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Media Mix, 1 to 1 Marketing & Sourcing Trends

Rick LittrellMagicomm, LLC

Rick@magicomm.biz www.magicomm.biz

April 13, 2023Magicomm, LLC

Marketing…Think Differently

Our ExpectationsHave CHANGED!

We want ‘it”… Where ever we are When ever we want Only what we want!

Microwave ovens, cell phones, FTP, Instant Messaging, and Blogs are symptoms of this trend 2April 13, 2023

Magicomm, LLCMarketing…Think Differently

Media access is“On-Demand” and

Personalized…TV provides ‘on-demand” movies

TiVo expands on options

Radio provides web access of previous programsMagazines are becoming more specialized

E-zines are configured with only information that you request

Web sites are configured based on past history of access

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Advertising Spending Worldwide

(AMA Marketing News 07.15.08)

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Marketing…Think DifferentlyApril 13, 2023

Communications Industry Forecast

study from Veronis Suhler StevensonAdvertising spending grew only 1.6%, to $212.56

billion in 2007 “Growth would have been even smaller if not for the

contributions from the cable TV, out-of-home, entertainment, and pure-play Internet and mobile advertising sectors”

“The weakening economy prompted brand marketers to shift ad budgets to alternative media and marketing services due to stronger return-on-investment (ROI) metrics, and high usage among target audiences”

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Marketing…Think DifferentlyApril 13, 2023

What Business-to-Business Marketers Spend* (In $Billions):

Business Marketing Association, Aug., 2008

Trade Shows/Events $17.3Internet/Electronic Media $12.5Promotion/Market Support $10.9Magazine Advertising $10.8Publicity/Public Relations $10.5Direct Mail $9.4Dealer/Distributor Materials $5.2Market Research $3.8Telemarketing $2.4Directories $1.4Other $5.1

*Projections based on BMA survey data

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B to B Direct Marketing Spend

(AMA Marketing News 07.15.08)

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Interesting Study fromDirect Magazine (Aug.,08)29% of all marketers have shifted marketing dollars from traditional channels to online media (same y/y)

56% report no changes in allocations

Drop in B-to-B digital efforts being more profitable 17% from 56% in 2007

Consumer firms said online campaigns were more profitable 41% from 47% in 2007.

B-to-B companies indicating their digital efforts are more profitable than those offline has dropped by half

35% a year ago to 17% today

Consumer firms indicate direct mail is their key Web site traffic driverB-to-B firms rely more on word of mouth

E-mail and direct mail campaigns are gaining fast

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Marketing…Think DifferentlyApril 13, 2023

Veronis Suhler Stevenson5 year growth forecast

Direct mail ($34.44 billion in 2007) 5.7%

Telesales ($31.41 billion) 2.1%

Catalog ($20.83 billion) 3.9%

E-mail marketing ($9.98 billion) 17.2%

DRTV ($4.9 billion) 5%

Internet and mobile ($37.03 billion) 14.3%

“This year, within direct marketing, direct mail remains the top category in terms of spending “because of its ability to reach consumers with a more detailed and targeted message than traditional mass media,” according to Veronis Suhler.”

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Marketing…Think DifferentlyApril 13, 2023

Global Growth inOnLine Spending

(study by media communications agency Carat in UK

)Newspaper 30.3%

1% drop in 2008

TV 25.6% 2% drop in 2008 & 2009

Online 22.3% 15% year-on-year growth for online

Magazines 11.4% 1% drop in 2008

Radio 7.4%1% drop in 2008

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Marketing…Think DifferentlyApril 13, 2023

Another “Online” growth story

(Source: BtoB Magazine)IDC says U.S. online ad spending grew 20.1% in second

quarterStory posted: August 25, 2008 - 11:59 am EDT

Framingham, Mass.—U.S. Internet ad spending totaled $7.01 billion in the second quarter, up 20.1% from the year-earlier period, according to research company IDC. In the quarterly report, IDC said that despite the current economic slowdown, the U.S. Internet advertising industry is not experiencing a pullback in spending. For the third quarter, IDC projects U.S. online ad spending will reach $7.70 billion, up 22% over the third quarter of last year.

—Kate Maddox

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Marketing…Think DifferentlyApril 13, 2023

Daily Search Engine Users Closing in On

Email UsersDaily Internet Activities (% Internet users who do this on a typical

day) 

Activity % of Search UsersEmail 60%Online search 49%Check news 39%Check weather 30%Research hobby 29%Surf web for fun 28% Visit social Networking site 13%

Source: Pew Internet & American Life Project, August, 2008

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Study on Mobil Advertising

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Marketing…Think DifferentlyApril 13, 2023

U.S. Alternative Media Spending

(AMA Marketing News 07.15.08)

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Marketing…Think DifferentlyApril 13, 2023

Social Media Marketing is going to change

EVERYTHING!Want is “Social Media Marketing”?

Social Media Marketing(SMM) Utilizing social networking and user-generated content platforms to promote a product, service or content. Often involves creating and participating in a dialogue with the target audience, rather than forcing an advertisement upon them. SMM can also include creating and promoting viral content that is meant to be shared by users. Many marketers are not comfortable with the lack of control over social media but when approached properly, social networks can be extremely effective channels for building product evangelism, reputation management or corporate branding.

Source: http://www.yoursearchadvisor.com/glossary.php

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Marketing…Think DifferentlyApril 13, 2023

Social Media…Worth Paying Attention

To!Trust in “a person like me” has tripled, from 20% to 68% from 2004 to 2006. (Edelman Trust Barometer) Online social network users were three times more likely to trust their peers’ opinions over advertising when making purchase decisions. (“Social Networking Sites: Defining Advertising Opportunities in a Competitive Landscape,” JupiterResearch, March 2007) A consumer survey by the JC Williams Group ranked consumer content as the #1 aid to a buying decision, cited by 91% of respondents. (JC Williams Group, 2006) 59% of their users considered customer reviews to be more valuable than expert reviews. (Bizrate) 81% of marketers surveyed say that their social media spending will meet or exceed their traditional advertising spending within the next 5 years. (TWI Surveys/Society for New Communications Research, November 2007) 97% of those surveyed who said they made a purchase based on an online review said they found the review to have been accurate. (comScore/The Kelsey Group, October 2007)

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Marketing…Think DifferentlyApril 13, 2023

Creating a “Pull” is MORE Important than “Pushing” the

MessageContent is King

The sharing of knowledge will establish reputation and enable a relationship to grow with clients and prospects

Corporations must be more open Can not change what is going on in the marketplace

BlogsDiscussion GroupsPublished ratingsPlaxo, LinkedIn, Facebook, MySpace, Twitter, ….

More participatory than we are use to

Must understand that message control is less important than product quality and corporate responsibility

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Marketing…Think DifferentlyApril 13, 2023

1 to 1 Marketing…Redux

Growing, but still has not reached its potentialAd Agencies must embrace for it to become mainstream

Their business model still based on mass media strategies

Good understanding of integrated marketing Lacks understanding of requirements for more

“individualized” messaging

Database to support efforts still an issue

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Marketing…Think DifferentlyApril 13, 2023

Why don’t more embrace it?It does cost more…Increasing requirements for:

Strategy Development Design and content costs Production costs

Appropriate databases not readily available Lacks demographic, behavioral or purchasing

information Must answer the question…”What do I need to

know to enable me to service them better?” Many want more information than is necessary or

that they are willing to act differently on19

Magicomm, LLC Marketing…Think DifferentlyApril 13, 2023

Print Industry Vendors must…

Expand marketing efforts beyond print market

It’s bigger than printMost implementations include email and web

Corporate clients must be educated on advantages AND challenges

Agencies must be taught how to implement

Practice what you preach Many still don’t use 1 to 1 marketing when

promoting their products and services

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Marketing…Think DifferentlyApril 13, 2023

Print CommunicationsMUST Be Relevant!

More information that we don’t ask for is being sent to us everydayTime is becoming more precious due to demands on our attention

Family Work Interests Direct Marketing

Integrating with other media is PARAMONT to survival!

Cross Media communication strategies are more powerful

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What does Cross Media mean?

From PCMAG.COM(1) Advertising in all media including radio, TV, direct mail, magazines, newspapers and the Web.Personalizing the content for cross media campaigns requires a database for targeted marketingBecoming increasingly a requirement for marketing services

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PURL’s (Personalized URL) are a Strong Complement to

Print• Web micro-sites that are database driven

with dynamic content (text and/or graphics).

• Each micro-site is UNIQUE!• Personalized URL’s (PURL’s) used for:

• Database verification• Database enhancement• Event registration or surveys• Cross and up selling opportunities• Includes real time tracking

• This is becoming MORE important for determining ROIApril 13, 2023April 13, 2023 23

Magicomm, LLC Marketing…Think Differently

What Is Important To Remember about 1 to 1

Marketing?Communicating with relevant information will enhance the prospects experience!Different people prefer their information delivered by different media

Communicate the way they prefer Let prospect/client control their information

flow

Multi-touch, integrated communication strategies ALWAYS out perform single media approach

Comparative % response rate and impact24

Magicomm, LLC Marketing…Think DifferentlyApril 13, 2023

Sourcing Trends…What do I know?

Time is STILL a very critical factor Relationships come into play, but are less important

“Just In Time” manufacturing is a must Requires more flexible scheduling

Storage of printed media is declining (?)North America has difficulty in competing on price with other regions

We can win the “time” battle Production automation will give us a chance

When time is NOT an issue, we will have to use different pricing strategies OR choose not to compete

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Marketing…Think DifferentlyApril 13, 2023

What does this ALL mean for Marketers?

(My view that no one else shares!)The consumer is gaining control of the message

More emphasis on direct interaction with corporation Less interest in “sales pitch” More interest in education and assistance when wanted

Mass communications strategies are weakeningMeasureable results must be providedGoogle is in the food chain for communications

LARGEST media company on the planet

Communications must be more dynamic to gain interest and results

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Marketing…Think DifferentlyApril 13, 2023

What does this ALL mean for the Print Industry?

(My view that no one else shares!)Automation is a MUST!Print beyond 4/c is required to enhance impactFinishing processes (beyond folding and cutting) are increasingly importantMove to “Just In Time” production must be acceleratedProgramming, IT, databases, and marketing are the “new” critical skillsExpanding BEYOND print = GROWTH

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Marketing…Think DifferentlyApril 13, 2023

Magicomm provides…

Integrated marketing solutions, including: Personalized Communications Web-enabled Implementations Social Media Strategies

Specialists supporting the graphics industry Vendors

Marketing strategy, creative, and implementations

PrintersFor outsourced marketing and technology support

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Marketing…Think DifferentlyApril 13, 2023

Magicomm Thank You For Your Time & Attention

Rick LittrellPresident/CMO

+1 978 808 3984Rick@magicomm.biz

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Magicomm, LLC Marketing…Think Differently