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Media Intelligence : 2009 - 2010
direct marketing INTEREST SURGES IN DIRECT CONTACT The old axiom that when there’s a downturn Direct Marketing fl ourishes is proving to be true in the current economic climate. This can be attributed to its accountability and refi ned forms of Direct Marketing such as email and mobile messaging which are experiencing a surge in popularity. Emphasis now on retention rather than acquisition Nick Mercer MD, MercerBell response, telemarketing. I would suggest in Australia it is probably about the same – 50% of expenditure would be on direct marketing. The biggest users are in the fi nancial services, followed by charities. What is brand response? Like any business, we are trying to differentiate ourselves and so we have taken a stance that we call “Brand Response” which we coined and also trademarked. The simple concept is, if you think back to the old days, there was a notion that brand advertising was on one side, and then below the line on the other side, and generally that is how clients split their budgets up. What we are saying is that with brand response, direct marketing communications can do both things – it can help build your brand, and it can help you get a response that will not only contribute to the brand experience, but get out and connect and result with a customer action It’s almost like a double whammy. Say you have a store loyalty card. A simple letter that comes in the post to tell you that as a valued customer, you can have 25% off this weekend – that is a brand experience. That letter has given you a good feeling about the brand, but it also prompts you to do something – to go to the store and spend money. Who is using direct marketing? Most companies. If you look at the US, according to their Direct Marketing Association, it suggest that direct marketing will account for 53% of ad expenditure in 2009. Bear in mind that includes direct mail, direct 65 MEDIA Trends + Strategy p64-65_directMark.indd 64 p64-65_directMark.indd 64 3/7/09 12:09:21 PM 3/7/09 12:09:21 PM A lot of people think of DM as a piece of paper that ends up in the recycling. How are you working to change perceptions both with clients and consumers? Nobody likes waste. The fi rst point to make is that there are still some marketers out there who are mass mailing everyone, and thinking about it as a numbers game. You are always going to get those who spoil the party, but most smart marketers understand that you have to improve your targeting – you have to make sure you only go to people who have requested it, or people you think are likely to want the information. We are seeing campaigns getting smaller, more niche, and more personal. The key is to make sure companies are targeting and being more relevant to the people they should be talking to and we are seeing a lot more tools now that are helping people select different segments. How does DM integrate with other marketing channels? It’s one of those trends that these days, most campaigns are integrated. From a DM perspective, if you are running a campaign in conjunction with a print ad, or a television ad you will see an incremental response rate. Typically, marketers will try and coincide their campaigns, but it doesn’t always have to be integrated. A lot of the mail that is crosssell, doesn’t necessarily have an above-theline component. However if you are doing an acquisition campaign where you are looking to get new customers, it’s likely that it will consist of print, TV, fl yers, direct mail, radio as well as mix of unpersonalised letterbox fl iers. A mechanisms to try and fi nd new customers. What kind of impact are you seeing with the economic downturn? We are seeing a lot of pressure on marketers. They are going to be driven by their management to be more accountable, more robust, more vigorous and they will want to see measurement and evaluation. That means we are going to see more of them shift into direct marketing – direct and digital. We are anticipating a greater emphasis on retention rather than acquisition, and we are already witnessing that in the credit card market. We are also going to see a greater use of analytics – more clients will be seeking more customer analytics to help inform them about their retention. We will also see, as part of trying to reduce wastage, they will focus on improving their targeting, and I believe we will see more digital printing to improve personalisation. If you use data planners – you can improve your data, you then can increase the personalisation of individual pieces and that will give you an increased response rate. What sort of innovations will we see in the DM space over the next 6-12 months? At MercerBell we are hiring data planners and will be providing that resource to our clients. We are going to be doing more data driven work. I believe we will see a lift in much more clever, more strategic and more targeted marketing activities online. Search is going through the roof and we are going to see search used as a greater driver for acquisition.
MT Resource 2010