Belgian webshop case 2012
1Source : 2012 BtC webshop! 50.000 contacts for each medium
Each
invested euro,
returns into..?
Webshop case background
• Sector: Food brand webshop active in Belgium
• Campaign objectives: Increase online sales on prospects with interest for the specific offered product ranges
• Campaign setting:
2
Bannering: 4 weeks
Direct Mail (50k contacts)
Email (50k contacts)
Google Adwords: 4 weeks
Measure
Comparing the approaches
3
Email Bannering Direct Mail
Comparison of the approaches is based on • metrics provided by the brand• the results for a comparable reach of 50.000 contacts
in each medium
Standard metrics, used for the 4 channels
• Average ticket value by purchase: 12€• Purchase frequency / year: 12
• DM cost, production included: 32.5Keur
• DM response rate: 3,5%
• Campaign cost: 3,4K eur
• CTR/impressions: 0,65%
• Conversion / CTR:2,2%
• Campaign cost: 6K eur
• Unique open rate:30%
• CTR/openrate: 15%
• Conversion/CTR: 2,2%
Adwords
• Campaign cost: 5K eur
• CTR/impressions: 7,94%
• Conversion / CTR:2,2%
4
Share of total salesfor 50.000 contacts for each medium
Wrong ! Online business
= only online media
SMART!Combination on & offline!
Source : 2012 BtC - 50.000 contacts for each medium
The results: DM is the biggest turnover generator
5%
0%
3%
92%
Total yearly turnover (K€)50.000 contacts for each medium
Wrong ! Online business
= only online media
SMART!Combination on & offline!
13
1
7
252
adwords
Banneri
ng (CPM)
DM
5
The results: DM is the biggest turnover generator
(X 1.000€)
Wrong ! Online business
= only online media
SMART!Combination on & offline!
13
1
7
252
5
3,4
6
32,5
adwords
Bannering
(CPM)
DM
Campaign cost Total Yearly Turnover
675%
18%
-71%
125%
Campaign ROI
Each invested euro returns into50.000 contacts for each medium
6
“Each invested
euro
returns into”
2,4 €
0,3 €
1,2 €
7,7 €
adwords
Bannering
(CPM)
DM
Source : 2012 BtC - 50.000 contacts for each medium
The results: DM ROI is higher than other channels
x 7
x 25
x 3
Cost per acquisition50.000 contacts for each medium
7
61 €
473 €
121 €
19 €
adwords
Bannering
(CPM)
DM
Source : 2012 BtC - 50.000 contacts for each medium
x 6
x 25
x 3
The results: Cost / acquisition is lower with DM
Contacts needed to acquire 1 customer
8
572
6.993
1.010
29
adwords
Bannering
(CPM)
DM
Source : 2012 BtC - 50.000 contacts for each medium
The results: budget to acquire 1 new
customer is lower with DM
x 35
x 245
x 20
Budget needed to acquire 1.000 customers
9
60.990 €
472.531 €
121.212 €
18.600 €
Adwords
Bannering
(CPM)
DM
Source : 2012 BtC - 50.000 contacts for each medium
x 7
x 25
x 3
The results: budget to acquire 1 new
customer is lower with DM
Key conclusion
• Don’ t look only at the cost / contact, considerthe full campaign sales ROI
• DM is proven to activate consumers on a more efficient way: better campaign ROI, response rate
• Combine online & offline approach to reinforcetheir mutual impact. A bannering campaignsupported by a DM action will generate betterresults
10
Direct Mail – 50.000 contacten E-mail – 50.000 contacten
11
Costs Costs
Cost per rented adress - € Cost per rented email-address - €
Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 €
Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 €
LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 €
Fulfilment cost per order - € Fulfilment cost per order - €
Total campaigncost 32.550 € Total campaigncost 6.000 €
x 5,4
Revenues Revenues
Adresses 50.000 Adresses 50.000Response rate
Average: Response DM on external data is: 5,78%) 3,50%Unique openrate (IAB-benchmark: 20,58%)
30,00%
ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00%
Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Campaign result: total orders Campaign result: total orders
Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50
Average Ticketvalue 12 € Average Ticketvalue 12 €
Frequency per year 12 Frequency per year 12
Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1
Revenu 252.000 € Yearly Revenu 7.128 €
Campaigncost 32.550 € Campaigncost 6.000 €
Brut ROI 219.450 € Brut ROI 1.128 €
Source : 2012 BtC - 50.000 contacts for each medium
Belgian BtC case!Direct Mail versus E-mail
Costs Costs Costs Costs
Cost per rented adress - € Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 € Cost Per Click (on average 0,75€) 0,75 €
Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 € 0,027
Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 €
LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 € Banners (creation) 1.000,00 €
Fulfilment cost per order - € Fulfilment cost per order - € Fulfilment cost per order 4,00 € Fulfilment cost per order 4,00 €
Total campaigncost 32.550 € Total campaigncost 6.000 € Total campaigncost 3.379 € Total campaigncost 5.327 €
x 9,6
Revenues Revenues Revenues Revenues
Adresses 50.000 Adresses 50.000 Impressies 50.000 Impressies 50.000Response rate
Average: Response DM on external data is: 5,78%) 3,50%Unique openrate (IAB-benchmark: 20,58%)
30,00%ClickTroughRate / impressions
(IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%)
0,65% ClickTroughRate / impressions
Google Says Average AdWords CTR at 2%
7,94%
ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Conversion /ClickTrough (IAB-benchmark) 2,2%
Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Campaign result: total orders Campaign result: total orders Campaign result: total orders Campaign result: total orders
Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,15 (Impressions x ClickTroughRate) x OrderRate 87,34
Average Ticketvalue 12 € Average Ticketvalue 12 € Average Ticketvalue 12 € Average Ticketvalue 12 €
Frequency per year 12 Frequency per year 12 Frequency per year 12 Frequency per year 12
Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1
Revenu 252.000 € Yearly Revenu 7.128 € Yearly Revenu 1.030 € Yearly Revenu 12.577 €
Campaigncost 32.550 € Campaigncost 6.000 € Campaigncost 3.379 € Campaigncost 5.327 €
Brut ROI 219.450 € Brut ROI 1.128 € Brut ROI -2.349 € Brut ROI 7.250 €
Costs Costs Costs Costs
Cost per rented adress - € Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 € Cost Per Click (on average 0,75€) 0,75 €
Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 € 0,027
Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 €
LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 € Banners (creation) 1.000,00 €
Fulfilment cost per order - € Fulfilment cost per order - € Fulfilment cost per order 4,00 € Fulfilment cost per order 4,00 €
Total campaigncost 32.550 € Total campaigncost 6.000 € Total campaigncost 3.379 € Total campaigncost 5.327 €
x 9,6
Revenues Revenues Revenues Revenues
Adresses 50.000 Adresses 50.000 Impressies 50.000 Impressies 50.000Response rate
Average: Response DM on external data is: 5,78%) 3,50%Unique openrate (IAB-benchmark: 20,58%)
30,00%ClickTroughRate / impressions
(IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%)
0,65% ClickTroughRate / impressions
Google Says Average AdWords CTR at 2%
7,94%
ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Conversion /ClickTrough (IAB-benchmark) 2,2%
Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Campaign result: total orders Campaign result: total orders Campaign result: total orders Campaign result: total orders
Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,15 (Impressions x ClickTroughRate) x OrderRate 87,34
Average Ticketvalue 12 € Average Ticketvalue 12 € Average Ticketvalue 12 € Average Ticketvalue 12 €
Frequency per year 12 Frequency per year 12 Frequency per year 12 Frequency per year 12
Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1
Revenu 252.000 € Yearly Revenu 7.128 € Yearly Revenu 1.030 € Yearly Revenu 12.577 €
Campaigncost 32.550 € Campaigncost 6.000 € Campaigncost 3.379 € Campaigncost 5.327 €
Brut ROI 219.450 € Brut ROI 1.128 € Brut ROI -2.349 € Brut ROI 7.250 €
Direct Mail – 50.000 contacts Bannering – 50.000 contacts
Source : 2012 BtC - 50.000 contacts for each medium12
Belgian BtC case!Direct Mail versus Bannering
Costs Costs Costs Costs
Cost per rented adress - € Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 € Cost Per Click (on average 0,75€) 0,75 €
Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 € 0,027
Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 €
LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 € Banners (creation) 1.000,00 €
Fulfilment cost per order - € Fulfilment cost per order - € Fulfilment cost per order 4,00 € Fulfilment cost per order 4,00 €
Total campaigncost 32.550 € Total campaigncost 6.000 € Total campaigncost 3.379 € Total campaigncost 5.327 €
x 9,6
Revenues Revenues Revenues Revenues
Adresses 50.000 Adresses 50.000 Impressies 50.000 Impressies 50.000Response rate
Average: Response DM on external data is: 5,78%) 3,50%Unique openrate (IAB-benchmark: 20,58%)
30,00%ClickTroughRate / impressions
(IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%)
0,65% ClickTroughRate / impressions
Google Says Average AdWords CTR at 2%
7,94%
ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Conversion /ClickTrough (IAB-benchmark) 2,2%
Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Campaign result: total orders Campaign result: total orders Campaign result: total orders Campaign result: total orders
Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,15 (Impressions x ClickTroughRate) x OrderRate 87,34
Average Ticketvalue 12 € Average Ticketvalue 12 € Average Ticketvalue 12 € Average Ticketvalue 12 €
Frequency per year 12 Frequency per year 12 Frequency per year 12 Frequency per year 12
Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1
Revenu 252.000 € Yearly Revenu 7.128 € Yearly Revenu 1.030 € Yearly Revenu 12.577 €
Campaigncost 32.550 € Campaigncost 6.000 € Campaigncost 3.379 € Campaigncost 5.327 €
Brut ROI 219.450 € Brut ROI 1.128 € Brut ROI -2.349 € Brut ROI 7.250 €
Costs Costs Costs Costs
Cost per rented adress - € Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 € Cost Per Click (on average 0,75€) 0,75 €
Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 € 0,027
Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 €
LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 € Banners (creation) 1.000,00 €
Fulfilment cost per order - € Fulfilment cost per order - € Fulfilment cost per order 4,00 € Fulfilment cost per order 4,00 €
Total campaigncost 32.550 € Total campaigncost 6.000 € Total campaigncost 3.379 € Total campaigncost 5.327 €
x 9,6
Revenues Revenues Revenues Revenues
Adresses 50.000 Adresses 50.000 Impressies 50.000 Impressies 50.000Response rate
Average: Response DM on external data is: 5,78%) 3,50%Unique openrate (IAB-benchmark: 20,58%)
30,00%ClickTroughRate / impressions
(IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%)
0,65% ClickTroughRate / impressions
Google Says Average AdWords CTR at 2%
7,94%
ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Conversion /ClickTrough (IAB-benchmark) 2,2%
Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Campaign result: total orders Campaign result: total orders Campaign result: total orders Campaign result: total orders
Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,15 (Impressions x ClickTroughRate) x OrderRate 87,34
Average Ticketvalue 12 € Average Ticketvalue 12 € Average Ticketvalue 12 € Average Ticketvalue 12 €
Frequency per year 12 Frequency per year 12 Frequency per year 12 Frequency per year 12
Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1
Revenu 252.000 € Yearly Revenu 7.128 € Yearly Revenu 1.030 € Yearly Revenu 12.577 €
Campaigncost 32.550 € Campaigncost 6.000 € Campaigncost 3.379 € Campaigncost 5.327 €
Brut ROI 219.450 € Brut ROI 1.128 € Brut ROI -2.349 € Brut ROI 7.250 €
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