“P loves E”

Or how Physical mail and Email work together to seduce the consumer

Marketing Day 11-3-2008

2

The story starts with youHow should I best make my on and

offline channels work together ?

How different or similar are physical mail and email for

advertising purpose?

Could I substitute my physical mail by

email?

What are the key media facts about

the one-to-one channels ?

I should start One to One. Physical, email

or both ?

3

We developed a reference survey to give the first insights on the 1-2-1 landscape

• Scope: DM, email, SMS, Telemarketing• Target: National 18+• Sample: n= 1.155 interviews • Field: november-december 2007• Data-collection: Computer assisted telephone

interviewing (CATI) – ad hoc• Weighting: Standard weighting national 18+

4

So how far do P and E love each other to create impact ?

REACH APPEAL ACT REACT

5

So how far do P and E love each other to create impact ?

REACH APPEAL ACT REACT

6

REACH APPEAL ACT REACT

With 67% potential reach, email is becomingmainstream

E-mail is becoming mainstream*72

67

Internet access*

E-mail access*

%

Base: * All (n=1155);**Access to e-mail (n=777)

22

6

3

1

9

60Home only

Home + workplace

Workplace only

Elsewhere only (e.g. library, cybercafé)

Mobile only

Other combinations

Amongst email access population:**

7

About 40% email users have more than one private email address

7

51

61

42

22

45 22 2 2 1

Mean = 1.4 Mean = 0.58

REACH APPEAL ACT REACT

Private Professional

1 2 3 4 5 6 1 2 3 4 5 6

# email addresses

%

Base: Access to e-mail (n=777)

7,7 mio addresses 3,2 mio addresses

10,9 mio addresses

00

8

But frequency of consulting email is lessintensive than physical mail

33

8

21

67

38

33

57%

E-Mailbox Potential Reach

No

Yes

Total

Daily

__________________________Source: TNS 2007

Weekly

Less often

Frequency

REACH APPEAL ACT REACT

__________________________Source: MAS 2005

0 3

100 9797%

No

Yes

Total

Daily

Weekly

Frequency

Letterbox Reach

9

5

5

14

32

42

2

23

63

14

0 20 40 60

%

6

8

18

29

38

1

49

51

0 20 40 60

%

Email is the most intensively used channelfor one to one advertising

12

20

25

25

15

2

85

15

0 20 40 60

%

36

15

32

53

14

33

0 20 40 60

%

TELE-MARKETING

(n=563)

EMAIL

(n=614)

PHYSICALMAIL(n=984)

SMS

(n=265)

Base: All (n=1155) but receiving advertising messages* Split not available

Frequency of Reach

REACH APPEAL ACT REACT

34% 83% 12% 15%

17%*

Daily

Several times a week

Once a week

Several times a month

Once a month

Less than once a month

Reception

No reception

No access

10

A consumer receives about 10 times more advertising emails than physical mail

52 2

47

Physical mail(n=984)

Emails(n=614)

SMS(n=265)

Telemarketing(n=563)

Average number of advertising items per month

REACH APPEAL ACT REACT

#

Base: Receive advertising

11

So how far do P and E love each other to create impact ?

REACH APPEAL ACT REACT

Preference

Attitude

12

Sector related questions to get more contextual results

• Automotive

• Banks and insurance

• Beauty care

• Clothing & shoes

• Food

• Hifi, video, cell phone

• Home equipment, furniture, DIY, Garden

• Mail Order

• Press

• Telecom, Internet, TV operators

• Tourism & Leisure

13

Physical mail remains by far the preferredcommunication channel

37

14

12

10

7

6

4

4

0,5

DM

Door to door leaflets

TV

Press

E-mail

Internet site

Animations in store

Radio

SM

PREFERENCE

*average figures across all sectors

REACH APPEAL ACT REACT

Which channel* do you prefer for an advertising message ?

%

14

Physical mail remains by far the preferredcommunication channel

29 34 36 38 43

9

13 10 57

10

8 147

111913

1322

8

1015

13 12 133

3 2 5 43

5 2 3 7136 7 4 2

1 1 0 0 1

Hifi, video, cellphone, computer

(n=144)

Telecom, internet,TV operators

(n=184)

Automotive (n=158) Home equipment:furniture, DIY,

garden (n=127)

Beauty products(n=120)

DM E-mail Print D2D TV Radio POS Internet SMS

PREFERENCE

*each respondent has an interest in the sector

REACH APPEAL ACT REACT

Which channel* do you prefer for an advertising message ?

15

Even when asked to choose different media, physical mail remains top of the list

70

5952 51

4339 37

30

90

20

40

60

80

100

Physical mailadvertising

Advertising inprint media

(newspapers,magazines)

D2D TVadvertising

Radioadvertising

Point of sales Advertisingon internet

site

E-mailadvertising

SMSadvertising

Which communication channels should a company use in order to provide you with commercial information?

PREFERENCEREACH APPEAL ACT REACT

%

Mail order

Beauty

Telecom

Press

Hifi, video

Food Food

Food Telecom

Telecom

*each respondent has an interest in the sector

16

Which way do you prefer to access information related to product characteristics

In the digital era, physical catalogues remain key asset , even as support for Web site

2

17

12

15

21

33

Do not know

No preference

I prefer information on the internet,combined with a paper catalogue

I prefer to consult product informationon the website

I prefer a paper catalogue

I ask for information in the shop itself

%

PREFERENCEREACH APPEAL ACT REACT

Base: Access to e-mail (n=777)

17

So how far do P and E love each other to create impact ?

REACH APPEAL ACT REACT

Preference

Attitude

18

ATTITUDEREACH APPEAL ACT REACT

Determining attitude is based on key items which should lead to media impact

Attention Advertising in this medium often captures my attention

Involvement Advertising in this medium makes me feel appreciated

PleasureAdvertising in this medium can surprise me and be originalAdvertising in this medium evokes emotion, makes me dreamAdvertising in this medium ofter irritates me

Image Advertising in this medium can give me a better image of a company or brandAdvertising in this medium takes into account the environment

Inform

Advertising in this medium gives me useful informationAdvertising in this medium gives me detailed informationAdvertising in this medium helps me to analyse an offerAdvertising in this medium gives me credible information

Advertising in this medium is easy and practical to obtain informationAdvertising in this medium is practical to communicate short messages

Convenience

ActionAdvertising in this medium can convince me to try out a new product or serviceIt is easy to react to this advertisingAdvertising in this medium urges me to react

19

E-mail & Physical mail: combination of strengths

121

85

84

81

59

56

49

48

46

45

27

10

-11

-23

-30

-48

Physical Mail index vs. Email

ATTITUDEREACH APPEAL ACT REACT

Feel appreciated

To try new products

Captures attention

Credible info

Better image

Analyse an offer

Useful info

Detailled info

Urges to react

Emotion

Original

Easy and practical for info

Easy to react

Short messages

Irritates me

Environment

20

Low rejection of 1-2-1 advertising

3

4

2

3

3

3

5

12

8

22

44

44

59

61

62

71

70

68

74

77

54

41

39

37

36

26

25

20

18

11

1

0 20 40 60 80 100

tv (n=1122)

internet (n=747)

door-to-door (n=1149)

radio (n=1058)

free press (n=991)

magazines (n=1046)

dailies (n=981)

cinema (n=678)

E-Mails (Averages)

Dm (Averages)

%

not enough enough too much sticker

Base: Users of each medium and give an answer

With regards to advertising in the following media, would you say there is …?

ATTITUDEREACH APPEAL ACT REACT

21

ATTITUDEREACH APPEAL ACT REACT

Among email users, 6 groups differentiate themselves in their relation to one to one media

The 1-2-1 lovers‘Positive towards

all BTL media’10%

The DM lovers ‘Physical Mail only’

28%

The DM & Email Addicts ‘Feel complementarily of Physical mail and e-mail’

27%

The Email lovers ‘E-Mails only’

8%

Telemarketing & SMS Addicts

8%

The Rejectors‘No 1-2-1 media’Only 19%

Base: Have access to e-mail (n=777)

22

Women

35+

MRP

HousewifesRetired

Urban

Single - couples

DM lovers(28%)

25-35; 55+

Employees TradersStudentsUrban, sec. local.

Families 1 – 3 p

Dutch

Men

Non MRP

E lovers(8%)

Men

Non MRP

15-44

Management, employee, students

Households 3+

DM + E addicts(27%)

Gender

Age

MRP ?

Occupation

Family

Language

Area

DM and Email seduce different people

ATTITUDEREACH APPEAL ACT REACT

23

These groups can reinforce media audiences …

TV

Free press

Dailies

Magazine

Radio

Internet

Cinema

H

H

H

H

H

H

H

H

H

H

ATTITUDEREACH APPEAL ACT REACT

DM lovers(28%)

E lovers(8%)

DM + E addicts(27%)

H= High media user

24

… or they can be complementary: you reach audiences other media reach less

TV

Free press

Dailies

Magazine

Radio

Internet

Cinema

H

H

M

H

S

ML

M

M

ML

H

H

H

H

H

H

H

ATTITUDEREACH APPEAL ACT REACT

DM lovers(28%)

E lovers(8%)

DM + E addicts(27%)

H= High media user M= Medium L= Low

25

So how far do P and E love each other to create impact ?

REACH APPEAL ACT REACT

26

Measures on opening rates

63%-93%

Avg. 78%

EMail

18%-43% 9%-28%

Physical Mail

REACH APPEAL ACT REACT

2005 panel surveyMAS - Post

(analysis on 3.352 DM)

2007 Q2Emailingsolution.com

Mailmailer.com

27

higher recall rate (eg +75%)

better content recall

higher purchase intention (eg +79%)

Key results Physical Mail vs. email

28

REACH APPEAL ACT REACT

Readership level is higher for Physical mail followed by SMS

44

14

9

13

19

0 20 40 60

%

SMS

(n=265)

67%

always open / listen

often open / listen

sometimes open / listen

rarely open / listen

never open (DM) / deletewithout opening (e-mail, sms)

/ never listen (telemark.)

40

20

23

13

5

0 20 40 60

%

PHYSICALMAIL

(n=984)

83%

Base: Receive advertising

17

15

30

21

17

0 20 40 60

%

EMAIL

(n=614)

62%

18

15

25

17

24

0 20 40 60

%

TELE-MARKETING

(n=563)

58%

29

0

10

20

30

40

50

60

0 10 20 30 40 50 60

%

Client

Not Client

No companyname

E-mail is slightly less appropriate to reach prospects

Email

Physical Mail

% throw it out immediately in function of sender information

REACH APPEAL ACT REACT

30

20

30

40

50

60

20 30 40 50 60

%

Email

Attention level of both channels varies across sectors, with Physical mail staying ahead

Note: each respondent was interviewd about 2 sectors in which he is interested

% attentive readership for advertising from a company you are client from

Press

Physical Mail

REACH APPEAL ACT REACT

Bank&InsuranceCar

Food

Home equipmentBeautyHifi

Mail order

Clothing

Leisure

Telecom

31

So how far do P and E love each other to create impact ?

REACH APPEAL ACT REACT

32

E-mail has a much stronger impact when combined with a physical mail

E-Mail funnel

Media received

DM + E-mail

E-mail only 100 30 13 930 42

Media recall Clicked Box ordered OpenedReceived

70

100 34 21 2334 60 93

+ 255%113% 161%

__________________________Source: DMix survey Mail order (2007)

REACH APPEAL ACT REACT

33

E-mail has a much stronger impact when combined with a physical mail

E-Mail funnel

Media received

DM + E-mail

E-mail only 100 30 13 930 42

Media recall Clicked Box ordered OpenedReceived

70

100 34 21 2334 60 93

+ 255%113% 161%

REACH APPEAL ACT REACT

Adding DM to email reduces by 25%the cost / response

Adding DM to email multiplies by 2,5 the number of final orders

__________________________Source: DMix survey Mail order (2007)

34

Paper catalogue is confirmed to be also a good gateway towards web

What did you do after receiving a paper catalogue?

37

12

21

18

15

2

2

34

Did a purchase in a selling point

Bought via the internet

Bought via mailorder of by phone

Visited the website of the catalogue

Asked information in a selling point

Sent an e-mail to request moreinformation

Other

Did nothing specific%

Clothing & shoes

Home equipment

Hifi, video

Tourism & leisure

Beauty products

Game, toys

Purchase

Information

REACH APPEAL ACT REACT

Base: received catalogue

35

REACH APPEAL ACT REACT

Site visit increases where mail is introduced to the mix

“How often have you visited the web site in the past 12 months?”

Between Once A Month And Once Every 6 Months

Less Than Once Every 6 Months

Greater ThanOnce a Month

51%63% 68% 72%

35%

30% 27% 23%

14%7% 4% 5%

Have Not ReceivedCatalogue

Received CatalogueWithin Past 12 months

Received CatalogueWithin Past 6 months

Received CatalogueWithin Past 3 months

+12%+5%

+4%

Source: Quadrangle: DM & Email 2007. DM & Online 2007

36

So how far do P and E love each other to create impact ?

37

Email Physical mail

• Higher opening and readingrate

• Better to contact prospects

• 67% of the 18+ • Only 57% emailboxes are

opened every dayReach

• 100% 18+• 97% letterboxes are opened

everyday (!time sensitive)

Appeal• 5th preferred• 8% E-lovers, 27% DM+E• Strengths:

• Easy and practical format(to react, to getinformation)

• Can surprise & be original• Taking account into

environment

• Most preferred• 28% DM-lovers, 27% DM+E• Strengths:

• Involving (valued)• Capturing attention• Giving usefull, detailed

trustworthy information• Urges to react

Act• Lower readership• Good for confirmation,

renforcement towards clients

38

React

Physical Mail is the 1-2-1 ‘base media’ to integrate in ‘KISS’ combinations

Physical MailEmail

confirmationReact?

Emailreminder

Web Interest? Brochure

Y

N

39

Electrabel – BBDO DirectJohn Caples Silver Award

40

41

You want more detailed results about this survey ?You want to know more about our media insights ?

Contact us !

022 / 011.111DMspecialists@post.be