VAD & UBI France - October `09

1

VAD 2009

2

Neil O’Keefe– V.P. Multichannel

Segments– Formerly

• Spiegel Brands• Regal Greetings & Gifts• Hanover Direct

3

Introduction to the DMA

• Global trade association• Founded in 1917• Represents more than

3,400 companies using and supporting multichannel direct marketing

4

Global Reach

• DMA has established partnerships & affiliates which provide a gateway to international markets.

• As this network continues to grow members benefit from global market knowledge, best practices and skill development via access to other members and associations across 42 countries and counting.

5

DMA Centers of Excellence

DMA’s Centers of Excellence Provide a Major Source of Value to Members

Advocacy Reputation

Education Research

Networking

6

Education / Competitive Advantage

DMA Global Education Program– The first global direct

marketing education program providing a globally recognized level of direct marketing education

– By 2010 this course will be available in Arabic, Japanese, Spanish and Chinese and will be distributed globally

7

Market Making / Networking

• Learn from the Best in the World• Annual Conference For Catalog and Multichannel Merchants

(ACCM)• DM Days New York Conference & Expo• Email Evolution Conference (EEC) – US and Europe• National Center for Database Marketing Conference &

Exhibition (NCDM)• National Conference on Operations & Fulfillment (NCOF)• Nonprofit Conference

• DMA Annual Conference– The world’s largest marketing exhibition hall– 12,000 attendees. 60% of whom are Director level

or higher, representing decision makers from Fortune 500 companies

– Market making opportunities allow your company to stay connected to customers and suppliers

– 130 educational sessions led by 350+ experts– Educational tracks help you chart your course of

study– Sessions organized by level ensures education

relevant to you

8

Echo Awards

• Founded in 1928 The DMA International ECHO Awards Competition honors the world's best direct marketing campaigns– Outstanding creative– Superb marketing strategy– Excellent results.

• Today ECHO welcomes all types of media and judges over 1,000 marketers and agencies across the entire direct marketing spectrum

9

Key Issues Include:– Anti-Spam– Do-Not-Mail– Data Security– Internet Taxation– On-Line Behavioral

Advertising– Privacy– Postal– Telemarketing

Advocacy/Public Policy

10

Reputation / Self Regulation

• A DMA logo associated with your company’s brand conveys compliance and integrity to consumers

• DMA’s Self Regulatory Initiatives Include:– Guidelines for Ethical Business Practice– DMAchoice.org– Commitment to Consumer Choice (CCC)– Environmentally Responsible Marketer

11

Market Intelligence / Research

• Benchmark your Business with DMA Market Intelligence– From DMA proprietary

research to carefully selected partner publications your company will gain a competitive advantage by benchmarking your results against global competition.

• The Power of Direct

• Statistical Fact Book

• Quarterly Business Review

12

Global Direct Marketing - 2009

Global DM Advertising spend exceeds $400 billion

Video, $1.6

Telephone, $64.0Direct Mail, $174.7

Internet, $50.0

Mobile, $4.5

TV, $44.7

Radio, $7.1

Magazines, $23.0

Out-of-Home, $5.4

Newspapers, $27.8

13

The POWER of Direct Marketing

14

The POWER of Direct Marketing - 2010

Direct Advertising drives over $1.7 Trillion in U.S. Sales!

OTHER, $26.2

RADIO-DR, $27.7MAGAZINE-DR

TELEVISION-DR

NEWSPAPER-DR

MOBILE, $2.1

COMMERCIAL EMAIL, $26.0

DIRECT MAIL(CATALOG)

DIRECT MAIL(NON-CATALOG)

TELEPHONE MARKETING

INTERNET MARKETING (NON-

EMAIL)

$334.3

$110.5

$445.8

$458.2

$110.4

$128.7

$68.4

15

$1,709

$1,952$1,738 $1,798

$2,233$11.20

$11.60 $11.60$11.70

$12.00

$0

$500

$1,000

$1,500

$2,000

$2,500

`04 `08 `09 `10 `14

$10.00

$10.50

$11.00

$11.50

$12.00

$12.50

US DM Sales US DM ROMI

Overall DM Sales and ROMI - 2010

16

2010Expenditure

s

2010ROMI

Direct Marketing (DM) $153.3 $11.73

Non-DM $116.7 $5.23

Total Advertising $270.0 $8.75

DM Expenditures and ROMI

ROMI = Return on Marketing Investment

DM Advertising ROMI is 2x Non-DM!

17

2010Expenditure

s

2010ROMI

Catalog $15.6 $7.3

Direct Mail (non-catalog) $29.9 $15.3

Internet $25.4 $19.9

Telephone $39.5 $8.4

Email $0.7 $40.1

DM Expenditures and ROMI by Medium

ROMI = Return on Marketing Investment

18

Top 5 Growth Areas – Expenditures 2010

45.6%

15.2%11.2% 10.4%

8.9%

MOBILE INTERNETOTHER

COMMERCIALEMAIL

SOCIALNETWORKING

INTERNETSEARCH

19

Internet Expenditure Growth – Percent of Direct

6.0% 14.0% 15.0% 17.0% 21.0%

2004 2008 2009 2010 2014

Internet Marketing (non-email) Total Direct MarketingSource: DMA Power of Direct 2009-2010

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“Digital” Expenditure Growth

$4.9

$10.8 $11.2

$12.2

$18.5

$0.0

$1.2 $1.2 $1.3

$2.3

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

2004 2008 2009 2010 2014

Internet Search Internet Display Internet Other Social Networking Email MobileSource: DMA Power of Direct 2009-2010

21

Evolution of Direct Marketing

What’s Next?

22

Council Membership - Benefits

• Members choose from one of 22 Councils

• Inside access to the latest tools in Marketing

• Councils include:– Insurance & Financial Services

– Mobile Marketing

– Search Engine Marketing

– Social Media

– Many more…

23

Word of Mouth

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Consumers Engaged in Social Media

< 100

100-200

200-300

300-400

400-500

500+

Source: DMA Social Media Council courtesy of Acxiom

Friend Count

24

Social Media

0% 5% 10% 15% 20% 25% 30% 35% 40%

None

Under Evaluation

0-6 months - test

6-12 months - test

12-18 months - test

Tests Underway

Core Business

Source: DMA Social Media Council courtesy of Headmix

Commercial Strategy

25

Social Media High Impact

0% 10% 20% 30% 40% 50%

Internal Communication

Employee Knowledge

Training Efficiency

Customer Insight

Customer Service

Flattened Hierarchy

Improved Business Decisions

Employee Input

Vibrant Company Culture

Innovation

Source: DMA Social Media Council courtesy of Headmix

Commercial Strategy

26

Measuring the Mobile Market

Sources:*Comscore/m:metrics June 2009, ** Comscore January 2009, US Census 2008 Estimate, Nielsen Mobile Media- December 2008; iLoop Mobile, Inc.

• Approximately 76% of US population has at least one mobile device

• Of mobile subscribers, 53% use text regularly

• Today 21% of mobile subscribers use their Internet browsers to access any news or info

• Those who have cut and/or do not use their landline now totals 34%

27

Enhanced Mobile Devices

Source: Luth Research Survey June 2009; Comscore June 2009

Text or Internet Enabled Text and

Internet Enabled

TextOnly

28

Mobile Media Usage

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Total 13-17 18-24 25-34 35-54 55+

SMS

MMS

Internet

Video

Source: The Nielsen Company

Penetration by Age

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Mobile Tactics

0% 10% 20% 30% 40% 50% 60%

Customer Service Text Alert

Coupons via SMS

SMS for Sweepstakes & Contests

Banner Ads on Mobile Search Sites

Sponsored or Brnaded Content

Paid Sponsorships

Short Codes

Instream Ads During Video Programming

Sponsored third-party News and Information alerts

Banner ads on Mobile Carrier portals

Keyword Bidding on Mobile search sites

Source: Forrester – US interactive Marketing Forecast

What mobile marketing tactics do you expect to use in the next 12 months?

30

Integration

Brand Development

Knowledge

Mobile Marketing

Acquisition

Innovation

Communication

Customer Service

Promotion

Internet

Direct MailSocial Media

E-mail

What’s Next?

RetailBroadcast

[email protected]