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High Performance Marketing & Advertising
Janet Rubio, Engauge
Tim Suther, Acxiom
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The iDirect Revolution

It was going to be a great
century…
after getting the 20th behind us

First Decade 21st Century
• The DotCom Crisis
• 9/11 Terror Crisis
• Hurricane Katrina Crisis
• War in Iraq Crisis
• Disappearing Arctic Ice Crisis
• War in Afghanistan Crisis
• Housing Crisis
• Unemployment Crisis
• Health Care Crisis
• Marketing Crisis
… And 15 more months to go

The time is now
“We need to reinvent the way
we market to consumers”
A.G.Lafley, Procter & Gamble CEO Chairman

Lots of talk. Not much else.
March 26, 2007

The same old wasteful advertising
2008: $142 billion
Down 2.7%
2009 Forecast: Down 5.1%

Will they ever learn?
$2 trillion down the drain in the 20th century
Yes!!! TWO TRILLION DOLLARS
And it only gets worse in the 21st century

The New Reality
Millions of us are
playing, working,
flirting and socializing
online and
producing oceans of
data . . .

The Great Disconnect
Email Marketing
Search Marketing
Friendship Marketing
Mobile Marketing
Interactive marketing
Digital Marketing
Direct Marketing

The Ultimate Connection
Direct is Digital
Digital is Direct

Lafley’s dream come true
Sponsored by Engauge, a customer engagement marketing agency

What the Book Reinvents
What was mistakenly seen as disparate
disciplines are one and the same
Optimizing each consumer engagement
Direct goes emotional with new iDTV Advertising
Media allocation for a mass networking era
Holding customers in the palm of your hand
Email Monetizer life support for customers
iBrands: the new face of the consumer
The new “Test. Test. Test.” mandate

What is iDirect Marketing?
iDirect is the future of marketing. It is
the growth engine at the confluence
of Digital and Direct that enables
customer engagement to drive
a better ROI than ever before.

What iDirect marketers do
iDirect marketers go directly to like-minded
people with an awesome awareness of each
person’s needs, lifestyle and behaviors.
They create online, on-going engagement that
spreads across the internet from person to person
for accountable, profitable outcomes.

The “i” is what now drives Direct
iDirect is
interactive, information-driven, insightful,
innovative, iterative,
and
grounded in what the intersection of the
internet and direct marketing practices
make possible today as never before.

And now . . . over to Tim Suther for more on
the Engauge and Acxiom vision of an
iDirect marketing future
Thanks for being here today

Send us your tweets
on Twitter.com
Use hash tag #AcxiomSeries

The iDirect Revolution
…continued
Tim Suther
SVP, Multichannel Marketing Services
Tim.Suther@acxiom.com
001-630-944-0416
www.acxiom.com
http://www.linkedin.com/in/timsuther
http://twitter.com/timsuther
http://www.slideshare.net/TimSuther

Living next to the train tracks
$112 billion of advertising is wasted each year in the US alone
$4 trillion excess brand valuation
22% of Americans feel advertising is credible…compared to 45% for talk shows
42% of consumer media consumption is online
7% of disposable income is now saved – was 0%

Change May Be Necessary

The Four Fundamentals
of iDirect Marketing

1. Data is the new black
The Differentiated Value of Customers
30% of customers deliver the majority of profits
50% Add nothing
20% Cost companies money
SAS

1. Data is the new black
Know the “who” when they’re “there”
Awareness Purchase
Up/Cross-sell
Shopping & Consideration

2. Optimization hinges on a 360˚ view
Remember every interaction and learn
• Explicit & inferred preferences
• Wants & needs
• Motivations & attitudes
• Social influence circle
• Cross-channel behavior
http://www.youtube.com/watch?v=9hq5jZrFTbE

2. Optimization hinges on a 360˚ view
The interrelated and overlapping effects of media
Display Viewthrough Effect
comScore
McKinsey/BAI
eHarmony/Dynamic Logic

3. The confluence of insight & media
• With most media, you never
know who you’re gonna get.
– ~80% online ad spend delivered
to wrong audience. comScore 2009
• Knowing who determines:
– How much to invest…if anything
– What to say…without guessing
• The typical marketing problem:
– Over-invest in low value
relationships
– Under-invest in high value
relationships

3. The confluence of insight & media
A look at “who” at world class brands
Cadillac American Express
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
Hershey Allstate
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
Source: Acxiom comScore (July 2009)

3. The confluence of insight & media
…and at leading publishers
MSN Yahoo
96 MM UV’s 148 MM UV’s
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
eBay AOL
56 MM UV’s 70 MM UV’s
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
Acxiom, comScore

4. It’s about accountability & execution
63% or 30%?
CMOs ability to set v execute strategy
80% or 8%?
A superior brand experience? CEOs view v their customers

4. It’s about accountability & execution
So, now what?
1. Identify customer value
2. Invest proportionally
3. Engage accordingly
4. Measure acquired customer
value
“Run the picket fence!”

The Four Fundamentals…Summarized
Hidden in plain sight
• Data is the new black
• Optimization hinges on a 360˚ view
• Confluence of insight & media
• Accountability & execution
These are the lessons of iDirect marketing
These are the lessons of direct marketing

iDirect at work…
4x “orders per thousand” $200M revenue / $4.5M
– Connecting print & digital OpEx savings
3x applications; 5x online – Connecting call center & digital
revenue; same head count $100M/yr EBIT impact
– Connecting call center & digital – Multichannel connection
2x online bookings 9-figure/yr revenue impact
– Connecting outbound & website – Multichannel connection
7.5x website spend
– Connecting mobile & email
17x response
– Connecting TV & offline

10 Easy Money Ideas for an iDirect mindset
“The Idea” “How & Why” “The Benefit”
1) Reduce wasted ad impressions, 1) Use Relevance-X Display to concentrate online 1) 3-5X revenue / ad dollar at other clients
concentrate spend on highest ad spend and then follow with Relevance-X TV. Existing customers respond 17X to
value consumers
prospects to digital TV ads
2) Recognize & connect with social 2) Use Relevance-X Social to recognize socially active 2) Match against 500M socially active
media influencers customers & prospects and implement and track individuals (~60-70% of any email list)
your direct social media marketing initiatives
3) Engage customers and prospects 3) Use Impact-X Mobile integrated with 3) Avg. mobile purchaser has higher income
via mobile lifecycle messaging Impact-X Email for likely halo effect & spends 2X over Web-only.
4) Examine call center patterns, use 4) Identify high-volume drivers of calls proactively 4) $2M / year cost displacement & $200M / yr
email to pre-empt expensive deliver relevant content to address needs that would influenced revenue at another client.
personal support have solved the reason for those calls.
5) Connect Web analytics with 5) Impact-X allows you to follow the digital 5) 2X website conversions achieved at
outbound messaging footprints to recalibrate your outbound another client.
marketing initiatives
6) When chat available on site, offer 6) Email a branded transcript back to site 6) This is the highest performing email
to send a branded transcript of the visitors. Include buttons to “buy” or to application at another client.
chat. “subscribe” to other services.
7) Perform an organic search audit 7) Identify opportunities to improve organic 7) 72% of Google clicks are organic. A
visibility, potentially reduce paid search. proper audit enables more free traffic
8) Implement lead scoring when 8) Build / implement predictive models to screen out low 8) The bottom three deciles can likely
receiving third party leads value leads provided. Consider a test with Acxiom be eliminated without impacting
CoReg services and / or e-list rental. conversions.
9) Improve the site experience 9) Target and test content with Impact-X Site. Implement 9) Personalized site experiences
Relevance-X analytics tags to measure conversion drive 4–15X ROI.
funnel progress by lifestage segment.
10) Retarget site visitors that do not 10) Relevance-X Display Retargeting : 53% of 10) Remarketing generates $4–10 revenue
convert shopping carts abandon. Remarket based on per ad dollar.
specific site behavior / lifestage.

Summary
• iDirect is a new paradigm formed at the intersection of
digital technologies and direct marketing practices
• iDirect is interactive, information-driven, insightful,
innovative, individualized and iterative
• Focus on the 4 fundamentals of iDirect marketing
• Take the easy money

Thank You
The global interactive marketing services company
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