Creative Direct
  Marketing
Topics

• Changes in marketing and
  advertising
• Broadcast, Search and Direct
  Marketing
• Tools of Direct Marketing
• Case Studies
• Brainstorm, Q&A
Marketing and Advertising 80’s
Marketing and Advertising 2009
Broadcasting 80’s
Broadcast
       •   TV
       •   Radio
       •   Cinema
       •   Newspapers
       •   Billboards/Signage
       •   Print (offset, large volume, static)

  –   Communication guaranteed
  –   Loud and consistent message = sales
  –   One way communication
  –   Spray and hope advertising
  –   No measurable responses
Broadcasting Now
Broadcast
     •   TV - Digital Terrestrial, Satellite, IP (online, viral)
     •   Radio – Analogue, Digital, Online
     •   Websites
     •   Newspapers – Online
     •   Social Media
           – Networks:

           – Blogging:

           – Newsfeeds:

           – IP Media:
Broadcasting Now
Broadcast
  – Online/Social Media allows for Two way communication
  – Searchable
  – Measurable responses

  – Communication isn’t guaranteed (Many channels - Fragmented)
     • Are they subscribed to your channels?
     • Are they “tuned” into your broadcast?
  – Media costs down, but time and labour costs up
Broadcasting Now
Broadcast - Online
  “The problem with online is that many of the [media] costs are so much lower that
     it’s dragging everything down. But for agencies, the irony is that their costs are
     so much higher online than they were on television. That eats into their profit
     margins.” - Robert Shaw, a professor at London’s Cass Business School.

  “Because the internet audience is more fragmented, every pound spent on
     advertising space online costs almost three times more, in terms of time and
     labour, than it would if you spent it on traditional media.” - Quentin George, chief
     digital officer at Interpublic’s Mediabrands.

  “The traditional time-based billing model is tough to uphold when developing online
     campaigns, says Rich Silverstein, co-founder of Goodby, Silverstein & Partners,
     an agency owned by Omnicom, the global marketing giant. “The internet is so
     deep it’s like drilling for oil,” he says. “So far, I don’t think we’ve really charged for
     all the time we’ve put into it.”
How do you reach people
    who aren’t tuned into you?



    Search – “They find you”

               and

Direct Marketing – “You find them”
Search 80’s
Search
       •   Yellow Pages
       •   Directory Listings
       •   Trade Industry Publications
       •   Trade Industry Events



  –   They find you
  –   Positioning
  –   Some measurable responses
  –   Very easy type of marketing
Search Now
Search
       • Search Engine Optimisation
       • Digital Asset Optimization




  –   Global search now available
  –   Global Positioning/Ranking
  –   Full measurable responses
  –   Not as easy, constant monitoring
Direct Marketing 80’s
Direct Marketing
       •   Telemarketing
       •   Sales Calls
       •   Face to face
       •   Relationship Management
       •   Direct Mail
       •   Direct Gifts

  –   You find them!
  –   You choose your clients.
  –   You understand their needs.
  –   Seen as too hard
  –   Seen as unglamorous
Direct Marketing 80’s
Direct Marketing
       •   Telemarketing
       •   Sales Calls
       •   Face to face
       •   Relationship Management
       •   Direct Mail
       •   Direct Gifts

  –   You find them!                     BUT...
  –   You choose your clients.       DM is seen by many to
                                      be either dead, or is
  –   You understand their needs.     “advertising’s ugly
                                          step sister”.
  –   Seen as too hard
  –   Seen as unglamorous
Direct Marketing Now
Direct Marketing
           •   Database driven
           •   Personalisation Software
           •   Digital Print
           •   Email
           •   PURLS
           •   Barcodes
           •   Mobile Phone Advertising – TXT/SMS, QR Codes, MMS
           •   Web and Mobile Phone Applications
“In many people’s minds Direct marketing is under appreciated and under valued in our current world
     which focuses on all things social (networking, media).
That's because successful DM is hard work and doesn't have the glamour of Twitter, blogs, wikis,
    YouTube etc.
Today's hiring managers are caught up in shiny objects that distract management from pursuing
   actions that have a long history of generating significant amounts of profitable revenue.”

    - Pat McGraw, McGraw Marketing
Direct Marketing Now
Direct Marketing




  –   Creativity in real world applications
  –   Allows for cross-media campaigns
  –   Strategic – a well designed plan of action
  –   One good strategy – Run many times
  –   Very good return on investment
  –   Set yourselves apart from competition
  –   Fully measurable responses
  –   Reaches where broadcasting can’t
The Common Factor in 2009?

      BROADCASTING
         (Online)



     DIRECT MARKETING




         SEARCH



          Databases
Tools of Direct Marketing
• Database
     – Segmented Marketing
          • Geographic – region, country, climate, area density
          • Demographic – age, gender, ethnicity, language,
            socioeconomic, education
          • Psychographic – personality, lifestyle, value, attitude
          • Behavioural – purchasing history, loyalty

George S. Day (Professor of Marketing at the Wharton School of Business,
   Pennsylvania, USA) describes two models of segmentation
         • the top-down approach: You start with the total population and divide it into
           segments.
         • the bottom-up approach: You start with a single customer and build on that
           profile.

           “Create a list of people you want to do business with.”
Tools of Direct Marketing
• Personalisation Software
  – XMPie
     • Image and Graphic Personalization
     • Data-Driven Charts & Graphs
Tools of Direct Marketing
• Digital Print
      • Short run
      • Fast turn around
      • Variable


• Email

• PURLS
Tools of Direct Marketing
• Barcodes and QR Codes
Tools of Direct Marketing
• Mobile Phone – TXT/SMS Short Codes
Tools of Direct Marketing
• Mobile Phone - MMS
Case Studies
• Agricultural
      Nufarm Limited
          – NuFarm Limited sells its products through distributors
          – Promote two products to the North American market
          – Raise company and product brand awareness
      • Personalised, three dimensional mail to 1000 distributors


                                        •One thousand distributors received a box
                                        •Labelled “We’ve got your back mate”
                                        •a back scratcher
                                        •PURL to a landing page
Case Studies
• Agricultural
      Nufarm Limited
      • Personalised postcard to prospective end users




                                     •More than 9,000 current and prospective
                                     end users received a postcard that used
                                     the same imagery and slogan
                                     •PURL to a landing page
Case Studies
• Agricultural
      Nufarm Limited
      • Offers used to drive people to the landing page
            – a chance to win a prize valued at $2,500
            – a chance to win an instant prize of merchandise worth $25 to $500
            – Once they visited the personalized URL, they were notified if they were
              an instant prize winner or entered into the Grand Prize drawing for the
              $2,500-valued prize
      •   46% response rate out of the 1,000 boxes sent to distributors
      •   6.7% response rate out of 9,000+ cards
      •   1,162 unique visits to personalized URLs
      •   1,078 of those 1,162 site visitors (93%) completed all pages of the
      •   personalized URL
Case Studies
• Retail
     Wolverine
Case Studies
• Retail
     Wolverine
Case Studies
• Retail - loyalty
      QUALITY STORES THANKQ PROMOTION
      • Increase sales in existing customer base for promoted
        merchandise.
      • Drive sales into other categories through cross-shopping offers.
                                       • Mother’s Day promotional flyer was
                                       sent to male customers
                                       • Newsletter contained promotional
                                       offers selected based on the customer’s
                                       purchase history
                                       • Promoted merchandise had a 51% lift
                                       in sales per name mailed.
                                       • 18% incremental lift in average dollars
                                       spent per customer.
Case Studies
• Retail - loyalty
         Sainsbury's Personalised Birthday Greeting
         • Improve shoppers relationship with store
         • Provide a free gift in keeping with buying habits
         • Personalise images as well as copy




• Increased redemption rate to more than 50%, which is 50% higher than previous
methods had generated
Case Studies
• Retail - loyalty
        Shoe Carnival
        • Connect with customers who had not visited a Shoe Carnival store
          in sixty days or more
        • Offer inactive customers an incentive to shop within a fixed period of
          time




  • Response rate of more than 26%
  •Net sales (after discounts) of more than $200,000
Case Studies
• Retail - loyalty
        Specialty Retailers
        • Retain customers after they move to new locations
        • Communicate with the customer within the first 30 to 60 days in his
          or her new location




  • Coupon redemption rates as high as 42%
  •Repeat foot traffic in stores from new movers after the initial coupon redemption
Case Studies
• Online Retail
      ebay
          –   Personalised direct mail to eBay’s top clients
          –   PURL address provided
          –   PURL launched a web app that built a personalised page
          –   Increased auction sales




     www.ebayfaves.com/mpanaggio
Footnotes
•   Direct Marketing with VDP doesn’t replace the need for good
    copywriting. In many cases it requires more effective copy.

•   People always buy for personal, selfish reasons.

•   Copy that speaks to them about what matters to them.

•   Always offer incentives for the clients to make the next step on the
    direct marketing path.
Thank You

CQ - Creativity In Direct Marketing

  • 1.
  • 2.
    Topics • Changes inmarketing and advertising • Broadcast, Search and Direct Marketing • Tools of Direct Marketing • Case Studies • Brainstorm, Q&A
  • 3.
  • 4.
  • 5.
    Broadcasting 80’s Broadcast • TV • Radio • Cinema • Newspapers • Billboards/Signage • Print (offset, large volume, static) – Communication guaranteed – Loud and consistent message = sales – One way communication – Spray and hope advertising – No measurable responses
  • 6.
    Broadcasting Now Broadcast • TV - Digital Terrestrial, Satellite, IP (online, viral) • Radio – Analogue, Digital, Online • Websites • Newspapers – Online • Social Media – Networks: – Blogging: – Newsfeeds: – IP Media:
  • 7.
    Broadcasting Now Broadcast – Online/Social Media allows for Two way communication – Searchable – Measurable responses – Communication isn’t guaranteed (Many channels - Fragmented) • Are they subscribed to your channels? • Are they “tuned” into your broadcast? – Media costs down, but time and labour costs up
  • 8.
    Broadcasting Now Broadcast -Online “The problem with online is that many of the [media] costs are so much lower that it’s dragging everything down. But for agencies, the irony is that their costs are so much higher online than they were on television. That eats into their profit margins.” - Robert Shaw, a professor at London’s Cass Business School. “Because the internet audience is more fragmented, every pound spent on advertising space online costs almost three times more, in terms of time and labour, than it would if you spent it on traditional media.” - Quentin George, chief digital officer at Interpublic’s Mediabrands. “The traditional time-based billing model is tough to uphold when developing online campaigns, says Rich Silverstein, co-founder of Goodby, Silverstein & Partners, an agency owned by Omnicom, the global marketing giant. “The internet is so deep it’s like drilling for oil,” he says. “So far, I don’t think we’ve really charged for all the time we’ve put into it.”
  • 9.
    How do youreach people who aren’t tuned into you? Search – “They find you” and Direct Marketing – “You find them”
  • 10.
    Search 80’s Search • Yellow Pages • Directory Listings • Trade Industry Publications • Trade Industry Events – They find you – Positioning – Some measurable responses – Very easy type of marketing
  • 11.
    Search Now Search • Search Engine Optimisation • Digital Asset Optimization – Global search now available – Global Positioning/Ranking – Full measurable responses – Not as easy, constant monitoring
  • 12.
    Direct Marketing 80’s DirectMarketing • Telemarketing • Sales Calls • Face to face • Relationship Management • Direct Mail • Direct Gifts – You find them! – You choose your clients. – You understand their needs. – Seen as too hard – Seen as unglamorous
  • 13.
    Direct Marketing 80’s DirectMarketing • Telemarketing • Sales Calls • Face to face • Relationship Management • Direct Mail • Direct Gifts – You find them! BUT... – You choose your clients. DM is seen by many to be either dead, or is – You understand their needs. “advertising’s ugly step sister”. – Seen as too hard – Seen as unglamorous
  • 14.
    Direct Marketing Now DirectMarketing • Database driven • Personalisation Software • Digital Print • Email • PURLS • Barcodes • Mobile Phone Advertising – TXT/SMS, QR Codes, MMS • Web and Mobile Phone Applications “In many people’s minds Direct marketing is under appreciated and under valued in our current world which focuses on all things social (networking, media). That's because successful DM is hard work and doesn't have the glamour of Twitter, blogs, wikis, YouTube etc. Today's hiring managers are caught up in shiny objects that distract management from pursuing actions that have a long history of generating significant amounts of profitable revenue.” - Pat McGraw, McGraw Marketing
  • 15.
    Direct Marketing Now DirectMarketing – Creativity in real world applications – Allows for cross-media campaigns – Strategic – a well designed plan of action – One good strategy – Run many times – Very good return on investment – Set yourselves apart from competition – Fully measurable responses – Reaches where broadcasting can’t
  • 16.
    The Common Factorin 2009? BROADCASTING (Online) DIRECT MARKETING SEARCH Databases
  • 17.
    Tools of DirectMarketing • Database – Segmented Marketing • Geographic – region, country, climate, area density • Demographic – age, gender, ethnicity, language, socioeconomic, education • Psychographic – personality, lifestyle, value, attitude • Behavioural – purchasing history, loyalty George S. Day (Professor of Marketing at the Wharton School of Business, Pennsylvania, USA) describes two models of segmentation • the top-down approach: You start with the total population and divide it into segments. • the bottom-up approach: You start with a single customer and build on that profile. “Create a list of people you want to do business with.”
  • 18.
    Tools of DirectMarketing • Personalisation Software – XMPie • Image and Graphic Personalization • Data-Driven Charts & Graphs
  • 19.
    Tools of DirectMarketing • Digital Print • Short run • Fast turn around • Variable • Email • PURLS
  • 20.
    Tools of DirectMarketing • Barcodes and QR Codes
  • 21.
    Tools of DirectMarketing • Mobile Phone – TXT/SMS Short Codes
  • 22.
    Tools of DirectMarketing • Mobile Phone - MMS
  • 23.
    Case Studies • Agricultural Nufarm Limited – NuFarm Limited sells its products through distributors – Promote two products to the North American market – Raise company and product brand awareness • Personalised, three dimensional mail to 1000 distributors •One thousand distributors received a box •Labelled “We’ve got your back mate” •a back scratcher •PURL to a landing page
  • 24.
    Case Studies • Agricultural Nufarm Limited • Personalised postcard to prospective end users •More than 9,000 current and prospective end users received a postcard that used the same imagery and slogan •PURL to a landing page
  • 25.
    Case Studies • Agricultural Nufarm Limited • Offers used to drive people to the landing page – a chance to win a prize valued at $2,500 – a chance to win an instant prize of merchandise worth $25 to $500 – Once they visited the personalized URL, they were notified if they were an instant prize winner or entered into the Grand Prize drawing for the $2,500-valued prize • 46% response rate out of the 1,000 boxes sent to distributors • 6.7% response rate out of 9,000+ cards • 1,162 unique visits to personalized URLs • 1,078 of those 1,162 site visitors (93%) completed all pages of the • personalized URL
  • 26.
  • 27.
  • 28.
    Case Studies • Retail- loyalty QUALITY STORES THANKQ PROMOTION • Increase sales in existing customer base for promoted merchandise. • Drive sales into other categories through cross-shopping offers. • Mother’s Day promotional flyer was sent to male customers • Newsletter contained promotional offers selected based on the customer’s purchase history • Promoted merchandise had a 51% lift in sales per name mailed. • 18% incremental lift in average dollars spent per customer.
  • 29.
    Case Studies • Retail- loyalty Sainsbury's Personalised Birthday Greeting • Improve shoppers relationship with store • Provide a free gift in keeping with buying habits • Personalise images as well as copy • Increased redemption rate to more than 50%, which is 50% higher than previous methods had generated
  • 30.
    Case Studies • Retail- loyalty Shoe Carnival • Connect with customers who had not visited a Shoe Carnival store in sixty days or more • Offer inactive customers an incentive to shop within a fixed period of time • Response rate of more than 26% •Net sales (after discounts) of more than $200,000
  • 31.
    Case Studies • Retail- loyalty Specialty Retailers • Retain customers after they move to new locations • Communicate with the customer within the first 30 to 60 days in his or her new location • Coupon redemption rates as high as 42% •Repeat foot traffic in stores from new movers after the initial coupon redemption
  • 32.
    Case Studies • OnlineRetail ebay – Personalised direct mail to eBay’s top clients – PURL address provided – PURL launched a web app that built a personalised page – Increased auction sales www.ebayfaves.com/mpanaggio
  • 34.
    Footnotes • Direct Marketing with VDP doesn’t replace the need for good copywriting. In many cases it requires more effective copy. • People always buy for personal, selfish reasons. • Copy that speaks to them about what matters to them. • Always offer incentives for the clients to make the next step on the direct marketing path.
  • 35.