Classic DM Definitions

Transcription

1 WHAT IS DM?

2 Classic DM Definitions David Ogilvy There is a yawning chasm between you generalists and we directs. Our clients don t give a damn whether we win awards at Cannes. They pay us to sell their products. Your favourite music is the applause of your fellow art directors. Our favourite music is the ring of the cash register. Drayton Bird Any advertising activity which creates and exploits a direct relationship between you and your prospect or customer as an individual Donal Rogan (Author Marketing, An Introduction for Irish Students. ) Direct marketing is one to one marketing communication; interacting with carefully selected customers, generally with an expectation to make a direct response.

3 But not all one to one communications are DM... Often companies will have transactional one to one communications such as bills and statements which are not DM. Direct Marketing communications will: Be designed to elicit a response. Carry a strong call to action. Usually include an offer Generally surprise the recipient. Not be a legal or regulatory requirement to send. However transactional communications can be used to carry DM messages very effectively 76% of Irish consumers read bill inserts.

4 Another Definition of DM... Seth Godin: Anyone with a website is a direct marketer

5 Direct Mail In a world where Direct 1960s -?

6 Or simply refusing to die? In 2010 more spend moved from above to below the line with 83% of marketers saying that Direct Mail is important in meeting their objectives. And 31% intend to increase their Direct Mail spend in the next 12 months.

7 Why? Because mail can do things other media can t. Talk to me about things that matter to me and talk to you about things that matter to you, all within the same campaign. Be guaranteed to get into the hands of your target audience. Engage all 5 senses: send me something I can smell, hear, see, taste, touch. Mark personal moments in your consumers lives birthdays, anniversaries etc not those that apply to all of us.

8 Letterbox vs. Inbox Only 27% of Irish consumers consider advertising relevant : 73% find addressed DM relevant. One reason for the irrelevance of is because they receive so much: on average they receive 4 advertising s a day. By contrast on average Irish consumers receive: 4 items of addressed B2C mail a week 1 item of addressed promotional mail a week 3 items of unaddressed a week 56% of people prefer to receive promotional information from companies by mail. Only 9% like to receive promotional information in s Direct Mail Consumer : Amárach July 2009 Ipsos MRBI Household Diaries wave Consumer Tracker-MilwardbrownLansdowne 2010 anpost.ie/mailmedia

9 Addressed Direct Mail is under-utilised in Ireland Quantities of Addressed DM received by country per week USA UK Germany Ireland IPC 2009 Direct Mail & anpost.ie/mailmedia Quadrangle, UK, 2007

10 Trust Almost twice as many Irish consumers trust addressed DM as compared to 50% of Irish year olds trust DM, only 35% trust adverts and 26% for online adverts 41% of Irish year olds are encouraged to buy with DM, that s twice as many as for and almost twice as many as for Online advertising. Direct Mail Consumer Amárach July 2009 Ipsos MRBI Household Diaries Wave anpost.ie/mailmedia

11 DM & OTHER MEDIA

12 Advertising drives a horse to water... 62% of Digital Campaigns see an increase in ROI when combined with Direct Mail. Marketing Week 2009

13 Barack Obama Yes, he did spend $14 million on online campaign tools including social networking, text & . But he also spent $22 million on direct mail, much of which was to build and engage this community in the first place. Source 5: OpenSecrets.org, Responsible Politics

14 The key to successful campaign integration is to understand the role and strengths of each media and the context in which it will be consumed.

15 DM can be used effectively at each stage.

16 Direct Mail is more effective at getting people to I am more likely to buy/use a product that has been advertised to me via DM Online Mobile 44% 26% 18% 17% Consumer Tracker-MilwardbrownLansdowne 2010 Direct Mail & anpost.ie/mailmedia Quadrangle, UK, 2007

17 Practicalities of Campaign Integration Managing multiple agencies Assign a lead agency and brief other agencies on the core creative idea. Core brief can be adapted to use for each media. Play to the core strength of each agency rather than a one size fits all approach. Set targets for each element of the campaign and ensure you can measure these. Campaign management meetings with representatives from all agencies. Circulation of creative work is a great way of cross pollinating ideas. Weekly update reports from all agencies can be shared. Brand management Brand guidelines should be adapted for all media what works for advertising may not work for DM or digital. Integration does not mean identical creative executions but that the core idea is adapted for each media. Brand experience is defined by media but central idea and identity remain the same.

18 Let s take a look at three brands who effectively integrated Direct Mail into their campaigns to drive action...

19 Nissan put their customers in the driving seat. The Challenge Sales of new cars down 22% in Australia in Drive sales of new Z range (40 years old) with a young early adopter market. Research showed consumers were avoiding test drives to avoid temptation. The Thinking Engage this audience in a way that will give them a feel for driving the Nissan 370Z. Create an experience that s the next best thing to a test drive. Use emotional and rational trigger points to tempt them into purchase. The Target Group Young early adopters. Mix of prospects and previous Nissan purchasers.

20 Best seat in the house with SKY

21 Best seat in the house with SKY Nissan put their customers in the driving seat. The Mailing Prospective customers were sent a dummy wheel for the 370 Z. Used augmented reality technology, so when used in front a webcam recreated the feeling for driving the car see everything in detail, turn lights on and off. 370 reasons to be a Z. The Result 7,497 visits to the website. Average of 4 mins 35 seconds on the site. Double the enquiries targeted. Order rate of 29 cars per week.

22 Persil remind Mums that Dirt is good The Challenge Persil wanted to connect with their customer base to bring the Dirt is good message from their above the line campaign alive. But like many FMCG brands they didn t have a direct relationship with customers. The Thinking By creating a Direct Mail piece built around insight into the target group they would provide something useful, relevant and valuable. Once they had established that they understood customers they would incentivise them to register details to avail of more benefits like this. The Target Group Parents with children specifically Mums. Targeted through cold list rental from UK list brokers. Also handed out packs at other events such as screening of children s movies. Combined total: 500,000

23 Best seat in the house with SKY

24 Best seat in the house with SKY Persil remind Mums that Dirt is good The Mailing Scrapbook was mailed out just before the start of the school holidays. Core message around every child s right to unstructured play. Pages were blank but contained suggestions of how to each day play, explore, create, imagine, experiment - all linked back to Persil s core message. Call to action for Mums and kids to go online and take this a step further by availing also of online scrapbook with additional features photo upload, drawing, sharing with friends. Accessing the online scrapbook required customer registration. The Result 26,053 customer registered details for online scrapbook (over 5%). Qualitative tracking demonstrated higher brand engagement and recognition levels among the mailed segment who also scored highest on clarity and understanding of message.

25 Bord Gais Energy: The Big Switch The Challenge Reposition Bord Gais from purely a gas provider to a safe and credible energy partner. Acquire 250,000 electricity customers over a 4 year period. To become a significant long term player in the electricity market. The Thinking There were four steps to acquiring new customers: educate, reassure, make offer, enable. Every part of the communications mix had to work hard to bring this to life. Above the line communications stimulated conversation and drove awareness and interest. Below the line communications conveyed more detail, gave reassurance and answered questions. The Target Group Existing gas customers were targeted through billing insert communications a channel that Bord Gais had found effective in the past.

26 Best seat in the house with SKY

27 Best seat in the house with SKY Bord Gais Energy: The Big Switch The Mailing Like all BTL comms the bill insert used the creative assets and personality from above the line to connect with customers and to reinforce the message. Strong focus on savings a minimum of 12% (research had shown that 10-14% was the key level to cut through inertia and prompt switching) Message emphasised ease of switching with FAQ section to allay any consumer fears. The Result 4 year target was exceeded within first 10 months of the campaign 300,000 customers acquired. Through measuring take up across segments the bill inserts were proven to be a very effective tool in driving uplift with existing base. Irish roll out acknowledged as being the most successful case study in any energy deregulated market.

28 DM and Other Media Dos and Don ts Do Think about your central idea and how each media can bring it to life. Define the core role of each media Put trackable measures in place for each element of the campaign. Ensure you have consistency of message across your campaign. Don t Be afraid to use more than one agency. Develop completely separate briefs for each, one central brief is key to consistency. Simply replicate an above the line execution for DM or Digital think about how can each media can take it one step further.

29 Integration