Notes
Outline
“Emerging technology, direct response marketing and the advent of direct branding™”
About Johnson Direct
Full-service direct response agency
National client base
Grainger, Humana, BCBSIL, BCBSWI,, Microsoft, Allstate, GE Financial, Pitney-Bowes, WPS, Omaha Steaks, and more
Times are indeed changing!
Billboard has a top 20 cell phone ring chart!
#1 – “My Boo” – Usher and Alicia Keys
Let’s discuss…
Marketing today
How things have changed
Advertising, direct marketing and branding
The future of marketing
How to improve your direct marketing, right now!
Marketing Definition (old)
“Marketing is the process of planning and executing conception, pricing, promotion and distribution of goods, ideas and services to create exchanges that satisfy individual and organizational goals."
AMA
New Definition
"Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders."
AMA
Direct Branding™
“The convergence of image based advertising strategies and tactics with those of direct marketing, utilizing both traditional and emerging media to capture market share and sales simultaneously.”
Grant Johnson, Johnson Direct
Recent major purchase?
What was your purchasing process?
A Quote:
“We believe the world is moving from mass media to my media.”
-- Daniel L. Rosensweig, COO, Yahoo, Inc
Marketing Shift
Then
Campaigns
Lists
Broadcast Monologue
Groups & Segments
Intermittent Contact
Promotional
Involuntary (opt-out)
Marketer driven
Now
Programs/Relationships
Integrated Customer Databases
Interactive Dialogue
Individuals
Sustained Contact
Informational, educational,
Entertaining & promotional
Voluntary (opt-in)
Customer/Prospect driven
Media Options
Then
Print
PR
Broadcast
Telephone
Mail
Face-to-face
Now
Print
PR
Broadcast
Telephone/Cell phones
Mail
Face-to-face
Internet, Intranet, extranet
E-mail
Websites/Microsites
SEO
Blogs
E-newsletters
Product placements
Statistic
Although the Internet still takes in only 4.3% of U.S. advertising revenue, surveys indicate that it accounts for 14% of America's media time.
Business Week
Growth
Q3 2004 Interactive Advertising Revenues Total over $2.4 Billion Fourth Record-Setting Quarter


Business Week, 11/15/04
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WOW
Internet has edged out TV as the medium of choice for 18 to 54-year-olds
18 to 24-year-olds — cite the Internet as their top choice if they had to choose only two media for the rest of the lives
ClickZ
Direct Branding includes
Traditional media
Emerging media/SEO (key word marketing)
Testing, measurement/analysis and more testing, measurement/analysis
Today, 11/18/04
Increased demands for marketing measurability
Must generate demand/leads
BtoB Magazine
Marketing must include sales
Accountability
“Now that advertisers have their hands on a tool that measures an ad’s effectiveness, they’re starting to press other media for accountability”
Business Week, 11/15/04
Current Consumer Trends
3,000 media impressions daily*
Media fragmentation
Consumer fragmentation, too
    (Coke 33-20; Pepsi 23-13)^
More research and consultation done today
Growing consumer (prospect) power
 * The Economist
^ “There’s No Business That’s Not Show Business” Page xvi
Increased # of Impressions
6 to 7 meaningful impressions today before you are on a prospects radar screen!
Thus, Direct Branding
Best bet…
Let them “find” you!
Know “natural” SEO  and paid listing ROI
You know, you know…
46% OF b2b marketers do not optimize their sites at all or do so only nominally.
B to B Magazine
Online Search
Integration is needed
Offline and online must work together
Proof…
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The Model
Don’t believe me
April 23rd
“Consumer is boss day”
P&G, Advertising Age, 11/15/04
Another Quote
“We need a new a new model. It does not exist. No one has one yet. But we need to get going now.”
A.G. Lafley, P&G Chairman/CEO, Ad Age, 11/15/04
Traditional Direct Mail’s Role
Front end
More back end
The largest Mass Marketer
“My request – indeed, my expectation – is for all P&G businesses to begin testing alternatives now.”
$5.5 Billion global advertising spend
A.G. Lafley, P&G Chairman/CEO, Ad Age, 11/15/04
Direct Mail Spending
Direct Mail Growth
Slide 35
Despite this…
Direct mail readership is increasing, 73% to 76%
Direct Magazine, 11/8/04
Recent Study…
60% have negative opinion of marketing
61% feel amount is out of control
65% feel constantly bombarded
59% feel marketing has very little relevance
Direct Newsline, 4/15/04 and Yankelovich Partners
Make mail work harder
Different types of tests
Different media integration tests
More back end & trigger based
More tied-in to data
Use technology wisely
Market relevancy – timing, offers etc…
Test, analyze, test analyze…
One-to-one direct mail
Tie data into relevant messaging (don’t simply insert my name) and pertinent offers
Use online data offline, especially transaction data
Trigger campaigns based on collected data
How?
Does a marketer determine relevancy today?
Prospect/Customer defines relevancy
Search Engine words/phrases
Site visits
Click throughs
Opt-ins
Surveys
Response rates
Direct Branding adds
Relevancy
Credibility
More sales
Internet = Direct Marketing
Supporting Statistics
Specialized content sites (targeted) = more likely to have ad viewed by correct prospect (didn’t buy, mail them?)
Audience pattern data
Measurable, trackable, testable
So who’s doing it?
Amazon
Victoria Secret
Morgan-Stanley
Automobile manufacturers
Dell
Google
E-bay
Yahoo
MSN
Consumer products
“Brands such as Kimberly-Clark Corp’s Huggies, have shifted 50% of their marketing budgets to relationship programs, much of that online”
--Grad Conn, Grey Global Group
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Marketing is changing
80% of Chrysler’s prospects are coming from online inquiries.
“800 numbers are just falling off a cliff”
- Bonita Stewart
  Director of Interactive Communication   Chrysler
  2/11/04 AdAge.com
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A Tale of Two…
Dell and Gateway
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Link Advertising
Dell from Yahoo Site
Urgency
Dell from MSN
More MSN from Dell…
Dell from USAToday.com
Dell Banner Ad
The Offer
Below the fold
Another Quote…
“Direct marketing has worked for us and continues to work for us.”
-- Mark Thompson
VP-Marketing, Small & Medium Business unit
Dell Computer Corp.
Pop-Ups
Banner Ads
Real Life Feedback
By Example…
A recent campaign
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Prospect in control!
Behavioral Marketing
Ads based on web surfing activity, rather than purely by the content of the pages they visit.
Higher click-through and conversion
More one-to-one based
Long-term verdict still out
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A “swinging” story…
Complex sometimes make things complicated!
Keep it simple first
What about e-mail?
Great customer contact tool
Good retention/activation tool
Marginal (at best) prospecting tool
Allow proactive marketing, not just reactive
Grow your own list for best success
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SeeWhatHappens.com
Microsite for new Mitsubishi Galant
Customers driven to Microsite by URL in TV commercial during the Super Bowl
The Microsite received more than 11 million hits in the first six hours after the spot ran
SeeWhatHappens.com
“The ad boosted visitors to Mitsubishi's brand Web site by 200% above previous averages the day after the game and drew 170,000 visitors to the site for the finale, according to ComScore Media Metrix.”
Direct Response Opportunity
Less than 10% of Microsites* are tested or measured
Recent Survey: less than 25% of marketing professionals test campaigns before roll-out.^
*According to Seth Godin
^ Sales Lead Newsletter and Chief Marketer (Primedia)
Direct Response Opportunity
27% test “occasionally”
34% “seldom”
15% “never”
8% “don’t need to test”
Why??? People cited Lack of time & budget
 *According to Seth Godin
^ Sales Lead Newsletter and Chief Marketer (Primedia)
Key Take Away
Always TEST
Points to Remember
Design for Search Engine Optimization
Up to 85% find new sites, new sources for products and services
Understand Meta Tags and use them
Facts
“IBM reported that it has achieved click-through rates as high as 42.5% with e-mail campaigns for its Microsites. The company also drives traffic through banner ads, direct mail, print and TV ads. But the most successful driver of all for IBM Microsites is its own Web site, www.ibm.com, which gets 4 million to 5 million site visits per week.”
Microsite Rewards Anything But Small  -- Mitch Wagner
Return on Investment (ROI) Results:
Direct sales 32%
Networking/referrals 21%
Homepage/online outreach 15%
Source: Thomas Register, August 2002
042884 ©2002 eMarketer, Inc. www.eMarketer.com
Facts
    Advertising Media Type that Has Most Influenced US “Business Decion Makers” to Make a Purchase or Obtain Services for Their Business, 2002 (as a % of respondents)
Internet 47% Television 20%
Magazines 35% Radio 10%
Newspapers 24% None of these 28%
Source: Nielsen//NetRatings @Plan, MORI Research and washingtonpost.com , September 2002 043445 ©2002 eMarketer, Inc. www.eMarketer.com
Microsoft
Case Study
Microsoft
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Metrix/Questra
New software solution
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Direct Branding Goal
Persuade visitors/prospects to complete a transaction while enhancing the brand
Basics STILL Matter
The list you use
The offer you make
The testing you do
The messaging
The creative
The timing
For ALL media used
Action Items
Build your brand while simultaneously selling your product/service (a MUST today)
Test, test, test some more
Analyze, learn, move forward…
Test in all media, including SEO
Direct mail both front end and back
Acknowledge the prospect is in control, not you
Begin to practice individual marketing
Slide 116
Questions?
Grant Johnson
Johnson Direct
1-800-710-2750
www.johnsondirect.com