e loves p (dm discovery 6)
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Or how Paper mail and Email work together to seduce the consumer
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Welcome to
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Everything youalways wanted to know about …
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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)
Agenda
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4 special guests for you today…
NiveaAnne Portzenheim – Global Communication Manager
CitibankMichel De Bolle - Marketing Director
Deutsche BankPhilippe Etienne - Head of Campaign Management
OgilvyOne & OgilvyInteractiveKoen Van Impe - Managing Director
1. Some key figuresabout these media
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Turnover IncreaseMio euro
224221214212
227
238
2002 2003 2004 2005 2006 2007
* Direct Advertiser Survey, Post
Direct Mail is still on the rise
+ 12.2 %+ 4.8 %
Usage increase:
8% of non direct mail users will start with Direct Mail in 2008*
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Gross media investments
by Media Type Jan - June
Direct Mail; 10,3%
Cinema; 0,6%
Dailies; 20,8%Radio; 10,9%
Regional Weeklies; 4,4%
Internet; 2,8%
Magazines; 8,7%
Postering; 7,2%
Television; 34,2%
Addressed Direct Mail represents 10,3% of gross media spendings
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
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97% opens
mailbox every day
… but receives only 2
DM/ week
78% is
opened
Consumersspend
1’52’’ per mail
… and behind every letterbox
is a unique person
you can target
The strength of direct mail, the MAIL MOMENT…
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E-Mailbox Potential Reach*
67
38
33 33
21
8
57%
No
Yes
Total
Daily
Weekly
Less often
Frequency
Frequency of consulting e-mail is lessintensive than paper mail
* Source: TNS 2007
** Source: MAS 2005
Letterbox Reach**
100 97
0
97%
No
Yes
Total
Daily
3% Weekly
Frequency
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Total online advertising market2006 - 2007
Total marketGross invoiced prices in €
55.255.140
77.656.628
2006 2007
Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”)
+41%
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Channel evolution2006 - 2007
Evolution 2006 - 2007in 000 €
0
10.000
20.000
30.000
40.000
50.000
60.000
Display Keyword ContentIntegration
E-mail Newsletter Other
20062007
Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”)
+37%
+82%
+9% +24% -6% +79%
5%
?2. When do I need
to use E or P?
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Consumers are “bombed” by a few 1000 mass messages every week
200 TV ads
150 radio ads1000’s of ambient ads ...
Weekly number of advertising messages per capita
20 e-mail ads
3 cinema ads
400 press ads/inserts
350+ outdoor ads
2+ DM pieces
Opportunity for Direct !
Source: Mindshare - Henley Centre (and TNS Media & Post survey)
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With regards to advertising in the following media, would you say there is …?
5%
4%
74%
68%
70%
71%
62%
61%
59%
44%
44%
22%
18%
20%
25%
26%
36%
37%
39%
41%
54%
77%
11%
12,10%
8,40%
0% 20% 40% 60% 80% 100%
Dm (Averages)
E-Mails (Averages)
cinema (n=678)
dailies (n=981)
magazines (n=1046)
free press (n=991)
radio (n=1058)
door-to-door (n=1149)
internet (n=747)
tv (n=1122)
not enough enough too much sticker
High acceptance of 1-2-1 advertising
3%
3%
3%
2%
1%
3%
* Source: TNS 2007
3. What are yourquestions
& challenges?
?
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Challenges of the E
� Spam
� Capture attention
� Coverage
� E-mail address collection & qualification
� Opt-in addresses
� Multiple e-mail addresses
� Intrusive character
� Abuse of e-mail usage
� Anti-spam filters
Challenges of the P
� Cost
� Flexibility / reactivity
� Keep data-base up to date
� Data-base qualification
� Environment
Points of attention
� Creativity
� Content
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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)
4. The strengths of both media
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What do you measure afteran E-mail campaign?
31%
61%
82%
95%
27,00%
26,00%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
# of opened messages
Return on investment
Clickthrough tracking
# interactors per link
Clickthrough behaviour on campaignpages
# of unique interactors
# unsubscribes
# of bounces
# of clicks per link
Total number of clicks
# of number of forwarded messages
brandawareness
Source: Emailgarage
Base:Users of each medium and give an answer
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What do you measure aftera DM campaign?
■ # of appointments■ # of sales■ # of postal returns
■ Cost of campaign■ Acquisition cost by contact■ Life time value of the consumer■ …
ROMI
ROI
Margin onAdditional Sales
Costs of the media campaign
Costs of the media campaign
Margin onAdditional
Sales
Probabilityto redeem
coupon
Averageshort term
margin
Averagelong termmargin
( )
Costs of the media campaign
Database hiring & mainten-
ancecost
Costcreation
Productioncost
(printingrouting)
Mailing cost
Coupon
■ # of reactions
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AverageBased on 21 cases 55 28 22 10
Conversion rate average*
Based on 21 cases
59 78 40
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73
Measure the real things
Percentage of respondents
Recall having received it
Opened it Read it Recall content 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?”
* Conversion rate average is an average of different conversion rates and doesn't correspond to conversion rate between average
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Brand perception
Sales activation
Boostingof ROI
Loyaltybuilding
DM is a strongsales activator
Integrated with other media DM increases the ROI of your
campaigns with at least 20%
DM builds stronglong termrelations withyour customer
DM improvesbrand perception
High recallrate
DM gets highrecall rates evenof complexmessages
1 2 3 4
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The power of Direct Mail
15% to 200% extra sales >25% more
loyal customers
Source: Post – 15 DM pilot surveys N: > 25.000
2 to 20 times better recall
>50% of brand attributes
improved
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E-mail Physical mail
■ Easy to react, to get information
■ Cost
■ Can be set up quickly■ Personnalisation
■ Measurability
■ Short messages
■ Can be surprising and original
Advantages
■ Appreciated – not intrusive
■ Targetting
■ Sales Activation■ Acquisition
■ Complex information
■ High opening and reading rate
When touse ?
■ Own list
■ Newsletters ( top of mind )■ Punctual Information & more
frequent use
■ Generate traffic on website
■ To promote image & brand value
■ Involving Capturing attention■ Giving usefull, detailed trustworthy
information
■ Urges to react (vouchers)■ Magazines
The strengths of both media
5. The future is on-line?
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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?
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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
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E-Mail only DM + E-mail
* IAB - E-mail Marketing Cookbook
** Study E loves P – Pilot Research
In one of the pilots we ran with our customers, adding DM to email multiplied by 2.5 the number of final orders *
+255%
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Thank you for your attention