DMA 2009 iDirect presentation Stan Rapp & Tim Suther

High Performance Marketing & Advertising

Stan Rapp, EngaugeTim Suther, Acxiom

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The iDirect Revolution

It’s going to be a jam-packed three days . . .

Pause for a feel-good moment

The once-in-a-thousand years celebration

January 1, 2000

20th Century Wipeouts

• Landlines

• Neckties

• Record Albums

• Cash

• Advertising

• Gas Guzzlers

It was going to be a great century…after getting the 20th behind us.

First Decade 21st Century

• The DotCom Crisis

• 9/11 Terror Crisis

• War in Afghanistan Crisis

• Hurricane Katrina Crisis

• Housing Crisis

• Disappearing Arctic Ice Crisis

• Unemployment Crisis

… And 15 more months to go

• War in Iraq Crisis

• Health Care Crisis

• Marketing Crisis

The Time Is Now

“We need to reinvent the way we market to consumers”A.G.Lafley, Procter & Gamble CEO Chairman

Lots of Talk. Not much else.

March 26, 2007

The same old wasteful advertising

2009 Forecast: Down 5.1%

2008: $142 billionDown 2.7%

Will they ever learn?

$2 trillion down the drain in the 20th century

Yes!!! TWO TRILLION DOLLARS

And it only gets worse in the 21st century

60% of Print Media Advertising is garbage

No engagement

No brand-building

No Internet connection

See for yourself

A “Nonvertising” Example

…and another … and another … and another

To paraphrase Mark Twain…

“Reports of the death of advertising-as-usual and the reinvention

of marketing have been greatly exaggerated.”

Until now. . .

Say hello to the e-conomy

Solution: Take ‘em by the hand and lead ‘em to a memorable interaction online.

Pouring more money into disruptive and disconnected “Nonvertising”

is a huge miss-take

The New Reality

Millions of us are playing, working,flirting and socializing online and

producing oceans of data . . .

The Great Disconnect

Email MarketingSearch Marketing

Friendship MarketingMobile Marketing

Interactive marketingDigital MarketingDirect Marketing

The Ultimate Connection

Direct is Digital

Digital is Direct

Lafley’s dream come true

Sponsored by Engauge, a customer engagement marketing agency

What the Book Reinvents

What was mistakenly seen as disparate disciplines are one and the same.

Optimizing each consumer engagement

Direct goes emotional with new iDTV Advertising

Media allocation for a mass networking era

Holding customers in the palm of your hand

Email Monetizer life support for customers

iBrands: the new face of the consumer

The new “Test. Test. Test.” mandate

What is iDirect Marketing?

iDirect is the future of marketing. It is the growth engine at the confluence

of Digital and Direct that enablescustomer engagement to drive a better ROI than ever before.

What iDirect marketers do

iDirect marketers go directly to like-mindedpeople with an awesome awareness of each person’s needs, lifestyle and behaviors.

They create online, on-going engagement thatspreads across the internet from person to personfor accountable, profitable outcomes.

The “i” is what now drives Direct

iDirect is interactive, information-driven, insightful, innovative, iterative, and

grounded in what the intersection of the internet and direct marketing practices make possible today as never before.

And now . . . over to Tim Suther for more on the Engauge and Acxiom vision of an iDirect marketing future

Thanks for being here today

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The iDirect Revolution…continued 

Tim SutherSVP, Multichannel Marketing ServicesTim.Suther@acxiom.com001-630-944-0416www.acxiom.com

http://www.linkedin.com/in/timsutherhttp://twitter.com/timsutherhttp://www.slideshare.net/TimSuther

Living next to the train tracks

$112 billion of advertising is wasted each year in the US alone

$4 trillion excess brand valuation

22% of Americans feel advertising is credible…compared to 45% for talk shows

42% of consumer media consumption is online

7% of disposable income is now saved – was 0%

Change May Be Necessary

The Four Fundamentals 

of iDirect Marketing

1.  Data is the new black

30% of customers deliver the majority of profits

50% Add nothing

20% Cost companies money

SAS

The Differentiated Value of Customers

Awareness

Shopping & Consideration

Purchase

Up/Cross-sell

1.  Data is the new blackKnow the “who” when they’re “there”

2.  Optimization hinges on a 360̊ view

• Explicit & inferred preferences

• Wants & needs

• Motivations & attitudes

• Social influence circle

• Cross-channel behaviorhttp://www.youtube.com/watch?v=9hq5jZrFTbE

Remember every interaction and learn

2.  Optimization hinges on a 360̊ view

McKinsey/BAIcomScore

Display Viewthrough Effect

eHarmony/Dynamic Logic

The interrelated and overlapping effects of media

3.  The confluence of insight & media

• With most media, you never know who you’re gonna get.– ~80% online ad spend delivered

to wrong audience. comScore 2009

• Knowing who determines:– How much to invest…if anything– What to say…without guessing

• The typical marketing problem:– Over-invest in low value

relationships– Under-invest in high value

relationships

3.  The confluence of insight & media

Cadillac

AllstateHershey

American Express

PersonicX Consumer Segments PersonicX Consumer Segments

PersonicX Consumer Segments PersonicX Consumer Segments

UV

Inde

xU

V In

dex

UV

Inde

xU

V In

dex

Source: Acxiom comScore (July 2009)

A look at “who” at world class brands

MSN96 MM UV’s

AOL70 MM UV’s

eBay56 MM UV’s

Yahoo148 MM UV’s

PersonicX Consumer Segments PersonicX Consumer Segments

PersonicX Consumer Segments PersonicX Consumer Segments

UV

Inde

xU

V In

dex

UV

Inde

xU

V In

dex

Acxiom, comScore

…and at leading publishers3.  The confluence of insight & media

4.  It’s about accountability & execution

63% or 30%?CMOs ability to set v execute strategy

80% or 8%?A superior brand experience? CEOs view v their customers

4.  It’s about accountability & execution

1. Identify customer value

2. Invest proportionally

3. Engage accordingly

4. Measure acquired customer value

So, now what?

“Run the picket fence!”

The Four Fundamentals…Summarized

• Data is the new black

• Optimization hinges on a 360̊ view

• Confluence of insight & media

• Accountability & execution

These are the lessons of direct marketingThese are the lessons of iDirect marketing

Hidden in plain sight

iDirect at work…

4x “orders per thousand”– Connecting print & digital

3x applications; 5x online revenue; same head count– Connecting call center & digital

2x online bookings– Connecting outbound & website

7.5x website spend– Connecting mobile & email

17x response– Connecting TV & offline

$200M revenue / $4.5MOpEx savings – Connecting call center & digital

$100M/yr EBIT impact– Multichannel connection

9-figure/yr revenue impact– Multichannel connection

“How & Why” “The Benefit”

1) Use Relevance-X Display to concentrate online ad spend and then follow with Relevance-X TV.

2) Use Relevance-X Social to recognize socially active customers & prospects and implement and track your direct social media marketing initiatives

3) Use Impact-X Mobile integrated with Impact-X Email for likely halo effect

4) Identify high-volume drivers of calls proactively deliver relevant content to address needs that would have solved the reason for those calls.

5) Impact-X allows you to follow the digital footprints to recalibrate your outbound marketing initiatives

6) Email a branded transcript back to site visitors. Include buttons to “buy” or to “subscribe” to other services.

7) Identify opportunities to improve organic visibility, potentially reduce paid search.

8) Build / implement predictive models to screen out low value leads provided. Consider a test with Acxiom CoReg services and / or e-list rental.

9) Target and test content with Impact-X Site. Implement Relevance-X analytics tags to measure conversion funnel progress by lifestage segment.

10) Relevance-X Display Retargeting : 53% of shopping carts abandon. Remarket based on specific site behavior / lifestage.

1) 3-5X revenue / ad dollar at other clients Existing customers respond 17X to prospects to digital TV ads

2) Match against 500M socially active individuals (~60-70% of any email list)

3) Avg. mobile purchaser has higher income & spends 2X over Web-only.

4) $2M / year cost displacement & $200M / yr influenced revenue at another client.

5) 2X website conversions achieved at another client.

6) This is the highest performing email application at another client.

7) 72% of Google clicks are organic. A proper audit enables more free traffic

8) The bottom three deciles can likely be eliminated without impacting conversions.

9) Personalized site experiences drive 4–15X ROI.

10) Remarketing generates $4–10 revenue per ad dollar.

1) Reduce wasted ad impressions, concentrate spend on highest value consumers

2) Recognize & connect with social media influencers

3) Engage customers and prospects via mobile lifecycle messaging

4) Examine call center patterns, use email to pre-empt expensive personal support

5) Connect Web analytics with outbound messaging

6) When chat available on site, offer to send a branded transcript of the chat.

7) Perform an organic search audit

8) Implement lead scoring when receiving third party leads

9) Improve the site experience

10) Retarget site visitors that do not convert

“The Idea”

10 Easy Money Ideas for an iDirect mindset

Summary

• iDirect is a new paradigm formed at the intersection of digital technologies and direct marketing practices

• iDirect is interactive, information-driven, insightful, innovative, individualized and iterative

• Focus on the 4 fundamentals of iDirect marketing• Take the easy money

The global interactive marketing services company

Thank You

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Oct 29, 2009Live in Little Rock, AR & via webinar

Interactive Marketing Leadership SeriesHenry Harteveldt, Forrester

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