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Media Intelligence : Media Trends+Strategy 2012
MEDIA Trends + Strategy direct mail/marketing MEDIA Trends + Strategy 75 For information on your sector go to www.mediabiznet.com.au Return on engagement The golden nuggets Have you witnessed changes in direct marketing activity lately and why? People enjoy receiving personalised communications and direct marketing is really the only way we can do this. Demand for direct mail is definitely increasing not just in Australia but globally. This is because marketing professionals are seeing that it works and that, rather than being a competitor to digital and classical Above The Line marketing, it complements these channels and drives cost effective outcomes. What are the biggest challenges impacting the sector in the next 12 months? The fight through the buzz of digital marketing and ensuring that the media agencies are using all channels to get the best outcome for their clients, not just the “cool” ones. Has the current financial climate altered the usage of patterns of DM? It has definitely made marketers more accountable for their marketing spend and the focus on measurement and ROI continues to prove the effectiveness of direct marketing as a very successful acquisition, cross sell, up sell and retention marketing channel. What has been the effect of digital and social media on direct marketing? These channels have added another personalisation solution to the direct marketing bundle. What we are finding today is that a combination of direct marketing channels provides stronger results and that digital and social platforms give marketers other options. What is the next big thing to impact on the direct marketing sector and change nature of the game yet again? Mobile is impacting Direct Marketing NOW and will continue to be the next best thing. Consumers are increasingly being selective with who they engage with and relying more on recommendations and turning to each other for solutions and advice before turning to brands. Mobile makes it easy for consumers to seek or provide recommendations and experiences before, during and particularly after interacting with a brand. This credibility should be leveraged, there’s nothing more reliable than a real person who has already experienced it. This is a gateway to communicating the golden nuggets, rewarding loyalty and providing stimulating content. Direct Marketing should become a facilitator of these interactions and connections linking back to a brand story, service offering and solutions to consumer needs. John Moore General Manager Marketing Australia Post Direct marketing appears to be enjoying a resurgence – have you seen changes in direct marketing activity and why? There has been a huge swing towards direct marketing in the past three to five years as companies that have traditionally used mainstream advertising and media have realised the value of customer centric-data driven marketing. Data is now seen as a company asset as it allows us to engage with our customers. At the same time, consumers now have high expectations of the companies they engage with and want a relevant, timely, personalised experience. This can only be achieved by understanding our customers through data insights and delivering customer- centric communications – i.e . direct marketing! What are the biggest challenges for the sector in the next 12 months? There are four key factors at play presently that are creating challenges for marketers. Firstly, the huge explosion of data being generated by consumers now available to marketers has caused significant challenges – marketers are now in a position where they have access to an overwhelming amount of data but are often starved of insight. Part of the challenge is knowing what data to focus on and what to ignore. There are also challenges around trying to integrate data to gain a single customer view – an essential requirement if we are truly to understand our customer. The second challenge is the proliferation of marketing channels – there are now so many ways that we can interact with a consumer that a marketer’s role has become increasing complex as they need to determine the best mix of channels to reach and engage with their customers. A third challenge is the rapid advance of technology. Marketers need to keep ahead of both digital and technological innovation and not be distracted by another ‘fad’. Lastly, a key challenge for marketers and business in general is the change of focus from product to customer. Mainly companies are not structured around delivering products or in a way that supports a ‘customer-centric’ approach. Has the current financial climate altered the demand for measurability of DM? How has the industry responded? Yes – absolutely. We saw a significant focus on marketing budgets even before the Global Economic Crisis hit – and we have remained with that fixation ever since. All marketing now needs to be measurable and show ROI. More recently we have also seen consideration for Return on Engagement – a testament to the new world of social media and a resumed understanding of the value of an ongoing relationship – another deep set principle of direct marketing. How has digital and social media enhanced the effectiveness of direct marketing? Digital channels have allowed direct marketing to be more measurable and more real-time and allows us to immediately react to a consumer’s likes, dislikes and behaviours. It has connected us with consumers in ways we have never seen before and this will only continue as technology advances. Social media has had a substantial impact on direct marketing as marketers are now in ‘listening’ or ‘response’ mode rather than proactively trying to promote a message. What is the next big thing to impact on the direct marketing sector? There are three things. The first is already here – the move to ‘content marketing’ and the idea that we actually engage customers by providing something valuable, interesting or intriguing. The second game-changer is the mobile device which is our key communication tool and will increasingly become central to our marketing focus. The last trend is gamification – the idea that we add gaming elements into marketing to make it fun, engaging or even addictive. We will see more and more companies adopt this approach as the need to engage with customers increases. Jodie Sangster CEO Australian Direct Marketing Association p74-75,77_directMark.indd 75 28/11/11 12:41:45 PM
MT Resource Guide 2011
MT Resource Guide 2012