Or how Paper mail and Email work together
        to seduce the consumer
Welcome to




             1
Everything you
always wanted to know about …




                                2
Agenda

  The Post
  ■   Some key figures about E & P
  ■   When do I use E or P?
  ■   What are the advertisers’ questions & challenges concerning E & P?
  ■   The strenghts of both media: Key assets, tips and success stories
  ■   The future is on-line?


  3 Cases illustrating the power of the mix
  ■   Belgacom/ Alcatel: Philip De Cleen & Steven Van Dingenen
      (Duval Guillaume)
  ■   Nutricia: Laurent Van Duyse (Wanabe)
  ■   Scottex & The best of Cannes: Geoffrey Hantson (Duval Guillaume)
                                                                           3
4 special guests for you today…

 Nivea
  Anne Portzenheim – Global Communication Manager


 Citibank
  Michel De Bolle - Marketing Director


 Deutsche Bank
  Philippe Etienne - Head of Campaign Management


 OgilvyOne & OgilvyInteractive
  Koen Van Impe - Managing Director




                                                    4
1. Some key figures
 about these media
Direct Mail is still on the rise

                                            Turnover Increase
                                                 Mio euro
                                                                      238

                                                       224      227          + 4.8 %
                                               221
                                      214                                              + 12.2 %
                          212




                         2002         2003    2004    2005   2006     2007


  Usage increase:
  8% of non direct mail users will start
  with Direct Mail in 2008*

   * Direct Advertiser Survey, Post


                                                                                                  6
Addressed Direct Mail represents 10,3%
of gross media spendings
                                                      Internet; 2,8%
 Gross media
 investments                Regional Weeklies;                         Cinema; 0,6%
                                  4,4%
by Media Type
   Jan - June            Postering; 7,2%
                                                                                      Television; 34,2%
                    Magazines; 8,7%




                Direct Mail; 10,3%



                              Radio; 10,9%                                     Dailies; 20,8%




  Mass Media (Cim MDB-Mediaxim): 1.560,5 Mio eur
  Direct Mail (La Poste-Mediaxim): 179.4 mio eur



         Source: Mediaxim CIM-MDB, Pige DM La Poste-Mediaxim
                                                                                                          7
The strength of direct mail,
the MAIL MOMENT…


        97%
       opens                       Consumers
       mailbox                       spend
      every day                     1’52’’ per
                                       mail
     … but
    receives
     only 2
    DM/ week                   … and behind
                               every letterbox
                                 is a unique
           78%
                                    person
            is
                               you can target
          opened

                                                 8
Frequency of consulting e-mail is less
intensive than paper mail

          E-Mailbox Potential Reach*                          Letterbox Reach**
                                                       No     0                         3% Weekly


     No       33                33


                                 8        Less often


                                 21       Weekly       Yes   100      97%      97       Daily


    Yes       67

                        57%      38       Daily




             Total            Frequency                      Total          Frequency


   * Source: TNS 2007
  ** Source: MAS 2005


                                                                                                    9
Total online advertising market
2006 - 2007


                                                       Total market
                                               Gross invoiced prices in €




                                                                 +41%



                                                                        77.656.628
                                         55.255.140




                                             2006                         2007

Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”)


                                                                                     10
Channel evolution
2006 - 2007

                                                      Evolution 2006 - 2007
                                                                 in 000 €


    60.000         +37%

    50.000

    40.000

    30.000

    20.000                           +82%

    10.000                                             +9%             +24%        -6%        +79%
                                                                                                      2006
                                                                                                      2007
            0
                    Display          Keyword           Content          E-mail   Newsletter   Other
                                                     Integration
                                                                       5%

Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”)


                                                                                                             11
?
2. When do I need
    to use E or P?
13
Consumers are “bombed” by a few 1000
mass messages every week
Weekly number of advertising messages per capita

                                          350+ outdoor ads



                                              400 press ads/inserts



                                                 2+ DM pieces




                                              3 cinema ads            Opportunity for Direct !
     200 TV ads
                                          20 e-mail ads


          150 radio ads
                                  1000’s of ambient ads ...




 Source: Mindshare - Henley Centre (and TNS Media & Post survey)



                                                                                                 14
High acceptance of 1-2-1 advertising

               With regards to advertising in the following media, would you say there is …?

      Dm (Averages)       8,40%                                        74%                                      18%

  E-Mails (Averages)         12,10%                                    68%                                     20%

     cinema (n=678)       5%                                    70%                                           25%

      dailies (n=981)     3%                                    71%                                           26%

 magazines (n=1046)       3%                              62%                                           36%

   free press (n=991)     3%                             61%                                            37%

      radio (n=1058)      2%                             59%                                           39%

door-to-door (n=1149) 4%                           44%                                     41%                      11%

     internet (n=747)     3%                   44%                                               54%

          tv (n=1122)     1%       22%                                             77%

                        0%                   20%                 40%              60%                  80%                100%
                                                    not enough         enough   too much     sticker



                        * Source: TNS 2007
                                                                                                                             15
?
3. What are your
       questions
   & challenges?
17
Points of attention
    Creativity
    Content

  Challenges of the E                           Challenges of the P
    Spam                                          Cost
    Capture attention                             Flexibility / reactivity
    Coverage                                      Keep data-base up to date
    E-mail address collection & qualification     Data-base qualification
    Opt-in addresses                              Environment
    Multiple e-mail addresses
    Intrusive character
    Abuse of e-mail usage
    Anti-spam filters



                                                                              18
And what about the privacy rules?


• E = Opt-in = I Agree


• P = Opt-out = Information + No Reaction (on document or later)



Opt-in exceptions:
• Soft opt-in
        - 3 conditions
                      client for “similar” product
                     + opt-out at data collection
                     + ”unsubscribe” (opt-out)
         - info@post.be




                                                                   19
4. The strengths
   of both media
21
What do you measure after
an E-mail campaign?


                    # of opened messages                          26,00%
                      Return on investment                        27,00%
                      Clickthrough tracking                         31%
                       # interactors per link
Clickthrough behaviour on campaignpages
                     # of unique interactors
                            # unsubscribes
                               # of bounces                                           61%
                          # of clicks per link
                     Total number of clicks
      # of number of forwarded messages                                                           82%
                           brandawareness                                                                   95%

                                                 0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%



     Source: Emailgarage
     Base:Users of each medium and give an answer
                                                                                                                   22
What do you measure after
a DM campaign?



                                                             Margin on                    Costs of the
                                                           Additional Sales              media campaign
                                            ROI
  ■   # of reactions                                                       Costs of the
                                                                          media campaign
  ■   # of appointments
  ■   # of sales
  ■   # of postal returns
                                         Margin on          Probability              Average                Average
                                         Additional         to redeem          (    short term             long term   )
                                           Sales              coupon                 margin                  margin
  ■   Cost of campaign
  ■   Acquisition cost by contact
  ■   Life time value of the consumer
                                                      Database
  ■   …                                                                            Production
                                         Costs of      hiring &
                                                                      Cost            cost       Mailing
                                        the media     mainten-                                                  Coupon
                                                                    creation        (printing     cost
                                        campaign        ance
                 ROMI                                    cost
                                                                                    routing)




                                                                                                                           23
Measure the real things
 Percentage of respondents


                Recall having
                                       Opened it            Read it                Recall content         Intent to act
                received it



                    “Do you remember                                          “Can you describe       “Do you have intention to
                                                 “What did you do with
                    receiving a DM?”                                          the DM?”                react?”
                                                 the DM?”


   Average
Based on 21 cases      55                   35                      28                    22                       10


Conversion rate
   average*                       59                   73                     78                     40
Based on 21 cases




* Conversion rate average is an average of different conversion rates and doesn't correspond to conversion rate between average




                                                                                                                                  24
The power of Direct Mail

                   1                                  2                         3                        4

            High recall                        Brand                         Sales                   Loyalty
               rate                          perception                    activation                building

         DM gets high                      DM improves                  DM is a strong            DM builds strong
         recall rates even                 brand perception             sales activator           long term
         of complex                                                                               relations with
         messages                                                                                 your customer

                                                     >50% of
                                                 brand attributes       15% to 200%
                                                                         extra sales         >25% more
                       2 to 20 times                improved
                                                                                                loyal
                       better recall
                                                                                             customers
                                                                    5

                                                            Boosting
                                                             of ROI                 Integrated with other media DM
                                                                                       increases the ROI of your
                                                                                      campaigns with at least 20%

Source: Post – 15 DM pilot surveys N: > 25.000


                                                                                                                     25
The strengths of both media

              E-mail                                Physical mail
              ■ Easy to react, to get information   ■ Appreciated – not intrusive
              ■ Cost                                ■ Targetting
              ■ Can be set up quickly               ■ Sales Activation
 Advantages   ■ Personnalisation                    ■ Acquisition
              ■ Measurability                       ■ Complex information
              ■ Short messages                      ■ High opening and reading rate
              ■ Can be surprising and original


              ■ Own list                            ■ To promote image & brand value
              ■ Newsletters ( top of mind )         ■ Involving Capturing attention
  When to     ■ Punctual Information & more         ■ Giving usefull, detailed trustworthy
   use ?        frequent use                          information
              ■ Generate traffic on website         ■ Urges to react (vouchers)
                                                    ■ Magazines


                                                                                         26
5. The future is
       on-line?
28
The future is on-line?

 The answer is NO… the future is DIRECT!

  ■   Certainly there is an evolution!
  ■   On-line media has become mainstream
  ■   There will always be people that prefer paper mail
  ■   A magazine remains a certain value
  ■   Objectives of both media are different
  ■   And a good combination of both always create more impact




                             What will be the future
                               for your brand?




                                                                 29
But the future is about the integration of E & P

■ 70% of belgian companies integrate e-mail marketing in their mediamix
■ 66% of them declare to be satisfied of the objectives reached




                                                 +255%
                                                             23

                                           9

                                   E-Mail only           DM + E-mail




  In one of the pilots we ran with our customers,
  adding DM to email multiplied by 2.5 the number
  of final orders *


          * IAB - E-mail Marketing Cookbook
          ** Study E loves P – Pilot Research
                                                                          30
Thank you for your attention




                               31

E Loves P (Dm Discovery 6)

  • 1.
    Or how Papermail and Email work together to seduce the consumer
  • 2.
  • 3.
    Everything you always wantedto know about … 2
  • 4.
    Agenda ThePost ■ Some key figures about E & P ■ When do I use E or P? ■ What are the advertisers’ questions & challenges concerning E & P? ■ The strenghts of both media: Key assets, tips and success stories ■ The future is on-line? 3 Cases illustrating the power of the mix ■ Belgacom/ Alcatel: Philip De Cleen & Steven Van Dingenen (Duval Guillaume) ■ Nutricia: Laurent Van Duyse (Wanabe) ■ Scottex & The best of Cannes: Geoffrey Hantson (Duval Guillaume) 3
  • 5.
    4 special guestsfor you today… Nivea Anne Portzenheim – Global Communication Manager Citibank Michel De Bolle - Marketing Director Deutsche Bank Philippe Etienne - Head of Campaign Management OgilvyOne & OgilvyInteractive Koen Van Impe - Managing Director 4
  • 6.
    1. Some keyfigures about these media
  • 7.
    Direct Mail isstill on the rise Turnover Increase Mio euro 238 224 227 + 4.8 % 221 214 + 12.2 % 212 2002 2003 2004 2005 2006 2007 Usage increase: 8% of non direct mail users will start with Direct Mail in 2008* * Direct Advertiser Survey, Post 6
  • 8.
    Addressed Direct Mailrepresents 10,3% of gross media spendings Internet; 2,8% Gross media investments Regional Weeklies; Cinema; 0,6% 4,4% by Media Type Jan - June Postering; 7,2% Television; 34,2% Magazines; 8,7% Direct Mail; 10,3% Radio; 10,9% Dailies; 20,8% Mass Media (Cim MDB-Mediaxim): 1.560,5 Mio eur Direct Mail (La Poste-Mediaxim): 179.4 mio eur Source: Mediaxim CIM-MDB, Pige DM La Poste-Mediaxim 7
  • 9.
    The strength ofdirect mail, the MAIL MOMENT… 97% opens Consumers mailbox spend every day 1’52’’ per mail … but receives only 2 DM/ week … and behind every letterbox is a unique 78% person is you can target opened 8
  • 10.
    Frequency of consultinge-mail is less intensive than paper mail E-Mailbox Potential Reach* Letterbox Reach** No 0 3% Weekly No 33 33 8 Less often 21 Weekly Yes 100 97% 97 Daily Yes 67 57% 38 Daily Total Frequency Total Frequency * Source: TNS 2007 ** Source: MAS 2005 9
  • 11.
    Total online advertisingmarket 2006 - 2007 Total market Gross invoiced prices in € +41% 77.656.628 55.255.140 2006 2007 Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”) 10
  • 12.
    Channel evolution 2006 -2007 Evolution 2006 - 2007 in 000 € 60.000 +37% 50.000 40.000 30.000 20.000 +82% 10.000 +9% +24% -6% +79% 2006 2007 0 Display Keyword Content E-mail Newsletter Other Integration 5% Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”) 11
  • 13.
    ? 2. When doI need to use E or P?
  • 14.
  • 15.
    Consumers are “bombed”by a few 1000 mass messages every week Weekly number of advertising messages per capita 350+ outdoor ads 400 press ads/inserts 2+ DM pieces 3 cinema ads Opportunity for Direct ! 200 TV ads 20 e-mail ads 150 radio ads 1000’s of ambient ads ... Source: Mindshare - Henley Centre (and TNS Media & Post survey) 14
  • 16.
    High acceptance of1-2-1 advertising With regards to advertising in the following media, would you say there is …? Dm (Averages) 8,40% 74% 18% E-Mails (Averages) 12,10% 68% 20% cinema (n=678) 5% 70% 25% dailies (n=981) 3% 71% 26% magazines (n=1046) 3% 62% 36% free press (n=991) 3% 61% 37% radio (n=1058) 2% 59% 39% door-to-door (n=1149) 4% 44% 41% 11% internet (n=747) 3% 44% 54% tv (n=1122) 1% 22% 77% 0% 20% 40% 60% 80% 100% not enough enough too much sticker * Source: TNS 2007 15
  • 17.
    ? 3. What areyour questions & challenges?
  • 18.
  • 19.
    Points of attention Creativity Content Challenges of the E Challenges of the P Spam Cost Capture attention Flexibility / reactivity Coverage Keep data-base up to date E-mail address collection & qualification Data-base qualification Opt-in addresses Environment Multiple e-mail addresses Intrusive character Abuse of e-mail usage Anti-spam filters 18
  • 20.
    And what aboutthe privacy rules? • E = Opt-in = I Agree • P = Opt-out = Information + No Reaction (on document or later) Opt-in exceptions: • Soft opt-in - 3 conditions client for “similar” product + opt-out at data collection + ”unsubscribe” (opt-out) - info@post.be 19
  • 21.
    4. The strengths of both media
  • 22.
  • 23.
    What do youmeasure after an E-mail campaign? # of opened messages 26,00% Return on investment 27,00% Clickthrough tracking 31% # interactors per link Clickthrough behaviour on campaignpages # of unique interactors # unsubscribes # of bounces 61% # of clicks per link Total number of clicks # of number of forwarded messages 82% brandawareness 95% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Emailgarage Base:Users of each medium and give an answer 22
  • 24.
    What do youmeasure after a DM campaign? Margin on Costs of the Additional Sales media campaign ROI ■ # of reactions Costs of the media campaign ■ # of appointments ■ # of sales ■ # of postal returns Margin on Probability Average Average Additional to redeem ( short term long term ) Sales coupon margin margin ■ Cost of campaign ■ Acquisition cost by contact ■ Life time value of the consumer Database ■ … Production Costs of hiring & Cost cost Mailing the media mainten- Coupon creation (printing cost campaign ance ROMI cost routing) 23
  • 25.
    Measure the realthings Percentage of respondents Recall having Opened it Read it Recall content Intent to act received it “Do you remember “Can you describe “Do you have intention to “What did you do with receiving a DM?” the DM?” react?” the DM?” Average Based on 21 cases 55 35 28 22 10 Conversion rate average* 59 73 78 40 Based on 21 cases * Conversion rate average is an average of different conversion rates and doesn't correspond to conversion rate between average 24
  • 26.
    The power ofDirect Mail 1 2 3 4 High recall Brand Sales Loyalty rate perception activation building DM gets high DM improves DM is a strong DM builds strong recall rates even brand perception sales activator long term of complex relations with messages your customer >50% of brand attributes 15% to 200% extra sales >25% more 2 to 20 times improved loyal better recall customers 5 Boosting of ROI Integrated with other media DM increases the ROI of your campaigns with at least 20% Source: Post – 15 DM pilot surveys N: > 25.000 25
  • 27.
    The strengths ofboth media E-mail Physical mail ■ Easy to react, to get information ■ Appreciated – not intrusive ■ Cost ■ Targetting ■ Can be set up quickly ■ Sales Activation Advantages ■ Personnalisation ■ Acquisition ■ Measurability ■ Complex information ■ Short messages ■ High opening and reading rate ■ Can be surprising and original ■ Own list ■ To promote image & brand value ■ Newsletters ( top of mind ) ■ Involving Capturing attention When to ■ Punctual Information & more ■ Giving usefull, detailed trustworthy use ? frequent use information ■ Generate traffic on website ■ Urges to react (vouchers) ■ Magazines 26
  • 28.
    5. The futureis on-line?
  • 29.
  • 30.
    The future ison-line? The answer is NO… the future is DIRECT! ■ Certainly there is an evolution! ■ On-line media has become mainstream ■ There will always be people that prefer paper mail ■ A magazine remains a certain value ■ Objectives of both media are different ■ And a good combination of both always create more impact What will be the future for your brand? 29
  • 31.
    But the futureis about the integration of E & P ■ 70% of belgian companies integrate e-mail marketing in their mediamix ■ 66% of them declare to be satisfied of the objectives reached +255% 23 9 E-Mail only DM + E-mail In one of the pilots we ran with our customers, adding DM to email multiplied by 2.5 the number of final orders * * IAB - E-mail Marketing Cookbook ** Study E loves P – Pilot Research 30
  • 32.
    Thank you foryour attention 31