Term
8 Reasons Why Advertisers
Purchase Ads in Magazines? |
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Definition
1. Magazine advertising engages readers
2. Magazine Advertising is considered
valuable content
3. Magazine ads motivate readers to act
4. Magazine ads improves overall ROI
5. Magazine ads are relevant and
targeted
6. Magazines reach desired consumers
7. Magazines influence the “Influentials”
8. Magazines supply credibility |
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Term
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Definition
2 Key Types of Magazines
Consumer
Business
$28 Billion Industry
Circulation Revenue: $9.1 Billion
Advertising Revenue: $18.5 Billion ($14B Cons.)
Ad revenues projected to decrease by approx. 2%
Over 190 Million adults read magazines
Represents over 85% of the US adult market
Increase of 10 Million readers in the past 5 years
Average reader spends 42 minutes reading a
magazine
Over 20,700 magazines are published in the US |
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Term
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Definition
Brand / Image Advertising
Direct Marketing
Larger circulations
Less targeted
More sales-driven
- Business to Business Format
(B2B)
Smaller circulations
More lead - generation
focused |
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Term
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Definition
1. Rate Card
2. Media Buying
3. CPM
4. Pilot
Publications
5. Magazine Cards
6. Timing
7. Frequency
8. Placement |
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Term
Advantages of Regional Media
Buying Versus Going National |
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Definition
- Saves Direct Marketer money
Regional testing allows
Direct Marketer to test an
ad’s effectiveness at a
lower rate (> 20%)
- Some Regions are better suited for selling the DM’s products or services
Economy, seasons,
demographics…
- Regional media buys enable DM to “test” different copy / creative in same edition of the Magazine at the same time
Split-run testing
- Regional Buying can be defined as either Geographic or Demographic
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Term
Disadvantages Of Regional
Media Buys |
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Definition
Less optimal placement
position
Ad clutter
Higher CPM for limited
media |
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Term
When Testing Media…
Try “Pilot Pubs” First |
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Definition
“Proven publications” that
well represent the targeted
audience for the DM
Usually a lower CPM than
competitive Magazines in
same category
Especially effective for DM
advertisers
If successful, the DM should
gradually add other “like”
pubs into the media mix |
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Term
3 Types of Magazine Cards
…Can increase response rates by 6 to 8 times
…Cuts Cost Per Response by 50% versus an on-page coupon |
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Definition
Most common
Most costly & most effective
Range from basic to
elaborate
Also called BINGO cards
Least costly
Multi- advertisers share a
single card |
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Term
Other Factors That Will Impact
Reader Response Rates |
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Definition
General / Mass versus Shelter /
Shelf-life pubs
Monthlies - 50% of total response
in the first month
Final results can be tabulated
within a 10% accuracy rate after 3
weeks
Weeklies - 50% comes in the first
two weeks
Subscription versus Newsstand
90:10 / Subscription: Newstand |
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Term
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Definition
2 Major
Advertising
Seasons for
Direct Response:
Winter:
January
through March
editions
Fall: August
through
November
editions
Timing may
impact ad
response
rates by 40% |
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Term
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Definition
Objective is to take the
minimum amount of space
necessary to deliver your
message effectively and to turn
a profit.”
1 - The type of ad presentation
may require a certain sized ad
space.
2 - Usually, if the goal is to SELL
versus GENERATE LEADS, a
larger sized ad is
required
3 - Larger sized ads usually
appear closer to the front of the
magazine
4 - if you are successful with a
single page ad with a coupon, test
an Insert Card before adding a
second ad page |
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Term
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Definition
Assuming the ad’s message is effective,
usually converting a 1-color to a 2-color
ad does not offset incremental costs
To typically be profitable and to offset
the incremental cost, a 4-color ad
needs to generate at least 20% more
responses than a 1-color ad
Split-run testing great way to measure |
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Term
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Definition
The closer to the front of the
Magazine the better the ad
will pull
The more visible the
position, the better the pull
Table of Contents
Inside Front Cover
Back cover
First 7 pages seems to
pull a dramatically better
response
Right side out-pulls left side
by approximately 15%
Insert cards open a
magazine DIRECTLY to an
Advertisers’ specific
message |
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Term
Magazine
Challenges & Opportunities |
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Definition
Decline of the “Print” Product as a
source for ad revenues
Developing more enhanced
relationships with their readers /
customers
New Technologies |
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Term
Why Newspapers?
Because Readers are “Engaged” |
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Definition
“… unlike almost all electronic
media, when a person is reading a
newspaper, that is all that they
are doing… they aren’t surfing
and the ads don’t beep, flash, popup or interrupt.
Newspaper ads don’t interrupt the
experience, they are part of it.” |
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Term
However, Newspapers Are Facing
Greater Challenges Than
Ever Before |
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Definition
WHY!!
The Internet - Giving away FREE content
Competitive websites re-using this FREE content
Tired formats |
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Term
So Who’s Reading Newspapers &
What’s the Trend? |
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Definition
- 61% of all Adults read newspapers
Over 100 million adults
read newspapers (print &
digital)
- 78% of readers ages 55+
- 75% of readers ages 35 to 54
- 64% of readers ages 18 to 34
- 20% of adults ages 18 to 24 read print newspapers
- 31% of adults ages 18 to 24 don’t follow the news at all… anywhere
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Term
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Definition
1.Poor Economic model - Focus on Ad revenues not subscription fees
2.Lost touch with their audience
3. Costly overhead and debt causes reduction in staff and the elimination of key
local coverage that is important to their readers
4. Changing readership habits
5. Illiteracy and poor reader comprehension |
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Term
Still a Significant Portion of the
Overall Advertising Mix |
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Definition
Newspaper advertising sales
revenues for 2011 were $27 Billion
Ranks # 5 among all ad mediums
Being “Local” is their strength
In the community
“Feet on the Street”
Ad Revenues decreased by over 8% from 2010 to 2011
and are forecast to decline at the same rate this year |
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Term
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Definition
Greater than $27 Billion in ad revenues
in 2011
Read by over 100 Million adults daily
The “heart & soul” of local Journalism
BUT they are losing large numbers of
Readers
Losing a large share of Advertisers
Are Print Newspapers going the
way of the Titanic? |
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Term
Newspaper ad revenues derive from 4 sources |
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Definition
RETAIL (-9.1%)
CLASSIFIED (-8.6%)
NATIONAL (-4.6%)
ONLINE +10.9% |
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Term
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Definition
1. ROP (Run of paper)
ads that appear in
specified Sections
- FOOD, SPORTS,
BUSINESS…
2. Newspaper as a
Distribution Channel
- SUNDAY COMICS, TV
GUIDE, FLYERS
3. On-line
- BEHAVIORAL
TARGETING (SignOn SD) |
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Term
Production & Placement
Challenges Still Exist |
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Definition
1. Poor print quality in some papers
2. ROP may guarantee specific Section, but
not specific placement (w/o paying
Premium)
3. Various newspaper sizes & rates
Sizes: 48” Standard versus Tabloid…
SAUs versus Column Inches
National Rate (or General Rate)
Retail Rate (w/o Agency Commission)
Classified Rate |
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Term
Alternative Ad Types - FSIs |
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Definition
Free-Standing Inserts (FSIs)
Aka “Preprints”
Can be purchased individually
by newspaper or via Network
FSIs are far more costefficient than Direct Mail
Can be distributed anywhere
from “full-run” to segmented zip
code areas or by demographic
Direct Marketer pays for the
printing of the FSI
Newspaper charges for
circulation |
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Term
Alternative Ad Types - FSIs |
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Definition
Unique advantages over regular ROP
ads
1. Paper quality & printing is controlled by
Direct Marketer (superior to newsprint)
2. Since they separate from the newspaper,
they may have a longer “shelf life” with
prospect
3. Can easily be tested via “Split Runs” |
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Term
Alternative Ad Types - Syndicated
Newspaper Supplements |
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Definition
- Aka: NATIONAL newspaper mags.
- Enable the Direct Marketer to reach a vast print audience via limited media buys (estimated at 73 Million readers)
Parade Magazine
Circ. 32.7 Million - Focus on
top 100 MSAs
USA Weekend
Circ. 22.7 Million - < top 150
MSAs |
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Term
Alternative Ad Types - Syndicated
Newspaper Supplements |
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Definition
CPM Formula
Ad Cost x 1000 / Circulation
General Rate ad costs
Parade
$818,200 for a Full Page/ 4C
Circulation - 32.7 Million
CPM = ? |
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Term
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Definition
- Local Newspaper Magazines
Local TV Guides
Local Restaurant Guide
Week-end supplement
Can also be purchased by
individual paper or via a
network
Surprisingly, Comic
demographic is a median
age of 40 |
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Term
4 Ways Print is Fighting Back!
|
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Definition
1 -Newspaper
National Network
makes buying print
newspaper in multi-
(local) markets much
easier for National
Advertisers
2-Print is converging
with on-line
On-line newspapers
generated over $3 Billion in
revenues in 2010
Covers 120 papers with
websites generating over 50
Million unique monthly visitors
Owned by Gannett, Hearst,
NY Times & Tribune
Drastically consolidates on-line
media buying process for
National advertisers
3-Newspapers are creating more niche
editions
Targeted by age
Targeted by ethnicity
Targeted by gender preference
4-Transitioning from
a “print-only”
product into a
Direct Marketing
Services
company
Print
On-Line
Internet Radio
Extensive Digital
Portfolios:
SOCIAL
COMMERCE |
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Term
A few other “Hopeful” Signs |
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Definition
Borrell Associates & Pricewaterhouse
Coopers both project that the decline in
ad revenues will stabilize this year and
then gradually increase
44
Smaller market papers are more
profitable than large city pubs
Newspaper cancellation rates have
diminished greatly
Publishers are developing ways to
better entice subscribers to remain with
them
By closing bureaus and cutting staff,
some papers are beginning to turn a
profit |
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Term
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Definition
1 Develop the Product
2 Create the
Infomercial
3 Buy the
Media
4 - Run the Ad
5 Take the Orders
6 Fulfillment
(S&H)
7 Manage
Customer
Support
8 Go Retail |
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Term
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Definition
1. Short Form:
:30, :60 & :120 second
ads
2. Long Form:
Infomercials - less than
30 minutes
3. TV Home Shopping
24 / 7 coverage |
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Term
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Definition
- Rapidly growing segment of DRTV
Between 250 - 300 Infomercial
programs are airing at any given time
- Many traditional companies are now using infomericals to market selected products
Clorox, ESPN, Ford Motor, Jenny Craig
- Substantial production & media costs
Short Form: Average Production can
range from $45,000 to $300,000
Long Form: Average Production can
range from $100,000 to $750,000
Market testing varies from $200,000 to
$750,000
Average weekly media costs can range
from $5,000 - $50,000 |
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Term
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Definition
- QUALITY VALUE CORPORATION (QVC)
Owned by Liberty Media
Over $7 Billion in sales
Handles over 180 MM calls per
year
1,150 products per week
- HOME SHOPPING NETWORK (HSN)
Publicly traded
Over $3 Billion in sales
Top 30 e-Retailer |
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Term
DR TV Advertising is the
“Ultimate Focus Group” |
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Definition
In 2 weeks, “The TEST,” you’ll
know if you have a winner or a
loser
FORMULA: DRTV sales need to be at
least 2X the cost of your media to be
successful
The costs for “Shipping & Handling” is
determined by the amount that the
Public will pay versus what they
deem is too expensive |
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Term
What Works Best For DRTV?
Does Your Ad Include… |
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Definition
1. Immediacy
2. Clarity
3. Distinctive Distribution
4. Increased Value
5. Limited Options
6. Early Close
7. Less is More
8. Show & Tell (BOLD DEMOs)
9. Integrate the Offer with the
product
10. Flash the 800 number and
web address for at least 25
seconds during ad |
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Term
Buying Time on Television |
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Definition
Approximately 1,600 stations
in US per FCC
Over $29.2 Billion in
advertising revenues in 2010
210 National Cable
Networks & 54 Regional
Networks
Over $51.9 Billion in
advertising revenues in
2010 |
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Term
Marketing Advantages of
CATV versus Broadcast TV |
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Definition
- CATV (Cable TV) audience is highly defined
Operators know who their
customers / subscribers
are via billing
- Demo & Psychographic info is shared with Advertisers
- CATV offers more special Interest programming
Enhanced targeting |
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Term
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Definition
:60 & :120 seconds ideal for DRTV
2 minute is standard for direct sale spot
1 minute is effective for lead generation
30 second is great for awareness
Due to inventory limits at key time periods, it is often
difficult to purchase :120 second spots
:10 & :15 second support commercials and
contribute to overall Gross Rating Points
Duration of an ad campaign (Start & Finish)
Tells the Direct Marketer what % of the total audience (homes or persons) that their ad is
REACHING at least once during the Flight
How often or how FREQUENTLY (on average) during the Flight Period is the targeted
audience being exposed to the ad (the number of times)
Gross Rating Points (GRP)
Reach x Frequency
Reach
GRPs / Frequency
Frequency
GRPs / Reach |
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Term
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Definition
4 Ways Advertisers Can Buy TV Time
1. Specific time-slots, sponsorships or programs
2. ROS (Run of schedule - similar to ROP in print)
3. Pre-emptible / Scatter
4. Payment Per Inquiry or Revenue Sharing |
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Term
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Definition
Lower viewer
attentiveness is better
for Direct Marketers
Independent stations may
be better DM choice than
Network (affiliated)
stations
More reruns, talk shows &
old movies
Seasonality |
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Term
Rules for DRTV Media Buying |
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Definition
Test TV ads in 2 to 5 markets for
one to two weeks
As few as 10 ads per week can
give you a fairly accurate fix on
how well your ad is doing
If response rates hold up,
monitor until they start to
decline
Then, move on to other
markets and launch in the
same methodical and
measurable way |
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Term
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Definition
Over 13,500 licensed broadcast radio stations in US
Over $9.4 Billion in 2010 Advertising Revenues (+ 5% from 09)
Clear Channel Communications owns over 1,200 stations |
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Term
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Definition
Broadcast Radio’s advantages over Broadcast TV
Radio program formats are better targeted by Advertisers
Typically, radio offers a lower cost for similar time periods as TV (even if viewership /
listenership is constant)
Creating Ads for Radio
Radio is the “writer’s medium” in its purest sense
1. Carefully consider a station’s format
2. Tailor your message to that format (but sometimes, don’t be afraid to “shock”
your listener by steering away from the typical format as long as its within
reason)
3. Connection to listener is direct, personal, emotional, primal
4. Encourage listener to “stretch their imagination” to visualize your message
5. Music and Humor enhance ads |
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Term
Satellite Radio - FEW ADS |
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Definition
PROS
Over 20 Million Paid
subscribers
Average subscriber pays $13
per month
50% of all new cars have
Satellite radio
Churn rate is just 1.8%
CONS
Heavy debt load ($1 Billion)
90% decline in stock price |
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Term
Elements Of A Direct Mail Kit (DMK)
The Outer Envelope |
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Definition
- The Corner Card
- Teaser Copy
Benefit Teaser
Offer Teaser
Curiosity Teaser
Priority, First Class
Standard / Discounted Mail |
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Term
Elements Of A Direct Mail Kit (DMK)
The Letter |
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Definition
Key Attributes
1. Opening
Sentence
2. Call to Action
3. Post Script
Addresses the reader’s
needs
Solves their problem
Use lots of “you” and “your”
in copy
The signature serves as a
“willing suspension of
disbelief” |
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Term
Elements Of A Direct Mail Kit (DMK)
The Brochure |
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Definition
- Compliments the letter
- Helps reader visualize the product
Consumer mail: embodies
emotional concept of the
mailing (non-profit)
Business mail: contains
more detailed information
- Copy explains product benefits
Utilize photos, graphics,
headlines, subheads…
Provides additional Call to
Action & Response Devices |
|
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Term
Elements Of A Direct Mail Kit (DMK)
The Response Devices |
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Definition
- How the reader can contact the Direct Marketer
Must be clear,
convenient & easy to
complete
- Effective Direct Mail usually provides more than one way for the recipient to respond
Few prospects respond
by mail anymore
Response card is often
“symbolic” - it focuses
reader towards another
“Call to Action”
- Never called a Response Device
Order form, Enrollment
form or Subscription
form |
|
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Term
Additional Elements Of A DMK
Involvement Devices |
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Definition
It’s the Action that makes this concept work
The response device is the moment of truth for the reader |
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Term
Why “Lumpy Direct Mail” May Be
Your Cure For Flat Sales |
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Definition
Lumpy 3-dimension packaging generates greater prospect interest
Generates substantially more responses than traditional “flat mail”
Six “Must Haves” for Lumpy Mail
1.Mail something of value
2.Mail something with “head scratcher” value
3.Back up with a strong sales letter
4.Don’t give out too much information
5.Be relevant
6.Follow up with a phone call |
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Term
Additional Elements Of A DMK
Involvement Devices |
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Definition
Size of a dollar bill
Serves to add info
Visual shorthand
A mini-flyer
Restates the Offer & Key
Bennies in different way
Reflects an additional
“personal” point of view
Usually a different
signature than the letter |
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Term
Alternate Direct Mail Options |
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Definition
Favored in B2B
Used for lead generation,
seminars or single product
offerings
Combine the DMK into one
piece
Fast delivery of visual
appeal & copy
Low cost
Ultimate self-mailer
Should not contain private
info |
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Term
Direct Mail Letter Writing Tips |
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Definition
Keep It Simple Stupid…
ATTENTION, INTEREST, DECISION & ACTION
1. Must have a Headline
2. Must have a PS (Postscript)
3. Must have an Offer
4. Must have a Call to Action |
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Term
Does size matter & other Personal Stuff |
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Definition
- A well crafted Direct Mail letter should be:
Long enough to adequately cover the subject
Short enough to retain the Reader’s interest
The longer you hold a Reader’s interest, the more likely it
is that your Reader will respond
Use sub-heads, underscores, CAPS… to divide copy
Online, this same strategy works (Reader will keep scrolling if
they are interested)
- Personalized Direct Mail usually out-pulls non-personalized Direct Mail
Makes Reader feel that the company “knows” them
The Reader’s “willing suspension of disbelief” |
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Term
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Definition
Deceptive Mail Prevention &
Enforcement Act of 1999
Federal Law which clearly defines what
a Direct Marketer can and cannot do
Carries significant fines and
penalties for violators
Restricts the ways that DM’s can
communicate with Recipients
Designed to protect consumers from
misleading and unethical Direct Mail
States still have authority to implement
additional, more restrictive laws |
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Term
3 Immediate Threats for Direct Mail |
|
Definition
1. USPS fiscal crisis
2. Consumers increased
preference for low-cost & faster
digital communications
3. Green Movement |
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Term
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Definition
AIDA
The job of the Ad Writer is to STOP
the reader
To first draw ATTENTION, then
generate INTEREST.
Then to create a DECISION and
lastly, to motivate the reader to take
ACTION
Focus on your best prospects
first!
Your “true” target market”
Afterwards, try to attract and draw
in additional less optimal prospects |
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Term
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Definition
• Ad does not appear to be
selling at all
• Headline promises a
benefit
• Long copy highlights many
sales points
• Repeats the Oreck
guarantees
• Multiple calls to action
• Multiple response options |
|
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Term
|
Definition
Advantages belong to
the product
Benefits belong to the
consumer
2 types of Benefits
Obvious Benefit
Ultimate Benefit |
|
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Term
|
Definition
- Know your prospect and speak RIGHT to them
Talk Straight
Tell them
what is most
important to
them
Don’t waste
their time
Don’t
condescend
Sometimes it’s OK
to go negative |
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Term
“Hand - Raiser” Ads
Sometimes Being Straight-forward Works Best |
|
Definition
Headline is designed to
QUICKLY get the attention
of the RIGHT prospects for
that product
Sometimes, clear, direct &
simple is best These ads
get prospects to selfselect and self-qualify
To achieve
this, the ad
can still be
implemented
with a high
level of
creativity
Sometimes,
clear, direct &
simple is best
These ads
get
prospects to
self-select
and selfqualify |
|
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Term
|
Definition
Direct Marketing Ad Writer’s have a different
challenge than Brand Writers.
Brand ads must make an impression
DM ads must stimulate an immediate action
DM copy must PILE onto the Reader’s mind, over and over again
all the reasons, rationales and sales points to persuade them to
take action NOW! |
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Term
|
Definition
1. Benefits Copy
2. Descriptive Copy
3. Support Copy
4. Sweetener Copy
5. Facilitating Copy |
|
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Term
|
Definition
“Now you don’t have to leave
unfinished business behind…”
“Alex cell phone”
Here’s what you do…
No obligation test drive
Free booklet
Call toll-free number |
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Term
|
Definition
1. Headlines
2. Effective prospect identification
3. Ad length
4. Story appeal and pictures
5. Before and after scenarios
6. Captions under photos
(over body text)
7. Editorial layouts
8. Repeat the “winners” |
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Term
A 10-Point Copy Checklist |
|
Definition
1. Has writer included ample product info to tell the story?
2. Has writer identified the correct target market / prospect?
3. Does the writer speak the target prospects’ language?
4. Does copy ensure that all promises can be delivered
upon?
5. Does copy get to the point quickly?
6. Are the key copy areas relevant to the sales proposition?
7. Is the copy clear and logical?
8. Is the copy enthusiastic and convincing?
9. Is the copy complete (does the whole story get told)?
10. Has the copy been correctly designed to generate the
desired response? |
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Term
Internet Applications for the
Direct Marketer |
|
Definition
Key Internet Uses
1. Advertising Medium
2. Sales & Marketing
Channel
3. Distribution Channel
3 components of E-Biz
E-communications
E-commerce
E-care |
|
|
Term
Engaged & Empowered Users |
|
Definition
Internet has grown faster than
any other medium
50 Million Internet users in less
than 5 years
TV took 13 years to reach 50
million viewers
Radio took 38 years for 50
million listeners
Shopping (not Buying) is the
number one online activity
High Speed Access / Broadband
has made the pace of consumer
acceptance skyrocket |
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Term
Issues: Privacy & Security |
|
Definition
75% of Internet users do not
like giving out personal data or
credit card info
Online Marketers need to
reassure consumers that their
info remains private
No one can truly guarantee
privacy. Just last week, the
data base of online
marketing firm, EPSILON
was hacked of millions of
email addresses of
customers at JP MORGAN,
TARGET, LL BEAN |
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|
Term
Key Internet Benefits for
Direct Marketers |
|
Definition
1. Reduces costs
1. Reduces overall operating costs
2. Lowers prices
3. Cost savings in order handling via reduced transaction
costs (Pay for what you need)
4. Optimizes supply base
5. Enhances controls over inventory & spending
2. Saves time
1. Enhances use of personnel via instantaneous
communications and / or outsourcing
2. Enhanced Marketing & Customer Service |
|
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Term
Internet Direct Response
Best of Both Worlds |
|
Definition
The Internet “goes both ways”
1. Builds & increases brand
recognition for Business &
Consumer companies like Mass
Media
2. But can also deliver vast
amounts of “relevant” info to
targeted prospects and customers
like Direct Mail
Although SEM & SEO
dominate, online marketers
have many tools at their
disposal
Banner ads
E-mail campaigns
Affiliate Marketing relationships
Sponsorships
Off-line advertising (other
media) |
|
|
Term
4 Main Types Of On-Line
Business Models |
|
Definition
• Clicks (only)
• Clicks & Mortar
• Online sites of traditional companies
that enable some or all business to
move to web
• Clicks & Mail Order
• Successful DM / catalog companies
that have experience in remote
customer fulfillment / service
• Clicks, Bricks & Mail Order
• Firms that see the Internet as just an
additional sales / distribution channel within
the shoppers’ experience |
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