Or how Paper mail and Email work together to seduce the consumer

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Welcome to

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Everything youalways wanted to know about …

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The Post

■ Some key figures about E & P

■ When do I use E or P?

■ What are the advertisers’ questions & challenges concerning E & P?

■ The strenghts of both media: Key assets, tips and success stories

■ The future is on-line?

3 Cases illustrating the power of the mix

■ Belgacom/ Alcatel: Philip De Cleen & Steven Van Dingenen

(Duval Guillaume)

■ Nutricia: Laurent Van Duyse (Wanabe)

■ Scottex & The best of Cannes: Geoffrey Hantson (Duval Guillaume)

Agenda

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4 special guests for you today…

NiveaAnne Portzenheim – Global Communication Manager

CitibankMichel De Bolle - Marketing Director

Deutsche BankPhilippe Etienne - Head of Campaign Management

OgilvyOne & OgilvyInteractiveKoen Van Impe - Managing Director

1. Some key figuresabout these media

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Turnover IncreaseMio euro

224221214212

227

238

2002 2003 2004 2005 2006 2007

* Direct Advertiser Survey, Post

Direct Mail is still on the rise

+ 12.2 %+ 4.8 %

Usage increase:

8% of non direct mail users will start with Direct Mail in 2008*

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Gross media investments

by Media Type Jan - June

Direct Mail; 10,3%

Cinema; 0,6%

Dailies; 20,8%Radio; 10,9%

Regional Weeklies; 4,4%

Internet; 2,8%

Magazines; 8,7%

Postering; 7,2%

Television; 34,2%

Addressed Direct Mail represents 10,3% of gross media spendings

Mass Media (Cim MDB-Mediaxim): 1.560,5 Mio eur

Direct Mail (La Poste-Mediaxim): 179.4 mio eur

Source: Mediaxim CIM-MDB, Pige DM La Poste-Mediaxim

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97% opens

mailbox every day

… but receives only 2

DM/ week

78% is

opened

Consumersspend

1’52’’ per mail

… and behind every letterbox

is a unique person

you can target

The strength of direct mail, the MAIL MOMENT…

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E-Mailbox Potential Reach*

67

38

33 33

21

8

57%

No

Yes

Total

Daily

Weekly

Less often

Frequency

Frequency of consulting e-mail is lessintensive than paper mail

* Source: TNS 2007

** Source: MAS 2005

Letterbox Reach**

100 97

0

97%

No

Yes

Total

Daily

3% Weekly

Frequency

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Total online advertising market2006 - 2007

Total marketGross invoiced prices in €

55.255.140

77.656.628

2006 2007

Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”)

+41%

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Channel evolution2006 - 2007

Evolution 2006 - 2007in 000 €

0

10.000

20.000

30.000

40.000

50.000

60.000

Display Keyword ContentIntegration

E-mail Newsletter Other

20062007

Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”)

+37%

+82%

+9% +24% -6% +79%

5%

?2. When do I need

to use E or P?

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Consumers are “bombed” by a few 1000 mass messages every week

200 TV ads

150 radio ads1000’s of ambient ads ...

Weekly number of advertising messages per capita

20 e-mail ads

3 cinema ads

400 press ads/inserts

350+ outdoor ads

2+ DM pieces

Opportunity for Direct !

Source: Mindshare - Henley Centre (and TNS Media & Post survey)

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With regards to advertising in the following media, would you say there is …?

5%

4%

74%

68%

70%

71%

62%

61%

59%

44%

44%

22%

18%

20%

25%

26%

36%

37%

39%

41%

54%

77%

11%

12,10%

8,40%

0% 20% 40% 60% 80% 100%

Dm (Averages)

E-Mails (Averages)

cinema (n=678)

dailies (n=981)

magazines (n=1046)

free press (n=991)

radio (n=1058)

door-to-door (n=1149)

internet (n=747)

tv (n=1122)

not enough enough too much sticker

High acceptance of 1-2-1 advertising

3%

3%

3%

2%

1%

3%

* Source: TNS 2007

3. What are yourquestions

& challenges?

?

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Challenges of the E

� Spam

� Capture attention

� Coverage

� E-mail address collection & qualification

� Opt-in addresses

� Multiple e-mail addresses

� Intrusive character

� Abuse of e-mail usage

� Anti-spam filters

Challenges of the P

� Cost

� Flexibility / reactivity

� Keep data-base up to date

� Data-base qualification

� Environment

Points of attention

� Creativity

� Content

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And what about the privacy rules?

• E = Opt-in = I Agree

• P = Opt-out = Information + No Reaction (on document or later)

Opt-in exceptions:

• Soft opt-in

- 3 conditions

client for “similar” product

+ opt-out at data collection

+ ”unsubscribe” (opt-out)

- info@post.be

4. The strengths of both media

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What do you measure afteran E-mail campaign?

31%

61%

82%

95%

27,00%

26,00%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

# of opened messages

Return on investment

Clickthrough tracking

# interactors per link

Clickthrough behaviour on campaignpages

# of unique interactors

# unsubscribes

# of bounces

# of clicks per link

Total number of clicks

# of number of forwarded messages

brandawareness

Source: Emailgarage

Base:Users of each medium and give an answer

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What do you measure aftera DM campaign?

■ # of appointments■ # of sales■ # of postal returns

■ Cost of campaign■ Acquisition cost by contact■ Life time value of the consumer■ …

ROMI

ROI

Margin onAdditional Sales

Costs of the media campaign

Costs of the media campaign

Margin onAdditional

Sales

Probabilityto redeem

coupon

Averageshort term

margin

Averagelong termmargin

( )

Costs of the media campaign

Database hiring & mainten-

ancecost

Costcreation

Productioncost

(printingrouting)

Mailing cost

Coupon

■ # of reactions

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AverageBased on 21 cases 55 28 22 10

Conversion rate average*

Based on 21 cases

59 78 40

35

73

Measure the real things

Percentage of respondents

Recall having received it

Opened it Read it Recall content Intent to act

“Do you remember receiving a DM?”

“What did you do with the DM?”

“Can you describe the DM?”

“Do you have intention to react?”

* Conversion rate average is an average of different conversion rates and doesn't correspond to conversion rate between average

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Brand perception

Sales activation

Boostingof ROI

Loyaltybuilding

DM is a strongsales activator

Integrated with other media DM increases the ROI of your

campaigns with at least 20%

DM builds stronglong termrelations withyour customer

DM improvesbrand perception

High recallrate

DM gets highrecall rates evenof complexmessages

1 2 3 4

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The power of Direct Mail

15% to 200% extra sales >25% more

loyal customers

Source: Post – 15 DM pilot surveys N: > 25.000

2 to 20 times better recall

>50% of brand attributes

improved

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E-mail Physical mail

■ Easy to react, to get information

■ Cost

■ Can be set up quickly■ Personnalisation

■ Measurability

■ Short messages

■ Can be surprising and original

Advantages

■ Appreciated – not intrusive

■ Targetting

■ Sales Activation■ Acquisition

■ Complex information

■ High opening and reading rate

When touse ?

■ Own list

■ Newsletters ( top of mind )■ Punctual Information & more

frequent use

■ Generate traffic on website

■ To promote image & brand value

■ Involving Capturing attention■ Giving usefull, detailed trustworthy

information

■ Urges to react (vouchers)■ Magazines

The strengths of both media

5. The future is on-line?

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The future is on-line?

The answer is NO… the future is DIRECT!

■ Certainly there is an evolution!■ On-line media has become mainstream

■ There will always be people that prefer paper mail

■ A magazine remains a certain value ■ Objectives of both media are different

■ And a good combination of both always create more impact

What will be the future for your brand?

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But the future is about the integration of E & P

■ 70% of belgian companies integrate e-mail marketing in their mediamix■ 66% of them declare to be satisfied of the objectives reached

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E-Mail only DM + E-mail

* IAB - E-mail Marketing Cookbook

** Study E loves P – Pilot Research

In one of the pilots we ran with our customers, adding DM to email multiplied by 2.5 the number of final orders *

+255%

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Thank you for your attention