
is…
Advertising with
a call to action
..which is
tracked
…evaluated
(CPR/CPA/ROI)
…and
optimised
£0£20£40£60£80£100£120£140£160£180£200£220£240£260£280£300£320£340£360£380£400£420£440£460£480£500£520£540£560£580£600£620£640£660£680£700
Core PPC
Cons PPC
Inserts
HDS
DRTV
Core BRTV
Cold DM
Cons BRTV
VOD
Typically it involves the following
media …
DRTV Fractional Press Leaflets Digital
But the Direct Response Model has
been facing some tough challenges
Response rates in long term
decline
Circulations falling
Clutter and congestion
Cost Pers rising
0.000970%
0.000811% 0.000834%
0.000596%
0.000301%
2009 2010 2011 2012 2013
TV Phone response rates
have declined by 69% in 5
years
Phone RR%
£-
£2.0
£4.0
£6.0
£8.0
£10.0
£12.0
£14.0
£16.0
0.0000%
0.0002%
0.0004%
0.0006%
0.0008%
0.0010%
0.0012%
0.0014%
0.0016%
0.0018%
0.0020%
Sep-2007Total
Oct-2007Total
Nov-2007Total
Dec-2007Total
Jan-2008Total
Feb-2008Total
Mar-2008Total
Apr-2008Total
May-2008Total
Jun-2008Total
Jul-2008Total
Aug-2008Total
Sep-2008Total
Oct-2008Total
Nov-2008Total
Jan-2009Total
Feb-2009Total
Mar-2009Total
Apr-2009Total
May-2009Total
Jun-2009Total
Jul-2009Total
Aug-2009Total
Sep-2009Total
Oct-2009Total
Nov-2009Total
Dec-2009Total
Jan-2010Total
Feb-2010Total
Mar-2010Total
Apr-2010Total
May-2010Total
Jun-2010Total
Jul-2010Total
Aug-2010Total
Sep-2010Total
Oct-2010Total
Nov-2010Total
Dec-2010Total
Jan-2011Total
Feb-2011Total
Mar-2011Total
Apr-2011Total
May-2011Total
Jun-2011Total
Jul-2011Total
Aug-2011Total
Sep-2011Total
Oct-2011Total
Nov-2011Total
Dec-2011Total
Jan-2012Total
Feb-2012Total
Mar-2012Total
Apr-2012Total
May-2012Total
Jun-2012Total
Jul-2012Total
Aug-2012Total
Sep-2012Total
Oct-2012Total
Nov-2012Total
Jan-2013Total
Feb-2013Total
Mar-2013Total
Apr-2013Total
May-2013Total
Jun-2013Total
Jul-2013Total
Aug-2013Total
Sep-2013Total
Oct-2013Total
Nov-2013Total
Dec-2013Total
Jan-2014Total
CostperClick
ResponseRate
Phone Call Response Rate vs PPC CPC
Avg. CPC Resp %
As clients move to reliance on an auction
model, business models struggle
rr% -75%
Cpc x5
We had to
develop a
new way
of thinking
One that’s
suited to a
super
connected
world
Three underlying causes
Consumers
Technology
Google
Our
solution…
Connected
Response
Consumers
Technology
Google
All media can drive some form of
response now…
Up to 10k
interactions
per week
from OOH
20-30k
interactions
from peak
TV
campaign
1,000s
interactions
from
Cinema
20% of
peak
airtime out
performs
daytime
Understand the algorithm
Everything is connected
Never miss an opportunity to
Interact - no dead ends
Nurture, convince, entice, don’t
just sellConsumers
Technology
Google
Unravelling the connectivity of a response
journey unlocks growth
There is an increasing amount of evidence that Social and
SEO are linked
Understand the algorithm
Everything is connected
Never miss an opportunity to
Interact - no dead ends
Nurture, convince, entice, don’t
just sellConsumers
Technology
Google
So, our
plans
move
from
this…
So, our
plans
move
from
this…
to this
52,000 5,200
Extra clicks
108
BB sales+10-20% CR
+5-10% CTRPPC
PPC clicks
SEO 360,000
20% of 1.8m untapped
SEO clicks in 3 mths
0.3%
Conversion rate
1,080
BB sales
Social
Signals
60,000
Likes/ follows/
Shares / re-tweets
30
BB sales
eCRM activity - 0.005% x 10
waves
Direct 5,500
Calls (0.001%)
3%
Phone CR
165
BB sales
19,500
Web (+1% more efficient
X 13 weeks)
1.5%
Web CR
293
BB sales
£4.3m Spend
550m impacts
Prospect
Pool 55,000
Content
Interactions (0.01%)
0.3%
Retargeted
clicks
165
BB sales
0.3%
Phone
Conversion rate
165
BB sales
SEO value can have a massive impact
on campaign performance
Product X
Which we measure on a connected response
dashboard
Social Signals
SEO Rank
Prospect Pools
Media Schedule
Campaign
Performance Outcome
Intermediate
Stimulus
System KPIs
We need a broader range of KPIs to
monitor the health of the system
Link to site
Entertain
Viral Link
SEO impact
Product info
Link to YouTube
Prospect pool
SEO impact
Bespoke Landing Page
TV Campaign
This campaign drove socially amplified content at
scale with significant impact on SEO ranking
O2 SEO Visibility dwarves its
competition
5x
Social
Visibility
50%
more SEO
visibility
10%
better
SPS
Building brand
metrics
Driving prospect
pools
Delivering sales
now
“Sprinting
the
marathon”
All advertising does both a
brand job and a response job
Solution addresses short and
longer term metrics together
Builds on traditional DR model
to unlock SEO growth

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WARC Direct Marketing is Dead 2

Editor's Notes

  1. Stephen and Andrew, you’ve both seen this diagram which helps us understand the changes in consumer purchase journeys, the increasing importance of social signals and the use of content in helping making choices. It gets us to think about how consumers are responding and how and what we focus on comms on to try and affect consumer purchase journeys. Whilst bundles is great its still principally an “offer and range” strand of communications which has high levels of reach and frequency, with online and offline optimisation still operating in a very linear manner (although econometrics tries to help pick this apart). We’ve been working with Chris on the implications for this for some time and you’re changing as a result of this to try and better capitalise on opportunities to integrate channels to market better.
  2. Here’s how it was proposed to Sky to give direction to the scale of the opportunity Collectively this delivered a potential 30% improvement…
  3. Dashboard designed to pull together an array of indicators across the response system
  4. May replace this example with DLG if we can get a compelling story together. They’ve made a very simple connection between their need to sell bigger and better data plans, the rewarding heritage of the brand, and the behaviour and mindset of heavy mobile internet users – explore with and play with everything. It’s a simple permissive strand to simply get consumers interacting with more of its content and driving more content creation and sharing, MGM with the dog-bomb, and lifestyle tips on “getting excited every day”. They’ve created a new brand response vehicle that puts interacting and sharing with the brand at its heart whether you are in the market now or not for a new phone/bundle.