diving into “terra incognita” : the direct mail
DESCRIPTION
Key facts about Direct Mail investments and efficiency.TRANSCRIPT
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Diving into “Terra Incognita” : The Direct Mail
Frédéric JadinonDM Media Expert
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Direct Mail…..
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• Measuring the “total picture”:IPC Survey
• Zoom into the Direct Mail investments: “the DM pige”
• Standard measure of the impact of DM: “the DM Barometer”
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What is the real “share of wallet” ?
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IPC ran extensive international study to beter understand the media ‘usage’
5
1,027 interviews in companies with a turnover of more than 0.25m € per year
Senior executives with Marketing & Communication expenditure responsibility, managing directors or business owners
IPSOS, 2008 Results weighted and extrapolated to represent total universe of companies
in Belgium
OBJECTIVES
What is the media spending in Belgium and the media usage rate ? How are the different media perceived by advertisers
METHODOLOGY
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Media Channels covered: a way to consider the 360°
Direct Marketing
Online Marketing Classic Media with Response
E-Mail Marketing Internet Site Banner Advertising Paid Search
Events Promotional
Campaigns Loyalty
Magazines Fax
Advertising
Print with response
Insert with response
Outdoor with response
TV with response Radio with
response Cinema with
response
Print Insert Outdoor TV Radio Cinema
Other Media
Classic MediaTraditional
Direct Marketing
Addressed Mailings
Unaddressed mail Outbound
Telemarketing Inbound
Telemarketing Mobile Marketing
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Direct Marketing : Internet Site
Direct Mail
Unaddressed mail
Banner advertising
Telemarketing
Inbound telemarketingOutbound telemarketingPaid-search
Mobile Marketing
Classic Advertising (with/without response) :
Print advertisingInserts
Outdoor
Radio
TV
Other Advertising :Trade fairsCustomer magazines
Promotional camp.
Couponing
Fax advertising
Data: All values in %Base: All companies with a turnover of at least 0.25 m €/year; N=128,376 companies (n=1,027)
37
13
9
9
4
70
34
32
17
14
11
9
6
4
2
OverallWith response mechanisms
Internet has the highest usage rate, followed by print advertising, trade fairs & Direct mail
Media penetration (%)
1 2
3
4
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Data:All values in € bn - those costs include both external and internal costsBase:All companies with a turnover of at least € 0.25m /year: Universe: 128,376 companies (n=1,027)
Source: IPC survey – 2008 – 1027 interviewed companies (IPSOS)
Direct Marketing represents 39 % of total media investments
€ 2.86 bn.
€ 3.18 bn.
€ 1.35 bn.
Other; 18%
Classic media; 43% Clasic media with response mechanism;
7%
Telemarketing; 6%
Unaddresssed mail; 6%
Online (e-mail; internet; paid search) ;
8%
Direct Mail; 12%
Total Marketing & Communication Expenditure (full costing) - Belgium 2007: € 7.40 billion
8
Direct Marketing accounts for 39% of all advertising expenditure
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Only 21% of Belgian advertisers are “cross media”
User Share of Cross-Media Campaigns
User of cross-media campaigns Non-User of cross-media campaigns
Number of campaigns:
112,393 campaigns
Ø number of campaigns per company:
4.9 campaigns/ year
2 media
3 media
4 media or more
Often 2 media, very few with 3 or more medias in their campaigns
Data: All values in %Base: All companies with a turnover of at least €0.25 m /year and which are doing direct marketing; Universe:108,595 companies (n=913)
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Only 21% of Belgian advertisers are “cross media”
User Share of Cross-Media Campaigns
User of cross-media campaigns Non-User of cross-media campaigns
Often 2 media, very few with 3 or more medias in their campaigns
DM + WebDM + PrintDM + Email
7%7%6%
Internet + Print 9%
Among them, when DM involved, …
Internet + Email 6%Print + TV 4%
Data: All values in %Base: All companies with a turnover of at least €0.25 m /year and which are doing direct marketing; Universe:108,595 companies (n=913)
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Advertisers consider DM as most efficient mainly for short-term sales and retention
Data:All values in %Base: All companies using the specific medium
Source: IPC Direct Marketing Intelligence 2008 – IPSOS 1027 belgian companies
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• Measuring the “total picture”:IPC Survey
• Zoom into the Direct Mail investments: “the DM pige”
• Standard measure of the impact of DM: “the DM Barometer”
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Before 2009, lot of questions without answers …
MDB (Mediaxim)
Highly detailed analysis on media investments
Weight of Direct Mail in my mix ???
Evolution of Direct Mail pressure in my sector ???
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The Post, in collaboration with BDMA, initiated a survey project to measure Direct Mail pressure
Survey objectives are: To track gross expenditures of Addressed Direct Mail To develop a trustworthy and recognised tool which builds information
similar to other media (Cim-MDB)
Project developped based on feedback from the market: Different work – information meeting with BDMA and UBA Official support of UBA
Preference for Mediaxim as operator: Expertise Willingness to be complementary to CIM-MDB, not to build another standard
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How to build a strong “tool” without reinventing the wheel
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Starting with the DM universe: which direct mail does it cover ?
• Addressed paper mails using the ‘direct mail’ tariff of the Belgian post:• No international DM• No advertising mail using another tariff• > 500 pieces
• Using a ‘deposit’ in one of the 26 sorting Center (ie 97% of DM value)
• With a proven “advertising” purpose (Mediaxim check)
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The key steps of this project
Information collection
Information Treatment
Valorisation
Access
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Step 1All material is sent to Mediaxim
Information collection
Information Treatment
Valorisation
Access
Transactional information needed to calculated gross
value
+
Daily transfer
All DM Specimen
Unique key
(deposit identifyer)
+
Regular transfer from 27 sorting centre
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Step 2Mediaxim identifies sector and sender
Information collection
Information Treatment
Valorisation
Access
DM specimen arriving at Mediaxim DM scan
Visual IdentificationSorting:Economical group – Sector – Sub sector
AdvertiserGroup - Advertiser – Brand
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Step 3Valorization is based on official tariff grid
Information collection
Information Treatment
Valorisation
Access
274 different prices in function of volume, sorting type, format, weight: from 0.383 to 2.727 (1 to 7)Revision currently in discussion
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Step 4Information is made accessible
Information collection
Information Treatment
Valorisation
Access
Subscription through Mediaxim
In a separate environment
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Diving into some results
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In addition to mass media (Cim), Direct Mail represents about 10% of gross media investments
Gross Media investments 2009(in mio eur)
Sources: DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)
TV; 39,3%
Dailies; 23,0%
Radio; 11,3%
Postering; 8,9%
Free Press; 4,8%
Internet; 4,0%
Magazines; 7,8%
Cinema; 0,8%
Mass Media(CIM MDB)
Direct Mail(Pige DM)
9,9%3169
349,1
3169
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In a “turbulent” communication market, Direct Mail hold relatively a good position
345
1204,8
736,7
377,2
299,9
249,5
150,4
119,1
26,8
1246
349,1
1246,8
730,3
357,7
281,7
247,5
152,2
128,1
24,6
1240,0
Direct Mail
TV
Dailies
Radio
Magazines
Postering
Free Press
Internet
Cinema
Total
20082009
Gross Investments evolution per mediaJan-dec 2009 vs. Jan-dec 2008
- 6,1%
+1,2%
+ 1,2%
+ 7,5%
- 0,8%
- 0,9%
- 5,2%
+ 3,5%
In millions eur
DM Pige
CIM-MDB
- 8,2%
3.168,93.164,4 + 0,1%
- 12,1%
-7,6%
+ 6%
- 5,7%
- 11,7%
-2,0%
+ 9,2%
- 9,8%
-1%
Sources: DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)
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75% of gross investments are concentrated in 5 sectors
103,1
98,4
32,9
8,7
8,3
6,7
5,9
5,5
5,2
5,2
4,9
4,0
3,5
3,1
42,5
11,3
POINT DE VENTE
VENTE A DISTANCE
BANQUES - CREDITS - ASSURANCES
OPERATEURS
INDUSTRIE AUTOMOBILE
ASBL - INITIATIVES PUBLIQUES
MEDIA
SERVICES TOURISME LOISIRS
SYNDICATS - PARTIS - MUTUALITES
ENSEIGNEMENT
EDITIONS
ENERGIE
MANIFESTATIONS SPECTACLES
FEDERATIONS - ASSOCIATIONS
PRODUITS DE SOINS
Autres
Direct Mail Gross investments, 2009Direct Mail Gross investments, 2009
29,5%
28,2%
9,4%
3,2%
2,5%
2,4%
1,9%
1,7%
1,6%
1,5%
1,5%
1,4%
1,1%
1,0%
0,9%
12,2%
Source: DM Pige Mediaxim-Post
In millions eur in %
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Most key sectors grew, except Finance – Car
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
0,0
POINT DE VENTE
VENTE A DISTANCE
BANQUES - CREDITS - ASSURANCES
OPERATEURS
INDUSTRIE AUTOMOBILE
ASBL - INITIATIVES PUBLIQUES
MEDIA
SERVICES TOURISME LOISIRS
SYNDICATS - PARTIS - MUTUALITES
ENSEIGNEMENT
EDITIONS
ENERGIE
MANIFESTATIONS SPECTACLES
FEDERATIONS - ASSOCIATIONS
PRODUITS DE SOINS
+0,9%
+1,2%
-8,8%
+21,9%
-2,7%
+7,1%
-1,3%
+10,9%
-10,4%
+2,9%
+14,1%
+23,3%
+2,5%
+3%%
+35,1%
Source: DM Pige Mediaxim-Post
0,9
1,1
-3,2
-0,2
0,5
-0,1
0,6
-0,6
0,1
0,6
0,9
0,1
0,1
0,8
2,0
Variation of Direct Mail Gross investments vs. 2008(Jan-Dec 2009 vs. 2008, in key sectors representing about 85% total inv.)
Variation of Direct Mail Gross investments vs. 2008(Jan-Dec 2009 vs. 2008, in key sectors representing about 85% total inv.)
In millions eur in %
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But for those 2 key declining sectors, DM increased its weight
8,78,9
2008 2009
32,836,0
2008 2008
AutomotiveAutomotive
Banking - FinanceBanking - Finance
-3% -9%
DM Gross Investments
DM Gross Investments
3,4%3,2%
2008 2009
+6%
DM index comparedto Cim-MDB
DM index comparedto Cim-MDB
15,2%14,4%
2008 2009
+5%
307,5300,1
2008 2008
All other sectorsAll other sectors
+2,5%
10,1%10,1%
2008 2009
-
Sources (03/02/2010): CIM-MDB, Mediaxim (Mass Media); DM Pige Mediaxim-Post (Direct Mail)
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This tool reveals also that penetration of DM varies strongly across sectors
Gross ATL media & DM investments in Top mass-media sectors(in mio eur gross, Total 2009)
Sources: DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)
349
271245
183 174 168
10979
57 50
12
103
7 933
4 11 5 6 0 0
98
Retailer Media Automotive Bank &Finance
Leisure,events,
entertaining
TelecomPublishingTourism Care Soft drinksMail order
Mass Media (source: Cim-MDB, Mediaxim) Direct Mail (source: DM pige-Mediaxim)
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• Measuring the “total picture”:IPC Survey
• Zoom into the Direct Mail investments: “the DM pige”
• Standard measure of the impact of DM: “the DM Barometer”
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A ‘quest’ for a kind of ‘beta’ for Direct Mail:The « DM Barometer »
Standardised post-test surveys(5 days after drop date, during 3 days)
Key measures– Recall campaign and content– Behaviour: opening and reading rate– Campaign evaluation– Intention of purchase / action
30
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Our 44 DM barometer show a high recall rate for Direct Mail
31* Conversion rate average is an average of different conversion rates and doesn't correspond to conversion rate between average
Recall having received it
Opened it Recall content(content or message)
Intent to act
“Do you remember receiving a DM?”
“What did you do with the DM?”
“Can you describe the DM?” “Do you have intention to react?”
Read it
AverageN= 44 cases 69 41 37 2446
Conversion rate(AVG)*N= 44 cases
65 8988 61
DM B2C
High recall content when opened
High reading rate
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Scores are strongly lower for unaddressed mail
32
Recall having received it
Opened it Recall content(content or message)
Intent to act
“Do you remember receiving a DM?”
“What did you do with the DM?”
“Can you describe the DM?” “Do you have intention to react?”
Read it
AverageN= 19 cases 36 14 9 219**
Conversion rate(AVG)*N= 19 cases
47 6255 22
Distripost door to door folders
* Conversion rate average is an average of different conversion rates and doesn't correspond to conversion rate between average
** Opening vs recall rate calculated on 7 D2D cases with envelope
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The Post has run extensive research with > 45.000 interviews (BtoB – BtoC)
Generic media surveys (e.g., Mail moment, E loves P, How direct are women?)
20 Multi-media surveys
>80 DM impact surveys
> 330 response rates - benchmark data base
33
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Transition implies a broadening of our understanding of the media landscape
• Transition into an ‘helicopter view’ of total “out of pocket”:– Direct Marketing accounts for about 40%– How do ALL (?) Touchpoints work together
• Transition towards broader possibilities of Media Mix analysis: DM pige is a step in this direction
• Transition with media specific but complementary impact standards– Eg DM ‘beta’ to be defined, combining recall (69%) and recall content
(37%)– DM opening rate (post-test based: 65%; diary based: 78%)
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Transition
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Thank you
Presentation available on www. DMPlaza .be
0479 429 159
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