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134 North Main Street, Suite 101    Rockford, Illinois 61101   toll free: 866.799.2879   www.trekk.com

Contact : Michael Frieri, Director, Business Development | Direct : 708.707.3100




                                         Social Networks, Mobile Devices, Email and Direct Mail:
                                         Is This the Future of Direct Influencing?
                                         Jeffrey Stewart
                                         May 2009


                                         What is the future of direct influence? This is a term that may be
                                         unfamiliar to many print distributors and manufacturers, but for those
                                         moving into the marketing services provider model, it is one they might
                                         want to familiarize themselves with.

                                         Marketers and end users are no longer looking at their marketing
                                         programs in a silo-ed fashion. Increasingly, they see their marketing
                                         efforts falling under the larger banner of “direct influence,” or simply an
                                         attempt to get someone to do something. That “something” might be to
                                         make a purchase, log into a personalized URL, or sign up for a seminar.

                                         To make this happen, marketers are finding that they cannot silo
      “What the Obama                    individual media, including print. They need to use coordinated, multi-
campaign, in particular,                 channel campaigns that combine a wide variety of media – whether
     was able to do with                 direct mail, social networking media, television, or point-of-sale – many
   nearly unprecedented                  of which may be unfamiliar to traditional print manufacturers and
     skill, was to use the               distributors.
   Internet to marshal a
  community force in its                 If the printing industry is to go where the print work is, we need to
                    favor.”              familiarize ourselves with this playing field.




                                                                                                                                 1
white paper

    134 North Main Street, Suite 101    Rockford, Illinois 61101   toll free: 866.799.2879    www.trekk.com

    Contact : Michael Frieri, Director, Business Development | Direct : 708.707.3100




Communication Trends
While many of the technologies in this report may seem unfamiliar                        Lessons From the Obama Campaign
from a marketing perspective, “unfamiliar” doesn’t mean irrelevant.                      Marketers should be learning these lessons.

                                                                                         What the Obama campaign, in particular, was able
Technology evolves in stages. It starts out with invention, then                         to do with nearly unprecedented skill was to use the
moves to early adoption, then standardization, and finally, mass                         Internet to marshal a community force in its favor. We
acceptance. In terms of marketing, we’re in the stage of early                           call this “crowd sourcing.”
adoption for many of these social and viral technologies, but once a
                                                                                         Crowd sourcing is the effort of letting a large external
trend is recognized as a lasting one, it’s far more profitable to get in
                                                                                         crowd take upon a task that would otherwise be
ahead of the curve – before standardization and mass acceptance –
                                                                                         done by a few internal people. Open source software,
than trying to play catch-up later.
                                                                                         Wikipedia and IdeaStorm (www.ideastorm.com) are
Just think about some of the other “new” technologies that seemed
                                                                                         excellent examples. Someone takes the kernel of an
foreign even a few years ago but which have since transformed the
                                                                                         idea, then allows people in the broader marketplace to
marketing landscape:
                                                                                         comment on it, contribute their own ideas and flesh it
•   the Internet                                                                         out. Then, these individual contributors distribute and
•   e-commerce                                                                           market these ideas on their own.
•   content management
•   1:1 (personalized) printing
•   1:1 multi-channel marketing
•   marketing analytics
•   customer relationship management (CRM) and the age of
    “customer loyalty”
Now, it’s social media.

Those who have understood the importance of getting in front of
these curves have not just profited from them, but transformed
the landscape in which they lived. As David Carr pointed out
in his New York Times article, “How Obama Tapped Into Social
Networks’ Power”:

       Thomas Jefferson used newspapers to win the
       presidency, F.D.R. used radio to change the way he                                In the Obama campaign, this started with the
       governed, J.F.K. was the first president to understand                            site itself, which was a veritable combination of
       television, and Howard Dean saw the value of the                                  newsroom, online streaming video (“BarackTV”),
       Web for raising money. But Senator Barack Obama                                   links to every major social networking site covering
       understood that you could use the Web to lower the                                every demographic (from Facebook to BlackPlanet
       cost of building a political brand, create a sense of                             to MySpace, YouTube and even lesser known social
       connection and engagement and dispense with the                                   network sites like Glee, MiGente and MyBatanga)
       command and control method of governing to allow                                  and tools to enable site visitors to connect with one
       people to self-organize to do the work.                                           another and organize outreach events.



                                                                                                                                                    2
white paper

  134 North Main Street, Suite 101    Rockford, Illinois 61101   toll free: 866.799.2879   www.trekk.com

  Contact : Michael Frieri, Director, Business Development | Direct : 708.707.3100




Influencing Behavior                                                          different media, including micro-sites/personalized URLs,
As members of the marketing and graphic communications                       Twitter, FaceBook, ads/POS, mobile and RSS Feeds. This is
industry, how do we begin to tap into this world?                            what we call the “content-centric model.”
It starts with the website. The website is the bedrock of the
campaign, where all of the content is linked.                                Next, you make it easy for people to find this content. This
                                                                             means making sure the site is structured correctly so it can be
This requires a good Web-based content management system,                    indexed by and optimized for search engines. Then you layer on
which allows you not just to centralize all of your campaign                 keywords campaigns or ad word campaigns that will make use
information, but to spit that information back out to all of the             use of the same content. Write for the search engines – write to
                                                                             give your content maximum visibility.

  Think you can avoid email as part of marketing? Email was                 media, as a channel, is about having conversations, getting
  a huge part of the Obama campaign’s success. Organizers                   people together and getting them to do things on their own
  collected more than 13 million email addresses and sent regular           initiative. The challenge for marketing professionals, especially
  email alerts, news releases, event reminders, solicitations and           CMOs, is to let go a little bit and let people do the work.
  email newsletters for a total of one billion messages.                    To a certain extent, this means letting your audience control the
                                                                            message, too. This is frightening for many marketers, but look at
  The campaign also used RSS Feeds to push content into other
                                                                            the results.
  sites, such as Twitter, iTunes and Flickr. These communications
  even included podcasts – (available directly from iTunes) and             PR 3.0 & Going Viral
  included an “embed link” URL next to its YouTube videos so that           This type of social, virally based marketing is what is being
  bloggers could easily embed these videos in their posts.                  called “PR 3.0.” With 1:1 printing, marketers are having individual
  This consistent stream of up-to-date – in some cases, nearly              conversations with recipients of the direct mail pieces. Social
  real-time – information allowed grassroots supporters to take             media is also about people having individual conversations, but
  ownership of the campaign itself and disseminated information             those people are going to talk among themselves.
  with a level of effectiveness that the campaign could not have       PR 3.0 is about using the Web to create a community, then
  purchased using traditional marketing methods.                       allowing that community to have it own conversation. If you can
                                                                       harness that as a brand, it’s more powerful than spending a few
  Changing the Face of Marketing
                                                                       million dollars on a SuperBowl ad. Just ask Apple! Its customers
  Marketers should be sitting up straight, because this may
                                                                       promote the brand with religious fervor.
  be the future of marketing. The Obama campaign used
                                                                       It is that passion you want to harness. This is why a critical aspect
  every combination of social media and online information
                                                                       of PR 3.0 is designing campaigns to go viral, or to be distributed
  dissemination to reach into every corner of the voter world. They
                                                                       from one person to another. This is where online media have
  fed people information, then encouraged them to comment on
                                                                       power that traditional media do not. This is also where the
  it, take ownership of it, and disseminate it – and they did.
                                                                       Obama organization also excelled. It created a network for
  Of course, the campaign made heavy use of traditional media,         blazing fast information dissemination, whether through blogs,
  as well. Especially toward the end of the political season, it spent podcasts, audio, social networking sites, or other media.
  record amounts on traditional media – upwards of $600 million
                                                                       Traditionally, the work of the PR specialist is to make it easy for
  – but the campaign didn’t start that way. Everything started with
                                                                       the writer or editor to pick up your story. In PR 3.0, it’s the work
  social media.
                                                                       of the PR specialist to make the information available and easy to
  The Obama campaign changed the way politicians – and                 go viral.
  marketers – understand media. The lesson we learn is that social


                                                                                                                                                  3
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  134 North Main Street, Suite 101    Rockford, Illinois 61101   toll free: 866.799.2879   www.trekk.com

  Contact : Michael Frieri, Director, Business Development | Direct : 708.707.3100




This process includes the following components:                             You learn by watching what’s working. This means tracking
                                                                            where your results are coming from: print, email, 1:1 printing,
• Search Engine Optimization: organic search, keyword                       print ads, banner ads, adwords, SMS/MMS, social networks,
  definition and optimization, index submission and                         radio/TV, then tweaking and optimizing.
  monitoring, link harvesting and exchange.
• Search Engine Marketing: i.e., Google AdWords,                            Like the Obama campaign, the point is to be everywhere that
  DoubleClick Ad Networks                                                   prospects’ eyeballs are. Once these eyeballs are in the right
• Social Media Optimization: continually push content into                  places, have in place a continual process of testing to figure out
  the social networks by feeding them content and creating                  what works most effectively.
  links for people to comment on.
• Testing: Check the effectiveness of different phrases and                 Look at the following ad words examples, as described in Super
  improve your performance. Establish a process of continual                Crunchers: Why Thinking-By-Numbers is the New Way To Be
  refinement.                                                               Smart, by Ian Ayres:

Launch and Learn                                                                     Super Crunchers
All of this may sound very foreign to print distributors and                         Why Thinking-by-Numbers IS the New Way to Be Smart
manufacturers, but the value to investing in the learning curve                      www.bantamdell.com
is high. As the great hockey player Wayne Gretzky has said, “A
good hockey player plays where the puck is. A great hockey                           The End of Intuition
player plays where the puck is going to be.”                                         Why Thinking-by-Numbers Is the New Way to Be Smart
                                                                                     www.bantamdell.com
In printing terms, we might say, “A good printer knows where
the print marketing is. A great printer knows where the print               Think both ads are similarly effective? Not at all. The “Super
marketing is going to be.”                                                  Crunchers” ad is 63% more likely to be clicked.

                                                                            Marketers can get this kind of basic analytics from any
   “Technology will never replace people.                                   adwords campaign. Google analytics, for example, will give you
   People who use technology will replace                                   information on referring sites, search engines, traffic sources and
                                                                            keywords. This will tell you who visited your site, where they
            people who don’t.”                                              came from, what keywords they used to find your site, which
                                                                            ads they clicked through and more.
For someone coming out of the traditional print marketing
environment, this can be a frightening proposition. How do you              You can also layer on additional analytics. Quantcast, for
learn these new playing fields? It’s not as daunting as it might            example, is an activity reporting tool that reports on visitors
seem. Identify the most important elements. Look to maximize                to the site and then, based on their IP address and tracking
the commonalities among them. Use the same messaging and                    with cookies, takes a good “guess” on their demographics. This
imagery. Package it appropriately for each channel.                         gives you an inside into the demographics by adding profile
                                                                            information to those visitors.




                                                                                                                                                 4
white paper

  134 North Main Street, Suite 101    Rockford, Illinois 61101   toll free: 866.799.2879     www.trekk.com

  Contact : Michael Frieri, Director, Business Development | Direct : 708.707.3100




If you are using a centralized Web console for all of your
marketing campaigns, you can monitor all of the different                              Measure Return on Investment
elements of your campaign, such as print, email, banner ads,                           As you measure your ROI, you’ll want to look at a
television and radio, in a single interface. You can compare and                       variety of different “return” metrics, including the value
contrast their results, identifying which campaigns were most                          of product sold (profit margin); value of qualified lead
productive, in which languages, using which lists and so on.                           (projected sales); and value of customer lifetime loyalty
This might seem like a lot of work, but if you can’t measure it                        (historically).
– you can’t manage it!                                                                 You also want to break down your investment into
                                                                                       fixed and variable costs. Fixed costs are things like . . .
In the end, all of this measurement has two benefits. It allows
you to tweak and improve your campaigns over time. And                                 • campaign research and concept development,
it allows you to measure your return on investment for each                            • tactic design and implementation, and
element of the campaign.                                                               • tracking and measurement tools.
                                                                                       Variable costs include things such as . . .
Are You Shifting?                                                                      •   list acquisition and cleansing
The marketing mix is shifting. Clients’ and end users’ marketing                       •   printing and fulfillment
priorities and investment dollars are shifting – moving toward                         •   offline and online ad placement
multi-channel marketing in which social media are a critical                           •   operation and measurement
component.
                                                                                       These costs should be compared against the results
                                                                                       you are getting from each element of the campaign.
If print manufacturers and distributors want to maintain a
                                                                                       For example, you want to look at
high level of profitability, they have to stay where the print is.
                                                                                       • broadcast impressions
Increasingly, it’s in multi-channel campaigns. That is going to
                                                                                       • response rates
require an investment in a new learning curve, but it’s one that
                                                                                       • cost per impression
will be critical over the next few years.
                                                                                       • cost per click
                                                                                       • cost per lead
                                                                                       • cost per conversion
                                                                                       • cost per direct mail
                                                                                       • cost per email (delivered / opened /clickthrough)
                                                                                       This tells you, not only what’s working, but where you
                                                                                       are getting the most value for your investment.

                                                                                       1. Identify unique segment behavior.
                                                                                       2. Use test results to refine the message and designs.
                                                                                       3. Calculate individual tactic ROI.
                                                                                       4. Continuously improve midstream.
                                                                                       5. Refine the campaign for the next cycle.




                                                                                                                                                     5

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Social Networks, Mobile Devices, Email and Direct Mail: Is This the Future of Direct Influencing?

  • 1. white paper 134 North Main Street, Suite 101 Rockford, Illinois 61101 toll free: 866.799.2879 www.trekk.com Contact : Michael Frieri, Director, Business Development | Direct : 708.707.3100 Social Networks, Mobile Devices, Email and Direct Mail: Is This the Future of Direct Influencing? Jeffrey Stewart May 2009 What is the future of direct influence? This is a term that may be unfamiliar to many print distributors and manufacturers, but for those moving into the marketing services provider model, it is one they might want to familiarize themselves with. Marketers and end users are no longer looking at their marketing programs in a silo-ed fashion. Increasingly, they see their marketing efforts falling under the larger banner of “direct influence,” or simply an attempt to get someone to do something. That “something” might be to make a purchase, log into a personalized URL, or sign up for a seminar. To make this happen, marketers are finding that they cannot silo “What the Obama individual media, including print. They need to use coordinated, multi- campaign, in particular, channel campaigns that combine a wide variety of media – whether was able to do with direct mail, social networking media, television, or point-of-sale – many nearly unprecedented of which may be unfamiliar to traditional print manufacturers and skill, was to use the distributors. Internet to marshal a community force in its If the printing industry is to go where the print work is, we need to favor.” familiarize ourselves with this playing field. 1
  • 2. white paper 134 North Main Street, Suite 101 Rockford, Illinois 61101 toll free: 866.799.2879 www.trekk.com Contact : Michael Frieri, Director, Business Development | Direct : 708.707.3100 Communication Trends While many of the technologies in this report may seem unfamiliar Lessons From the Obama Campaign from a marketing perspective, “unfamiliar” doesn’t mean irrelevant. Marketers should be learning these lessons. What the Obama campaign, in particular, was able Technology evolves in stages. It starts out with invention, then to do with nearly unprecedented skill was to use the moves to early adoption, then standardization, and finally, mass Internet to marshal a community force in its favor. We acceptance. In terms of marketing, we’re in the stage of early call this “crowd sourcing.” adoption for many of these social and viral technologies, but once a Crowd sourcing is the effort of letting a large external trend is recognized as a lasting one, it’s far more profitable to get in crowd take upon a task that would otherwise be ahead of the curve – before standardization and mass acceptance – done by a few internal people. Open source software, than trying to play catch-up later. Wikipedia and IdeaStorm (www.ideastorm.com) are Just think about some of the other “new” technologies that seemed excellent examples. Someone takes the kernel of an foreign even a few years ago but which have since transformed the idea, then allows people in the broader marketplace to marketing landscape: comment on it, contribute their own ideas and flesh it • the Internet out. Then, these individual contributors distribute and • e-commerce market these ideas on their own. • content management • 1:1 (personalized) printing • 1:1 multi-channel marketing • marketing analytics • customer relationship management (CRM) and the age of “customer loyalty” Now, it’s social media. Those who have understood the importance of getting in front of these curves have not just profited from them, but transformed the landscape in which they lived. As David Carr pointed out in his New York Times article, “How Obama Tapped Into Social Networks’ Power”: Thomas Jefferson used newspapers to win the presidency, F.D.R. used radio to change the way he In the Obama campaign, this started with the governed, J.F.K. was the first president to understand site itself, which was a veritable combination of television, and Howard Dean saw the value of the newsroom, online streaming video (“BarackTV”), Web for raising money. But Senator Barack Obama links to every major social networking site covering understood that you could use the Web to lower the every demographic (from Facebook to BlackPlanet cost of building a political brand, create a sense of to MySpace, YouTube and even lesser known social connection and engagement and dispense with the network sites like Glee, MiGente and MyBatanga) command and control method of governing to allow and tools to enable site visitors to connect with one people to self-organize to do the work. another and organize outreach events. 2
  • 3. white paper 134 North Main Street, Suite 101 Rockford, Illinois 61101 toll free: 866.799.2879 www.trekk.com Contact : Michael Frieri, Director, Business Development | Direct : 708.707.3100 Influencing Behavior different media, including micro-sites/personalized URLs, As members of the marketing and graphic communications Twitter, FaceBook, ads/POS, mobile and RSS Feeds. This is industry, how do we begin to tap into this world? what we call the “content-centric model.” It starts with the website. The website is the bedrock of the campaign, where all of the content is linked. Next, you make it easy for people to find this content. This means making sure the site is structured correctly so it can be This requires a good Web-based content management system, indexed by and optimized for search engines. Then you layer on which allows you not just to centralize all of your campaign keywords campaigns or ad word campaigns that will make use information, but to spit that information back out to all of the use of the same content. Write for the search engines – write to give your content maximum visibility. Think you can avoid email as part of marketing? Email was media, as a channel, is about having conversations, getting a huge part of the Obama campaign’s success. Organizers people together and getting them to do things on their own collected more than 13 million email addresses and sent regular initiative. The challenge for marketing professionals, especially email alerts, news releases, event reminders, solicitations and CMOs, is to let go a little bit and let people do the work. email newsletters for a total of one billion messages. To a certain extent, this means letting your audience control the message, too. This is frightening for many marketers, but look at The campaign also used RSS Feeds to push content into other the results. sites, such as Twitter, iTunes and Flickr. These communications even included podcasts – (available directly from iTunes) and PR 3.0 & Going Viral included an “embed link” URL next to its YouTube videos so that This type of social, virally based marketing is what is being bloggers could easily embed these videos in their posts. called “PR 3.0.” With 1:1 printing, marketers are having individual This consistent stream of up-to-date – in some cases, nearly conversations with recipients of the direct mail pieces. Social real-time – information allowed grassroots supporters to take media is also about people having individual conversations, but ownership of the campaign itself and disseminated information those people are going to talk among themselves. with a level of effectiveness that the campaign could not have PR 3.0 is about using the Web to create a community, then purchased using traditional marketing methods. allowing that community to have it own conversation. If you can harness that as a brand, it’s more powerful than spending a few Changing the Face of Marketing million dollars on a SuperBowl ad. Just ask Apple! Its customers Marketers should be sitting up straight, because this may promote the brand with religious fervor. be the future of marketing. The Obama campaign used It is that passion you want to harness. This is why a critical aspect every combination of social media and online information of PR 3.0 is designing campaigns to go viral, or to be distributed dissemination to reach into every corner of the voter world. They from one person to another. This is where online media have fed people information, then encouraged them to comment on power that traditional media do not. This is also where the it, take ownership of it, and disseminate it – and they did. Obama organization also excelled. It created a network for Of course, the campaign made heavy use of traditional media, blazing fast information dissemination, whether through blogs, as well. Especially toward the end of the political season, it spent podcasts, audio, social networking sites, or other media. record amounts on traditional media – upwards of $600 million Traditionally, the work of the PR specialist is to make it easy for – but the campaign didn’t start that way. Everything started with the writer or editor to pick up your story. In PR 3.0, it’s the work social media. of the PR specialist to make the information available and easy to The Obama campaign changed the way politicians – and go viral. marketers – understand media. The lesson we learn is that social 3
  • 4. white paper 134 North Main Street, Suite 101 Rockford, Illinois 61101 toll free: 866.799.2879 www.trekk.com Contact : Michael Frieri, Director, Business Development | Direct : 708.707.3100 This process includes the following components: You learn by watching what’s working. This means tracking where your results are coming from: print, email, 1:1 printing, • Search Engine Optimization: organic search, keyword print ads, banner ads, adwords, SMS/MMS, social networks, definition and optimization, index submission and radio/TV, then tweaking and optimizing. monitoring, link harvesting and exchange. • Search Engine Marketing: i.e., Google AdWords, Like the Obama campaign, the point is to be everywhere that DoubleClick Ad Networks prospects’ eyeballs are. Once these eyeballs are in the right • Social Media Optimization: continually push content into places, have in place a continual process of testing to figure out the social networks by feeding them content and creating what works most effectively. links for people to comment on. • Testing: Check the effectiveness of different phrases and Look at the following ad words examples, as described in Super improve your performance. Establish a process of continual Crunchers: Why Thinking-By-Numbers is the New Way To Be refinement. Smart, by Ian Ayres: Launch and Learn Super Crunchers All of this may sound very foreign to print distributors and Why Thinking-by-Numbers IS the New Way to Be Smart manufacturers, but the value to investing in the learning curve www.bantamdell.com is high. As the great hockey player Wayne Gretzky has said, “A good hockey player plays where the puck is. A great hockey The End of Intuition player plays where the puck is going to be.” Why Thinking-by-Numbers Is the New Way to Be Smart www.bantamdell.com In printing terms, we might say, “A good printer knows where the print marketing is. A great printer knows where the print Think both ads are similarly effective? Not at all. The “Super marketing is going to be.” Crunchers” ad is 63% more likely to be clicked. Marketers can get this kind of basic analytics from any “Technology will never replace people. adwords campaign. Google analytics, for example, will give you People who use technology will replace information on referring sites, search engines, traffic sources and keywords. This will tell you who visited your site, where they people who don’t.” came from, what keywords they used to find your site, which ads they clicked through and more. For someone coming out of the traditional print marketing environment, this can be a frightening proposition. How do you You can also layer on additional analytics. Quantcast, for learn these new playing fields? It’s not as daunting as it might example, is an activity reporting tool that reports on visitors seem. Identify the most important elements. Look to maximize to the site and then, based on their IP address and tracking the commonalities among them. Use the same messaging and with cookies, takes a good “guess” on their demographics. This imagery. Package it appropriately for each channel. gives you an inside into the demographics by adding profile information to those visitors. 4
  • 5. white paper 134 North Main Street, Suite 101 Rockford, Illinois 61101 toll free: 866.799.2879 www.trekk.com Contact : Michael Frieri, Director, Business Development | Direct : 708.707.3100 If you are using a centralized Web console for all of your marketing campaigns, you can monitor all of the different Measure Return on Investment elements of your campaign, such as print, email, banner ads, As you measure your ROI, you’ll want to look at a television and radio, in a single interface. You can compare and variety of different “return” metrics, including the value contrast their results, identifying which campaigns were most of product sold (profit margin); value of qualified lead productive, in which languages, using which lists and so on. (projected sales); and value of customer lifetime loyalty This might seem like a lot of work, but if you can’t measure it (historically). – you can’t manage it! You also want to break down your investment into fixed and variable costs. Fixed costs are things like . . . In the end, all of this measurement has two benefits. It allows you to tweak and improve your campaigns over time. And • campaign research and concept development, it allows you to measure your return on investment for each • tactic design and implementation, and element of the campaign. • tracking and measurement tools. Variable costs include things such as . . . Are You Shifting? • list acquisition and cleansing The marketing mix is shifting. Clients’ and end users’ marketing • printing and fulfillment priorities and investment dollars are shifting – moving toward • offline and online ad placement multi-channel marketing in which social media are a critical • operation and measurement component. These costs should be compared against the results you are getting from each element of the campaign. If print manufacturers and distributors want to maintain a For example, you want to look at high level of profitability, they have to stay where the print is. • broadcast impressions Increasingly, it’s in multi-channel campaigns. That is going to • response rates require an investment in a new learning curve, but it’s one that • cost per impression will be critical over the next few years. • cost per click • cost per lead • cost per conversion • cost per direct mail • cost per email (delivered / opened /clickthrough) This tells you, not only what’s working, but where you are getting the most value for your investment. 1. Identify unique segment behavior. 2. Use test results to refine the message and designs. 3. Calculate individual tactic ROI. 4. Continuously improve midstream. 5. Refine the campaign for the next cycle. 5