The Value of Direct Mail in Media Campaigns. Print 2 days, Wednesday 15 June 2011

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The Value of Direct Mail

in Media Campaigns

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Consulting solutions and studies for direct mail advertising 2

*source Henley Center, average for Europe

More than

350 posters

200 TV spots

150 radio spots

400 press inserts

3 Messages (cinema)

350 internet

banners…

advertising

messages!

Each week: 1,500

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There’s no saturation in direct mail advertising:

● French people like mail: 93% of them open their mail

box every day.

● 97% look at or read the advertising addressed to

them and 94% read advertising without an address.

Ads without addresses

10

3

Directly addressed advertising mail pieces

Average per household/week in France, calculated from Jan to June 2010

Sources: Kantar Média 2010 TNS Study 2011: "Les français et le courrier publicitaire" (French People and Direct Mail)

With direct mail,

An event that makes for better memorization

and recall of the advertising

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Memory of direct mail as compared to

other media

Memorization rates by medium*

(5)

● A privileged relationship:

–

Accessibility, mail gives people the

impression that the company is speaking

directly to them (64%)

–

Confidence: provides more information and

that info is more reliable (35%)

–

Focused attention: when French people

read mail, they give it 51% of their

attention, as compared to 11% for radio,

38% for internet, 41% for email and 42%

for television

–

Holding onto it (75% for at least a week

for adressed mail)

Source: TNS 2011 Study: "Les français et le courrier publicitaire" (French People and Direct Mail)

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Consulting solutions and studies for direct mail advertising

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8

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Mail, a medium you can’t do without

Direct mail: the leading communications support

Source : SIMM –TGI 2010 Reference group: those who answered the questionnaire The role of media in consumer purchasing

"Via which medium do you prefer to receive advertising?"

37%

23%

18%

9%

7%

4%

1%

Direct mail

Television

News magazines

Internet

Signs, Posters

Magazines, Newspapers

Radio

SMS, e-mailing

that’s

17.9 million

people

(11)

Memorization

Incitement,

Advertising funnel

Return On

Investment

Recall

Brand Perception

Medium message

perception

(12)

The "media mix”

approach was initiated by La Poste

in June 2007 and has been tested

since then after having been successfully conducted by local post offices in Europe and

North America.

This approach aims to measure relative media efficiency in a 360°context.

Poster

advertising

Press

Internet

Direct Mail

(DM)

TV

Media tested in

the approach

2 samples

• In order to measure the

efficiency of direct mail as

compared to that of other

media

(TV, press, radio, poster ads

and Internet)

People who receive a piece of mail

Sample number 1: Mass media + Direct Mail

Sample number 2: Mass media only

People who do not receive a piece of mail

Radio

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A campaign for a youth bank card

The campaign tested: a bank card for young people

Campaign objectives: to boost the sales of the card for young people

Targeted Customers: 12-25 years old

Targets tested:

Target of the study: 18-25 years old

Media Mix:

● TV: M6, W9, Paris Première

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Consulting solutions and studies for direct mail advertising 14 Base Customers

570 pers.

Reading and keeping the piece of mail

% respondents who memorized the mail piece

23% 16%

45% 16%

•

With the young target audience, the bank’s mail shot was widely read, with a read rate much higher than that of our benchmark for the banking sector (66%)

•

The keep rate was also higher than the average found in our various studies on the banking sector (36%).

•

With the young target audience, the bank’s mail shot was widely read, with a read rate much higher than that of our benchmark for the banking sector (66%)

•

The keep rate was also higher than the average found in our various studies on the banking sector (36%).

Read or glanced at: 84%

40%

57% 3%

Base Customers

570 pers.

Source TNS –La Poste, results of market research

Read completely

Read partially

Glanced at it Didn’t read at all

Gave the piece of mail to another person

Threw it away

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15

Desire for information about the card and

medium desired

% of people polled

Customer population

•

Nearly 1 out of 2 young people would have liked to receive information about the bank card

•

More than 80% would have liked to receive information by mail

•

Nearly 1 out of 2 young people would have liked to receive information about the bank card

•

More than 80% would have liked to receive information by mail

Sample who did not receive the mail shot

Yes

39%

Would you like to have received information about the bank card?

In what form?

Sample who did not receive the mail shot

8% 85% 39% by mail by e-mail by telephone Customer population

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Effect of the mail shot on recognition of the bank card as a means of

withdrawing money and making purchase

% of people polled

•

The mail shot increases the overall recognition of the bank card by 5 percentage points

•

The mail shot increases the overall recognition of the bank card by 5 percentage points

8% 7%

* Significant difference at 90%

Sample who did not receive the mail shot (403 pers.) Sample who received the mail shot (600 pers.) Assisted recognition

Spontaneous brand recognition other than top of mind awareness

Analysis of the impact of mail on overall

bank card recognition

Source TNS–La Poste, results of market research

4% 69% 65% 4%1% 2% _75% 70% + 5 pts* Top of mind awareness

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Sample who did not receive the mail

shot (400 pers.) Sample who received the mail shot (600 pers.) % of people polled

•

Mail greatly increases the recall for an advertising campaign

•

Recall for the TV is standard for the sector

•

Recall for mail is high and much better than the average

•

Mail greatly increases the recall for an advertising campaign

•

Recall for the TV is standard for the sector

•

Recall for mail is high and much better than the average

57% 70%

+ 23%*

Source TNS–La Poste, results of market research

* Significant difference at 95%

Memory of an advertisement for the bank

card

Impact of the piece of mail on prompted memory of an ad for the bank card

RECALL OF AN

ADVERTIZEMENT MEMORISATION(proven score)

TNS Sofres standards – rate of recall for PRIVATE BANKING sector, new products

•TV: 35% to 45%

Benchmark "Optimix" piece of mail – banking/insurance sector for

customers

•Memorizationl: 18% Recall and memorization of an advertisement for the bank card by medium

29% 53% 14% 40% mail television

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18 Meets my needs

Knows how to work

with young people at

important moments in

their lives

0 10 20 30 40 50 60

Bold: significant difference at 95% 399 pers.

597 pers.

Gives a modern, dynamic

image of the bank

% of grades from 8 to 10 out of 10 BASE Know the card

•

The card image is communicated by the mailing, particularly the bank’s modern, dynamic aspect.

•

The card image is communicated by the mailing, particularly the bank’s modern, dynamic aspect.

Brand Perception

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The piece of mail’s impact on knowledge about the cards and

incitement to act

Number of people polled out of 100, conversion rate in %

•

Adding mail to the mass media

campaign helps to increase incitement at different levels

•

Adding mail to the mass media

campaign helps to increase incitement at different levels

Source :TNS –La Poste, results of market study

Intend to get this bank card

Intend to find out more about the bank card Know the bank

card

+8%

+17%

+59%

Incitement to take action

15% 28% 75% 9% 24% 70%

received the piece of mail did not receive the piece of mail

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Summary

… on behavior of young people aged 18 to 25 when receiving mail

9 84% of the young people targeted remember the piece of mail and read the mail sent, a

rate much higher than our benchmark for the banking sector (66%)

9 More than 57% of them kept the piece of mail

9 More than 1 out of 3 young people who did not receive the piece of mail would have

liked to receive more information about the card and nearly 9 out of 10 would have like

to receive that info by mail.

9 The mailing increased card’s recognition by 5 points

9 Mail greatly increased people’s memory of the product, it is the most recalled media.

9 Incitation to act increased by more than 50% with a mail shot

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•

For the various products in the banking/insurance/credit agency sector, mail in addition to mass media led to an increase in intention to act of 17% to 51%.

•

For the various products in the banking/insurance/credit agency sector, mail in addition to mass media led to an increase in intention to act of 17% to 51%.

Exposed to mass media Car insurance Life insurance Health insurance Consumer credit Exposed to mass media + mail 5% 7% 2.8% 4.2% 2.8% 3.6% 34% 40%

Increase Added RoI of mail as an addition to mass media ~ 300% ~850% n/a n/a +51% +35% +17% +30%

Products from the banking, insurance and credit agencies sector

Incitation to act marketing funnel

Products in the banking/insurance/credit agency sector

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Impact of mail on performance of other media

TV Press Radio Posters Internet

●Recognition 105 106 105 121 118

●Unprompted ad recall 103 100 107 133 106

●Top of mind recognition 148 121 138 125 128

●Spontaneous recognition 135 114 116 113 118

●Intention to get more

information 125 127 117 108 124

●Intention to buy 124 117 103 133 108

Source Optimix Studies

•

Mail shots are a very good when used in addition to TV and poster ads

•

Whatever type of advertising it is paired with, mail increases top of mind recognition and intention to buy

•

Mail shots are a very good when used in addition to TV and poster ads

•

Whatever type of advertising it is paired with, mail increases top of mind recognition and intention to buy

Index Exposed to