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Welcome To ACCM 2009Welcome To ACCM 2009

Vice President, Catalog and Multichannel SegmentsDirect Marketing AssociationVice President, Catalog and Multichannel SegmentsDirect Marketing Association

NEIL O’KEEFENEIL O’KEEFE

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Welcome To New OrleansThe Crescent CityWelcome To New OrleansThe Crescent City

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New Orleans HistoryWars And DisastersNew Orleans HistoryWars And Disasters

Jean Lafitte - 1805

Great New Orleans Conflagration -1788

Hurricane Katrina - 2005

Battle of New Orleans -1814

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Another Long History:Catalog And Multichannel Merchants

Another Long History:Catalog And Multichannel Merchants

Montgomery Ward “Modern” Mail Order Catalog

1872

Ben Franklin1st Catalog 1772

AT&T Toll Free 800

Numbers 1972

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2004

Another Long History:Catalog And Multichannel Merchants

Another Long History:Catalog And Multichannel Merchants

Montgomery Ward Online - 2009

1983

1994

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Today Everyone Is A Multichannel MerchantToday Everyone Is A Multichannel Merchant

You must be, because customers, donors and prospects clearly hold the power today, and multichannel choices are what they want

People avoid marketing because of a cluttered advertising environment and a shortage of time

New technologyhelps consumerscontrol media andallows them tocreate personalmedia content

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Everywhere In MarketingThe Lines Are BlurringEverywhere In MarketingThe Lines Are Blurring

BETWEEN MEDIA…Radio DVD Streaming Web Audio/VideoTV Podcasting

Radio DVD Streaming Web Audio/VideoTV Podcasting

…AND BETWEEN MARKETING DISCIPLINESProduct Mgt. Advertising Catalog Brand Mgt. Direct Mktg. Customer Relationship Mgt.

Product Mgt. Advertising Catalog Brand Mgt. Direct Mktg. Customer Relationship Mgt.

BETWEEN CHANNELS…Telephone Mobile Cable/DSL/SatelliteBroadcast 3G/WiMAX

Telephone Mobile Cable/DSL/SatelliteBroadcast 3G/WiMAX

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Direct Marketing: A Multichannel ProcessNo Longer A Single Industry

Direct Marketing: A Multichannel ProcessNo Longer A Single Industry

•Direct Mail, Catalog Direct Mail, Catalog •DR DR

TV/Radio/Magazine/NewspaperTV/Radio/Magazine/Newspaper•Internet/Email, Internet/Email,

WWW/EcommerceWWW/Ecommerce•Addressable Digital Addressable Digital

Cable/SatelliteCable/Satellite•MobileMobile

•Teleservices, Insert media, Teleservices, Insert media, OtherOther

•Ad agenciesAd agencies•Analytics servicesAnalytics services•Contact center servicesContact center services•Creative Creative •Data compilingData compiling•Display/digital mediaDisplay/digital media•Email/Search/Web Email/Search/Web

marketingmarketing•List List

brokers/managers/ownersbrokers/managers/owners•Marketing database Marketing database

solutionssolutions•Mailing/fulfillmentMailing/fulfillment•Printing/Variable data Printing/Variable data

printingprinting•Social media, Mobile, Social media, Mobile,

OtherOther

DIRECT MARKETINGPROCESS

MARKETSCustomers,

donors & prospects

MARKETSCustomers,

donors & prospects

INTERACTIVE

CHANNELSINTERACTIVE

CHANNELS

MARKETERSEvery

industry & segment

MARKETERSEvery

industry & segment

DIRECT MARKETING SUPPLY CHAIN

DIRECT MARKETING SUPPLY CHAIN

DIRECT MARKETINGPROCESS

DIRECT MARKETINGPROCESS

MARKETSCustomers,

donors & prospects

MARKETSCustomers,

donors & prospects

INTERACTIVE

CHANNELSINTERACTIVE

CHANNELS

MARKETERSEvery

industry & segment

MARKETERSEvery

industry & segment

DIRECT MARKETING SUPPLY CHAIN

DIRECT MARKETING SUPPLY CHAIN

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Prevailing TrendsIn A Paradigm ShiftPrevailing TrendsIn A Paradigm Shift

Marketing budgets have been reduced at 75%+ of ANA Surveyed marketers

Marketing dollars are shifting from advertisingto direct marketing

Direct mail dollars are shifting to emerging media

Marketers are increasingly turning to integrated, multichannel direct marketing

Overall, advertising and Overall, advertising and marketing budgets are marketing budgets are

down significantlydown significantly

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Each Direct Marketing Channel Is LargeTogether They’re A Powerhouse

Each Direct Marketing Channel Is LargeTogether They’re A Powerhouse

DRIVING $2.0578 TRILLION ANNUAL US SALESDRIVING $2.0578 TRILLION ANNUAL US SALESDRIVING $2.0578 TRILLION ANNUAL US SALESDRIVING $2.0578 TRILLION ANNUAL US SALES

Source: The Power of Direct Marketing 2008-2009 EditionDirect Marketing Association

Direct Mail (Catalog)

Direct Mail(Non-Catalog)

OtherInsert MediaDR Radio

Internet Marketing(Non-email)

CommercialEmail

DR Magazine

DR Television

Telephone Marketing

DR Newspaper $166.1 B$166.1 B

$363.8 B$363.8 B

$547.7 B$547.7 B

$154.7 B$154.7 B$481.5 B$481.5 B

$155.3 B$155.3 B

$28.0 B$28.0 B

$90.2 B$90.2 B

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2008 Direct Marketing Expenditures $176.9 Billion With $11.63 ROI (Average)

2008 Direct Marketing Expenditures $176.9 Billion With $11.63 ROI (Average)

Internet Marketing

Email Marketing

Catalog

Telephone Marketing

$21.3 Billion 1.8% CAGR $ 7.28

$35.2 Billion 1.4% CAGR $ 15.55

$24.1 Billion 13.4% CAGR $ 19.94

$42.5 Billion < 1% CAGR $ 8.55

$ 0.6 Billion 17.7% CAGR $ 45.06

2008-13 Growth(Projected)

Source: The Power of Direct Marketing 2008-2009 EditionDirect Marketing Association

2008 ROI(Average)

Direct Mail (Non-catalog)

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Mobile Platform Will Further EnableEvery Direct Marketing Channel

Mobile Platform Will Further EnableEvery Direct Marketing Channel There are more mobile devices in use today

worldwide than TVs and PCs – combined

Over 86% of US population has at least one mobile device

More than half (52%) of mobile subscribers use text messaging regularly

27% of mobile subscribers use web on their phone regularly

MOBILEMOBILEPOSTPOST EMAILEMAILPHONEPHONE CABLECABLE

DRMEDIA

DRMEDIA CATALOGCATALOGINSERTINSERT WEBWEBCONTACT

CENTERCONTACTCENTER

DIRECTMAIL

DIRECTMAIL …X n

DIRECDIRECT T

ORDEORDERR

DIRECDIRECT T

ORDEORDERR

FUND-FUND-RAISINRAISIN

G G

FUND-FUND-RAISINRAISIN

G G

GENERAGENERATETE

LEADSLEADS

GENERAGENERATETE

LEADSLEADS

RETAILRETAILPURCHAPURCHA

SESE

RETAILRETAILPURCHAPURCHA

SESE

SOCIALMEDIASOCIALMEDIA

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Nonprofit FundraisersLead The Way With Mobile Giving

Nonprofit FundraisersLead The Way With Mobile Giving

$5 DonationText KIDS to 90999

$5 DonationText HUMANE to

20222

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DMA Provides National AdvocacyOn Issues That Matter Most To Marketing

DMA Provides National AdvocacyOn Issues That Matter Most To Marketing

DMA GOVERNMENTAFFAIRS

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Viability Of The US Postal Service:Key Issue For All Multichannel Marketers

Viability Of The US Postal Service:Key Issue For All Multichannel Marketers

Source: United States Postal Service

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More And More Issues Arising In State CapitalsMore And More Issues Arising In State Capitals SSUTP (Streamlined Sales

and Use Tax)- DMA’s IA actively lobbies in

strong opposition SSUTP instate capitals

- Significant cost burdens on businesses located outside the state

State Do Not Mail- Six bills proposed so

far this session in fourstates: CT, FL, NJ, NY

- DMA-led Mail MovesAmerica coalition spreading the wordabout the economicimportance of mail

AOL Amazon AT&T Comcast

eHarmony Experian IAC Intuit

United Online VeriSign Yahoo!

AOL Amazon AT&T Comcast

eHarmony Experian IAC Intuit

United Online VeriSign Yahoo!

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Giving Consumers ChoicesBuilds A Bridge Of Trust For Marketers

Giving Consumers ChoicesBuilds A Bridge Of Trust For Marketers

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Hot Issue For Marketing Behavioral AdvertisingHot Issue For Marketing Behavioral Advertising

FTC report calls on Internet companies to ratchet up self-regulation of privacy practices

Coalition composed of AAAA, ANA, DMA, IAB and CBBB is develop common guidelines to be followed by all

DMA will synchronize with NARC and administer self-regulation and enforcement as part of ongoingEthics committee processes

““They invite legislation if they don’t do a good job at self-regulationThey invite legislation if they don’t do a good job at self-regulation.”.” FTC Commissioner Jon Leibowitz, NY Times, Feb. 14, 2009 FTC Commissioner Jon Leibowitz, NY Times, Feb. 14, 2009

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Multichannel MerchantStrategic Advisory BoardMultichannel MerchantStrategic Advisory Board

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Thanks To This Year’sACCM Program Advisory Committee

Thanks To This Year’sACCM Program Advisory Committee

Lawrence Becker-The Darden School of Business,University of Virginia

Lois Boyle-Brayfield-J Schmid & Assoc. Inc.

Coy Clement-ClementDIRECT

Melissa Dowling-Multichannel Merchant Magazine

Lauren Freedman-the e-tailing group

Pinny Gniwisch-ice.com

Jeff Govoni-America’s Gardening Resource

Mary Ann Kleinfelter-Marketing, L-Com

Heather Lloyd-Martin-Successworks

George Mollo-GJM Associates, Inc.

Sucharita Mulpuru-Forrester Research

Glenda Shasho Jones-Shasho Jones Direct, Inc.

Charlie Silver-Consultant

Linda Spellman-Hickory Farms

Gina Valentino-Hemisphere Marketing

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Today’s Keynote SpeakerClaire SpoffordToday’s Keynote SpeakerClaire Spofford

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Profitability in Times of Turmoil:Appleseed’s And Orchard Brand’s Measure for Success

Profitability in Times of Turmoil:Appleseed’s And Orchard Brand’s Measure for Success

CLAIRE SPOFFORD

PresidentAppleseed’s Holding

Inc.

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Questions & AnswersQuestions & Answers

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Energy Break In The Exhibit HallEnergy Break In The Exhibit Hall

Please Join Us in Hall D

11:00 - 11:45 AM

Concurrent Sessions begin at 11:45 AM

Please Join Us in Hall D

11:00 - 11:45 AM

Concurrent Sessions begin at 11:45 AM