'Media is vital to direct marketing mix'
Media Week 18th-25th March - Andrew McCormick
The decline of traditional direct marketing is posing media agencies and their clients a number if critical questions about how they should best secure the highest number of responses to campaigns. Should direct operations be merged with digital? The question of whether agencies decide that direct demands a distinct unit or whether it should be merged into their other media operations can be rendered obsolete, depending on clients' approaches, according to David Kyffin, managing director of direct and digital at WPP's trading arm GroupM. Big Direct spenders in WPP's fold include MediaCom clients RBS and Sky, who take different approaches to direct marketing. RBS sees it as inextricably linked to its activity across all media and has consolidated spend within Mediacom as a result.
Making direct response a theme throughout media plans is essential, however, as the days of people picking up a leaflet and calling a number to request a loan or credit card appear numbered. Spencer Stratford, media director at Mike Colling & Company, says: "Mass cold direct mail is increasingly under threat. Markets such as car insurance are dying a death as a result, as buying addresses in bulk doesn't make economic sense."
The internet is largely responsible for the change. While purchases have often been made on the price promised by clients through direct marketing promotions, the rise of price comparison sites means potential customers often consider the best value offers, with the company that owns the best brand winning out.
Mike Colling & Company has a pedigree in direct marketing, but has had to change to offer clients a range of media options, exemplified by its work in reversing declining subscriptions for Which? The agency redirected Which?'s media spend from 95% direct marketing to 95% on a mix of TV, radio and press inserts. All of the ads contain a call to action, but are more creative and brand-enhancing than mail on the doorstep.
Direct marketing has moved a long way from being seen as a provider of junk mail and media agencies have had to bring in knowledge and skills from all other disciplines to cater for the differing approaches of clients in this new environment.
Wednesday, 19 March 2008
Insurance Related Issues
‘Lloyds TSB enters insurance comparison market’
Lloyds TSB has launched its own insurance comparison website, allowing consumers to compare car and insurance policies. Information comes from 35 insurance firms and is based on price, policy benefits and strength of service. The site, at http://www.insurance.co.uk/ has been created by search specialist Tamar to offer a streamlined and user-friendly experience. Tamar claims that the quote process is completed in as few as four online pages, and at the same time makes fewer assumptions about customers' requirements."For too long now, consumers have had to make do with comparison sites that offer only some of the information they need to make the right choices," said Lesley Oliver, client service director at Tamar. "Although there's no shortage of online services that claim to compare insurance policies, you'd be hard pressed to find one that can truly demonstrate it's built on a solid understanding of what consumers want.Lloyds TSB worked with Tamar last year to create its ‘Help I'm Flooded' site in response to the summer floodings. The new site enters a maturing price comparison site market with major new entrants, including Tesco which launched its own service last year, joining more seasoned players such as uSwitch and Confused.com.
By Hayley Pinkerfield / Revolution UK 12-Mar-08
Lloyds TSB has launched its own insurance comparison website, allowing consumers to compare car and insurance policies. Information comes from 35 insurance firms and is based on price, policy benefits and strength of service. The site, at http://www.insurance.co.uk/ has been created by search specialist Tamar to offer a streamlined and user-friendly experience. Tamar claims that the quote process is completed in as few as four online pages, and at the same time makes fewer assumptions about customers' requirements."For too long now, consumers have had to make do with comparison sites that offer only some of the information they need to make the right choices," said Lesley Oliver, client service director at Tamar. "Although there's no shortage of online services that claim to compare insurance policies, you'd be hard pressed to find one that can truly demonstrate it's built on a solid understanding of what consumers want.Lloyds TSB worked with Tamar last year to create its ‘Help I'm Flooded' site in response to the summer floodings. The new site enters a maturing price comparison site market with major new entrants, including Tesco which launched its own service last year, joining more seasoned players such as uSwitch and Confused.com.
By Hayley Pinkerfield / Revolution UK 12-Mar-08
Competitors
‘AA trials free car washes to pull in business’
The AA is offering free car washes for a year to prospective members as part of a drive to increase sign-up. The breakdown service has teamed up with car wash firm ARC/IMO to offer joiners a free car wash each month for a year.
The trial is testing the vouchers against the AA's previous incentive of £20 M&S vouchers. If the new reward proves successful, it may be extended to the end of the year. Parallel Promotions created the AA's partnership with ARC/IMO, which has more than 300 car washes across the UK. In January, the AA joined the Nectar Business rewards scheme. In the same month, it began a review of its £33 million above and below-the-line accounts.
By Julia Buchanan / Promotions & Incentives 06-Mar-08
The AA is offering free car washes for a year to prospective members as part of a drive to increase sign-up. The breakdown service has teamed up with car wash firm ARC/IMO to offer joiners a free car wash each month for a year.
The trial is testing the vouchers against the AA's previous incentive of £20 M&S vouchers. If the new reward proves successful, it may be extended to the end of the year. Parallel Promotions created the AA's partnership with ARC/IMO, which has more than 300 car washes across the UK. In January, the AA joined the Nectar Business rewards scheme. In the same month, it began a review of its £33 million above and below-the-line accounts.
By Julia Buchanan / Promotions & Incentives 06-Mar-08
Behavioural Targeting
‘Bebo offers targeted media in wake of takeover by AOL’
Social network to use AOL's Platform A technologies to deliver ads users want.
Bebo plans to deliver targeted media to users for the first time, which will then act as a basis for delivering ads, following AOL's $850m (£424) takeover of the social network. Bebo intends to use the array of targeting technologies housed within AOL's Platform A unit to deliver relevant content from media owners such as Sky, ITV and Channel 4 - three of the 400 media owners that have signed up to Bebo's Open Social project. Joanna Shields Bebo President says "It's not like we're combining with the AOL portal. What it gives us is access to amazing social networking products such as AIM and ICQ." The deal is very interesting and shows AOL clearly trying to catch up, recognising that social networks are the next generation of portals," said Stuart Sullivan-Martin, chief strategy officer at Mediaedge:cia. Onlookers are nervous about how AOL will handle ads for the network. Alex Millar, head of Jam, I-Level's social media unit, said: "Bebo sells its integrated solutions and standard display advertising separately and it should keep those teams separate, retaining the Bebo sales team, which seems very good."
by Andrew McCormick Media Week 18-Mar-08
Social network to use AOL's Platform A technologies to deliver ads users want.
Bebo plans to deliver targeted media to users for the first time, which will then act as a basis for delivering ads, following AOL's $850m (£424) takeover of the social network. Bebo intends to use the array of targeting technologies housed within AOL's Platform A unit to deliver relevant content from media owners such as Sky, ITV and Channel 4 - three of the 400 media owners that have signed up to Bebo's Open Social project. Joanna Shields Bebo President says "It's not like we're combining with the AOL portal. What it gives us is access to amazing social networking products such as AIM and ICQ." The deal is very interesting and shows AOL clearly trying to catch up, recognising that social networks are the next generation of portals," said Stuart Sullivan-Martin, chief strategy officer at Mediaedge:cia. Onlookers are nervous about how AOL will handle ads for the network. Alex Millar, head of Jam, I-Level's social media unit, said: "Bebo sells its integrated solutions and standard display advertising separately and it should keep those teams separate, retaining the Bebo sales team, which seems very good."
by Andrew McCormick Media Week 18-Mar-08
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