The document discusses the evolution of direct marketing in the context of social media, emphasizing the need to redefine direct marketing as it becomes more interactive and data-driven. It contrasts direct marketing's focus on measurable responses with the conversational and engagement-centric nature of social media marketing. Key performance indicators (KPIs) are highlighted as crucial for evaluating the effectiveness of marketing strategies across different channels.

1. Ron Jacobs [email_address] Is Social Media Marketing the New Direct Marketing? Or, is Social Media just stealing our souls? A Presentation for direct mail? data? search? Email? web?

2. Ron Jacobs President, Jacobs & Clevenger Co-Author, Successful Direct Marketing Methods Sponsor, Ron Jacobs & Bob Stone Multichannel Marketing Communications Certificate Program, DePaul University

3. Agenda The need to redefine Direct Marketing Direct Marketing is Interactive, Interactive Marketing is Direct (Stan Rapp) How Direct Marketing and Social Media Marketing overlap How Social Media Marketing is creating data The importance of establishing Key Performance Indicators Explore attribution models for multichannel marketing communications http://vimeo.com/10251808

4. Direct Marketing How do you define it?

5. Direct marketing is a form of advertising that reaches its audience without using traditional formal channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising. Direct Advertising is a sub-discipline and type of marketing . There are two main definitional characteristics which distinguish it from other types of marketing. The first is that it sends its message directly to consumers , without the use of intervening commercial communication media . The second characteristic is the core principle of successful Advertising driving a specific "call to action." This aspect of direct marketing involves an emphasis on trackable, measurable, positive responses from consumers (known simply as "response" in the industry) regardless of medium. If the advertisement asks the prospect to take a specific action, for instance call a free phone number or visit a Web site, then the effort is considered to be direct response advertising. Direct marketing is predominantly used by small to medium-size enterprises with limited advertising budgets that do not have a well-recognized brand message. A well-executed direct advertising campaign can offer a positive return on investment as the message is not hidden with overcomplicated branding. Instead, direct advertising is straight to the point; offers a product, service, or event; and explains how to get the offered product, service, or event.

6. Most definitions of Direct Marketing don’t reflect contemporary usage Ron J.’s definition Interactive use of advertising media, to stimulate an (immediate) behavior modification, in such a way that this behavior can be tracked recorded and analyzed, then stored in a database for future retrieval and use Larry Kimmel’s definition (Pres. DMA) The channel agnostic approach to driving maximum customer satisfaction and optimal marketplace results DMA’s definition An organized and planned system of contacts Using a variety of media Seeking to produce a lead or an order Developing and maintaining a database Measurable in cost and results Expandable with confidence

7. Bob Stone didn’t try to define Direct Marketing, so much as describe what it does

8. We can agree on many aspects of what Direct Marketing Strategies should include Use of (multiple) channels for communication and response Segment customers Demographics, psychographics, behavior, proximity, etc. Individually addressable communications Focused content, discrete offers, calls to action Relevant interactions Response, conversion, leads, etc. Create sustainable relationships Beyond likes, fans, friends and followers Capture, analyze and use data Measureable and scalable results Lifetime value, ROMI, business centric goals, best practices

9. So, how is Social Media Marketing different than Direct Marketing? Multiple, individual voices that choose to engage Conversational tone Not controlled by the brand Transparent & searchable Users choose touch points Unique to the personality of prospects & customers Meets brand objectives Partial customer engagement Evaluate advocates, influentials Customers and prospects are targeted Communications & tone are controlled by the brand Single, outbound voice Across all touch points Reflects the personality of the brand Meets business objectives Full customer engagement Evaluate with analytics Direct Marketing Social Media Marketing

10. New thinking, a new lexicon. Not campaigns… curation Not ads… dialogues. Not awareness & interest… behavior. Reputation Sentiment Experience Collaboration Engagement Relevance Authenticity Transparency Accountability Agility Behavior Like, Friend Curation Immersion Emotion Brand Consumer

11. Curation enables consumers to become collaborators

12. Media Vs Channels It’s about effectiveness, not efficiency

13. Channels work together, but play their own roles

14. Paid Media

15. Crispin Porter + Bogusky’s Social Home Page

16. Owned Media … A Brand Channel

17. Kogi BBQ… Twitter for traffic building and CRM

18. Kogi BBQ… Twitter for traffic building and CRM

19. Earned Media… Angie’s List

20. Earned Media… Angie’s List

21. Marketers (and Agencies) need to show accountability & effectiveness, not just measurement Everything has a Key Performance Indicator (KPI), but cross-channel activity makes measurement and attribution harder Relevance How marketing adds value to the business Alignment Proof that marketing is focused on the success of the business, not the size of its budget Rigor A fact-based, disciplined approach to strategy and execution Without the above, Marketing gets The ROI Question This is Finance’s way of asking “Can Marketing be trusted to spend the company’s money wisely?”

22. Key Performance Indicators (KPIs) can help measure everything 1. Business contribution: Channel reach, revenue contribution (direct and indirect), Return On Investment (or ROMI), category penetration, costs and profitability. 2. Marketing outcomes: Customers, leads, sales, service contacts, conversion, retention, winback and response efficiencies. Acquisition cost, Avg. order, Avg. profit, Lifetime Value. 3. Customer satisfaction: Usability, performance/availability, recommendation behavior. Opinions, attitudes, reasons for defection, brand impact and churn. 4. Customer behavior : Profiles, customer orientation (segmentation), usability, clickstream and site actions. Bounce rates, conversions, page views, depth, page & site duration, RFM and transaction behavior. 5. Channel promotion: Attraction efficiency. Referrer efficiency, cost of acquisition and reach. CPM Vs CPC. Search engine visibility and link building. Unique visitors, frequency, e-mail marketing results. Channel integration. 6. Social media: Engagement (e.g. # of comments); involvement (e.g. time spent); bounce rate; # of reads, comments, & posts; brand affection/aversion; conversions; mention of brand name; advocacy; viral activity; referrals; recommendations; multiple moving averages; etc. 1. Business contribution 2. Marketing outcomes 3. Customer satisfaction 4. Customer behavior 5. Channel promotion 6. Social Media KPIs distill analytics data into relevant information Exclusive to each business Specific Valuable Actionable Focus on the 3 – 5 most significant metrics

23. Marketing Dashboards. The visual display of metrics. Marketing Dashboards graphically display KPI’s in main categories Brand Product Customer Channels Efficiency Organizational Development Macro-economic Environment

24. Social Media It’s already being by brands to optimize marketing

25. Businesses are taking social marketing seriously The number of photos archived on Flikr.com as of June 2009 13.6 Billion The amount of content (Links, news, posts, notes, photos, etc. shared on FaceBook weekly 3.5 Billion The number of minutes spent on FaceBook daily 16 Billon If FaceBook were a country It would be the 3 rd most populated in the world, behind China & India The number of Articles on Wikipedia 16 Million

26. Businesses are taking social marketing seriously The amount of video uploaded to YouTube every minute 24 hours The amount of time it would take to view every video on YouTube 1,750 Years The number of YouTube videos viewed per day 2 Billion The average number of tweets on Twitter.com every day 65 Million

27. The Social Graph… Conversations are occurring around every category, brand, and the entire buying process Where are conversations taking place? Who are the influencers driving them? What is being talked about? (e.g. Keywords) Is the Sentiment positive or negative? Are Keywords be used in dialogues, topics, headlines, copy?

28. Online data begins to unlock the riddle of prospects & customers Social monitoring merges with Web analytics Alterian, Omniture, Coremetrics/IBM, Webtrends Technology like Hadoop makes it easy for companies to tap unlimited data E.g. New York Times making its archives public Twitter archived by Library of Congress Facebook Cassandra, Amazon Dynamo, Google BigTable Dashboards and data visualization tools make it easy to understand Balancing privacy and personalization

29. Combining social/online data and offline data is a key to micro-targeting Social Data Social Site Affiliation Interests and brand affinities Occupation Education Location Reviews Social Graph Targeting friends Extending reach Social Affinity Offline Data Income Presence of children Home Ownership Purchase Behavior Lifestyles Much more Micro-Targeting Targeted lists of people for postal and/or email programs Serve display media to only people you want Use customer insight to tailor messaging and media plan

30. Facebook is creating and capturing large amounts of data Facebook has 500 million active users 50% of active users log on every day Average user creates 90 pieces of content monthly 550,000 Facebook applications 70% of users engage with apps

31. Google’s data mining benefits their advertisers 79 million US Gmail Accounts Google has 145 million unique US visitors 1 billion searches daily Google data mines all search and Gmail as a resource for advertisers 96% of Googles profit is the result of ad revenue

32. Rapleaf, data mining the social space Rapleaf Data Mines Who – demographics Where – footprint online What – affinities, interests With Whom – friend connections Rapleaf Process Quick Facts Data on 900+ million records 400+ million consumers 60+ billion friend connections

33. YOUR AD HERE YOUR AD HERE Marketers can target ads based on social data today Target: -Existing fans/followers -Friends of current fans/followers -Existing & prospective customers -Friends of prospects -Fans/followers of competitors -Custom created segments -Leverage metadata to facilitate sharing

34. Bringing Social Media Marketing to life Alterian Buzz Bowl

35. Alterian’s Social Engagement Index 2011 Super Bowl TV Ads www.alterian-social-media.com/

36. Alterian’s Social Sentiment Engagement Index 2011 Super Bowl TV Ads www.alterian-social-media.com/

37. How much is a tweet, a fan or a follower worth? Cost Per Social Impression www.alterian-social-media.com/

38. Ads effect Mobile as well, which is growing faster than predicted Mobile searches related to Chrysler, a Super Bowl advertiser, were 102 times higher after the ad was televised Desktop searches for Chrysler increased only 48 times For GoDaddy.com, another Super Bowl advertiser, mobile searches for the brand were 315 times higher than usual Desktop searches were only 38 times higher There are 200 million plus YouTube mobile playbacks per day 78% of smartphone users shop on their device Apps Market… Apple leads with 82.7% share in 2010 (Forrester) Avg. cost of paid apps -- $2.43 $1.7 billion globally in 2010 $38 billion globally by 2015 Source: Google

39. Conclusions Direct Marketing, like all marketing, is effected by social media marketing Social Media Marketing is creating even more marketing data To prove marketing effectiveness, use a few KPI’s aligned with organizational goals, which have indisputable rigor Customer engagement is attributable to customer experience Relevancy is both earned and bought It’s not Push or Pull… It’s Push and Pull!!! “ If you don’t like change, you’re going to like irrelevance even less.”

40. Questions & Answers Questions?

41. Thank You! [email_address]