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Direct Marketing Challenged by 2020’s Record Political Spend

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AccuList’s direct marketing clients need to plan for competition for consumer attention across all media as political campaigns’ ad spending is forecast to hit record heights in 2020. Kantar’s Campaign Media Analysis Group (CMAG) predicts that political media campaigns will spend a record $6 billion on advertising in 2020, a 14.3% increase over the $5.25 billion spent in the 2018 midterm elections, and a 37.9% increase over the last Presidential campaign year in 2016, with the biggest gains going to digital media, which will nearly double to $1.2 billion in 2020. Meanwhile, ad media giant GroupM forecasts that political ad spending could reach a record $9.8 billion or more in 2020, again driven by digital ad growth.

Political Digital Competition Will Squeeze Inventory, Drive Up CPM

Nonpolitical marketers will face a considerable challenge, especially if they are advertising in politically divided markets, warns Kantar. For example, in the last three weeks of the 2016 campaign season, political advertising totaled 32% of local TV ad time within the battleground markets studied, an increase of 26% from the beginning of the season, while nonpolitical advertisers watched their share of the market plummet from 77% to 51%. Meanwhile, because digital is a big growth area for politicos in 2020, with a preference for programmatic advertising, marketing agency Hiebing warns that a scramble for digital inventory will significantly drive up CPMs for nonpolitical campaigns. Advertisers should develop a game plan early, either shifting campaign flights out of the election window or diversifying channels and tactics, Hiebing advises. Marketers should also consider Private Marketplaces, or PMPs, which are invitation-only marketplaces where selected programmatic media buyers make deals with publishers. These can offer access to more premium inventory, and better control over brand safety, than open exchanges crowded by 2020 political buyers.

Direct Mail Needs Careful Scheduling, Targeting, Stand-out Tactics

For direct mailers, it’s important to recognize that mailbox crowding will be especially bad around certain key events, such as the weeks before an election date, as well as early voting starts and the delivery of absentee/mail ballots. Marketing-mail drop dates need to be adjusted accordingly. Since bulk mail delivery is slowed, taking a back seat to first-class political promotions, mailers need to build in extra delivery time to the in-home date. Plus, in 2020, you will need to pay attention to the Super Tuesday primaries on March 3 because those primaries will see more impact (and more political mail) than usual as two of the nation’s most populous states, Texas and California, are among the 14-state total; indeed, Super Tuesday this year affects a whopping one third of the U.S. population. Bottom line: Careful planning of mail schedules will be required to get promotions in the hands of target audiences at the right time! Even with good timing, mailboxes are busier and response can be impacted, so marketers also need to make an effort to stand out creatively, perhaps changing up outer envelopes in size and color, and to avoid costly waste with more targeted messaging, via segmentation and personalization.

Insert Media Offer Cost-Effective Marketing Options

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Insert media, direct mail’s less glamorous relative, is also a proven way to reach new customers, and AccuList helps clients place offers in a range of printed insert options such as package inserts; publication “blow-in,” “bind-in” and onsert programs; postcard decks; statement stuffers; and cooperative mailing programs. In the digital space, there also are webserts to qualified online buyers.

Insert Media Virtues: Targeting, Co-Branding, Savings

Insert media programs may seem old-fashioned, but younger recipients actually embrace them. For example, Quad/Graphics research has found that 49% of millennials said they ignored Internet ads, and 48% said they ignored e-mail, but only 25% ignored retail inserts! Or on the flip side, 73% said they paid attention to retail inserts vs. 48% who paid attention to mobile text. Plus, insert media have a number of virtues that make them attractive to direct marketers: They leverage co-branding since offers “ride along” with material from an already trusted source; they avoid postage costs and save on printing expenses; and they offer a targeted audience. So here are some tips for those who want to add insert media to their direct marketing.

The Basics Still Apply: Target and Test

In choosing insert media, the first step is to consider your desired target audience and its match with the demographics and purchase history/interests of the host program. Next, as with any direct marketing effort, test and re-test. Start by testing small but in large enough batches for an accurate reading of response, and make sure there is a large enough universe for future rollout. You can test for both creative/offer and audience category, but if finding the right audience and host program is the goal and the budget is limited, it’s probably better to test four different audience groups/programs rather than four creatives to the same audience/program. Of course, even once a control is developed for rollout, continue to test against it. And be wary of potential audience duplication: Using different programs with the same owner, a package insert and a statement insert for example, might reach the same recipients at different times.

Multi-channel Response and Multi-channel Tracking

Insert media today are usually part of an omnichannel strategy, and recipients of printed materials often prefer to respond by other channels. That means inserts should provide more than one response option: business reply card, 800 number, URL, and mobile QR code. And it means tracking and analyzing results across channels. So make sure to provide a unique code on pieces to track response by program, offer, audience category, insert month/timing. etc. And if you use a mobile QR code, with links to an offer/purchase landing page or a reply/request page, be sure that the online pages are mobile optimized! Because inserts are competing for attention with other offers, your creative needs to stand out in design and messaging, with a clear call to action. Plus, in scheduling insert media, remember that you are at the mercy of the host program’s timings and availability. Plan with seasonality in mind and build in adequate lead times; most insert media campaigns will need to be produced and delivered weeks in advance of program distribution. The payoff in cost-effective reach can definitely make the planning worthwhile, however, as noted in a 2019 article on the value of insert media for niche businesses.

2019 Forecast Stresses Mobile Marketing Innovation

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As mobile use has expanded to include the majority of the population, mobile marketing has become integral to AccuList USA clients’ multiple marketing channels, including direct mail’s mobile-scanned QR & AR codes, mobile-optimized e-mail, nonprofits’ mobile giving and retailers’ geo-located ads and apps. When the average U.S. adult is expected to spend more than three and a half hours a day on a mobile device and 70% of digital advertising is already mobile, it’s no surprise that 2019 is forecast to be another banner year for mobile marketing. A recent ClickZ post outlines some of the big trends to expect.

Increased Efforts to Combat Mobile Ad Fraud

Mobile ad fraud is on the rise, doubling year-on-year during the first quarter of 2018, which also saw an increase in fraud sophistication, such as SDK spoofing and click injection. As a result, ClickZ author Luca Mastrorocco predicts that advertisers will push to avoid fraud and boost brand safety by demanding supply chain transparency from vendors, increasing use of anti-fraud metrics for mobile apps, and seeking to engage users directly via mobile network operator rather in-app.

More Apps and More Diverse Apps

Even with over 2 million apps in both Google Play and the Apple App store, Mastrorocco asserts that the mobile app landscape is far from saturation, citing innovations such as J.P. Morgan’s online banking app offering free or discounted trades in its digital investing service, the success of TikTok’s viral 15-second video app, and Facebook’s investment in a new Lasso app to compete with TikTok. He foresees even more app development and innovation ahead, especially in AI-based apps and use of virtual reality and augmented reality (AR).

An Embrace of Mobile Interactivity

Mastrorocco also predicts that interactive mobile experiences, such as IKEA’s new AR app allowing users to virtually place furniture in their homes, will blossom in 2019, blurring the line between mobile advertising and content. Gamification will play a central role in interactive mobile marketing, even among non-gaming brands, he adds, as brands use playable ads to communicate with users in a entertaining way and to join digital and brick-and-mortar sales, such as by rewarding players with prizes or discount vouchers that can be redeemed in-store.

A Focus on Real-Time Data Tracking & Analytics

Expect data-driven tactics to expand significantly in 2019. Brand marketers are forecast to increase their demand for user-centric advertising that tracks performance and analyzes results in real time to optimize media and creative in-flight. Their goals will be to both produce the best possible user experiences and more cost-effective ad spending. Brands using real-time data to produce iterative in-house creative can gain a competitive edge over those relying on agency creative, per Mastrorocco, who sees a resulting rise in experimentation with geo-location targeting and dynamic creative optimization. For the complete article, go to https://www.clickz.com/mobile-marketing-2019/221210/

Scarcity, Targeting, Value Woo Performing Arts Audiences

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Performing arts marketers face many challenges in competing for attention and share of wallet in a noisy multi-channel marketplace. AccuList USA recently found some good basic advice on winning audience response in a blog post by Dave Wakeman of the Wakeman Consulting Group. .

Create a Feeling of Demand and Scarcity

Wakeman noted that creating a sense of scarcity is key to performing arts marketing–even lacking a hot-demand show like the current musical “Hamilton.” Nothing attracts a crowd like a crowd! Offering all tickets prior to marketing-generated demand undermines that desired sense of urgency, but marketers can still use the secondary ticket market, such as StubHub or TicketsNow, to produce a feeling of scarcity, he advises.

Define the Target Audience and Value Message

Performing arts marketers need to define the audience target of a show/event and then tailor a value message that appeals specifically to that audience. Targeting and creative messaging will be very different for a family show, a political commentary, a well-known classic, or a one-off by a famous author. New attendees will need a different approach than members and donors. Certainly, many shows don’t have the time for the sort of traditional agency advertising that waits for reviews to come out and then creates ads around positive lines from those reviews. Plus, that kind of reactive, critic-centered promotion can miss a more persuasive value message to win over the target audience.

Create Multiple Forms of Value

Wakeman notes that in today’s market, people often aren’t just going to “see a show.” They are likely looking to make a night of it and are attracted to events with multiple value offers. He lauds the successful audience-building efforts of the Chattanooga Symphony & Orchestra, which promotes multiple ways to engage even for those without a dedication to the symphony. Pairing a wine tasting, art show or discussion group/lecture with a performing arts event may be just what it takes to attract a new audience or convince an existing audience to try a new entertainment option. “If we don’t make it easy for people to see themselves in our seats, we are missing out,” he argues.

 

 

 

Arts Marketers Need Digital CTAs That Drive Subscriptions

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While direct mail continues to be a sturdy workhorse for AccuList USA’s performing arts marketing clients, digital campaigns–via online display ads, e-mail and social media–are required in a multi-channel world. Digital subscription drives offer cost-effectiveness, off-season branding, audience segment targeting, and synergy with direct mail. (Check out our Digital2Direct program to see we help mate mail with e-mail and social media ads.)  But with more competition for attention in the crowded digital space and with less room for persuasion than “snail mail,” digital promotion success is especially dependent on a well-designed and targeted call-to-action, as pointed out in a recent blog post by strategists at MogoARTS, a digital marketing agency for arts and cultural organizations.

Customizing CTA by Audience

An effective call-to-action will differ by targeting, the post points out. With renewals, the targets are lists of current season subscribers, so the CTA messaging can be direct and should highlight an incentive like a discount or savings for renewing early or by a deadline. For acquiring new members or reactivating lapsed subscribers, targeting includes lists of previous season ticket buyers and e-mail opt-in prospects, who need to be shown the benefits of subscription (or reminded). The CTA messaging for lapsed subscribers and multi-ticket buyers should give a reason to come back or upgrade to a subscription by promoting package savings or special benefits, such as free parking or early access to add-ons. CTAs to entice new members will need to spell out subscriber benefits, either across ad units or on a landing page, and showcase varied package options.

Tips on CTA Creative

The blog post also lists some CTA creative suggestions for arts marketers, whether the decision is to leverage programning/events or benefits to drive action. In pushing benefits in digital ads, listing one benefit per banner maximizes message impact and avoids overcrowding with too much text; patrons will see multiple banners over the life of the campaign after all. If the decision is to push programming, then other formats such as video or Facebook/Instagram News Feed Carousel ads may spark greater engagement than a static ad.

General CTA Best Practices

MogoARTS cites three best practices for any CTA: 1) customization for the different audience types, meaning renewing, lapsed or new members; 2) emphasis on the benefits of a subscription package over a single ticket purchase; and 3) highlighting of the savings/special rewards available for subscribing now. For CTA examples, see https://www.mogoartsmarketing.com/blog/subscription-campaign-best-practices-2018

Power Up Holiday E-mail With Segmentation, Offers

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AccuList USA’s e-mail list clients, especially those in e-commerce and multi-channel retailing, are beginning their holiday e-mail campaigns. What strategies will make for optimum results?

Segment to Maximize Response, Order Value

From decades as data brokers and e-mail support providers, we can attest that targeting and smart segmentation are essential to holiday e-mail success. Of course, the house list can single out the active buyers and segment by basics such as location (no ice to Eskimos) and gender. But more sophisticated segmentation looks at purchase history in terms of product interest, in-store vs. web store, abandoned carts, purchase frequency, etc. For example, to maximize customer value, you can segment by average purchase (separating high-priced buyers from discount buyers) and send targeted e-mails with offers slightly over average order value. You can also reward and stimulate more sales from the most loyal buyers, segmented by purchase frequency or referrals etc., by e-mailing them unique holiday specials and freebies. The holiday season is also a great time to revive inactive customers, such as the previous year’s holiday buyers who haven’t been active since. Send them special offers to woo them back to the brand. Prior-holiday gift card buyers are a good sub-segment for a reminder e-mail about this convenient option. You can also target the most recent opt-ins who haven’t converted to buyers with offers and creative most likely inspire clicks. And don’t neglect to match your e-mail list to Facebook, YouTube or third-party newsletters to extend your reach via those vehicles! Although rented e-mail lists will not have the same intimate customer knowledge, you can still select by location, gender, age, product interest, and more.

Get Creative With Holiday Offers

Holiday e-mails have to grab attention in crowded inboxes, and that means you need to get creative with offers that drive opens and clicks. Constant Contact recently surveyed its small business clients and gathered 30 successful holiday e-mail ideas that may help inspire your marketing. Here are just the lucky top seven: a holiday preview sale, a campaign to drive traffic to your Cyber Monday specials, a free shipping offer, a gift card or gift certificate bonus offer, a holiday gift guide, the tried-and-true holiday coupon, a holiday sample sale (good for food and drink retail). Go to the Constant Contact post to see examples and read about all 30 holiday e-mail ideas.

Always Be Testing: Even the Best Mail Control Gets Tired

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AccuList USA’s successful direct mail marketers seek to optimize response by constantly testing creative (as well as lists), because they know that even the best control package can lose its punch and need refurbishing or replacing.

Understanding the Sources of Control Success and Fatigue

Since direct mail testing can be expensive, especially multivariate testing where each variable tested needs a large enough mailed group for statistically valid results, it is important to think through why response to a proven control can flag and what changes are worth testing. A recent Target Marketing magazine article, by direct marketing consultant Gary Hennerberg, addresses the issue by reminding marketers of basics: The control has succeeded better than other mailing packages because, using the right list, the marketer has matched the offer’s emotional hot buttons and unique selling proposition to the prospects’ awareness of both their problem and the marketer’s solution at the time. But that alignment between prospect and promotion is not static.

As Brand Awareness Grows, Control Effectiveness Can Shrink

After mailing the same direct mail control package over and over (or using the same digital message), the majority of targeted prospects have either seen your pitch or been educated by other media, so your message may no longer fit with their knowledge and needs. “If you don’t stay on top of this changing awareness and understanding, your direct mail control package, or messaging in other channels, fatigues, and you’ll wonder why,” Hennerberg warns. He suggests that marketers commit to a program 1) assessing prospect awareness of the problem solved by the marketed product or service; 2) creating multiple creative approaches that align with different prospect awareness levels; and 3) testing creatives (headlines, leads, formats, etc.) against each other and the control to find the sweet spot. An important caveat: If a mail package seems to go over the heads of the current market, consider re-testing in future when the time may be ripe in terms of prospect interest.

For a basic overview of direct mail testing, see http://www.targetmarketingmag.com/post/direct-mail-ab-test/

 

 

Subscription Marketing Basics Still Create Winning Formulas

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Despite modern publishing’s multi-platform environment (print, web, mobile), many long-time subscription marketing rules retain their relevance. A recent post from Bill Dugan, for niche magazine consulting firm Mequoda, stressed just that point by reminding audience development pros of the fundamentals for price, offer and creative. As a list brokerage with many paid or controlled circulation clients, AccuList USA would, of course, add another important component: quality data

Price, Offer, Creative

As Dugan stresses, the art and science of pricing still counts. In pricing, whether for print, online, tablet or combination packages, subscription marketers actually have an edge over many other products by being able to sell the same product at different prices each time it’s purchased, from a new subscriber to each subsequent renewal. Pricing strategies can include 1) simply the same price at every stage of buying or renewing; 2) giving the more price-sensitive new subscriber an introductory discount and then selling renewals at full price; 3) maximizing response and profitability with a step-up program from a low introductory price through gradual renewal increases to maximum; and 4) rewarding subscribers with a lower monthly price for selecting a longer (annual) term. Next, marketers can build a range of offers. Based on testing, Dugan reports that the best response is earned by a “soft offer,” meaning a trial free issue or more, plus a premium and a bill-me-later for a full subscription. The lowest response offer is the old-fashioned hard offer, requesting up-front credit card payment with no trial or premium,per his testing. And finally, direct marketing success requires wrapping the offer in effective creative. A key to creative response today, whether direct mail or e-mail, is personalization that focuses on the target customers’ needs.

And Market-Tested, Targeted Lists!

Of course, effective personalization requires targeted, quality data! So while Dugan didn’t talk about the paramount importance of data, we remind marketers of the continuing relevance of either the 40-40-20 rule (40% of response success from audience/list, 40% from offer and 20% for creative) or the 60-30-10 formula (60% from targeted audience/list). Bottom line, good audience data is key. To support digital and print publishers, AccuList USA turns to its proprietary research on market-tested data and selection parameters most likely to boost response. That means lists such as those targeting active subscribers to trade or consumer publications; book buyers having specific interests; digital or print edition subscribers; known subscribers at work, home, or waiting room address; or subscribers with Facebook profiles.

For the complete Mequoda article, see http://www.mequoda.com/articles/subscription_websites/subscription-marketing-the-more-things-change-the-more-they-stay-the-same/