Discovery 7 Dm In Media Mix

September 2009

No Charlie without a hat

No campaign without DM 7th DM Discovery

DM Discovery 7: No campaign without DM

Discovery 1:

Growing your Business with DM (2006)

Discovery 2/3:

Get the Max out of your mix (2007)

Discovery 4/5:

DM brand relationship (2007)

Discovery 6:

P loves E (2008)

Discovery 7:

No campaign without DM (2009)

2

Increasing shift to interactive, one-to-one, proximity media

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

€ 3.18 bn.

Classic media, 50%

3

0

200

400

600

800

1000

1200

1400

1600

1800

Mass Media DM

1st Semester 2008

1st Semester 2009

Despite the crisis, DM investments have increased in the 1st Semester ‘09 by 2,4% compared to 1st Semester ‘08

Source: DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)

-4,1%

+2,4%

Gross investments (in mio eur, 2008)

4

Advertisers consider Direct Mail as the most efficient media mainly for short-term sales and retention

0%

20%

40%

60%

80%Retention

Acquisition

Brand ImageProduct Advertising

Short-term Sales

E-Mail Marketing Addressed Direct Mail Internet SitePrint with response Unaddressed Mail TV with response

Data: All values in %Base: All companies using the specific direct marketing medium

Source: IPC Direct Marketing Intelligence 2008 – IPSOS 1027 belgian companies

Retention

Short-term Sales

5

Which communication channel do you prefer?

6

DM scores among customers as the preferred informative communication channel in most sectors.

45 43 42 39 36 36

0

20

40

60

80

100

Mail order sales(n=171)

Beauty products(n=120)

Banks & Insurances(n=184)

Home equipment:furniture, DIY, garden

(n=127)

Automotive (n=158) Press (n=165)

%

DM Print D2D TV Radio POS Internet E-mail SMS none dk

45 43 42 39 36 36

5 11 117 14 13

15 8 11 22 13 13

1513 11

1213 10

44 4

52 6

47

3

2

25

47 8

9 7 85 10 5

1 2

21

13

1 1 231 3 4 3 4

0

20

40

60

80

100

Mail order sales(n=171)

Beauty products(n=120)

Banks & Insurances(n=184)

Home equipment:furniture, DIY, garden

(n=127)

Automotive (n=158) Press (n=165)

%

DM Print D2D TV Radio POS Internet E-mail SMS none dk

7

Retailer and Mail order are already heavy usersGross ATL media & DM investments in retail (in mio eur, Total 2008)

Sources: DM pige-Mediaxim (Direct Mail); Cim-MDB, Mediaxim (other media)

354

286273

215

172160

105

7357 53

109

8 9

36

4 9 5 5 2 2

Retailer Media Automotive Bank &Finance

Leisure,entertaining

Telecom Publishing Tourism Care-pharma Public

Mass Media (source: Cim-MDB, Mediaxim) Direct Mail (source: DM pige-Mediaxim)

Mail order:

8

Retailer and Mail order are already heavy usersGross ATL media & DM investments in retail (in mio eur, Total 2008)


354

286273

215

172160

105

7357 53

109

8 9

36

4 9 5 5 2 2





RETAILER

9

But DM is still a small player in most sectorsGross ATL media & DM investments in Top 10 mass-media sectors (in mio eur, Total 2008)


354

286273

215

172160

105

7357 53

109

8 9

36

4 9 5 5 2 2





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

>40 DM impact surveys

> 250 response rates - benchmark data base

10

What are the most frequent barriers to the DM use?

Inspiration

I don’t know how/when to use it

Would my customers remember it?

My company is too small

11

Effectiveness

DM seems complicated

How does it work?

How to measure the effective impact?

DM takes time & resources

Database

My database isn’t qualitative enough

Where can I rent adresses?

DM Consultancy team: a team at your disposal to help overcome those barriers

12

Source: DM Consultancy team analysis

Reach

Gross costper contact

Important criteria to consider when evaluating a Media Mix

IMPACT ON BRAND: - Awareness- Equity- Loyalty

+IMPACT ON SALES

ROMI

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Reach



ExposureDuration / depth

Attention


+IMPACT ON SALES

ROMI

14

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 Mail Moment remains unique

15


Reach



Saturation


Attention


+IMPACT ON SALES

ROMI

16

12%

8%

22%

44%

44%

59%

61%

62%

71%

70%

68%

74%

77%

54%

41%

39%

37%

36%

26%

25%

20%

18%

11%

0% 20% 40% 60% 80% 100%

TV (n=1122)

Internet (n=747)

Door-to-door bundle

Radio (n=1058)

Free press (n=991)

Magazines (n=1046)

Dailies (n=981)

Cinema (n=678)

E-Mails (Averages)

Paper mail (averages)

not enough enough too much No pub sticker

1%

Consumers don’t feel overwhelmed with Direct Mails

With regards to advertising in the following media, would you say there is …?

Source : “E loves P” study – 2007 – TNS Dimarso -1100 respondents17

3%

4%

2%

3%

3%

3%

5%


Reach


Personnalisation


Saturation


Attention


+IMPACT ON SALES

ROMI

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Personnalisation: the power of relevance

19

Information Page Response Page

BART

Helmut


Reach


PersonnalisationInvolvement


Saturation


Attention


+IMPACT ON SALES

ROMI

20

Consumers feel closely involved when receiving Direct Mail

21Source : Synovate Censydiam – DM Brand relationship model – fashion sector - 2007

This media can give me the feeling of ….. DM

Avg. other media

… rewarding me as a customer 73% 19%

… being connected to the brand 63% 8%

… acknoweldgement / appreciation 57% 8%

… being important for that brand 57% 7%

… being unique 51% 7%


Reach


PersonnalisationInvolvement


Saturation


Attention

EnvironmentalImpact


+IMPACT ON SALES

ROMI

22

Global Belgian paper consumption =3.692.000 tons / year

The post “consumes” 0,08% (2.808 tons) of that for its own needs and “transports” around 6% (around 220.000 tons) of the total paper produced yearly in Belgium

23

Other 93,97%

Paper transported by the Post5,96%

DM = about 1/3rd of the yearly paper tonnage transported by the Post

the Post ownconsumtion 0.08%

DM represents ONLY 2% of total consumption of paper in Belgium

2.7

6.4

5.9

2.3

4.6

5.8

2.1

4.1

3.1

2.3

3.4

2.73.1

3.4

4.5

1.41.2

2.5



Telecom Publishing Regional retail Tourism

With DM Without DM

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Average RROI of Different Media

Source: Omnicom UK – Brand Science 2008

Medium

Ave

rage

RO

IDirect Mail helps boosting ROI of most campaigns (UK)

1 2 3 4

Integrated to the Media Mix, DM boost ROI by min 20%

Source: Post – 15 DM pilot surveys N: > 25.000

LOYALTY BUILDING> 25%

RECALL RATE2->20 x higher

BRAND PERCEPTION> 50%

SALES ACTIVATION15 up to 200%

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+ min. 20% ROI

if integrated into media mix

DM COSTS

Database

Creation

Production

Fulfilment

NET MARGINSHORT TERM

on incremental sales

LONG TERM

on « lifetime » sales

Knowing that, would you imagine ….

26

Only 21% of Belgian

advertisers are “cross

media”

79

21

User share of cross media campaign

DM + WebDM + PrintDM + Email

7%7%6%

Internet + Print 9%Among them …

Source: IPC survey – 2008 – 1027 interviewed companies (IPSOS)

September 2009

No campaign without DM

Discovery 7 Dm In Media Mix

Business

Transcript of Discovery 7 Dm In Media Mix