This document discusses best practices for using direct marketing internationally. It notes that the world is diverse with many languages, countries, and ethnic groups. While the internet allows some commonality, direct marketing still requires translating domestic strategies and testing assumptions in new markets. The document outlines Netflix's process of starting with domestic knowledge, questioning everything, evaluating media options, using targeting tools, exploring creative opportunities, and testing plans while maintaining metrics. Careful consideration of local details is important for direct marketing success overseas.

1. Selling Internationally:
Using Direct Marketing
Best Practices Overseas
Spyro Kourtis, President/CEO Hacker Group

2. The world is a great
big complicated place!
• There are 6,500 languages
in the world
• There are 196 independent
countries recognized in
the world
• There are more than 5,000
ethnic groups

3. The world is
smaller and smaller
Internet retailers establish
some commonality

4. Speaking the same language with best practices

5. When the journey began
 We didn’t know what we
didn’t know
• What do we test?
o What is relevant?
o What will resonate?
• What can we test?
• What are the targeting,
production and delivery
opportunities and limitations?

6. How to boil
the ocean
 Start with what
you know
 Translate
predictive factors
from your
domestic efforts
How to boil
the ocean
 Start with what
you know
 Translate
predictive factors
from your
domestic efforts

7. Netflix Content Tests
Discovery

8. Question everything
 Just because it’s a viable
market to enter – does not
make it a viable market for
all media
 Don’t assume even the most
basic things - mere delivery
of direct mail is not
“automatic” in many
countries

9. Media and direct mail usage
Source: Institute for Advertising and Media Statistics (IRM), 2010

10.  High broadband penetration
 Majority of residents have credit cards
 Preference for shopping online
 Unaddressed mail options
 Broad acceptance of direct mail
 Reliable post offices
 99% literacy rates
 Very little direct mail usage
 Poor delivery: The national
postal service is said to FAIL to
deliver as much as 30% of mail
 44.2% poverty rate
 Credit card usage limited to only
25% of the country

11. Cost of living

12. Do the Math

13. Relentless pursuit of fore-castable results

14. Evaluate Media Options

15. Media assessment
• Population does not equal
market size potential
• Many countries have a
simple mail opt-out
process, leaving deliverable
houses who want mail
• Products and delivery
methods vary from country
to country

16. Targeting tools
 Unaddressed mail
 Not uncommon to
identify population,
income and other
factors by geography
(zone)

17. Targeting
 We found a variety of kinds
of segmentation available
for consideration

18. Type 1: Mature and practical high spenders
e-Types - Example

19. What are the creative opportunities?

20. First see what’s out there…
 ViaPlay
• Streaming TV and movies for about $10/mo
US
• One month free offer
 Voddler
 80% of catalog is free (sponsored by ads)
 1.3 million subscribers in Scandinavia
 A standard app on the Nokia phones
 LOVEFiLM
 Streaming TV and movies for about $8/mo US
 One month free offer
 Nordic performance “has not met
management expectations” (as of Oct 2011)
 Other competitors (pay per view)
• Headweb
• Film 2 Home
• Comoyo

21. Explore what’s possible
 We discovered
new formats in
this process

22. Creative and testing considerations
 Use your controls
• Maintain cost-effective performance and baseline metrics
with control while testing new approaches

23. Love is in the details
• Tax issues
• Exchange rates
• Oversight critical

24. Bringing it all together:
Test Plans

25. 1 2
35
4
Step 1: The PowerTest® methodology
32

26. 1 2
35
4
Step 2: Look for winning combinations (HotZones™)
33

27. 1 2
35
4
Step 3: CheckTest™ or rollout winners
34

28. Measurement

29. Netflix Case Study