Nothing Special   »   [go: up one dir, main page]

DM 1

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 34

Article Highlights:

 The high cost and difficulties in measuring success of traditional is leading to a budget
exodus to direct digital
 Combining captured online behavioral data with enterprise customer data provides
unique opportunities for message targeting and segmentation
 Direct digital marketing is less complex than traditional channels in terms of campaign
setup, execution, and measurement

Direct digital marketing is as simple as it is important. The concept is based on a proven


marketing principle -- addressability. While traditional direct marketing uses a postal address to
communicate relevant information to a consumer, direct digital marketing delivers targeted
communications to individual consumers through the three primary digital channels -- email,
web, and mobile -- using an email address, a web browser cookie, and a mobile phone number.

The definition of direct digital marketing makes sense. It is a natural fusion of everything
effective about direct marketing (relevant and timely messages) and everything effective about
digital marketing (improved relevance and timing plus optimization and instant accountability).
The reason direct digital marketing is becoming such a widely adopted marketing discipline is
because of how marketing is evolving, from the Fortune 500 companies right down to the small
mom and pop shops.

Traditional marketing is not necessarily dying; the standard marketing channels of television,
radio, and print are still useful. However, the extremely high cost and inability to effectively
measure the success of traditional marketing campaigns is leading to a budget exodus to direct
digital marketing. For some, traditional marketing is simply too expensive to be effective, and an
untenable element of any long-term marketing plan.

Marketing is a broad discipline. While objectives largely remain the same no matter what
industry a marketer is plying their trade in (i.e., sell more stuff), part of direct digital marketing's
value is in its adaptability. Whether a company's target audience is consumers or another
business, direct digital marketing is applicable and effective.

Benefits for B2C marketers


While multi-channel delivery of targeted messages to individual consumers is an obvious benefit
of direct digital marketing, superb data management is the foundation. Web analytics providers
give marketers the tools necessary to analyze the massive amounts of data captured both online
and offline, but they are historically poor at turning the data into actionable marketing
campaigns. A good direct digital marketing partner uses a data mart dedicated to direct digital
marketing, or a universal profile management system. Combining captured online behavioral
data with enterprise customer data, for example, provides the marketer with unique opportunities
for message targeting and segmentation that are not available with traditional marketing.

A smart approach to data creates a single view of an individual consumer and allows for more
effective, targeted, and relevant communications through each primary digital channel the
consumer already uses to engage with a brand.
While multi-channel delivery, message relevance, and campaign execution are easy with direct
digital marketing, testing and optimization are also built-in requirements. Optimization with
traditional direct marketing is better classified as trial and error -- expensive trial and error. With
direct digital marketing optimization is essential, instant, and easy.

Benefits for B2B marketers


Business-to-business marketers perpetually encounter an endemic marketing challenge in the
disconnect between marketing and sales. Direct digital marketing's multi-channel scope helps to
expedites sales cycles by skipping formerly mandatory qualification steps. Lead quality is also
substantially increased because a prospect's areas of interest are self-evident when reviewing
email click-throughs, website click paths, and page view data in one environment. When
prospect need is demonstrated before contact with the sales staff even begins, a more meaningful
engagement occurs.

For decades marketers have loosely justified campaign investment with circumstantial and
qualitative data. However, as marketing evolves from direct to direct digital methods, an
increased importance is placed on the scientific aspects of marketing. A common trait for both
B2C and B2B marketers is the need for immediate accountability. Addressability through the
primary digital channels easily translates to accountability in direct digital marketing campaign
reporting and measurement, regardless of industry.

Direct digital marketing is accountable to more than the mandatory -- yet occasionally arbitrary
-- metrics like clicks, opens, page views, and coupon redemption. It is accountable to any return
on investment questions by easily measuring specific conversion events, revenue per site visit,
and lift in other key categories.

Direct digital marketing is more cost efficient than traditional methods not only for its immediate
accountability but because of the reduced time investment. Instead of coordinating multiple
partnerships each with specialized channel delivery capabilities, a single direct digital marketing
partner frees marketers up to develop sound strategies instead of focusing on on multi-channel,
multi-partner campaign execution. It is also less complex than traditional channels in terms of
campaign setup, execution, and measurement -- regardless of how many channels are included in
a campaign.

For too many years marketers have battled unnecessary tradeoffs. Budget exists for email, but
not for mobile. Or mobile is a priority but website targeting capabilities must go by the wayside.
Well-executed direct digital marketing prevents these tradeoffs, improves results, and is
accountable for its effectiveness. While it is unwise to forsake any useful traditional marketing
strategies, failure to adopt direct digital marketing prevents the type of scalable, accountable
marketing that is the hallmark of a successful company.

Brian Deagan is the co-founder and CEO of Knotice.

On Twitter? Follow iMedia Connection at @iMediaTweet.


Integrated Marketing Communications is a term used to describe a holistic approach to
marketing. It aims to ensure consistency of message and the complementary use of media. The
concept includes online and offline marketing channels. Online marketing channels include any
e-marketing campaigns or programs, from SEARCH  ENGINE OPTIMIZATION, pay-per-click,
affiliate, email, banner to latest web related channels for webinar, blog, RSS, podcast, and
Internet TV. Offline marketing channels are traditional print (newspaper, magazine), mail order,
public relations, industry relations, billboard, radio, and television. A company develops its
integrated marketing communication programme using all the elements of the marketing mix
(price, place, product, and promotion).

Reasons for the Growing Importance of IMC


Several shifts in the advertising and media industry have caused IMC to develop into a primary
strategy for marketers:
From media advertising to multiple forms of communication.
From mass media to more specialized (niche) media, which are centered around specific target
audiences.
From a manufacturer-dominated market to a retailer-dominated, consumer-controlled market.
From general-focus advertising and marketing to data-based marketing.
From low agency accountability to greater agency accountability, particularly in advertising.
From traditional compensation to performance-based compensation (increased sales or benefits
to the company).
From limited Internet access to 24/7 Internet availability and access to goods and services.

IMC  is  a  synergistic  approach  to  achieving the  objectives of   a marketing
campaign, through  a  well  coordinated  use  of   different promotional methods.
It  includes   a   variety  of  communication  disciplines-
*advertising
*public  relations
*personal  selling
*sales promotions
*direct  marketing
*sponsorship
and combines them to provide clarity, consistency, and maximum communication impact.”

PR  IS  AN ELEMENT  OF   THE   PROMOTIONAL  MIX,


WHICH  IN  TURN  IS  A  PART  OF   THE MARKETING  MIX.
PR  PLAYS  A  ROLE  IN  THE  MARKETING  CAMPAIGN   AND  IS
INTEGRATED  INTO  IMC,  WHICH   ADDS  TO  THE  SYNERGY  OF  MARKETING
==============================================
EVOLUTION   OF  ÍMC

While IMC has been viewed as a valuable concept by practitioners , some believe that
organizational factors have imposed constraints on its institution. In certain client situations,
because of organizations' preoccupation with functional focus, capable people are seen as being
"strapped in functional boxes, constrained and trained not to solve business problems but
-to 'do advertising' or
- 'do public relations' or
'do direct marketing'"
etc  etc
which  compartmentalized  the  functions  and  not  allowed  intergration.
BUT  over  the  last  10 years   with  additional  media  coming  online,
it  became  a  necessary  evil  to  integrate  and  seek  more  effectiveness
for  every dollar.

THE  GROWTH   OF  INTERNET    AND  THE  ONLINE  MARKETING


FORCED  IMC    into  the  open.
====================================================

IMC   IS  BECOMING   MORE  IMPORTANT.


A management concept that is designed to make all aspects of marketing communication such as
advertising, sales promotion, public relations, and direct marketing work together as a unified
force, rather than permitting each to work in isolation.
Model for Integrated Marketing
Integrated Marketing Communication is more than the coordination of a company's outgoing
message between different media and the consistency of the message throughout. It is an
aggressive marketing plan that captures and uses an extensive amount of customer information in
setting and tracking marketing strategy. Steps in an Integrated Marketing system are:
Customer Database
An essential element to implementing Integrated Marketing that helps to segment and analyze
customer buying habits.
Strategies
Insight from analysis of customer data is used to shape marketing, sales, and communications
strategies.
Tactics
Once the basic strategy is determined the appropriate marketing tactics can be specified which
best targets the specific markets.
Evaluate Results
Customer responses and new information about buying habits are collected and analyzed to
determine the effectiveness of the strategy and tactics.
THIS  CYCLIC   PROCESS  RUNS   AND  KEEP  RUNNING,  WITH  FEEDBACK  ON
EVERY  CYCLE RUN.
=====================================================================
WHY   IMC   IS   SO  EFFECTIVE ?
4 P's vs. 4 C's
Not PRODUCT, but CONSUMER
Understand what the consumer wants and needs. Times have changed and you can no longer sell
whatever you can make. The product characteristics must now match what someone specifically
wants to buy. And part of what the consumer is buying is the personal "buying experience."
Not PRICE, but COST
Understand the consumer's cost to satisfy the want or need. The product price may be only one
part of the consumer's cost structure. Often it's the cost of time to drive somewhere, the cost of
conscience of what you eat, and the cost of guilt for not treating the kids.
Not PLACE, but CONVENIENCE
As above, turn the standard logic around. Think convenience of the buying experience and then
relate that to a delivery mechanism. Consider all possible definitions of "convenience" as it
relates to satisfying the consumer's wants and needs. Convenience may include aspects of the
physical or virtual location, access ease, transaction service time and hours of availability.
Not PROMOTION, but COMMUNICATION
Communicate, communicate, communicate. Many mediums working together to present a
unified message with a feedback mechanism to make the communication two-way. And be sure
to include an understanding of non-traditional mediums, such as word of mouth and how it can
influence your position in the consumer's mind. How many ways can a customer hear (or see) the
same message through the course of the day, each message reinforcing the earlier images?
=====================================================================
=====================
WHY  IMC  IS  SO   DIFFERENT  TO   ''REGULAR  MARKETING''

Perception vs. Facts


In an age of increasing information overload, the consumer has developed a coping mechanism
to deal with the amount of information being received. There is increasing evidence that
customers and prospects are basing most of their purchasing decisions on what they perceive to
be important or true (or what they think is right or correct) rather than on solid, rational,
economically derived information. To the consumer, perception is truth. A perception may not be
correct, but it is what they know, and what they know is all they need to know. This new "sound
bite" approach to gathering marketing information demands that a marketer's statements about
products or services must be clear, concise, consistent, and comprehensible through all forms of
communication or the consumer will simply ignore them. Any minor inconsistency that does not
match the existing "mind map" and will be ignored.
=====================================================================
=============
IMC   ADVANTAGES /DISADVANTAGES / BENEFITS

ADVANTAGES
-cross  functional approach  to  communications
-improved  communication  with consumers
-uses  demographic / psychographic of  consumers  profiles
-applies  strategic  segmentation  of  consumers
- includes many online and offline marketing channels.
-Online marketing channels include any e-marketing campaigns or programs, from search engine
optimization (SEO), pay-per-click, affiliate, email, banner to latest web related channels for
webinar, blog, RSS, podcast, and Internet TV.
-Offline marketing channels are traditional print (newspaper, magazine), mail order, public
relation, billboard, radio, and television.
-IMC  plan will customize what is needed for the client based on time, budget and resources to
reach target or goals.
-Small business can start an integrated marketing communication plan on a small budget using a
website, email and SEO.
-Large corporation can start an integrated marketing communication plan on a large budget using
print, mail order, radio, tv plus many other online ad campaigns.

DISADVANTAGES

-agencies  learning  the  expertise  of  IMC


-coordination  at   the  client's  office
-correct  database  on   segmentation
etc

BENEFITS
-maximizing  the  use  of  dollars
-better  results  for  the  dollar  spending
-effective   communication  coverage  of  targeted  consumers
-in some cases, it  is  the  one-to-one  marketing  exercise, with fast consumer  response.
- Instead of dividing communications into several overlapping departments, organizations use
one strategy for everything, making every communication consistent with one message and one
strategy.
etc  etc
==================================================
FOR DEVELOPING   AN   EFFECTIVE  INTEGRATED  MARKETING
COMMUNICATION,
YOU  SHOULD
1. Define Product or Service
• Describe your product/service and mission in  simple terms
• Emphasise your USP “Unique Selling Proposition”
• Communicate intrinsic benefit/value to your  customer
------------------------------------------------
2. Identify Target Audience
• Your audience refers to the people you aim
your sales effort at, otherwise known as your
“target market”. You may have more than  one target market.

• This includes two factors:


∗ Who needs your product/service?
∗ What is the profile of your ideal customer
and what are their habits?

• Target markets are described in terms of


their shared characteristics.
∗ For example, if your product/service is
aimed at individuals, you can describe
them by age, income, geographic location,  and lifestyle.
∗ If your product/service is aimed at
organisations, you can describe them by
number of employees, sales, geographic location, and industry.
----------------------------------------------------------
3. Determine Goals and Objectives
• Set the bar as to what you want to achieve.
• Measure your success against your own  efforts, not your competitors.
• Two types of goals:
∗ Quantitative – those with specific, measurable results and numbers.
∗ Qualitative – bring increased value, like  improving image or visibility.
------------------------------------------------------------
4. Define the Brand
• Focus your message by identifying 3 to 4
“key messages” to be woven through all  marketing materials.
• There is a lot of “media clutter” customers
are bombarded daily with hundreds of sales
and marketing messages about numerous products and services.
• To succeed, focus on a particular market and
emphasise features/benefits to them.
----------------------------------------------------------------
5. Set Pricing
• A guidepost for setting price involves
estimating the monetary value your customer
will receive, and understanding your financial  goals and objectives.
• Remember to price the product/service at a
rate higher than your fixed and variable cost.
-----------------------------------------------------------------
6.Establish Marketing Budget
• Set aside a specific dollar amount either per
quarter or per year. You need to make the best
marketing decisions possible to maximise the
return on your marketing dollars invested.
• Evaluate marketing decisions such as
advertising in the yellow pages, hiring sales
reps or conducting a PR program based on
the amount of business a particular initiative generates.
• Track each initiative and evaluate what
worked and what didn’t.
------------------------------------------------------------------
7. Choose Marketing Strategies
• Strategic marketing tools to deliver your
message to the target audience. Brainstorm
ideas to reach target market. Be creative -
don’t sensor wild ideas.
• Divide into paid, non-paid and non-traditional media.
∗ Paid media: direct mail, newspaper, radio,
TV, billboards, direct sales
∗ Non-paid media – referred to as public
relations because it is exposure through
traditional media without paying for advertising
in that media.
∗ Non-traditional media: includes everything
else — sponsorships, ad specialties,
shows/events, electronic media and the
Internet.
-----------------------------------------------------------------
8. Determine Tactics
• List out specific action steps to achieve each  strategy.
• Include deadlines and key dates for executing
all of your marketing activities.
-------------------------------------------------------------------
9. Establish Timing
• Establish a specific timetable for each tactic.
-------------------------------------------------------------------
10. Measure Results
• Track results of your marketing efforts on an
ongoing basis, using tracking devices such as
ad codes, call-in logs and reply cards (if the
budget allows).
• Evaluate at the end of the year or plan period
to see if the results matched your stated goals.
=======================================
FOR  MEDIA  STRATEGY / SELECTION.

• What goals do you want to accomplish?


Pinpoint very specifically the action and/or awareness that you want your target
audience to adopt.
• Who is the target audience?
The target audience is a segment of a population that will receive the media
message. Carefully dissect the population into the target category by profiling
the audience to better understand their attitudes, knowledge, and behavior.
Knowing what the target audience thinks about the issue at hand and where they
obtain information will play an important part in determining appropriate media
channels used in delivering your message.
• What messages will bring about the desired change or outcome?
Message development is of utmost importance. The root message should come
from quality discussion and brainstorming. The root message also should
position your goal in a unique and appealing way to the target audience. Choose
more than one message (but no more than three) to prevent staleness and to
encourage a view from different angles. Suggestions for message development
include: interviews, surveys, focus groups, and piloting materials with the target
audience.
• What media channels will be the most efficient and cost-effective?
There are several categories of mass media: News media includes television,
radio, newspapers, magazines, and periodicals. Advertising and public service
announcements may involve print, radio, television and billboards/bus boards.
Public affairs events may include rallies, conferences, and speeches. To help
inform the decision of which type or types of media to use, be aware of where
the target population gets its information, which channels are most/least
believable, what your budget will support, and what will provide adequate
“dosage” of the messages on a regular basis. Building and maintaining
relationships with local media will aid in better results during a campaign.
• How will progress be monitored?
There are two common evaluation techniques to consider for evaluating a public
awareness campaign: process and outcome. A process evaluation will ask
questions such as “how is the implementation going?” or “are we meeting
benchmarks”? An outcome evaluation will focus more on the number of people
reached or how behavior has changed. Through ongoing evaluation measures,
you will know
- whether your messages and supporting materials are being seen,
- whether your messages are perceived to be credible and plausible, and
- whether your messages are affecting behaviors.
################################################
INTEGRATED  Marketing communications has a mix. Elements of the mix are blended in
different quantities in a campaign. The marketing communications mix includes many different
elements, and the following list is by no means conclusive. It is recognised that there is some
cross over between individual elements (e.g. Is donating computers to schools, by asking
shoppers to collect vouchers, public relations or sales promotion?) Here are the key of the
marketing communications mix.

HERE  YOU  WILL  SEE, HOW  IMPORTANT  IS  THE  ELEMENT


OF  PUBLIC  RELATION  IN   THE   MARKETING / IMC.
PR   is blended  into  many  aspects  of  the  IMC
*personal  selling.
*trade fair  &  promotions
*mass  advertising
*below  the  line  promotions
*sponsorship
*merchandising
*online  promotions
*branding
etc

The Marketing Communications Mix.


Personal Selling ,
-here the marketing communication is used
*to  inform the customers/ prospects
*to  create awareness
*to  present  the product
*to  influence the  customer
*to  sell  benefits
*to help  the  customer to  make the  buying  decision
*to  seek  commitment
*to  help  to  close the  sale.
HERE  THE  PR MATERIALS   ARE  PROVIDED  TO  THE  SALESPEOPLE
AS  A  SALES AID  TO  HELP  IN  SELLING.
---------------------------------------------------------------------------------
Sales Promotion
-here the  marketing  communication is  used
*to inform  the  customers
*to  physically present
*to influence  the  customers
*to help  the  customers  to feel the  product
*to help  the  customer to  make the  buying  decision
*to offer  consumer incentives
*to  help  the  final  transactions
HERE  THE  PR  MESSAGE  IS  USED TO  SOFTEN  THE  CUSTOMERS
IN  ACCEPTING  THE  PRODUCT  AND   TRYING  IT.
------------------------------------------------------------------------------
Public Relations (and publicity)
-here the  marketing  communication is  used
*to  publicise  the company
*to  publicise  the  product
*to publicise  the  company's  research/ development
*to  publicise the  company  image
*to  create  the  company  brand
*to  inform  public
*to  communicate  with the community.
*to  establish  relations  with government  
*to  establish   community  relations
HERE  THE  PR  MATERIAL   IS  USED  IN THE  MASS  COMMUNICATION
TO  SOFTEN   PUBLIC  ATTITUDE.
----------------------------------------------------------------------
Direct Mail
-here the  marketing  communication is  used
*to  inform
*to  talk  to  individuals
*to  focus  on  niche  market
*to inform the  decision  makers  directly
*to   advertise cost efficiently
*to promote selected  market  segments
*to contact individuals  for  one-to-one  marketing
HERE  THE  PR   IS  USED  FOR  REINFORCING   THE  SALES
MESSAGE   ON  ONE-TO-ONE   BASIS.
----------------------------------------------------------------------
Trade Fairs and Exhibitions
-here the  marketing  communication is  used
*to  inform  individuals
*to  provide  visibility
*to  talk  to  individuals
*to inform the  decision  makers  directly
*to   advertise cost efficiently
*to promote person to  person
*to contact individuals  for  one-to-one  marketing
HERE  THE  PR   IS  USED  FOR  REINFORCING   THE  SALES
MESSAGE   ON  ONE-TO-ONE   BASIS.
--------------------------------------------------------------------
Advertising (above and below the line)
-here the  marketing  communication is  used
ABOVE  THE  LINE
*to  MASS  inform the customers/ prospects
*to  create MASS awareness
*to  present  the product
*to  influence the  customer
*to  sell  benefits
*to help  the  customer to  make the  buying  decision
HERE  IS  PR  IS  INCLUDED   AS  A  MASS  COMMICATION
TOOL .
------------------------
BELOW  THE  LINE
*to  physically present
*to make it  visible at  the  point  of sale.
*to influence  the  customers
*to help  the  customers  to feel the  product
*to help  the  customer to  make the  buying  decision
*to offer  consumer incentives
*to  help  the  final  transactions
*to  display  and promote
*to  merchandise the product
HERE  THE  PR   IS  USED  FOR  REINFORCING   THE  SALES
MESSAGE   ON  ONE-TO-ONE   BASIS.
------------------------------------------------------------------------------
Sponsorship
-here the  marketing  communication is  used
*to  MASS  inform the customers/ prospects
*to  create MASS awareness
*to  present  the product
*to  influence the  customer
*to  sell  benefits
HERE  IS  PR  IS  INCLUDED   AS  A  MASS  COMMICATION
TOOL .
---------------------------------------------------------
Packaging -here the  marketing  communication is  used
-here the  marketing  communication is  used
*to  MASS  inform the customers/ prospects
*to  create MASS awareness
*to  present  the product
*to  influence the  customer
*to  make  it  visible  at  the  point  of  sale
HERE  THE  PR   IS  USED  FOR  REINFORCING   THE  SALES
MESSAGE   ON  ONE-TO-ONE   BASIS.
--------------------------------------------------------------
Merchandising (and point-of-sale)  
-here the  marketing  communication is  used
*to create visiblity  at the point of  sale.
*to influence  the  customers
*to help  the  customers  to feel the  product
*to help  the  customer to  make the  buying  decision
*to offer  consumer incentives
*to  help  the  final  transactions
*to  display  and promote
*to  merchandise the product
HERE  THE  PR   IS  USED  FOR  REINFORCING   THE  SALES
MESSAGE   ON  ONE-TO-ONE   BASIS.
--------------------------------------------------------------------
EMarketing (and Internet promotions)
-here the  marketing  communication is  used
*to  inform
*to  talk  to  individuals
*to  focus  on  niche  market
*to inform the  decision  makers  directly
*to   advertise cost efficiently
HERE  THE  PR   IS  USED  FOR  REINFORCING   THE  SALES
MESSAGE   ON  ONE-TO-ONE   BASIS.
----------------------------------------------------------------
Branding (and corporate identity)
-here the  marketing  communication is  used
*to  create an  unique position  for the company
*to create  an  unique  position  for the product
*to create unique visibility
*to make it  easy to  identify
*to  make it easy to  buy
*to make it  easy  to  sell
HERE  IS  PR  IS  INCLUDED   AS  A  MASS  COMMICATION
TOOL .
-----------------------------------------------------------
ALL  THE  INTEGRATED MARKETING  COMMUNICATION EFFORTS  ARE
DIRECTED
-TO  MAKE  IT EASY  FOR  THE  CUSTOMERS  TO  MAKE  THE BUYING  DECISION.
-HENCE  MORE  SALES.
=========================================================
Integrated marketing communications see the elements of the communications mix 'integrated'
into a coherent whole. This is known as the marketing communications mix, and forms the basis
of a marketing communications campaign.
marketing communications process
The elements of the promotions mix are integrated to form a coherent campaign. As with all
forms of communication. The message from the marketer follows the 'communications process'
as illustrated above. For example, a radio advert is made for a car manufacturer. The car
manufacturer (sender) pays for a specific advert with contains a message specific to a target
audience (encoding). It is transmitted during a set of commercials from a radio station (Message /
media). The message is decoded by a car radio (decoding) and the target consumer interprets the
message (receiver). He or she might visit a dealership or seek further information from a web site
(Response). The consumer might buy a car or express an interest or dislike (feedback). This
information will inform future elements of an integrated promotional campaign. Perhaps a direct
mail campaign would push the consumer to the point of purchase. Noise represent the thousand
of marketing communications that a consumer is exposed to everyday, all competing for
attention.
##################################################################  

Tim Surowiecki
December 07, 2009

The new rules for direct response advertising

Article Highlights:

 It's important to test, refine, and optimize different executions of creative for different
types of sites and different placements within sites
 True success lies in following your creative performance all the way through conversion
 It's nearly useless to spend money on online advertising if you don't have the software
you need to track your conversions

The challenging economic climate has brought with it increased scrutiny into marketing budgets
-- underscoring the importance of ROI on advertising dollars. As a result, traditional brand
advertising is quickly taking a backseat to direct response advertising.

Direct response can deliver more tangible, measurable metrics and ROI to cost-conscious
marketers, while offering a significant opportunity for publishers to increase advertising
inventory sell-through percentages. But this switch to direct response advertising brings with it a
completely new set of rules. As publishers continue to increase their investment in this arena, it's
essential for marketers to have a clear understanding of how to best manage direct response
campaigns in order to truly tap into the revenue opportunities they present. 
 
So what are these new rules of engagement? How can marketers tackle the unique challenges of
this audience head-on to achieve true campaign optimization? Consistent improvement of
conversion and click-through rates are the building blocks of success here, and it begins with the
active and daily management of four key campaign components:  

Creative
One size does not fit all. Testing is always critical when it comes to maximizing marketing ROI;
in this case, it's important to test, refine, and optimize different executions of creative for
different types of sites and different placements within sites. For instance, test a banner ad's
color, as well as its copy and size. You may be surprised to learn that what performs well on one
website may perform poorly on another. Apply what is working to other types of creative, and
routinely check performance to figure out what is giving you the best return on your investment
dollars. And don't be afraid to test new sites, creative, and more -- you'll never find out what will
work without determining what won't.

Quick tip: Keep in mind that true success lies in a combination of both click-through rates and
conversion. It's easy to get hung up on click-through rates, but sales are the ultimate measure --
so following your creative performance all the way through conversion is just as important.

Reporting and tracking


Track and analyze what is happening to your leads to figure out where and how they are
converting. Once you have this information, it's important to have the tools in place to report on
performance so you can take actionable steps to fix anything that isn't working or converting.

Quick tip: It's nearly useless to spend any amount of money on online advertising if you don't
have the software you need to track your conversions. If you don't have your own reporting tool
in place, consider using Google's Website Optimizer, or any other number of free reporting tools
available via the web. Then, take a closer look at where potential converters are dropping out of
your conversion funnel. You may find that your checkout process has form issues or confusing
steps that are causing abandonment. Once your entire conversion funnel is mapped for drop-offs,
don't leave it alone. Constantly review and test new adjustments. You'll often find that minor
tweaks to wording, form layout, or imagery can have a significant impact on conversion rate.

CPA budgeting
Before beginning any direct response campaign, define what your true allowable cost per
acquisition is. In other words, what can you afford to pay for each registration or sale? Make sure
to consider the long-term value of your customers beyond the initial sale. Think of alternate ways
that you can extract revenue from each customer, and factor that into your upfront costs. Often,
marketers haven't done the math ahead of time -- which can lead to budget trouble down the
road.
Quick tip: In a direct response campaign, be prepared to pay more per customer than in your
standard search campaigns. Before you take the plunge, run the numbers to see what you can
actually afford to pay for a new customer. You may find that you can't afford it -- or that it's very
much worth the effort and investment. Once campaigns are launched, revisit your actual metrics
to ensure that your projections on long-term customer value were correct. You may need to
revisit your CPA goals based on how your ROI metrics shape up.

Vendor relationships
When it comes to your team of vendors, it's important to set and manage campaign goals from
the start. Communicate your expectations -- such as important targets and your range of
allowable CPAs -- on a daily basis. In a branding world, a campaign's worth is measured in
impressions over a set time period. Direct response is an every day numbers game, so constant
adjustment is crucial to reaching and exceeding ROI goals. Keeping your vendors in the loop
will ensure that every change is seamless.

Also, seek feedback from key vendors on what other advertisers in your vertical are testing, since
publishers are a great source for insightful competitive intelligence. And review what other
advertisers are running on the vendor sites. If  you see a lot of other direct response advertisers
on the site, chances are that the vendor has a sales force that is built to sell direct response priced
CPMs and to handle the needs of advertisers looking to back into ROI metrics.

Quick tip: In a direct response campaign, a publisher's involvement is significantly higher, so it's
essential to have strong relationships with the account team to maintain constant communication
about hitting goals. Some publishers now have automated optimization tools, which can be
helpful in terms of communicating frequently about what's working and what's not. 

Ultimately, it's important to create and implement a hands-on, transparent approach that takes
into account the direct response "rules of engagement" with your vendors and your customers.
Knowing these rules and building your plan around them will enable you to take your campaign
and advertising relationships to new levels of success

Mobile marketing can refer to one of two categories of internet. First, and relatively new, is
meant to describe marketing on or with a mobile device, such as a landline phone. (this is an
example of horizontal telecommunication convergence). Second, and a more traditional
definition, is meant to describe marketing in a moving fashion - for example - technology road
shows or moving billboards.

Although there are various definitions for the concept of mobile marketing, no commonly
accepted definition exists. Mobile marketing is broadly defined as “the use of the mobile
medium as a means of marketing communication”[1] or “distribution of any kind of promotional
or advertising messages to customer through wireless networks”. More specific definition is the
following: “using interactive wireless media to provide customers with time and location
sensitive, personalized information that promotes goods, services and ideas, thereby generating
value for all stakeholders"
Mobile marketing via SMS

Marketing on a mobile phone has become increasingly popular ever since the rise of SMS (Short
Message Service) in the early 2000s in Europe and some parts of Asia when businesses started to
collect mobile phone numbers and send off wanted (or unwanted) content.

Over the past few years SMS has become a legitimate advertising channel in some parts of the
world. This is because unlike email over the public internet, the carriers who police their own
networks have set guidelines and best practices for the mobile media industry (including mobile
advertising). The IAB (Interactive Advertising Bureau) and the Mobile Marketing Association,
as well, have established guidelines and are evangelizing the use of the mobile channel for
marketers. While this has been fruitful in developed regions such as North America, Western
Europe and some other countries, mobile SPAM messages (SMS sent to mobile subscribers
without a legitimate and explicit opt-in by the subscriber) remain an issue in many other parts or
the world, partly due to the carriers selling their member databases to third parties.

Mobile marketing via SMS has expanded rapidly in Europe and Asia as a new channel to reach
the consumer. SMS initially received negative media coverage in many parts of Europe for being
a new form of spam as some advertisers purchased lists and sent unsolicited content to
consumer's phones; however, as guidelines are put in place by the mobile operators, SMS has
become the most popular branch of the Mobile Marketing industry with several 100 million
advertising SMS sent out every month in Europe alone.

In North America the first cross-carrier SMS shortcode campaign was run by Labatt Brewing
Company in 2002. Over the past few years mobile short codes have been increasingly popular as
a new channel to communicate to the mobile consumer. Brands have begun to treat the mobile
shortcode as a mobile domain name allowing the consumer to text message the brand at an event,
in store and off any traditional media.

SMS services typically run off a short code, but sending text messages to an email address is
another methodology. Short codes are 5 or 6 digit numbers that have been assigned by all the
mobile operators in a given country for the use of brand campaign and other consumer services.
Due to the high price of short codes of $500-$1000 a month, many small businesses opt to share
a short code in order to reduce monthly costs. The mobile operators vet every short code
application before provisioning and monitor the service to make sure it does not diverge from its
original service description. Another alternative to sending messages by short code or email is to
do so through one's own dedicated phone number. Besides short codes, inbound SMS is very
often based on long numbers (international number format, e.g. +44 7624 805000), which can be
used in place of short codes or premium-rated short messages for SMS reception in several
applications, such as product promotions and campaigns. Long numbers are internationally
available, as well as enabling businesses to have their own number, rather than short codes which
are usually shared across a number of brands. Additionally, long numbers are non-premium
inbound numbers.

One key criterion for provisioning is that the consumer opts in to the service. The mobile
operators demand a double opt in from the consumer and the ability for the consumer to opt out
of the service at any time by sending the word STOP via SMS. These guidelines are established
in the MMA Consumer Best Practices Guidelines which are followed by all mobile marketers in
the United States.

Many mobile marketing companies serve the SMS messaging industry. A regularly-updated list
is available here.

Mobile marketing via MMS

MMS mobile marketing can contain a timed slideshow of images, text, audio and video. This
mobile content is delivered via MMS (Multimedia Message Service). Nearly all new phones
produced with a color screen are capable of sending and receiving standard MMS message.
Brands are able to both send (mobile terminated) and receive (mobile originated) rich content
through MMS A2P (application-to-person) mobile networks to mobile subscribers. In some
networks, brands are also able to sponsor messages that are sent P2P (person-to-person).

A good example of MMS mobile originated Motorola's ongoing campaigns at House of Blues
venues where the brand allows the consumer to send their mobile photos to the LED board in
real-time as well as blog their images online.

[edit] In-game mobile marketing

There are essentially four major trends in mobile gaming right now: interactive real-time 3D
games, massive multi-player games and social networking games. This means a trend towards
more complex and more sophisticated, richer game play. On the other side, there are the so-
called casual games, i.e. games that are very simple and very easy to play. Most mobile games
today are such casual games and this will probably stay so for quite a while to come.

Brands are now delivering promotional messages within mobile games or sponsoring entire
games to drive consumer engagement. This is known as mobile advergaming or Ad-funded
mobile game.

Mobile web marketing

Google and Yahoo! as displayed on mobile phones

Advertising on web pages specifically meant for access by mobile devices is also an option. The
Mobile Marketing Association provides a set of guidelines and standards that give the
recommended format of ads, presentation, and metrics used in reporting. Google, Yahoo, and
other major mobile content providers have been selling advertising placement on their properties
for years already as of the time of this writing. Advertising networks focused on mobile
properties and advertisers are also available.
[edit] Mobile marketing via Bluetooth

The rise of Bluetooth started around 2003 and a few companies in Europe have started
establishing successful businesses. Most of these businesses offer "hotspot" systems which
consist of some kind of content-management system with a Bluetooth distribution function. This
technology has the advantages that it is permission-based, has higher transfer speeds and is also a
radio-based technology and can therefore not be billed (i.e. is free of charge). The likely earliest
device built for mobile marketing via Bluetooth was the context tag of the AmbieSense project
(2001-2004). More recently Tata Motors conducted one of the biggest Bluetooth marketing
campaigns in India for its brand the Sumo Grande and more of such activities have happened for
brands like Walt Disney promoting their movie 'High School Musical'

[edit] Mobile marketing via Infrared

Infrared is the oldest and most limited form of mobile Marketing. Some European companies
have experimented with "shopping window marketing" via free Infrared waves in the late 90s.
However, Infrared has a very limited range (~ approx. 10 cm - 1meter) and could never really
establish itself as a leading Mobile Marketing technology.

[edit] Mobile marketing via Proximity Systems

Mobile marketing via Proximity Systems, also referred to as Proximity Marketing, relies on
GSM 03.41 which defines the Short Message Service - Cell Broadcast. SMS-CB allows
messages (advertising, public information, etc.) to be broadcast to all mobile users in a specified
geographical area. In the Philippines, GSM-based proximity broadcast systems are used by select
Government Agencies for information dissemination on Government-run community-based
programs to take advantage of its reach and popularity (Philippines has the world's highest traffic
of SMS). It is also used for commercial service known as Proxima SMS. Bluewater, a super-
regional shopping centre in the UK, has a GSM based system supplied by NTL to help its GSM
coverage for calls, it also allows each customer with a mobile phone to be tracked though the
centre which shops they go into and for how long. The system enables special offer texts to be
sent to the phone.

[edit] Location-based services

Location-based services (LBS) are offered by some cell phone networks as a way to send custom
advertising and other information to cell-phone subscribers based on their current location. The
cell-phone service provider gets the location from a GPS chip built into the phone, or using
radiolocation and trilateration based on the signal-strength of the closest cell-phone towers (for
phones without GPS features). In the UK, networks do not use trilateration; LBS services use a
single base station, with a 'radius' of inaccuracy, to determine a phone's location.

Meantime, LBS can be enabled without GPS tracking technique. Mobile WiMAX technology is
utilized to give a new dimension to mobile marketing. The new type of mobile marketing is
envisioned between a BS(Base Station) and a multitude of CPE (Consumer Premise Equipment)
mounted on vehicle dashtops. Whenever vehicles come within the effective range of the BS, the
dashtop CPE with LCD touchscreen loads up a set of icons or banners of individually different
shapes that can only be activated by finger touches or voice tags. On the screen, a user has a
frame of 5 to 7 icons or banners to choose from, and the frame rotates one after another. This
mobile WiMAX-compliant LBS is privacy-friendly and user-centric, when compared with GPS-
enabled LBS.

In July 2003 the first location-based services to go Live with all UK mobile network operators
were launched.

[edit] User-controlled media

Mobile marketing differs from most other forms of marketing communication in that it is often
user (consumer) initiated (mobile originated, or MO) message, and requires the express consent
of the consumer to receive future communications. A call delivered from a server (business) to a
user (consumer) is called a mobile terminated (MT) message. This infrastructure points to a trend
set by mobile marketing of consumer controlled marketing communications.[5] Due to the
demands for more user controlled media, mobile messaging infrastructure providers have
responded by developing architectures that offer applications to operators with more freedom for
the users, as opposed to the network-controlled media. Along with these advances to user-
controlled Mobile Messaging 2.0, blog events throughout the world have been implemented in
order to launch popularity in the latest advances in mobile technology. In June 2007, Airwide
Solutions became the official sponsor for the Mobile Messaging 2.0 blog that provides the
opinions of many through the discussion of mobility with freedom.[6]

GPS is playing an important role in location-based marketing. There are many options for this
including [1]

[edit] Privacy concerns in mobile marketing

Mobile advertising has become more and more popular. However, some mobile advertising is
sent without a required permission from the consumer causing privacy violations. It should be
understood that irrespective of how well advertising messages are designed and how many
additional possibilities they provide, if consumers do not have confidence that their privacy will
be protected, this will hinder their widespread deployment.[7]

The privacy issue became even more salient as it was before with the arrival of mobile data
networks. A number of important new concerns emerged mainly stemming from the fact that
mobile devices are intimately personal and are always with the user, and four major concerns can
be identified: mobile spam, personal identification, location information and wireless security.[8]

[edit] Proposed changes to the existing legislation

Because the current telecom regulations are outdated in the EU and in the United States
particularly concerning unsolicited commercial communications and the spam issue new
legislation should be imposed. New laws should be more clear (simple), flexible and
comprehensive but still address only those issues, which are strictly necessary. This is important
because laws should promote competition, encourage investment, cut unnecessary costs, and
remove obstacles to doing business. They should be drafted in a technologically neutral way to
avoid the need to adapt the legal framework constantly to new developments and independent
from the parties involved. Consumers’ privacy must be protected and marketers have to be able
easily to understand and comply with the rules. Kaspersen Henrik W.K. has proposed that
directives with regard to unsolicited commercial communications should regulate not only
electronic communications but also paper distribution.[9] Moreover legislator should cooperate
with technological and business experts to create a reasonable legal framework

Application of these rules must be done in a sensible manner thus courts should avoid applying
new rules with too much severity because there is a risk of retarding or limiting the development
of a very promising industry.[10]But with too loose interpretation of the rules, consumers’ may not
feel protected which may also limit the development.[11] In other words if consumers concerns
about privacy are not addressed, the growth of mobile advertising may be endangered by the
same lack of consumer trust that has discouraged the growth of email marketing.[12] The
protection of privacy shall be achieved in combination with a number of efforts including
legislation, social norms, business practices and technical means.

MOBILE ADVERTISING: THE NEXT BIG THING

Written on October 6, 2007 by Ignacio Gafo in International Marketing, Nuevas Tendencias

The Economist joins the magazines that analyze the Mobile Marketing and more specifically the
Mobile Advertising.

I do think that Mobile Marketing and Mobile Advertising are indeed the next big thing. It is
just a question of time, but the advances are going much faster than anyone predicted. Mobile
Advertising is now taking the form and text messages (sms) and to a limited extent of
multimedia messages (mms). However, as long as the Internet access through tne mobile
improves and the mobile surfing speed gets quicker, the Mobile Phones will be definitively be
one of the most – if not the most – communication tool. Thus the importance and opportunity
that both the Mobile Marketing and Advertising represent.
I enclose the full article from The Economist.

Thoughts and comments are welcome.

Think Different!

Ignacio Gafo

—————————–

The next big thing

Marketers hail the mobile phone as advertising’s promised land

ADVERTISING on mobile phones is a tiny business. Last year spending on mobile ads was
$871m worldwide according to Informa Telecoms & Media, a research firm, compared with $24
billion spent on internet advertising and $450 billion spent on all advertising. But marketing
wizards are beginning to talk about it with the sort of hyperbole they normally reserve for
products they are paid to sell. It is destined, some say, to supplant not only internet advertising,
the latest fad, but also television, radio, print and billboards, the four traditional pillars of the
business.
At the moment, most mobile advertising takes the form of text messages. But telecoms firms are
also beginning to deliver ads to handsets alongside video clips, web pages, and music and game
downloads, through mobiles that are nifty enough to permit such things. Informa forecasts that
annual expenditure will reach $11.4 billion by 2011. Other analysts predict the market will be as
big as $20 billion by then.

The 2.5 billion mobile phones around the world can potentially reach a much bigger audience
than the planet’s billion or so personal computers. The number of mobile phones in use is also
growing much faster than the number of computers, especially in poorer countries. Better yet,
most people carry their mobile with them everywhere—something that cannot be said of
television or computers.

Yet the biggest selling point of mobile ads is what marketing types call “relevance”. Advertisers
believe that about half of all traditional advertising does not reach the right audience. Less effort
(and money) is wasted with online advertising: half of it is sold on a “pay-per-click” basis, which
means advertisers pay only when consumers click on an ad. But mobile advertising through text
messages is the most focused: if marketers use mobile firms’ profiles of their customers cleverly
enough, they can tailor their advertisements to match each subscriber’s habits.

In September Blyk, a new mobile operator, launched a service in Britain that aims to do just that.
It offers subscribers 217 free text messages and 43 free minutes of voice calls per month as long
as they agree to receive six advertisements by text message every day. To sign up for the service,
customers must fill out a questionnaire about their hobbies and habits. So advertisers can target
their messages very precisely. “Britain is the largest, but also the trickiest European ad market,
so if it works here it will work everywhere,” says Pekka Ala-Pietila, chief executive and one of
the founders of Blyk.

Last year America’s Virgin Mobile tried something similar with its “Sugar Mama” programme,
which offers subscribers the choice between receiving an ad via text message or viewing a 45-
second advertisement when browsing the internet in exchange for one free minute of talk time.
Those who spend five minutes filling out a questionnaire online get five more minutes. Sugar
Mama is proving popular: at the end of August Ultramercial, the company that manages the
scheme, reported that Virgin Mobile had given away more than 10m free minutes.
Vodafone, a big mobile operator based in Britain, sees mobile advertising as a potentially
lucrative source of additional income. For the time being, most of the ads on its network are still
text messages, although it has begun displaying ads on Vodafone live!, its mobile internet
homepage, through which subscribers access the internet and download videos and music.
Vodafone is also running several pilots, says Richard Saggers, the head of its mobile advertising
unit, in which subscribers receive free content in exchange for viewing ads. Earlier this year,
subscribers in Britain were given the option of downloading footage from “Big Brother”, a
reality-TV show, in exchange for viewing a promotional video clip. The firm has also offered
free video games punctuated with ads to customers in Greece, and free text messages to Czech
students who agree to accept ads in the same format.

Definition of SMS Marketing

Most mobile advertising strategies now rely on text messages, since few customers have taken to
more elaborate services that allow them to download music, games and videos and to surf the
web. Only 12% of subscribers in America and western Europe used their mobiles to access the
internet at the end of 2006. Most people think mobile screens are too small for watching TV
programmes or playing games, although newer models, such as Apple’s iPhone, boast bigger and
brighter screens.

That is not the only problem. While consumers are used to ads on television and radio, they
consider their mobiles a more personal device. A flood of advertising might offend its audience,
and thus undermine its own value. Tolerance of advertising also differs from one market to
another. In the Middle East, for example, unsolicited text messages are quite common, and do
not prompt many complaints. But subscribers might not prove so open-minded in Europe or
America.

Another hitch, says Nicky Walton-Flynn of Informa, is that operators have lots of databases with
information about their clients’ habits that would be of great interest to advertisers. But privacy
laws may prevent them from sharing it. Moreover, advertisers, operators and middlemen have
not agreed a common format for this information, nor worked out how to share the revenue it
might yield.

Some think these obstacles will confine mobile advertising to a niche for years to come. But
others see a whole new world of possibilities, as more people use their phones to access the
internet and consumers grow used to the intrusion. Mobile phones, some of which are now
equipped with satellite-positioning technology (see article), could be used to alert people to the
charms of stores or restaurants they are walking or driving past.

Tying ads to online searches from mobile phones is another potential goldmine. A subscriber
typing in “pizza” for instance, could receive ads for nearby pizza parlours along with his generic
search results. Such a customer, mobile operators hope, is likely to be more grateful than
annoyed by the intrusion. What could be more relevant than that?
With more than 2.4 billion active users worldwide, Short Message Service (SMS), or text
messaging as it is also known, is the most widely used data application on earth. In Western
Europe, almost 80 percent of all mobile users actively use SMS on a regular basis, while in the
U.S., that figure is only 49 percent, but growing steadily. Compared to other marketing channels,
mobile marketing is cheap per marketed individual. Its other advantages include being time- and
location-specific, instantaneous, discrete and spam-free.

History

1. Commercially launched in the U.K. in 1995, SMS text messaging didn't come into its own until
1998, when text messaging was available across all four major U.K. mobile networks -- O2,
Orange, Vodafone and T-Mobile. With a simple "Merry Christmas," Neil Papworth of the Sema
Group sent the first text message to Richard Jarvis of Vodafone on Dec. 3, 1992. Since this
simple holiday greeting, literally billions of messages have been sent and received.

SMS' Exponential Growth

2. Offering convenience and ease of use, SMS text messaging's exponential growth has been
impressive. SMS opt-in marketing campaigns that create a powerful two-way instantaneous link
between a business and its consumer should help fuel this growth even further. As mobile users
recognize SMS' inherent ability to give them access to information instantly, these figures should
only increase.

Opting In

3. Opting in to a mobile campaign is a key criteria for mobile marketing. Mobile marketing is
primarily a "pull" media model, meaning a consumer must sign up for the service rather than
the traditional "push" media model, which gives the consumer no choice in whether they want
to be advertised to or not. Mobile marketers must spend money advertising their services to get
users to sign up, but if they do the potential is huge.

SMS' Advantages

4. Making it illegal to send a text message to someone who hasn't opted in to the service has
created a spam-free environment for SMS. According to a survey conducted by the Opinion
Research Corporation, among people under 30 years old, 91 percent of received SMS messages
are responded to within an hour by the recipient. SMS marketing's unique advantage is its
ability to laser-target a relevant message to an oftentimes primed individual. Its ability to do
one-on-one advertising anytime, anywhere to any individual with a mobile phone is superior to
any other marketing channel currently available.

SMS Marketing Campaigns

5. Creating an ongoing relationship between a business and its customers is the most important
SMS advantage. For example, in a form of dynamic pricing, mobile coupons can be sent out to
opted-in customers to help fill restaurant tables or venue seats that might otherwise have gone
empty. SMS Customer Relationship Management (CRM) systems can track guest lists at
nightclubs and, when a manager recognizes it's going to be a slow night, he or she can entice
customers into a club with offers of his choosing.

Virality

6. The most effective marketing messages are those that require the least amount of thought on
the part of the consumer. Unlike emails, which are not always read or even seen immediately,
SMS marketing is usually read by the recipient instantly and, in many cases, responded to
immediately. SMS also has the potential to go viral, i.e., one person who receives an SMS
message can forward it to his or her list of contacts, who can then forward it to their list of
contacts, increasing marketing efficiency exponentially.

Limitations

7. Limiting users to 160 characters might seem like a huge drawback to SMS marketing, but with
the increasing prevalence of smart phones that can link to fully interactive experiences on the
Internet, the character limitation is almost a moot point.

Read more: Definition of SMS Marketing | eHow.com


http://www.ehow.com/about_6562774_definition-sms-marketing.html#ixzz19xDkyol7

The Advantages of Sms Marketing

 SMS marketing gives businesses a technologically savvy way to reach out to their customer bases by
sending text messages to their cellular phones using short message services. Businesses use SMS
marketing to communicate sales and promotions, product launches and other important, timely
information to their customers using web-based solutions.

Send One Message to Many People


 SMS marketing gives business owners and their marketing teams the opportunity to send a unified
message to its entire customer base or to segments. More efficient than making phone calls to several
customers, SMS marketing is a convenient one-touch approach to distributing a message to customers.

Permission-Based Marketing
 Businesses can ask for a customer's permission to add them to their SMS marketing database for the
purpose of receiving product and promotion information. Customers who sign up receive alerts serve as
potential leads for sales and services, since they've already expressed some interest in the business. The
FTC doesn't have any formal regulations in place for SMS marketing, although Direct Mag reports that
they are monitoring the impact of consumers receiving unwanted text messages. Direct Mag also
reports that many wireless carriers are blocking volumes unsolicited messages monthly to protect their
consumers.

Personal Form of Communication


 Clients and potential clients are accustomed to receiving text messages from friends, family and
colleagues as a means of communication. It's a personal way for them to send quick messages back and
forth without making a call, sending a letter or composing an email. Customers who opt-in to receive
SMS messages from businesses are signing up to enhance their relationship with business the patronize.

Local Marketing
 SMS marketing helps local business owners connect with the community. It offers a platform for
contacting local customers with messages about lunch sales, special store events and local community
news.

Use Fewer Resources


 SMS marketing is meant to provide customers with a quick message or reminder, rather than the
more complete marketing messages may receive in a direct mail or email campaign. Quick messaging
saves business owners resources because they spend less time preparing the message and less money
on hiring a writer to craft a message.

Deliver Time Sensitive Data


 As Business Link online reports, most people who own cell phone take them everywhere they go. So
that means a business advertising a sale for its most loyal customers, can send an SMS message at 8 a.m.
to announce a sale starting several hours later. Businesses can also update customers about
reservations, sold out items and newly stocked items almost instantly.

Read more: The Advantages of Sms Marketing | eHow.com


http://www.ehow.com/list_6363268_advantages-sms-marketing.html#ixzz19xFHVGJf

What Is The Direct Marketing Association?


DID YOU KNOW... You can place a shortcut
icon to DMA Interactive on your desktop.
Overview

The Direct Marketing Association (DMA) is the leading global trade association of businesses
and nonprofit organizations using and supporting multichannel direct marketing tools and
techniques. DMA advocates industry standards for responsible marketing – both online and
offline, promotes relevance as the key to reaching consumers with desirable offers, and provides
cutting-edge research, education, and networking opportunities to improve results throughout the
end-to-end direct marketing process.
Founded in 1917, DMA today represents companies from dozens of vertical industries in the US
and 48 other nations, including nearly half of the Fortune 100 companies, as well as nonprofit
organizations.

In 2009, marketers – commercial and nonprofit – spent $149.3 billion on direct marketing, which
accounted for 54.3% of all ad expenditures in the United States. Measured against total US sales,
these advertising expenditures generated approximately $1.783 trillion in incremental sales. In
2009, direct marketing accounted for 8.3% of total US gross domestic product. Also in 2009,
there were 1.4 million direct marketing employees in the US. Their collective sales efforts
directly supported 8.4 million other jobs, accounting for a total of 9.9 million US jobs.

Each dollar spent on direct marketing yields, on average, a return on investment of $11.73,
versus ROI of $5.23 from non-direct marketing expenditures. That's the Power of Direct.
From DMA's The Power of Direct Marketing: ROI, Sales, Expenditures and Employment in the
US, 2009-2010 Edition.

DMA is headquartered in New York City and has an office in Washington, DC. It represents its
members' interests in each of the 50 states as well as on Capitol Hill, at the Federal Trade
Commission, the Federal Communications Commission, and other agencies such as the United
States Postal Service (USPS). Each year DMA tracks thousands of proposed laws and
regulations in Washington, DC and across the nation. We address key Federal and state policy
issues that affect the direct marketing community such as behavioral marketing, data security,
privacy, postal reform, Do Not Mail legislation (DNM), the Streamlined Sales and Use Tax
Agreement (SSUTA), and others.

DMA provides best-in-class education and professional development including specialized


seminars; webinars; in-house training; certificate programs; access to direct marketing databases
and information; a library and resource center; as well as case studies; white papers; in-depth
analyses; performance benchmarks; thought-leader trend briefings; and research reports. DMA's
comprehensive education programs have content available online through virtual seminars and
self paced e-Learning modules. The programs are delivered in collaboration with thought leaders
from across the community and top experts in the appropriate fields including the newly
expanded Search Engine Marketing certification program and the DMA Certified Marketing
Professional Program.

DMA hosts numerous, events, conferences, and exhibitions including the Retail Marketing
Conference (RMC); Digital Marketing Days New York Conference & Expo; The Email
Evolution Conference; the National Center for Database Marketing Conference & Exhibition
(NCDM); the National Conference on Operation & Fulfillment (NCOF); multiple Nonprofit
Conferences; and the largest gathering of cross-media/channel marketing professionals, the
DMA Annual Conference.

We are increasingly active in international government relations, including the Federation of


European Direct and Interactive Marketing (FEDMA), the Universal Postal Union (UPU), and
have forged partnerships with the China Direct Marketing Association (CDMA) and the Arab
Direct Marketing Association (ADMA).  DMA keeps an online roster of different Direct
Marketing Associations from around the world, as well as numerous international resources and
business links.  We operate a Safe Harbor Program, The International ECHO Awards
Competition, a Global Advisory Board, and an International Council.

DMA also promotes the direct marketing community and member companies to consumers,
fights negative perceptions, ensures fair treatment by the media, and proactively addresses the
issues affecting marketers.  We maintains our Commitment to Consumer Choice (CCC)
Program, part of our continued emphasis on empowering consumers and strengthening their trust
with the direct marketing community, where members follow specific practices to protect
consumer preferences and privacy, as well as preserve self-regulatory actions.  In October 2008
DMA launched DMAchoice.org, a site empowering consumers to opt-out of commercial
mailings they would prefer not to receive and opt-in to get commercial mailings they do want, all
from a single, free, Web-based account.  DMAchoice is a portal for all channels, enabling
marketers to reach audiences with maximum efficiency, and effectively communicate with
people who are interested in their products, services, or messages.

DMA maintains a US-wide Affiliate Network in order to:  unify the direct marketing
community; build deep political grassroots to enhance all direct marketers' lobbying strength;
enhance the national and local educational, informational, and networking opportunities; and
build membership both locally and nationally.

To enhance networking and learning opportunities for its members, DMA has over 20 Special
Interest Councils:  Agencies; Analytics; Broadcast; Business-to-Business; Catalog and
Multichannel Marketing; Circulation; Contact Center; Customer Relationship Management;
EMail Marketing; Hispanic Marketing; Insert Media; Insurance & Financial Services;
International; List & Data; Marketing Technology; Mobile Marketing; Nonprofit; Pharma and
Healthcare Marketing; Retail Marketing; Search Engine Marketing; Social Media; and Travel
and Hospitality.

DMA publishes Point, a digital publication focused on one timely, highly relevant topic,
explored in-depth by several high-level experts representing a variety of viewpoints in the
marketing spectrum, per installment.  Soon to debut is CinemaDMA, where direct comes alive,
an online video library featuring thought leaders, pace-setting innovators, and industry trend-
setters sharing their thoughts and experiences from today’s direct, digital, cross media,
multichannel environment.

DMA is actively engaged in Facebook, LinkedIn, Twitter, and YouTube.    

For more information about DMA or its subsidiaries, call 212.768.7277 or e-mail us at
membership@the-dma.org.

DMA Annual Report

back to top
What DMA does

In today's world, direct marketing has evolved into a data-driven, cross media, interactive,
multichannel process for building and cultivating mutually beneficial relationships between you
and your customers and prospects.  The future of your organization depends a great deal on how
you communicate, and direct marketing is your most important tool.

DMA Mission
DMA’s goal is to keep all marketing channels open and economically viable, as well as maintain
the flow of data that fuels multichannel marketing.  DMA advocates with legislators and
regulators, provides reputation management, cutting-edge research and education, as well as
networking and market making opportunities to improve results throughout the end-to-end direct
marketing process.  We call this combination The Power of Direct.

DMA's Five Centers of Excellence of Member Service


DMA shapes the way organizations apply direct marketing methods to all marketing, sales, and
customer service.  The outstanding array of the membership benefits is organized in five areas:

 ADVOCACY
DMA is the voice of the direct marketing community on state, federal, and international levels.
We act as advocates for direct marketing standards and self-regulation to ensure responsible
marketing, and we also serve as a liaison to government officials to represent direct marketing
interests in public policy, media, and other venues.

 REPUTATION MANAGEMENT
DMA promotes the direct marketing process and member organizations to consumers, fights
negative perceptions, and addresses issues affecting marketers. We promote responsible
business practices through outreach to marketers on most important topics, as well as establish
and continuously update stringent ethical guidelines for marketers. We also assist our members
with setting and adhering to those ethical standards and support them in their compliance
efforts.

 EDUCATION/PROFESSIONAL DEVELOPMENT
DMA is committed to providing professionals with educational and training opportunities.
Through seminars, virtual seminars, conferences, in-house training programs, certificates, and
many events, we help our members stay abreast of news and developments, improve their
overall marketing expertise, and enhance their ability to compete.

 NETWORKING & MARKET-MAKING


As a DMA member, you will be a part of the largest network of direct marketers anywhere.
Member organizations get unparalleled opportunities to share ideas with the finest minds in the
community, connect with peers, and forge business relationships.

 MARKET INTELLIGENCE/RESEARCH
DMA membership gives you access to a wealth of information to help you make knowledgeable
marketing decisions. Research publications and DirectLINK online provide valuable market
intelligence for every segment and topic of the direct marketing community. The cutting-edge
research lets you accurately keep pace with trends and measure your organization’s activity
relevant to current direct marketing.

To learn more about specific DMA activities, view our Annual Report.
Explore DMA Services or download our Products and Services Brochure.

back to top

Who are DMA members?

DMA's members can be categorized into three broad segments: marketers, vendors and suppliers
to the direct marketing community, and nonprofit organizations.

Both consumer and business-to-business marketers are the users of direct marketing techniques.
These marketers employ a number of media, including websites, catalogs, television, inserts,
mobile, magazines, email, and search.  The suppliers are those companies that provide marketing
companies with supplies and services.

DMA’s membership roster includes companies such as:  Google; Microsoft; Procter & Gamble;
Time Warner/AOL; Xerox; Yahoo!, and nonprofits such as:  American Red Cross; American
Institute for Cancer Research; Habitat for Humanity; St. Jude Children's Research Hospital;
North Shore Animal League America; and The Nature Conservancy.

Join this group of gold standard marketers and suppliers when you become a DMA member.

back to top

What is direct marketing?

Direct marketing is defined as an interactive process of addressable communication that uses one
or more advertising media to effect, at any location, a measurable sale, lead, retail purchase, or
charitable donation, with this activity analyzed on a database for the development of ongoing
mutually beneficial relationships between marketers and customers, prospects, or donors. Along
with mass advertising, direct marketing allows organizations to inform potential customers,
create brand awareness, or spur immediate purchase behavior. In addition, direct marketing
enjoys certain advantages over mass advertising such as measurability, accountability,
efficiency, and higher return on investment. The Power of Direct means relevance,
responsibility, and results.

The process of direct marketing:

 Begins with data for identifying and addressing categories of prospects, customers, or donors
(by nonprofit organizations) judged most likely to be interested in the product or service.  Direct
marketing therefore depends on a vibrant list and database infrastructure.;
 Analyzes this data through a variety of data to develop relevant and effective offers and
communications between the marketer and customer or prospect;

 Utilizes a variety of addressable media, individually or in combination, to produce, deliver, and


receive such communications and/or exchanges of value (products, services, payments)
between marketers and customers;

 Uses market segmentation and optimization to measure such communications and transactions
between marketers and customers, especially transaction responses (response rates and
average order size) driven by, or related to,  communications messages exchanged;
 Tests new communications against past communications to improve future interactions
between marketers and customers in an ongoing "learning process" leading to long-term,
mutually beneficial relationships.

Source:  The Power of Direct Marketing, 2009 – 2010 Edition

When fully integrated throughout the organization, direct marketing processes increase the
organization's overall efficiency, from initial product research and development decisions
through final customer sales and service.  Because today's direct marketing processes are so
efficient and powerful, a business that does no direct marketing is increasingly rare.  Every
company should consider expanding its use of direct marketing techniques and benefit from The
Power of Direct.

Find out how DMA membership will benefit your organization

What is mobile marketing?

Mobile marketing is promotional activity designed for delivery to cell phones, smart phones and
other handheld devices, usually as a component of a multi-channel campaign.

Some mobile marketing is similar to advertising delivered over other electronic channels such as
text, graphic and voice messages. SMS messaging is currently the most common delivery
channel for mobile marketing. Search engine marketing is the second-most common channel,
followed by display-based campaigns.

The expanding capabilities of mobile devices also enable new types of interactive marketing.
New mobile marketing channels include:

 location-based service (LBS), which involves detecting the area the user is connecting
from (geolocation) and sending marketing messages for businesses in that area.
 augmented reality mobile campaigns, which overlay the user's phone display with
location-specific information about businesses and products.
 2D barcodes, which are barcodes that scan vertically as well as horizontally to include
much more information. A mobile user can scan barcodes in the environment to access
associated information.
 GPS messaging, which involves location-specific messages that the user picks up when
he comes into range.

The Kelsey Group, a marketing research company, predicted that the mobile advertising industry
would grow from to $3.1 billion in 2013, up from $160 million in 2008. The firm also predicts
that mobile search marketing will account for 73% of mobile marketing by 2013, up from 24%
in 2008, and that SMS-based campaigns would shrink to 9%, down from 63% in 2008. Display-
based campaigns are expected to stay relatively steady, up to 18% from 13%.

Learn More About IT:


> The Mobile Marketing Association provides relevant news, articles and research.
> This free chapter download provides background on the technologies behind mobile
marketing.

Learn more about Smartphones and Mobile Phones

 Product review: Top smartphone expense reporting applications


Product Review  - Smartphone expense reporting applications from Concur and
Expensify simplify expense tracking for road warriors. Standalone mobile expense
reporting tools from iXpenseIt and ExpenseManager are...
 IBM & Microsoft mobile clients: Unified communications for smartphones
Feature   - IBM and Microsoft are unified communications market leaders and have
developed mobile clients for smartphones. Learn how to extend your traditional IBM and
Microsoft network tools and applications to...
 Enterprise mobile security: Learn the keys to mobile app/OS protection
Chapter Download  - Enterprise mobile security has become imperative to protect users
increasingly relying on their mobile devices. This chapter from "Mobile Application
Security" shows you how to protect your mobile...
 The best Palm Pre accessories: Add-ons, batteries, chargers and much more
Chapter Download  - Looking for the best Palm Pre accessories to customize your new
smartphone? This chapter from the book "How to do Everything: Palm Pre" showcases
products that can help you get more out of your...
 The best Palm Pre accessories: Add-ons, batteries, chargers and more
Chapter Download  - Looking for the best Palm Pre accessories to customize your new
smartphone? This chapter from the book "How to do Everything: Palm Pre" showcases
products that can help you get more out of your...

Social Media as a Direct Marketing Channel


The old techniques meet the new technology.
By Ryan Deutsch
Posted Oct 9,
Unless you've been hiding under a rock (without Internet access), you know that there is a
tremendous buzz around social media right now. The incredible success of Facebook and the
atmospheric rise of Twitter have brought the power of social networks to the forefront of society.
If you need any proof of how mainstream social networks have become, walk into any library
and see all the computers being used by patrons to check and update their myriad social
networks. Even Oprah recently devoted an entire episode to Twitter. It doesn't get any more
mainstream than that.

Not surprisingly, the rising popularity of social networks has not escaped the attention of direct
marketers. In fact, companies like Dell and Amazon have been widely profiled on how they use
Twitter to market their products to customers, who in turn expose these offers to their friends and
followers. In fact, Dell's Twitter feed @DellOutlet just surpassed $2 million in sales. Similarly,
many companies are scrambling to build an extensive network of "fans" on Facebook to
communicate exclusive offers and create a community of loyal brand advocates. However, like
any emerging channel, companies are still trying to figure out the best way to leverage social
media to drive customer engagement and response.

While some companies see social networks as merely another channel for building awareness,
there is new evidence that direct marketers are vying to take ownership for social network's
incredible demand generation potential. StrongMail recently completed a survey of 500
marketers, who validated not only the importance of leveraging social media for direct
marketing, but also in having it integrated with their email marketing programs.

The survey highlights the "land grab" that is going on in organizations over control of social
media, with 29 percent of respondents saying social media is being shared by multiple
departments. However, ownership by direct marketing took the lead with 36 percent of
respondents. As a frame of reference, only 9 percent of respondents stated that social media was
owned by public relations departments.

That social media is a viable and powerful direct channel is clear. Nevertheless, the survey also
revealed social media's strong connection with email marketing. In fact, 66 percent of marketers
plan to integrate the two channels in 2009. This move totally makes sense: Email is an integral
part of social media, as it is relied upon to keep members informed about the latest news and
updates. Furthermore, integrating the two channels allows marketers to get a more complete
view of the customer, which is necessary for delivering relevant and effective communications.

The emergence of social media as a direct channel is not without its challenges. According to the
survey, the top two challenges for marketers came down to finding the right strategies for
measuring success and establishing business goals.  

Being able to measure success is critical to any direct marketing effort, and that's why it's
important not to neglect this important step. With the right tools, marketers can create viral social
media campaigns that can be tracked, measured, and optimized to maximize reach and return on
investment.
Social media is a valuable new tool in a direct marketer's toolbox, but it needs to be sharpened
and used correctly to accomplish the task at hand. Making it easy for customers to share Web site
or newsletter content over social networks is just the beginning. Direct marketers need to
develop viral programs that fully exploit the channel's true potential. Finally, they need to
identify ways to measure their success, which will allow them to fine tune their efforts going
forward. 

Leveraging social media as a direct channel also enables central ownership, which is key to
maximizing success across all departments. Eliminating multiple owners not only streamlines the
process, it facilitates having one cohesive strategy that can accommodate the business objectives
of multiple departments, such as sales, public relations, and customer service. Uncoordinated
management by multiple departments can lead to mixed messages that hamper the company's
ability to attract fans, followers, or other influencers.

Email marketers understand the value in sending targeted messages and measuring their
effectiveness, which is why it's not surprising that many companies are leveraging their email
marketing departments to embark on social media initiatives. Not only are the two channels
closely related, they are also the top two areas of investment in 2009. As companies catch up
with the social media trend, their direct marketing departments will no doubt be leading the
charge.

You might also like