masterworks

INNOVATIONH A N D B O O K

4.1 Overview

Please provide us with basic information about your organization’s history, ownership, mergers, etc.

Masterworks was founded in 1989 by Dr. Raymond Schenk as The Raymond Group. Ray was a former •

denominationalofficialwithTheChristianandMissionaryAlliance,seniorexecutivewithWorldConcernandVP

ofclientservicesatScreenCommunications.RayretiredfromMasterworksin1996.

In1992,SteveWoodworthjoinedasexecutivevicepresident;todayheispresidentofMasterworks.Steve•

wasVPofmarketingforWorldVision,leadingmostofitsmarketingprogramsthroughthe’80sandearly’90s.

DuringhistimeatWorldVision,Stevewasaclientoftwoleadingadvertisingagencies.

Intheearly1990s,withMasterworks’emphasisonefficiencyandinnovation,wepioneeredtheuseofshort-•

cycletimeprocessesandcontinuousprocessimprovementinanadvertisingagency.Ourturnaroundtimeon

projectsishalftheindustrynorm.

In1998,TheRaymondGrouphelpedfoundandlaunchHighPointSolutions,theinteractivesolutionsagencyof•

clientslikeFocusontheFamily,AmericanBibleSociety,WorldVision,Microsoft,Wal-MartandSafecoInsurance.

HighPointSolutionshasconductedmajoronlineinitiativesforWorldVision.

In2001,wechangedournamefromTheRaymondGrouptoMasterworkstoreflecttheKingdomemphasisof•

ouragency.

In2005,MasterworkspurchasedTouchPointSolutions,aleadingmajordonorconsultingfirm,tointegratethe•

vitalfunctionsofdirectmarketingandpersonalcontactfundraising.

Today,Masterworkscontinuestoleadtheindustryintheimplementationofbranding,CRMandintegrated•

multi-channelmarketing.

BuildingonthelegacybegunbySteveandRay,Masterworks’entireseniorteamconsistsofpeoplewhohave•

ledsuccessfulmarketingprogramsfornonprofitorganizations.

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Describe your management hierarchy i.e., starting with the account managers that would be assigned to our account and next level positions, up to president.

Masterworksisrecognizedasananalytics-led,strategy-driven,andinnovation-focusedmarketing•

“ministry”consistingoffiveprimaryservicefunctions:clientservices,creativeservices,newmedia,

marketingintelligence(analytics),andinnovationdesign(R&D).Theseteamsfunctioninter-

dependentlywithoneanotherinourdailycommitmenttoprovideworld-classservicetoourministry

partners.

Eachclientwepartnerwithisassignedadedicatedcross-functionalagencyteam.Wedonot•

moveteammembersonandoffaccounts.That’sbeenaphilosophyfromourinception.Why?We

realizethatourpartnersaremakingasignificantinvestmentinusastheiragency,andourshared

commitmentistomaintaincontinuitywiththeaccountteamsomessaging,designandotherclient-

unique requests are honored.

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if awarded wOrld visiOn’s 30 HOur famine, yOur agency team wOuld be:Account Supervisor: Dave Raney, SVP of Strategic DevelopmentTheaccountsupervisorroleisassignedtoanagencyprincipalwhohasultimateresponsibilityforthesuccessof

theaccount.Davehasbeenworkinginnonprofitmarketinganddevelopmentfornearly30years.Overthelast

8yearsatMasterworkshehassupervisedaccountssuchasFocusontheFamily,FoodfortheHungryandPrison

Fellowshipamongothers.PriortojoiningMasterworks,Daveserved18yearsattheRussReidCompanywhere

hespentmostofhisyearsmanagingtheWorldVisionaccount.

Account Executive: Heidi HenryTheaccountexecutivewillbeassignedtheday-to-daymanagementofyouraccount.Heidihasmorethan15

years’experienceinmarketingfrombothin-houseandagencyenvironments.Sheexcelsincreatingstrategies

andprocessesthatproduceresults.Heidihasapassiontoapplyhermanagementandcommunicationskillsin

thenonprofitworld.Shehasvolunteeredherservicesatchurchesandschools,andisanadjunctprofessorof

AdvertisingatSeattlePacificUniversity.

Project Manager: Heidi ColemanHeidiColeman’sexperience,energyandpassionforservicemakeheravaluableassettotheMasterworks

team.ForthepasttwoyearsshehasmanagedprojectsformajorclientssuchasCityTeamMinistriesandThe

QuietHour,ensuringon-timedeliveryworkingwithinouraggressiveschedule.Herstronginterpersonaland

organizationalskillsarekeytoclearcommunicationbetweenclients,businessmanagersandcreativeteams.

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Creative Director: Rob Zawoysky, SVP of Creative ServicesRob’sbeenaround.With41yearsinmarketingandfundraising,heknowswhat

heknowsandwhathedoesn’t.Foryouthmarketprojects,helistenshardtohis

youngerstaff,encouragestheirfreshthinkingandchallengesideasthatneed

deeperthought.Mostimportant,afterallthoseyears,allthoseclientsandall

thoseprojects,he’sstillhavingfun.

New Media Strategist: Jacob SmithJacobhasbeenworkingtohelpnonprofitstelltheirstoryandexpandtheirreachwithNewMedia

forthepastfiveyears.Hebringsadeepexpertiseinonlineengagementandtechnologies.Asa

NewMediaStrategist,Jacobworkswithclientstocreateintegratedstrategiestoachievetheirgoals.

Componentsincludewebsites,eMail,socialnetworking,blogging,onlinevideo,wikisandmore.

Marketing Intelligence: Michael Fassnacht, Director of AnalysisFor20years,Michaelhashonedhisproblem-solvingskillsinavarietyofprofessions.Fromresearchingnuclear

powerplantsinthedesertsofIdaho,tothesuccessfuldevelopmentofastart-upInternetcompany,tocreatingan

extensiveforecastingandplanningmodelforaglobalcustomerservicenetwork,Michaelhasmastereddatarelations,

customerrelationsandbusinessdevelopment.PriortojoiningMasterworks,MichaelservedatAmazon.comwhere

hehelpedimplementthecompany’sfirstCRMsoftwareandledthewayindevelopingprogramsandproceduresthat

emphasizedcustomerrelationshipmanagement.

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In addition to the core agency team, there are several other senior agency members who will play an active role:

Dave Raley, Director of New MediaDavefoundedhisfirstcompanyattheageof20andbuiltitthroughinnovativeonlinemarketingstrategies.

AsMasterworks’DirectorofNewMedia,DaveoverseestheNewMediadivision.Daveandhisteamdevelop

andconceptualizeintegratedNewMediastrategiesthatdrivegrowth,includingthedevelopmentofwebsites,

eMail,socialnetworking,blogging,onlinevideo,wikisandmore.

Kn Moy, SVP of Insight and InnovationKnMoyhasovertwodecadesofexperienceasamarketingstrategistandintegratedmarketingspecialist.Kn

leadstheMasterworksteamthatisresponsiblefordrivinginnovationinordertohelpclientsachievebetter,

faster,andmoresustainableresults.

AformerWorldVisionU.S.staffperson,KnjoinedMasterworksin1996andhelpedlaunchHighPointSolutions,

aleadinginteractivesolutionsfirm,whereheservedasChiefCreativeOfficerandSeniorStrategist.HighPoint

SolutionsledthedevelopmentofInternetstrategiesforFocusontheFamily,AmericanBibleSociety,World

VisionandahostofotherChristianorganizationsandwasalsoapreferredserviceproviderontheInternetfor

MicrosoftCorporation.

Kn’sindustryawardsincludetheprestigiousBenjaminFranklinAward(“TheBenny”),theEmmyintheprint

designindustry.KnalsoledtheInternetteamthatwontheWebby,theEmmyoftheInternetworld,aswellas

theprestigiousSmithsonianInstitutionComputerWorldAwardforinnovativeworkinonlineeCommerce.

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If awarded World Vision’s 30 Hour Famine, we’ll schedule a series of key meetings to ensure our high level of service and ministry objectives. These include:

Astart-upmeetingwithMasterworks’accountteamandWorldVision’s30HourFamineteam.Thepurposeofthis•

meetingistomakeappropriateintroductions,gathercriticalinformationtoexecutetheplan,reviewworkflow

andapprovalprocessesandhavetimeforQ&A.

PriOrity

Steve Hanberg, VP of Marketing IntelligenceSteveservesasstrategicdirectorofMarketingIntelligencedivision.Hebeganhiscareermorethan30

yearsagoinChristianradio,transitioningtopublishingandthendirect-responsefundraising.Steve’s

experiencemanagingmagazinesubscriberlistsandanalyzingdirectresponseresultslaunchedhis

passionfordataanalysisandperformancemeasurementsoverthelast20years.

Steve Woodworth, PresidentServingaspresident,Steveprovidesauniqueblendofmarketing,managementandorganizational

developmentexperience.AsWorldVision’sVicePresidentofMarketing,Stevedirectedalldirect-marketing

programs,inadditiontochurchandvolunteerprogramsanddonorservices.Duringhis12yearsatWorldVision,

mediaincomealonegrewfrom$40millionto$130million.BeforejoiningMasterworks,Stevewasapartner

inTheThomasGroup,amanagementconsultingfirmhelpingFortune500companiesboostproductivityand

profitabilitythroughprocessreengineering.

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Describe your core capabilities and experience, please tell us how these capabilities have evolved since we last engaged with you, and tell us why they changed.

Overthepast20years,thisintegratedsetofcoreagencycapabilitieshasevolvedtomeetthechallengesofthe

seismicshiftsthatareoccurringinourmarketplace.And,thesecapabilitieswereestablishedtoleveragethe

opportunitiesthatexisttodayinourmarketplace.

Tounderstandmorefullyhowandwhythesecapabilitieshaveevolved,pleaseseeourresponsetoyourrequest

onpage9(pleasetelluswhyyouareuniquelypositionedatthispresenttimetoengageus).

AweeklymeetingbetweentheAccountSupervisorandAccountExecutivetodiscussaccountactivityandmake•

surewemeetobjectives.Thisisinadditiontothedailyinteractionsthatwilltakeplaceamongtheaccount

team.

AweeklystatuscallwithMasterworks’AccountExecutive,ProjectManagerandidentifiedWorldVisioncontacts•

todiscussprojectwork.

AmonthlyaccountreviewmeetingconsistingoftheAccountSupervisor,AccountExecutive,ProjectManager•

andoneotheragencyprincipal.

ProposedquarterlymeetingswithWorldVisiontoreviewactivityandstrategizefutureplans.Masterworks’team•

wouldincludetheAccountSupervisor,AccountExecutive,ProjectManagerandanyotherappropriateaccount

teammembersgiventheagenda,alongwithWorldVision’steam.

Abiannualaccountreviewincludingallagencyprincipals(president,executivevicepresident,teamleaders),•

accountexecutivesandallmembersoftheassignedaccountteaminordertofullyreviewallaccountactivity.

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masterwOrks PrOvides tHe fOllOwing services:

Brand Development and •Strategic Positioning

Strategic Planning •

New Media•

eMarketing

WebsiteStrategyDevelopment

and Implementation

WebsiteOptimization

eCommunication

OnlinePromotion

OfflineIntegration

MobileEngagement

Social Media Implementation

Innovation Design (R & D)•

Traditional Media•

Direct Mail

VideoandTelevision

Radio

Print

Telemarketing

Integrated, Multi-channel •Marketing

Major Donor Consulting•

Analytics•

RevenueForecasts

TrendAnalysis

Segmentation

Modeling

CampaignPerformance

FullDonorFileAnalysis

DataWarehousing

CustomCRMStrategies

quality8

Please tell to us why you are uniquely positioned at this present time to engage with us.

Inourworldtoday,powerfulandoftencounterintuitivetrendsarechangingtheworldandchangingthewayin

whichourconstituentsrespondtomarketingcommunications.Thesetrendsareshapingtomorrowrightbefore

us.Noorganizationcankeepdoingwhatit’salwaysdone,andexpecttogetthesameresults.

Theconsumerhasneverhadmore

individualchoices,andthereasons

andpatternsforthosechoiceshave

neverbeenhardertounderstand

andanalyze.Constituentshave

neverbeenmoresophisticated,

moreindividualistic,ormore

knowledgeableaboutthechoices

theymakeintheirdailylives.Theskillofengagingconstituentsaroundtheirindividualneedsandwantshas

neverbeenmorecriticalinmarketingcommunications.

Inthis“bravenewworld”ofmarketing,Masterworks,whichcelebratesits20thyearin2009,isuniquelyableto

addressthisexponentiallygrowingchallenge.Throughouranalytics-led,strategy-drivenandinnovation-centric

approach,wearedeliveringworld-classresultsforourclients—despitethehistoricdownturnintheeconomy.

In2008,70%ofourclientswereabovebudgetprojections,15%wererightattheirbudgetprojections,and15%

werebelowtheirprojections.Ofthosebelowtheirprojections,two-thirdsarenewclientswhocametousin

2008becausetheiragencywasnotperforming.

because masterwOrks is structured tO drive and sustain client results tHrOugH innOvatiOn, we are uniquely POsitiOned tO HelP tHe 30 HOur famine mOve tO tHe next level.

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Thekeytodrivingconsistentsuccessforourclientsisthis:weareconstantlyinnovatingtooptimizeresults

inourconstantly-changingmarketplace.Acommitmenttoinnovationis,accordingtotheHarvardBusiness

Review,thesinglemostimportantdifferentiatorbetweenmoreeffectiveorganizationsandlesseffectiveones.

accelerating sustained results tHrOugH innOvatiOnMasterworksdoesmorethanjusttalkaboutinnovation.Masterworksistheonlymarketingagencyworking

withfaith-basedorganizationstohaveadedicatedteam,ledbyourSeniorVicePresidentofInsightand

Innovation,whosejobitistodriveinnovationinordertocreatefaster,betterandmoresustainablerevenue

results for our clients.

Some of our innovative marketplace initiatives include:

Directmailintegratedonlinevideoleveragingthestrengthsofmail,videoandInternettosignificantlydrive•

up results.

Our“GivingTogether”socialmediagivingapplicationconceptthatallowsagroupofpeopletoconnectand•

stayconnectedaroundgivingtimeandmoney.

Re-engineeringdirectmailtogetittoworkmoreeffectivelyinaworldthatnolonger“reads.”Thisprojectis•

ledbyaJohnsHopkinsUniversityPh.D.inHumanFactorsEngineeringwhodesignsinterfacesforsoftware

andwebsites.Sheisnowturningherattentiontooptimizingthedirectmailinterface.

Crackingthecodeonthemediamixwithinintegrated,multi-channelmarketing.WeareworkingwithaPh.D.•

fromUSCwhohasworkedwithMicrosoftinoptimizingitsmarketingspendinintegrated,multi-channel

marketing.

Our Donors for Life® constituent experience management strategy is a breakthrough •

approach for connecting and staying connected with your constituents.

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Driving Innovation Through Better InformationOurDNAhasalwaysbeenaboutinnovation—longbeforewebroughttogetherourInsightandInnovation

team.Today,15%ofourstaffofnearly80peopleareinvolvedinanalyzingdatathatleadstomarketinginsights

thatdriveasteadystreamofinnovationforourclients.Nootheragencyhascommittedsuchalargepercentage

ofitshumanresourcestoanalyticsandmarketplaceinsight.Together,theteamthatuncoversinsightandthe

teamthatintegratesitmakesupnearlyone-thirdofourcompany.That’sacommitmenttoinnovationnotseen

anywhere else in our industry.

We Are The State Of The IndustryMasterworksistheleadingintegrated,all-mediadirectmarketingagencyintheU.S.providingservicesto

faith-basedorganizations.Throughitsprovenanalytics-led,strategy-drivenandinnovation-focusedapproach,

Masterworkshelpsclientsbuildandsustaineffectivedonorexperiencesthathaveonesimplegoal:tomaximize

ROIwhiledeliveringsustainableresultsandcreatinglong-termconstituentloyalty.

Throughthetransformationalapproachofconnectingwithconstituentsaroundtheconstituentexperience

managementframework,Masterworks’abilitytodeliverfully-integrateddirectmarketingprogramsfar

exceedsthatoftraditionaldirectmarketingagencies.Inadditiontoconventionalagencyserviceslikestrategy

development,creative,interactive,databasemanagement,production,media,listresearchandbrokerage

solutions,completeproductionandmailingservicesaswellasresultsanalysis,Masterworks’directmarketing

solutionsaredesignedtoenhanceandextendyourprogram’sbrandinordertocreatelastingbrandadvantage.

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4.2 direct mail acquisitiOn

Please tell us about your agency’s success and experience in this area over the past 24 months and contrastthiswhereyourorganizationwasfiveyearsago.Pleaseprovidegrowthratesthatvalidateyour information.

Directmailacquisitionhasbeenacoreagencyservicesinceourinception20yearsago.Infact,someofour

principleshave30+yearsofdirectmailexperience.Historically,it’sbeenaprovendirectresponsemedium

andyet,inandofitself,iscontinuingtoshowagradualdeclineineffectivenessasrentallistuniversesshrink,

postageratesincreaseandconsumersbecomemoreempoweredtodeterminewhatarrivesintheirmailbox.

Fiveyearsagomanyofourclientswereconductingdirectmailacquisitioncampaignsinthefallseason,at

year-endandinthespring.Thecampaignsincludedcontrolandtestpackagesbasedonthestrongestoffers

mailedindonorcultivation.Buttheprimarydistinctivebetweenthenandtodaywasthattheyweremailedas

“standalone”strategieslackingintegrationwithothermarketingchannels.

Overthelast24months,wehavelearnedthatfordirectmailacquisitiontoworkeffectivelyandtrulybe

optimizeditmustbeintegratedwithothermarketingchannelsandbeseenasalargermovementofsome

kind...likethe“OneMealOneHope”campaignwerecentlycompletedforSeattle’sUnionGospelMission

(UGM).

Thiscampaignincorporateddirectmailtomultipleaudiences,telemarketing,promotionandevents,volunteer

recruitment,collateral(posters,pressreleases,etc.),newmedia(website,landingpage,onlinevideo,banner

ads,searchads),eMarketinginnovations(suchasaneCardcampaign,FlickrandFacebookapplications,aswell

astraditionaleMailefforts),radio(spotsandon-airpledgedrives),andprintmedia(freestandinginserts,etc.).

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“One Meal One Hope” was presented to the broader public as a movement with direct mail being a natural

response trigger in addition to the website. And despite the suffering economic times and fall election, the

campaign was extremely successful both in terms of brand exposure as well as response. For example:

1.6 million pieces mailed•

New donors up by 3,000 over prior year•

63,577 website visits•

Web income up by $100,000 over prior year which is substantial for this client•

61,870 emails•

4.4 million banner ads•

7.4 million total impressions•

It’simportanttorememberthatthepreviousyearUGM’sfallcampaignconsistedprimarilyofdirectmail(we

testedalternativemediainanticipationofacampaignthisyear).Ourclientbelievesthatwithoutthisyear’s

campaignapproach,theywouldhavebeendowninrevenueduringthefinalquarterofcalendaryear2008.

Instead,theywereupnearly3%.

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Documentforustheoverallaverageresponserateandfulfillmentrateyouhaverealizedindirectmailacquisitionoverthepast24months.Identifythetypesofcampaigns,ifaveragefulfillmentratesvarybycategories or type. Please describe your capabilities and experience in youth creative.

Herearethecompileddirectmailacquisitionresultsachievedacrossallclientssince2005:

YearTotal

MailedTotal

Responses%

ResponseAverage

GiftTotal

Income TotalCost ROI

2005 5,169,807 41,719 .81% $30.21 $1,260,360 $2,026,772 .62

2006 6,305,264 57,834 .92% $34.58 $1,999,649 $2,939,126 .68

2007 6,616,467 50,613 .76% $40.88 $2,068,906 $2,960,719 .70

2008 10,078,252 60,742 .60% $32.50 $2,138,182 $4,691,836 .46

Masterworksapproachtodonoracquisitionisalwaysbasedonlong-termdonorvalueanalysis–notupfront

results.Weconductextensivelong-termanalysistodeterminewhichacquisitionstrategies,kits,lists,first

giftsizeandzipsyieldthestrongestlong-termdonorfortheorganization,andthenwebaseouracquisition

strategyandbudgetallocationrecommendationsfromthatanalysis.

Forexample,ouranalysishasshownthatanewdonorwhogivesagiftof$50comparedtoanewdonorwho

givesafirstgiftof$25(thusafactorof2),hasanexponentiallyhigherlong-termvalueovertime.Thatiswhy

we’recontinuallytestingoffersandgifthandles,whichiswhyouraveragegiftandROIreflecteda3-year

increase up until this last year.

In2008,twonewlargeministrieshiredMasterworkstohelpthemturnaroundsufferingacquisitionprograms.In

thosecases,significanttestingwasdonetoidentifypotentialnewoffersandlists,whichnegativelyinfluenceda

3-yearupwardtrendinaveragegiftandROI.

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Finally,nearlyallofthedirectmailacquisitioncampaignswe’vemanageddidnothaveasecondaryfulfillment

componenttothem.However,wehaveproducedandcoordinatedmanypledgeprogramsforclientsoverthe

years(similartoWorldVisions’childsponsorshipprogram)wheremonthlyfulfillmentresultsweretypicallyin

the70-80%range.

Creative for Youth . . . by Youth

Adecadeago,creatingapersonalwebpagewasconsideredanactoftechnicalandcreativevirtuosity;today,the

comparablepracticeofcreatingaMySpaceprofileisanunremarkableachievementforthemajorityofyoung

peopleintheU.S.Itisbecomingcommonplaceforpeopletobothpostandviewpersonalandamateurvideos

andphotosonlineaspartoftheireverydaymediapractice.Inturn,thesepracticesarereshapingourprocesses

forself-expression,creativity,learning,andsociality.

Tothatend,MasterworksCreativeServicesisayouthculture.Seephoto.Thisdepartmentiscomprisedof5

graphicdesignersand5productionartists,eachofwhomareprofessionally-trainedgraphicartists.Anumber

ofthemareunder30.Wealsohaveateamof5writersand

asmanyproofreaders.Therearepeopleunder30onthis

team.Our3creativedirectorsareover30—theyhavea

combinedyearsofcreativeexperienceofalmost90years

—butknowhowtoconnectwiththeyouthculture.

Young people todaY innatelY know how to engage and connect with other Young people .. . production of Youth creative is best performed bY those who also consume Youth creative.

turn

Pag

e w

itH

caut

iOn

Documentforusthemostsuccessfulfulfillmentratesyouhaverealizedindirectmailacquisition.Telluswhatcampaignsorprogramsthesesuccesseswererealizedinandwhatyoubelievespecificallycausedtheir success.

Asacknowledgedabove,thesuccessfactorsofnearlyallofthedirectmailacquisitioncampaignswe’ve•

producedwerebasedoninitialupfrontresults(numberofdonorsacquiredanditscorrelatedpercentresponse,

averagefirstgiftsizeandROI)andlong-termdonorvalueovertime.Becauseouracquisitionrecommendations

arebasedonlong-termvalue,ourministryclientsareacquiringmoregenerousdonorsthatareyieldinggreater

long-termreturnsfortheiracquisitioninvestment.

Please name any third parties you presently work with, or are considering that would assist you in providing services that are incorporated into what you might offer World Vision. Describe their core competencies,andspecificallytheirroleifthiscanbeprojectedatthistime.

[SeediscussionofHighPointSolutions/Brand:Wallopunder“InteractiveAcquisition.”]

Masterworks’mobilemarketingpartner,Mo7,conceives,implementsandmanagesuniquemobile-basedmarketing

campaignsfororganizationsofallsizes.Mo7helpsorganizationsreachtherightperson,attherighttime,withthe

rightofferusingoneofthemostpowerfulengagementtoolsavailable,theubiquitouscellphone.Mo7’scapabilities

include:mobileresearchandconsumertargeting,mobilemediachannelplanningandbuying,mobileadcreation,

mobilewebsitedevelopmentandmanagement,mobileapplicationdevelopment,customSMStoolsandcampaigns,

securedatabasemanagementandbackendanalytics—and24/7technicalsupportduringacampaign.

Mo7wasfoundedbyScottForrest,aformerWorldVisionstaffperson.Mo7clientsincludeOnTheBorderrestaurants

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(aBrinkerInternationalbrand),Chick-fil-A,theU.S.Army,Gold’sGym,theMSSocietyandConocoPhillips,among

others.ThescopeofMo7’sworkrangesfromcustomlead-generatingandCRMsolutionsutilizingSMSandthe

mobileweb,tothedevelopmentofcutting-edge,brandedmobileapplications.Mo7iscurrentlydevelopingacell

phonebasedlocationfinderforConocoPhillipsthatutilizesGPStriangulationtechniquesalongwithGoogleMaps

andMicrosoftVirtualEarth.

4.3 interactive acquisitiOn

Please note: For some of the answers below, we are not able to disclose information about specific online acquisition strategies and approaches that our clients perceive as valuable and proprietary as well as information that clients believe may degrade their competitive advantage in the marketplace. In some cases, we are legally bound by nondisclosure agreements (NDAs). This is, in part, because NDAs, also known as “Silicon Valley Handshakes” have become ubiquitous in the interactive world and, as such, are almost

standard operating procedure.

Please tell us about your agency’s success and experience in this area over the past 24 months and contrastthiswhereyourorganizationwasfiveyearsago.Pleaseprovidegrowthratesthatvalidateyourinformation.

Fiveyearsago,notoneofourclientswasspendinganymoneydoingonlinedonoracquisition.Today,ourlargest

onlineclientspendsupto$150,000amonthdirectlythroughMasterworksdoingonline-onlydonoracquisition.

They are committed in partnership with Masterworks to “crack the code” of online donor acquisition.

Forthatclient,thefocusisoninnovatingandbuildinganinfrastructurefocusedondigitalmarketingandusing

integrated,multi-channelmarketing,includingmail,tosupportthat.Aswe’vefine-tunedouronlineacquisition

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strategiesforthisclient,onlineengagementbringsthemintorelationshipwiththeorganization,andintegrated,

multi-channelmarketingsustainstherelationshipanddrivesuplong-termdonorvalue.Multi-channeldonors

givealmosttwiceasmuchassingle-channeldonors.Soitisalwaysourobjectivewithclientstooptimizethe

conversionofonlinedonorstomulti-channeldonors.

Documentforustheoverallaveragefulfillmentrateyouhaverealizedininteractiveacquisitionoverthepast24months.Identifythetypesofcampaigns,ifaveragefulfillmentratesvarybycategoriesortype.

Itisnotpossibletoextrapolatean“averagefulfillmentrate”becausetoomanyvariablesdefinehowwell

interactiveacquisitioncampaignswork.Forexample,whenclientshaveinsistedthatwetargetabroadly-

definedaudiencegrouping,fulfillmentratesaregenerallylowwhencomparedtoclientsthathaveallowedusto

targetanarrowly-definedaudiencesegment.Drivingtargetedtraffictoanofferingorproductalwaysproduces

betterfulfillmentrates.Clientswithbetterofferswillhavebetterfulfillmentratesthanclientswithweakoffers.

Clientsthathaveleveraged“wordofmouth”havebetterfulfillmentratesthanclientswhohaven’tleveraged

socialmediatechnologies.And,whentheInternetisacomponentofanintegrated,multi-channelcampaign,

fulfillmentratesarealwayshigher,thanwhentheInternetisthesoleengagementchannel.

Documentforusthemostsuccessfulfulfillmentratesyouhaverealizedininteractiveoverthepast24months.Describethecampaignsorprogramsthesewererealizedinandwhatyoubelievespecificallycaused their success.

Theneedtomaintainconfidentialitydoesnotallowustospeakinspecificdetailsaboutsomeofthekey

strategiesthatledtothesuccessofourtopcampaignsoverthepast24months.

But,pleaseallowustospeakgenerallyaboutourprovenstrategiesforcreatingfaster,betterandmore

sustainable results in online acquisition.

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Webelievethatthecurrentonlineacquisitionmodelaspracticedbythemajorityofdirectmarketingagencies—

acquireand/orbuildprospectlistsandacquireasmanydonorsaspossiblethrougheMail—isatbestastopgap.It

isnotalong-term,bestpracticessolution.Itwillnotbesustainablegiventhecurrenttrendinginonlinebehavior.

Whilewehavedemonstratedinthepast2yearsthattheeMailacquisitionapproachis,infact,workingsuccessfully

alotofthetimewithourclients,thereare4reasonsthatresultsfornewconstituentand/ordonoracquisition

onlinewillcontinuetofall.Infact,decliningsuccessratesinonlineacquisitionareofficiallyatrendnowaccording

tothemostrecentonlineresearchbyTargetAnalysis.

tHe 4 reasOns tHe current mOdel Of Online acquisitiOn is nOt wOrking:Onlineacquisitionisnotabletofillthegapleftbythedeclineindirectmailacquisition.Longterm“customer”1.

valueofdonorsacquiredonlineisnotcertain.

Mostonline“customers”arenotcominginthefrontdoorofeMailsolicitation.Theyarecomingintheside2.

door.Thatsidedooristheresultofmediatriggers,integratedmarketingcampaigns,ortheattentionthatan

organizationgarnerswhentheircurrentcustomersletothersintheirnetworkknowthattheyarepassionate

abouttheorganizationanditsproductsorservices.

It’snotcurrentlyasustainablemodel.Whenweapplytheconventionalshout-in-your-face,compel-and-sell3.

directmailapproachestoeMail,webuildaresistancetoopeningeMailwithpeoplewhoareaccustomedto

beingtreatedinmorerelationalwaysonline.

ItisfareasierfororganizationstoquicklywearouttheireMailwelcomewithdonorsonline.Onlineacquisition4.

isburningoutpeoplemorequicklythandirectmailacquisitioneverdid.cOng

ruit

y

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Onlineacquisitionisnotjustaboutdirectresponse.Ultimately,webelieveitisaboutonlinerelationship

building.Webelievethatitiscriticaltostoptreatingpeoplelikecashmachines.Itistimetostopalienating90%

ofpeoplejusttogeta10%returnoneMailcampaigns.

Weneedtostartengagingpeoplepersonallyandinmorerelevantandmeaningfulwaysthanever.(Thisiswhy

70%ofCRMinstallationshavefailedaccordingtoGartner.)CRMinsistsoncategorizingindividualsas“donors”or

“accounts”anddoesnotallowforunderstandingwhypeoplegive,howtheyprefertobetreatedandhowthey

prefertogive(includinggivingtime),understandinghowtheycanbeleveragedtofurthertheorganization’s

mission,etc.

Online,relationshipsaretheonlythingthatmatter.Muchmoretimehastobespentcreating,building,and

sustainingrelationships.Wedothisintheframeworkofcreatingmeaningful,onlineexperiencesforpeople.

ThatisMasterworks’uniqueapproachtoonlineacquisition.

Webuildanddeepenrelationshipbeforeweeventhinkaboutaskingformoney.Weengagetheminapersonal

wayandinahumanway,byshowingyourorganization’shumanface.Itisaboutengagingpeopleonlinein

waysthatarerelevantandmeaningfultothem.It’snotjustabouthittingthemupformoney.Thiswillmean

engagingpeopleinnewways,encouragingthemtonetwork,toconnectwitheachotheroveryourmission.

Webelievethatonlineacquisitionwillincreasinglyleveragenewonlinemedia:blogging,twitteringtomeet

peopleyouwouldneverhavemetotherwise,learningmoreaboutthem,connectingthemtoothersandtoyour

offerings,offeringrelevantonlinevideo,engagingthemthroughtheirmobiledevices,aswellasothertoolsto

makeiteasierforpeopletoengagewithyouinthewaysandtimesoftheirchoosing,whetherit’svolunteering,

spreadingtheword,orspreadingthewealth.

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in general, Our strategic aPPrOacHes fOr OPtimizing Online acquisitiOn fOllOw tHis fOrmula:

Sincenearly39%ofWebsitevisitorsoriginatefromsearchengines,itisimportanttoleveragebothSEOand•

SEMbestpracticesanddrivetraffictoaWebsiteoptimizedforconvertingvisitorstoparticipants.Weare

expertsatoptimizingWebsitestoconvertvisitorstoparticipants.Wecandemonstratethisfromimpressive

resultsachievedforWorldVision.

Since33%ofWebsitevisitorsoriginatefromexternallinks,itisimportanttoinvestinsocialmedia•

technologiesandstrategiesthatcreatebuzz-worthinessaroundthe30HourFamine,resultinginmore

peoplelinkingtothe30HourFamineWebsite.The30HourFamineneedsmorepresenceinthesocialmedia

spaceinordertomoreeffectivelypenetratethemarketplace.Wewilldevelopandimplementstrategiesfor

creatingbuzzandpassionforyourcauseandofferings.

Since27%ofWebsitevisitorsaccessthesitedirectly,weneedtobuildandimplementastrategytoadvertise•

thesitebothonlineandoffline,drivingtraffictoaWebsiteoptimizedforconvertingvisitorstoparticipants.

Eachofthesestrategiesabovewillhavetobeoptimizedaround30HourFamine’s3coreaudiences:youth,•

youthleaders,anddonors.

Sinceconsumers,ingeneral,nowexpectto“haveanexperience”notjustreceiveaproductorservice,itis•

alsoimperativethatwemapoutandimplementatotalonlineexperiencethatnotonlycreatesbuzz,helps

peoplefindrelevanceandmeaning,andfacilitatestheirbeing30HourFamineAmbassadorstohelpsellyour

causeandprogramstotheirnetworkthattruststhem.Thisonlineexperiencewouldspanthedigitalworld

andwouldeventouchtheirmobiledevices,whichisfastbecomingoneofthemosteffectivewaysofstaying

connected with customers.

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Documentyouraverageimpressionrates,clickthrough,andotherfulfillmentmetricsforSearchandDisplay media.

Again,webelievethatextrapolating“averages”isnotmeaningful.Onetangibledemonstrationofwhatthe30

HourFaminecouldseeinbothsearchanddisplayisourworkrecentlywithCampusCrusade’sAthletesinAction

2009NationalBCSFootballChampionshipsCampaign.Indisplayadvertising,withnearly15millionimpressions

wesawanaverageCTRof0.41%.Insearch,morethan12millionimpressionshadanaverageCTRof0.07%.

FortheseresultsthispastJanuary,theclientspentjust28%ofwhattheyspent2yearsagoforthesame

campaign,withcomparablereachandimpact.Webelievethatsiteinteractionwouldhavebeenmuchhigher

hadtheclienthadtimetoimplementourusabilityrecommendationsforoptimizingtheonlineexperience.CTR

andotherfulfillmentmetricsareverymuchafunctionofWebsiteusability.Inthisnationalonlinecampaign,the

clientdidnothavetimetofinetunetheonlineuserexperience.

Please contrast your capabilities in Display vs. Search media.

Inbothonlinedisplaymarketingandonlinesearchmarketing,Masterworkshasover10yearsofinteractive

marketingexperience.

Intheareaofonlinedisplaymarketing,wethink“beyondthebanner(ad).”Tostayaheadinacontinuously

evolvingonlinedisplaymarket,webelieveorganizationsneedto:

Find(andbuy)sitesthatworkharderforthemtodriveawarenessandconversion.•

Thinkbeyondthebanner:utilizingnewsletters,eMails,text,socialmediatechnologies,mobilestrategies,•

andevenprint.Wearefindingthatalargenumberofpeoplerequestinformationinthemail.Imaginethat!

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Createlinksforhighestefficiencyandbetterresults.•

Utilizesocialnetworksforbroaderreachandcosteffectiveness.•

Wecanhelpineachoftheseareasofdisplaymarketing.

Wehaveextensiveexperiencedevelopingandcoordinatingcampaignsonadnetworks,inadditionto

individualsitebuys.We’vetestedandarecapableofproducingbothrichmedia-andstaticimage-basedads,

andthecorrespondingexperiencefromclick-throughtoconversion.

Intermsofsearchmarketing,wedevelopandplaceads,primarilyonthebigthreesearchnetworks—Google,

Yahoo!,andMSN.Aswithdisplayads,we’vearchitectedtheuserexperiencefromclick-throughtoconversion.

Please name any third parties you presently work with, or are considering that would assist you in providing services that are incorporated into what you might offer World Vision. Describe their core competencies,andspecificallytheirroleifthiscanbeprojectedatthistime.

[SeediscussionofMo7MobileMarketingunder“DirectMailAcquisition.”]

InMay1998,MasterworkshelpedfoundandlaunchtheinteractivesolutionsagencyHighPointSolutions(HPS).

MasterworksPresident,CFOandSeniorVicePresidentwerethreeofthefoundingpartnersofHPS.

HPSquicklybecameoneoftheleadingInternetagenciesintheworldofChristianorganizations,workingwith

clientslikeFocusontheFamily,AmericanBibleSociety,andWorldVision.IntheearlyyearsoftheInternet,HPS

evenbecameastrategicInternetpartnertoagencieslikeKMA,RussReid,andGrizzardCommunications.

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AtthedawnoftheageofInternetmarketing,MasterworksandHPSinnovatedabreakthroughmembership

fulfillmentstrategyforColumbiaHouseRecords.Additionally,HPSbecameapreferredserviceprovideronthe

InternetforMicrosoftfor4years,andhasworkedwithFortune500clientslikeWal-MartandSafecoInsurance.

HPShasworkedwithWorldVisionforovertenyearsincludingtheirworkwithredesigningthe30HourFamine

Websiteforfourofthoseyears.Morerecently,HPShasworkedextensivelyonimprovingtheuserexperience

ofthemainWorldVisionsite,notonlyprovidingthenewarchitectureforthemainsitebutmostrecently,

completelyredesigningiStoreandtheonlinedonationandmerchandisingprocess.Theresultshavebeena

muchmoreintegratedexperienceforusersbetweeniStoreandthemainsitebutmoreimportant,thisworkhas

resultedinincreaseddonationstotheministry.HPSalsorecentlycompletedworkontheredesignofboththe

publicandbackend/administrativeaspectsoftheWorldVisionExperience:AIDSWebsite.

Attheendof2008,HPSdecidedtoreorganizetofurtheritsstudiomodelofbringinginspecificexpertiseas

neededforgivenprojects.ThisorganizationalreengineeringalsoallowedHPStopartnermorestrategicallywith

MasterworksinternalNewMediadivision,ledbyDaveRaley.

ThisledtoclosingHPSandthecreationofBrand:Walloptofocusmoreoncorecompetenciesintheareas

ofbrandingandcreatingemotionallycompellingexperiencesforusers,particularlyinlightofnewformsof

community(onlineandoffline)andsocialnetworking.Thisrefinedapproachhelpsorganizationsconnectto

theiraudiencesbetterbydefiningtheorganization’sbrandinwaysthatmatterdeeplytoitsaudiencesandthen

tolivethatoutconsistentlythroughalltouchpoints(face-to-facecontact,print,mail,eMail,Internet,mobile,

etc.).Thisincreasinglymeanshelpingorganizationstodevelopmorethandirectresponseoffers.Itmeansthe

creationofprogramsoractualinteractiveexperiencesthatengageaudiencesandmoreimportant,providethe

contextforthemtostayengagedovertime.We’vefoundthatmanyorganizationscanacquirenewconstituents,

butinthiscrowdedmarketplace,gettingthemtocomebackandmoreimportant,becomeloyaldonorsand

participants is what matters most.

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Inthelastyearalone,inpartnershipwithMasterworks’SeniorVicePresidentofInsightandInnovation,Brand:Wallop

developedaninteractiveenvironmentalexperienceforHiltonGrandVacationsthatresultedinabreakthrough20%

increaseinsaleswithintheinitialtwo-monthperiodalone.Inaddition,HPShasworkedwithFocusontheFamilyto

createParentingCompass,aninteractiveassessmentforparentsandyouthtocreatetheirownfamilysuccessplan.As

partofthisparentinginitiative,Focushasexperiencedextraordinarygrowthintheironlineforumparticipationand

onlinecommunities.Similarly,HPSiscurrentlyworkingwithSearchInstituteontheredesignofMVParents.com,asite

withsignificantcorporatesponsorshipthatwill,whencompletedlaterthisyear,beoneofthemostimportantresources

forparentsontheInternet.Ineachofthesecases,thesecrettosuccesswasn’tinjustbuildingaWebsiteoramarketing

campaign,butincreatinganoverarchingprogramorenvironmentthatconnectsemotionally,providesareasonfor

engagementandmostofall,givesparticipantsaframeworkorcontextforstayingengagedovertime.

Butitisonlysustainedthroughconsistentapplicationofthebrandateachdetailed

implementationtouchpointandacompellingrationalethatmakespeoplefeelasif

theyarepartofsomethingbiggerthanthemselves.Withouttheoverarchingvision

ANDthedetailedexecution,youwilllosedonorswhoareofftothenextexperience

or cause.

WhatMasterworksandBrand:Wallopoffersthe30HourFamineisthismethodology

ofstartingwithastrategythatrefinestheprogramitselfandtakesadvantageof

newformsofcommunity.Thismeansextendingthereachoftheexperienceitselfonlinetoleveragesocialmediatools

andnetworksmoreeffectively.Mostimportant,itmeansunderstandingwhataspectsofthe30HourFaminecanbe

leveragedtoconnectemotionallywithparticipants,youthleadersanddonorssothattheyallhave,eitherinpersonor

throughsocialnetworks,apieceofthe“experience.”

Thegoalistobegintheintentionalprocessofcreating“tribes”whopassionatelyengagewiththe30HourFamineand

loYaltY starts with an “emotional wallop” that gets attention and captures hearts.

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inviteotherstojoinin,expandthetribeandcreatetheirownformsofparticipation.Theironyintoday’sworldis

thatthemoreyoutrytocontrolyourbrand,thelesscontrolyouhaveoverit.Weclearlyrealizetheimportance

ofhavingpeopleconnectbacktoWorldVisionanddonate—and,evensponsorachild.Butthe30HourFamine

hastheopportunitytoreachfarmorepeoplethanitcurrentlydoesbylettingpeopleleveragetheirowntribes

andnetworksandthengivethemareasontoconnectbacktoWorldVisionandthe30HourFamine.

Youthdon’tneedopportunitiesforcommunitytoday.ThisiswhyorganizationssuchasYoungLifeareseeing

amarkeddecreaseincertainareasintermsofyouthparticipationintheiractualgroupmeetings.Youthare

connectingthroughtextingandIM’ingallthetime,anongoingvirtualanddynamiccommunity.

Butwhattheydon’tfindinthisformofcommunityisanopportunityforengagement,serviceandmeaning.And

that’swhatthey“hunger”for.The30HourFamineprovidestheframeworkforthisengagementandpurpose,

butitneedstoberelevanttotheircontextandneeds.ThisiswhywebelievethatFamineshouldstartwithan

overarchingstrategythatincludesastrongprogramdevelopmentpiece.It’snotsomuchthatthemediaisthe

messageasmuchasthattheprogramitselfprovidesthecontextforengagement.Withoutthatcontext,without

thatreasonforcomingandstayingandtellingothersaboutwhythereisnothingelseouttherelikethe30Hour

Famine,theFaminewon’tgrow.Butidentifyingthatcorepointofrelevancyandthenleveragingthatthrough

thechannelsthattoday’syouthareusing,willgiveyouanopportunitytoconnectandsustaintherelationship

overtime.

Together,MasterworksandBrand:WalloparereadytotaketheFaminetothenextlevel.

cOngruity28

4.4 cHristian culture

Please tell us if you believe past experience with Christian organizations is not a prerequisite to working with World Vision. Regardless if you have experience working with Christian organizations or not, please tell us why you think this.

AllMasterworksclientsareChristianorganizations.Thisisbydesignasourcoreemphasisasanagency—we

defineourselvesasaministry—isadvancingtheKingdomofGodbyassistingourclientsinacceleratingtheir

growthandministryactivity.Webelievethatyoucan’tmanufacturebiblicallanguageandspeakthetruthabout

ChristasiftheChristianmarketwerethesameasanyothermarket.Allourleadershipandcreativeteamare

Christians.

Please describe to us what hurdles you might encounter with your staff and third parties in partnering with World Vision because of our strong Christ centered position.

None.

Please tell us if you believe you have recently had or currently have relationships with customers, thirdparties,orothergroupsthatyousensemightbeinconflictwithourstrongChristianposition.

Wehavenotbeeninvolvedwithanyclients,thirdpartiesorothergroupswhowouldbeinconflictwithWorld

Vision’sstrongChristianposition.

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4.5 accOuntability and transParency

Pleaseprovideanyfeedbackinregardtotheprocessimprovementorfinancialelementswehavepresentedhere.IfanylooktobeinconflictwithhowyouwouldbeabletoconductbusinesswithWorld Vision, please describe this and help us understand your position.

ThereareanumberofcomponentstoMasterworks’businessmodelthatwouldbeofinteresttoyou:

Masterworks operates on a • fixedfeebasis.Forexample,ifaclientaskedustodevelopadirectmailpackage,

wewouldquotethepriceforcreative(artandcopy)andthatpriceisfixed.Thisapproachappliestoall

componentsofanannualmarketingplan.Asaresult,therecanneverbesurprisesinrelationtothecostof

ourservices.

Masterworks • does notchargecommissionsonmediabuysandwedonotmark upprintingandmailing

costs.Webelievethatwhenanagency’sprofitistiedtotheamountofmediaboughtoraclient’smail

volume,thereisaninherentconflictofinterest.

Masterworks is committed to • continuousimprovementwithregardtoourinternalprocessesandinour

workforclients.Overadecadeagoweestablishedaprocessimprovementteam.Oneofthepractical

outcomesproducedbythisteamwastoreducethecycletimeforcreatingandmailingadirectmailpiece

fromtheindustrystandard120daysto60days.Wealsohaveaprocedureinplacetocreateandmail

emergencyappealsinfourdays.

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If not presently working with World Vision, please execute our NDA (attached) and submit this with your written response.

Seeattachedsigneddocument.

Please identify any of our standard terms and conditions (attached) that you cannot accept. Suggest any revisions at this time and submit them with your response.

Nonedenied;wecomplywithWorldVision’sstandardtermsandconditions.

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your mission • our innovation • His purpose

masterworks