Ipc Survey Belgium 2009

18 May, 2009

International Post Corporation Media survey Belgium - 2007

May 2009

Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 22

Agenda

Conclusions

Background & Objectives

Cross-media campaigns

Advertisers’ perception of Direct Marketing

Assessing the communication investments & usage

Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM

Who is International Post Corporation ?

The International Post Corporation is an association of 24 postal operators in Europe, North America and the Asia-Pacific region. IPC provides its members with systems and programmes that ensure that international mail is delivered efficiently and competitively.

IPC represents the majority of the world’s mail, with its members delivering eighty percent of global mail volumes – more than 330 billion letters each year. Together, providing nearly 2.4 million jobs.

Based in Brussels, with an international staff from 16 countries, IPC is an organisation governed by a Board composed of CEOs from eleven member posts plus the Chief Executive of IPC.


Introduction

IPC Direct Marketing Intelligence is a research tool developed to estimate marketing & communication expenditure, media usage and perceptions of direct mail (both addressed and unaddressed) within advertisers’ marketing mix

The survey covers 6 countries ( US , France , the Netherlands , Belgium , UK and Sweden) . Its methodology, adapted from existing projects conducted by Deutsche Post, includes interviews with advertisers as well as a desk research component. IPC worked in 2008 with IPSOS market research group to conduct telephone interviews, personal interviews and analysis.

Insights gained from the benchmarking opportunities arising from conducting comparable studies in multiple countries, will support the development of direct marketing as a whole, growing its share of marketing & communication budgets. Understanding the dynamics within direct marketing media across a range of markets at different level of online development, will provide a clear picture of how advertisers can best leverage the unique strengths of direct mail as a communication medium.

The following report focuses on the Belgian media market .

4


Key questions addressed by IPC study

What is the actual total media spending in Belgium and the media usage rate ?

How is direct mail perceived by advertisers versus other media ?

How many cross-media campaigns do advertisers run ?

In what ways can direct mail become a more highly valued media?

5


IPC Direct Marketing Intelligence Methodology

Step Aim

Classification of media channels and structuring of sectors and industry codes

Quantitative research

Qualitative research

Weighting and fusion of

information

Results and information reflecting the entiremarket

Consolidation & validation

1

2

3

Desk research


Survey Description

Primary research amongst senior executives with Marketing & Communication expenditure responsibility, managing directors or business owners

1,027 interviews with additional 8 in-depth interviews amongst national Top100 advertisers

Robust sampling structure, developed in cooperation with market research

Results weighted and extrapolated to represent total universe of companiesin Belgium (with an annual advertising budget of more than 0.25m € per year)

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Methodology – Universe structure

CountryIndustry Sectors

Trade Services Manufacturing Industry Total

US 634,000 1,222,000 428,000 2,284,000

DE 383,000 530,000 346,000 1,259,000

UK 172,000 280,000 136,000 587,000

FR 230,000 282,000 141,000 653,000

NL 93,000 153,000 83,000 328,000

BE 48,000 51,000 29,000 128,000

SE 41,000 74,000 38,000 153,000

TOTAL 1,601,000 2,592,000 1,201,000 5,392,000

The results are valid for all companies with an advertising budget of at least €0.25 m/ year


Universe structure : classification of Sectors

9

The universe of companies is divided by sectors and constructed with 3 levels of detail:

Trade Services Manufacturing

Trade Finance Public Services Other Services Manufacturing Industries

• Trade (Wholesale, Retail)

• FMCG (food, household products, etc.)

• Mail order

• Banks• Insurances• Other financial

services

• Non-profit• Utilities (Energy,

Telecom)• Government• Health services• Education

• Media• Travel/ Tourism• Leisure/

Entertainment• Automotive repairs• Other services

• Construction Sector• Agriculture• Mining• Production

Firs

t Le

vel

Seco

nd L

evel

Third

Lev

el


Media Channels covered

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


Topics

Conclusions






IPC Direct Marketing IntelligenceTotal Marketing & Communication Expenditure

• Development of concept/ design• External agency fees

• Printing/ preparation of material & mailings• Set-up of software / hardware maintenance• Address/ lists/ telephone charges

• Postage• Delivery/ technical implementation

• Costs of processing of responses• Call centres/ Hotlines

• Other costs from external suppliers

• Directly attributable salaries & expenditures excluding overheads

12


Marketing & Communication Expenditure –Belgium 2007

13

Total Marketing & Communication Expenditure 2007 (full costing) € 7.40 billion

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)

Direct Marketing accounts for 39% of all advertising expenditure( full costing basis)

€ 2.86 bn.

18%

6%12%

8%

6%

7%43% Classic

media with response mechanism

€.1.35 bn.

€ 3.18 bn.

Direct MarketingOther

Classic MediaOnline

Direct Mail

Unaddressed Mail

Telemarketing


Very different cost structures from one direct marketing type to another .

87

77

71

63

54

48

27

13

23

28

29

37

46

52

73

72

Total Expenditure (in € bn)

External Costs (in € bn)

0.11 0.09

0.33 0.25

0.42 0.30

0.89 0.63

0.40 0.25

0.07 0.04

0.13 0.06

0.47 0.13

TV + radio w. response

Print advertising w.r.

Online

Direct Mail

Unaddressed mail

Outdoor w. response

E-mail

Telemarketing

Data: All values in %Base: All companies with a turnover of at least 0.25 m €/year; N=128,376 companies (n=1,027)

Direct Marketing cost structures – Belgium

Internal costsExternal costs


4%12%

4%

18%24%

7% 9% 11%2%

3%

3%

2%

6%

1%7% 3%

52%23% 44%

36%

50%

27%0% 10%

24%35%

19% 24%

9%

29%

49%

16%

60%

35%

36%

11%

19%31%

27%

18%

Creation

Production

Delivery

ResponseManagement

Others

Direct Mail Online Print w.r. Unaddr. Mail

Telemar-keting

TV + Radio w.r. E-Mail Outdoor

w.r.

in bn € 0.63 0.30 0.25 0.25 0.13 0.09 0.06 0.04


Very different Direct Marketing external cost structures by media type – Belgium


Services

TOTAL €bn 4.01

Telemark /Unadd.Mail 0.51

Direct Mail 0.35

Online 0.34

Response mechanism 0.26

Classic advertising 1.93

Other advertising 0.62

Trade

TOTAL €bn 2.24


Direct Mail 0.40

Online 0.16




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48,201 companies

Data: All values in € bnBase: All companies with a turnover of at least € 0.25m /year: Universe: 128,376 companies (n=1,207)

Highest proportion for direct marketing is for trade. This is driven by high direct mail investment (18%) .

Marketing & Communication investments by Sector –Belgium 2007

Tot .Dir Marketing :46 %

Tot.Dir Marketing :43 %

Finance

TOTAL €bn 0.81

Telemark /Unadd. Mail 0.13

Direct Mail 0.10

Online 0.03




4%

31%17%

12%

4%33%

Tot .Dir Marketing :36 %


Public Services

TOTAL €bn 0.90


Direct Mail 0.07

Online 0.07




Other Services

TOTAL €bn 2.30


Direct Mail 0.18

Online 0.24




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14,640 companies

Data: All values in € bnBase: All companies with a turnover of at least € 0.25m /year: Universe: 50,883 companies

Tot. Dir Marketing :33 %

Tot. Dir Marketing :38 %

Marketing & Communication investments by Sector – Belgium 2007

Manufacturing

TOTAL €bn 1.14


Direct Mail 0.12

Online 0.08




Tot.Dir Marketing :31 %


Internet has the highest usage rate (70%) , followed by print advertising (49%) , trade fairs (37%) & Direct mail (34%)

Direct Marketing :

Internet Site

Direct Mail

E-Mail

Unaddressed mail

Banner advertising

Telemarketing

Inbound telemarketing

Outbound telemarketing

Paid-search

Mobile Marketing

Classic Advertising (with/without response mechanisms) :

Print advertising

Inserts

Outdoor

Radio

TV

Other Advertising :

Trade fairs

Customer magazines

Promotional camp.

Couponing

Fax advertising


37

13

9

9

4

70

34

32

17

14

11

9

6

4

2

Communication channel usage (%) Belgium

OverallWith response mechanisms


Usage of Direct Marketing Media by company type

(BtoC or BtoB) : unaddressed is more used in BtoC than in BtoB whereas addressed mail suits very well for all businesses

19

Data: All values in %Base: All companies with turnover of at least € 0.25m /year N=128,376 companies (n=1,027)


Direct Marketing usage and investments

20

€ 0.26 bnInternal costs

IPC DMI 2007Direct Mail

Investments

Total investments € 0.89 bn

External Costs € 0.63 bn

Direct mail activities account for:• 31% of direct marketing investments • 12% of total marketing and communication investments• 34% usage

Data: All values in %Base: All companies with a turnover of at least € 0.25m /year: Universe: 128,376 companies (n=1,027)

Direct Marketing Expenditure


Direct Marketing usage by sector (%)

• Online and e-mail advertising is highest for services • Direct mail has a low user share for public services

70

35

33

48

17

8

4

3

62

34

21

20

18

7

15

1

82

37

40

23

12

14

1

4

68

37

35

27

29

17

6

5

68

26

32

21

22

22

3

7

N= 48,201(n = 284)

N= 29,292(n = 237)

N= 30,623(n = 250)

N= 5,620(n = 125)

N= 14,640(n = 131)

Data: All values in %Base: All companies with a turnover of at least 0.25 m €/year: n = actual interviews N = weighted data to reflect universe

* Online: Internet Site, Banners & Paid searches

Online *

Direct Mail

E-Mail

Print with. resp.

Unaddressed Mail

Telemarketing

Outdoor with response

TV & Radio with response.

Trade Manufacturing Industry Services Financial Services Public Services


Topics

Conclusions



Advertisers’ perception and expectations of Direct Marketing



Advertiser perception of Direct Marketingeffectiveness - Belgium

- Direct mail scores very well on all communication objectives - Unaddressed mail are best in acquiring new customers

Existing Customer Retention Short Term sales to End Customers Brand Image Advertising Product Advertising Acquisition of new

Customers

1 Addressed direct mail 57

2 Internet Site 40

3 E-mail marketing 27

4 Outbound telemarketing 22

5 Unaddressed mail 17

6 Inserts in newspapers, etc. with response 15

7 Ads in newspaper, etc with response 14

8 Inbound telemarketing 9

9 Mobile Marketing 3

10 Outdoor advertising with response 2

11 Internet banner advertising 1

12 TV advertising with response 0

13 Radio advertising with response 0

14 Paid for internet search 0





5 Internet Site 35












3 Internet Site 31















4 Internet Site 36












2 Internet Site 43



5Unaddressed

mail 28










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


Effectiveness of Direct Marketing MediaAddressed direct mail scores very well on all dimensions

24

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

BE


Effectiveness of Direct Marketing MediaDirect Mail versus other Direct Marketing Media – Belgium

25

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


Main reasons for using Direct Mail

Data: All values % - Agree / Completely agreeBase: All companies with a turnover of at least 0.25 m €/year: Universe 128,376 companies (n=1,027)

Users Non-Users

65

49

45

Direct mail users perceive Direct Mail as a creative communication tool , delivering good and measurable results

Direct mail allows room for creativity

Direct Mail campaigns always produce good results

The success of Direct Mail can be measured effectively in terms of ROI


+24

+4

-1

-4

-1

-21

0

Heavy Users

+10

+10

+3

+1

-5

-17

-2

Medium Users

Users of Direct Mail

Developing Direct Mail - BelgiumRequirements by Level of Usage

- High demand for evaluation of campaign process by heavy users.- Medium users require more support for creation and address management

Total

13

12

11

5

3

2

55

Data: All values in %Base: All companies whose using direct mail or unaddressed mail (n=507)

+1

+6

-6

-1

0

+1

0

Low Users

Evaluation of campaign process

Creation

Address management

Dispatch and selection

Production of the mailing

Response management

None of these


Topics

Conclusions






Cross-media campaigns - Belgium

User Share of Cross-Media Campaigns

23,060 companies

85,535 companies

Data: All values in %Base: All companies with a turnover of at least 0.25 m €/year and which are doing direct marketing; N= 108,595 companies (n=913)

User of cross-media campaigns Non-User of cross-media campaigns

Number of campaigns in 2007:

112,393 campaigns

Ø number of campaigns per company:

4.9 campaigns/ year

2 media

3 media

4 media or more

- Only 21% of advertisers are running multi-media campaigns , using most often 2 media- Very few cross-media users include 3 or more medias in their campaigns


Cross-media campaigns users profile

Finance

Trade

PublicServices

ManufacturingIndustries

Services

User Share by Sector User Share by Company size

Small

Medium

Large

Cross-media campaigns most often used by public services , trade & finance

30

Data: All values in %Base: All companies with a turnover of at least 0.25 m €/year and which are doing direct marketing; N= 108,595 companies (n=913)


Cross-media CampaignsMost frequent media combinations

31

BE- Addressed direct mail is used in 20% of cross-media campaigns - The most frequent cross-media combination is print + Internet site (9%)

9%7% 7% 6% 6%

4% 4% 4% 3% 3%

Internet site +Print

Addresseddirect mail +

print

Addresseddirect mail +internet site

Internet site +e‐mail

Addresseddirect mail + e‐

mail

Print + TV TV + Radio Print + E‐mail Print +Unaddresseddoordrops

Internetbanner

advertising + Inserts in

newspapers +Outdoor


Topics

Conclusions






Key Findings Direct Marketing Belgium

The media landscape is increasingly fragmented across online and offline media

Direct Marketing had in 2007 a market share of 39% of total advertising expenditure ; in trade & service sectors , direct marketing represents 46%

Cost structures are very different from one direct marketing tool to another : in e-marketing , internal costs are relatively higher than the ones in direct mail

Cross-media campaigns are used by 21% of the companies . In 1 out of 5 cross-media campaign , direct mail is used .

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The media landscape is increasingly fragmented across online and offline media

Direct Marketing had in 2007 a market share of 39% of total advertising expenditure ; in trade & service sectors , direct marketing represents 46%

Cost structures are very different from one direct marketing tool to another : in e-marketing , internal costs are relatively higher than the ones in direct mail

Cross-media campaigns are only used by 21% of the companies . 71% of those campaigns use only 2 media . In 1 out of 5 cross-media campaigns , direct mail is used .

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Key Findings – Direct Marketing Belgium

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Key Findings – Addressed Direct MailBelgium

Accounts for 12 % of total media investments and 31% of direct marketing expenditure

Is relatively more important in trade and financial services sectors

31% of companies use Direct Mail

Direct Mail is perceived as a specially effective media for customer retention and generating short-term sales . It is also highly effective for improving brand image and delivering detailed product information .

Direct Mail is appreciated for its creative possibilities , its measurableand proven ROI

Heavy Direct Mail users are mainly concerned with campaign evaluation whereas medium users are focussing on correct addresmanagement and creation .

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Unaddressed direct maill accounts for nearly 6 % of all media investments and for 15% of Direct Marketing investments

17% of companies ( mainly BtoC) are using unaddressed mail

Main advantages are its capability of generating short term salesand acquiring new customers

Key Findings – Unaddressed Direct MailBelgium

Ipc Survey Belgium 2009

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Transcript of Ipc Survey Belgium 2009