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My Message About The Mail Medium Mark Thomson Media Director 19 May 2011 The Strategic Mailing Partnership™ supported by Royal Mail
Steve Aldridge–  Partners Andrews Aldridge Video 1
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],And its not just Steve saying it…
[object Object],[object Object],[object Object],Our Media landscape
MAIL IS EFFECTIVE ,[object Object],Open rates for acquisition email  11% (Ebiquity Rapport 2010) (DMA)
And It Is Getting More Effective Direct Mail prospect opening rates have increased from 88% to  91%  since 2007 (Ebiquity)   Email acquisition open rates have fallen from 21% to  11%  since 2007 (DMA).
Direct Mail helps other media work harder Base: c500 studies, UK campaigns, 2005-2008   Source: OMD / Brand Science (2009) ,[object Object],£ revenue ROI by channel (based on econometric campaign evaluation)
Direct Mail has seen its ROI level rise steadily over the last three years, a trend credited to improved targeting Source: OMD Brand Science (2010) Analysis of average ROIs achieved by direct mail component of campaigns (2006-2009)  ,[object Object],[object Object],[object Object],[object Object],[object Object]
While the efficiency of Direct Mail has been improving, Online has been moving in the opposite direction, with rising costs eroding levels of ROI Source: OMD Brand Science (2010) Analysis of average ROIs achieved by Online component of campaigns (2006-2009) Online
Mail is welcomed by Consumers
Customers still prefer their service providers to contact them by Mail rather than E-mail. e.g. BT    46% Mail 22% E-mail e.g. Virgin Media 44% Mail 21% E-mail e.g. Lloyds TSB  52% Mail 13% E-mail e.g. Churchill 50% Mail 20% E-mail Source- Ebiquity Rapport 2010 The customers of  60  of the top 61 Direct mailing companies would prefer to be contacted by mail than e-mail.
Base: c2,000 UK adults  Source: BMRB 2010 I welcome mail that gives me useful information I  welcome mail that rewards my loyalty I  welcome receiving direct mail from companies I’m already a customer of I like being informed of special offers or promotions by post Mail is welcomed, particularly when it is relevant and rewarding
Base sizes: All product holders (by market)  Source: GfK FRS, 6 months ending  December 2009 Customers recruited by Direct Mail are more loyal   ,[object Object],[object Object],New product holders considering switching –  by information used to choose provider
Waitrose case study B2C ,[object Object],[object Object],Results   The hamper was warmly welcomed by all recipients. More importantly, 50% of them chose to feed back to the MyWaitrose community Waitrose sold 14 weeks’ worth of rhubarb in four days.
Mercedes case study B2B-18 April 2011 Mercedes-Benz created a piece of direct mail in the form of a job application to promote its Sprinter van to businesses.
Mercedes sprinter video Video 2
Mercedes case study B2B-18 April 2011 Results 400 prospects have been identified. So far 120 letters have been mailed out. The campaign is still in its early days. Editor’s Comment This is a  great example of direct mail and digital media working together   to be more effective than either could on its own . The idea of the van writing its own letter is ingenious enough. But then the way it gets fleet managers to go online to watch a demo of the van at work writing it is the key to what I am sure will be a great business success.
Mail and digital are very effective partners
Digital companies are discovering mail Evidence from a digital marketing agency which offers integrated digital approach. Agency clients include: Digital contact:  15-39%   Vs  Postal contact:  55-94% ,[object Object],[object Object]
Caroline Marshall, Haymarket Brand Media, 11-Apr-2011   ,[object Object],[object Object],[object Object]
Mail to Digital in Action Video 3
Direct Mail is the most successful partner for email DMA 2010 Annual Client Email Report
Direct Mail is best for explaining your message  in more detail Gives me better impression of the company More professional means of communication Easy to take in information Likely to really grab my attention I’m likely to spend a lot of time reading it It makes me feel more valued I am more likely to do something as a result Appropriate if I’m not already a customer Better for sending reminders I enjoy receiving and reading it More appropriate if a customer already Easy to file so I can go back to it later Better for confirmation / follow-up messages Easier to respond to Better at communicating brief messages Better for the environment Direct Mail % E-Mail % Source: Quadrangle: DM & Email 2007. DM & Online 2007 ,[object Object],[object Object]
But Don’t forget the digitally disenfranchised ,[object Object],Source: TGI 2010
But Don’t forget the digitally disenfranchised ,[object Object],Source: TGI 2010
Major UK Online Bank Case Study:  DM is a clear ROI champion ,[object Object],[object Object],[object Object],OMD Brand Science Findings Recommendations
Savvy advertisers recognise all of this and are reacting accordingly
Direct Mail industry spend has started to increase again Source: AA/WARC Media Spend Summary
There is still strong usage of Direct Mail in the media mix ,[object Object],[object Object],[object Object],Source: Nielsen April 10-Mar 11
Why are we bullish about DM? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Our landscape

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Direct Mail Still Effective Despite Rise of Digital

  • 1. My Message About The Mail Medium Mark Thomson Media Director 19 May 2011 The Strategic Mailing Partnership™ supported by Royal Mail
  • 2. Steve Aldridge– Partners Andrews Aldridge Video 1
  • 3.
  • 4.
  • 5.
  • 6. And It Is Getting More Effective Direct Mail prospect opening rates have increased from 88% to 91% since 2007 (Ebiquity) Email acquisition open rates have fallen from 21% to 11% since 2007 (DMA).
  • 7.
  • 8.
  • 9. While the efficiency of Direct Mail has been improving, Online has been moving in the opposite direction, with rising costs eroding levels of ROI Source: OMD Brand Science (2010) Analysis of average ROIs achieved by Online component of campaigns (2006-2009) Online
  • 10. Mail is welcomed by Consumers
  • 11. Customers still prefer their service providers to contact them by Mail rather than E-mail. e.g. BT 46% Mail 22% E-mail e.g. Virgin Media 44% Mail 21% E-mail e.g. Lloyds TSB 52% Mail 13% E-mail e.g. Churchill 50% Mail 20% E-mail Source- Ebiquity Rapport 2010 The customers of 60 of the top 61 Direct mailing companies would prefer to be contacted by mail than e-mail.
  • 12. Base: c2,000 UK adults Source: BMRB 2010 I welcome mail that gives me useful information I welcome mail that rewards my loyalty I welcome receiving direct mail from companies I’m already a customer of I like being informed of special offers or promotions by post Mail is welcomed, particularly when it is relevant and rewarding
  • 13.
  • 14.
  • 15. Mercedes case study B2B-18 April 2011 Mercedes-Benz created a piece of direct mail in the form of a job application to promote its Sprinter van to businesses.
  • 17. Mercedes case study B2B-18 April 2011 Results 400 prospects have been identified. So far 120 letters have been mailed out. The campaign is still in its early days. Editor’s Comment This is a great example of direct mail and digital media working together to be more effective than either could on its own . The idea of the van writing its own letter is ingenious enough. But then the way it gets fleet managers to go online to watch a demo of the van at work writing it is the key to what I am sure will be a great business success.
  • 18. Mail and digital are very effective partners
  • 19.
  • 20.
  • 21. Mail to Digital in Action Video 3
  • 22. Direct Mail is the most successful partner for email DMA 2010 Annual Client Email Report
  • 23.
  • 24.
  • 25.
  • 26.
  • 27. Savvy advertisers recognise all of this and are reacting accordingly
  • 28. Direct Mail industry spend has started to increase again Source: AA/WARC Media Spend Summary
  • 29.
  • 30.
  • 31.

Editor's Notes

  1. Thanks Mike for that interesting view on the media landscape. I though I would start by offering a rounded view and showing and interview from one of your peers”
  2. 810169gr1 Current account: table 28 Credit card: table 39 Savings: table 48