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Selling Internationally: Using Direct Marketing Best Practices Overseas
Spyro Kourtis, President/CEO Hacker Group
The world is a great big complicated place!
• There are 6,500 languages in the world
• There are 196 independent countries recognized in the world
• There are more than 5,000 ethnic groups
The world is smaller and smaller Internet retailers establish some commonality
Speaking the same language with best practices
When the journey began
We didn’t know what we didn’t know • What do we test?
o What is relevant? o What will resonate?
• What can we test? • What are the targeting,
production and delivery opportunities and limitations?
How to boil the ocean
Start with what you know
Translate predictive factors from your domestic efforts
How to boil the ocean
Start with what you know
Translate predictive factors from your domestic efforts
Netflix Content Tests
Discovery
Question everything
Just because it’s a viable market to enter – does not make it a viable market for all media
Don’t assume even the most basic things - mere delivery of direct mail is not “automatic” in many countries
Media and direct mail usage
Source: Institute for Advertising and Media Statistics (IRM), 2010
High broadband penetration Majority of residents have credit cards Preference for shopping online Unaddressed mail options Broad acceptance of direct mail Reliable post offices 99% literacy rates
Very little direct mail usage
Poor delivery: The national postal service is said to FAIL to deliver as much as 30% of mail
44.2% poverty rate
Credit card usage limited to only 25% of the country
Cost of living
Do the Math
Relentless pursuit of fore-castable results
Evaluate Media Options
Media assessment
• Population does not equal market size potential
• Many countries have a simple mail opt-out process, leaving deliverable houses who want mail
• Products and delivery methods vary from country to country
Targeting tools
Unaddressed mail
Not uncommon to identify population, income and other factors by geography (zone)
Targeting
We found a variety of kinds of segmentation available for consideration
Type 1: Mature and practical high spenders e-Types - Example
What are the creative opportunities?
First see what’s out there…
ViaPlay • Streaming TV and movies for about $10/mo
US • One month free offer
Voddler 80% of catalog is free (sponsored by ads) 1.3 million subscribers in Scandinavia A standard app on the Nokia phones
LOVEFiLM Streaming TV and movies for about $8/mo US One month free offer Nordic performance “has not met
management expectations” (as of Oct 2011) Other competitors (pay per view)
• Headweb • Film 2 Home • Comoyo
Explore what’s possible
We discovered new formats in this process
Creative and testing considerations
Use your controls • Maintain cost-effective performance and baseline metrics
with control while testing new approaches
Love is in the details
• Tax issues • Exchange rates • Oversight critical
Bringing it all together: Test Plans
1 2
3 5
4
Step 1: The PowerTest® methodology
32
1 2
3 5
4
Step 2: Look for winning combinations (HotZones™)
33
1 2
3 5
4
Step 3: CheckTest ™ or rollout winners
34
Measurement
Netflix Case Study