Top Marketin g Trends . Marketing Then (2002) and Now (2012). Direct Mail - Then. According to the Direct Marketing Association (DMA ), in 2002 annual direct mail expenditures were $52.7 Billion and represented 19% of total advertising spend overall in the U.S.
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Top Marketing Trends
Marketing Then (2002) and Now (2012)
Direct Mail - Then
According to the Direct Marketing Association (DMA), in 2002 annual direct mail expenditures were $52.7 Billion and represented 19% of total advertisingspend overall in the U.S.
Synovate Mail Monitor reported that credit card offer mailings represented 4.89 billion pieces of mail in 2002 and produced a response rate of .6%.
This compares to 1.52 billion mail pieces in 1992 and a 2.8% response rate.
The DMA conducted a study over the next 9 years and report that response
rates were 25% higher in 2002 then they are now.
Direct Mail - Now
The Direct Marketing Association (DMA) revealed in June of 2012 that direct mail
response rates have dropped nearly 25 percent over the past nine years.
Even so, mail campaigns draw a better overall response than digital channels. For instance, response rates for direct mail to an existing customer average 3.40 percent and 1.38 percent for a prospect list, compared with 0.12 percent for email according to DMA.
The National Mail Order Association reported the following response rates for outside lists:
The DMA report shows Cost per order or lead for acquisition campaigns in 2012 were roughly equivalent for direct mail ($51.40), post card ($54.10), email ($55.24), and paid search ($52.58).
Another important DMA finding was that Email had the highest Return on Investment (ROI) at $28.50, compared with $7.00 direct mail.
Video - Then
Prior to 2002 Apple had introduced a streaming format in it’s quick time application which was first distributed in 1999.
From 1999 to 2002 it was adopted on websites with RealPlayer and Windows Media streaming formats. The three competing formats on websites required each user to download the respective applications for streaming and resulted in many users having to have all three applications on their computer for general compatibility.
In 2002 the interest in a single, unified, streaming format and the widespread adoption of Adobe Flash prompted the development of a video streaming format through Flash, which is the format used in Flash-based players on many popular video hosting sites today such as YouTube.
Video - Now
ComScore released a study indicating that professionally-produced video content and
user-generated product videos, when used together, drive higher sales.
Nielsensurveyed 27,000 consumers in 55 countries to learn how they watch video.
The consumption of video has grown astronomically as consumers have demonstrated
a strong interest in video-delivery of entertainment and all types of information.
Changes in technology have enhanced both the video experience and the convenience
and ease of accessing video.
Nielsen also found that as the consumption of online video content in the United States has escalated, women, who are between 25 to 44 years of age have been some of the most devoted viewers of video, as well as regular users of digital platforms regardless of gender.
Email - Then
1996 : Hotmail Becomes the First Web-Based Email Service
A year later in 1997, Microsoft purchased HotMaiL for four hundred million dollars and renamed it MSN Hotmail.
Email - Now
Today, Hotmail is still technically the largest web-based email service in terms of raw users, according to the most recent ComScoredata Hotmail is reported to have three hundred and sixty-four million users.
Yahoo! mail is the second largest with a reported two hundred and eighty million users.
Google’s Gmail is third with one hundred and ninety-one million users.
In 2002 USA Today had an average weekday circulation of 2,230,899.
The Wall Street Journal followed with1,800,607.
The New York Times circulation was 1,113,000.
It has been all down hill since, declining at an average of 2 to 3% a year for
15 straight consecutive periods according to the Pew Research Center Project for Excellence in Journalism.
Newspapers - Now
The Audit Bureau of Circulation recently reported that the New York Times digital circulation now surpasses its print circulation by roughly 27,000 readers.
Weekday circulation, including print and digital rose by 73% and Sunday rose by 50%. The paper accredits this to the installment of its digital paywalls.
According to the ABC report, overall digital circulation now accounts for 14.2% of newspapers’ circulation mix.
Wall Street Journal- 1,566,027 print, 552,288 digital
USA Today- 1,701,777 print, 115,669 digital
New York Times- 779,731 print, 807,026 digital
Los Angeles Times- 489,514 print, 100,221 digital
At the same time the Pew Research Center For Excellence in Journalism reported print ad revenues down from 45 million in 2003 to under $23 million, while online revenues has made up only 10% of the loss, increasing from $1.2 million to $3 million.
Text capable cell phones were just emerging in 2002. The first Blackberry came out in 2002 as did the first mobile phone with a built-in camera.
In 2002, there were 140,766,842 mobile phone subscribers in the United States. Bell Atlantic and GE had just merged in 2000 to create Verizon, and SBC and BellSouth combined in 2001 to create Cingular Wireless.
AT&T creates AT&T Wireless company
Deutsche Telekom changes its name to T-Mobile.
Mobile - Now
Today, there are 327,577,529 cell users in the United States and over 5.6 Billion worldwide.
Users send an average of 40 text messages per day and cell phones aren’t just used for phone calls, but they’re personal assistants. They give us access to email, internet, calendars. cameras, printers, and video games.
This has changed the face of marketing. Companies now have to design their websites not only to be mobile friendly, but also for mobile applications. Many retail companies are now using text message marketing. Users can even scan and use coupons right from their cell phones.
Cell phones paired with social media allow companies to offer coupons with “check-ins,” which also get the company’s name out on social media. When at Starbucks, for example, a user can check in using their mobile Facebook app to unlock potential coupons.
Social Media - Then
Friendsterlaunched in 2002 with 3 million users in the first few months.
This was the only social media platform at the time. Friendster was very similar to
Facebook. You could connect with friends and people who had similar interests.
However, Jonathan Abrams, the inventor of Friendster, turned down a $30 Million
buyout from Google, and eventually it became hard to compete with newersocial
LinkedInlaunched in 2003.
Myspace started in 2003.
YouTube began in 2005.
Facebookopened in 2006.
Twitterintroduced tweets in 2008.
Pinterest launched in 2010.
Google + leapt in just last year.
Social Media - Now
LinkedIngains users at a rate of approximately two new
members per second and has 161 Million membersas of
March 31, 2012.
MySpace currently has 25 Millions registered users.
YouTube reports the highest viewed video ever is Justin
Bieber - Baby ft. Ludacris with 756,207,676 views.
Facebookis expected to pass 1 Billion users by
Twitter launched in 2008 and, as of March 2012,has
140 Million active members and sees 340 Million
Tweets per day.
Pinterest boasts 104.4 million monthly page views. It’s also
tied with Facebook for average minutes spent on the site
per day at 405 minutes.
Google +alreadyhas 250 Million registered users.
What Actions Will Drive Business Today?
Direct Mail – do less, personalize it and be more targeted geographically, and demographically.
Video – Fast-paced and shorter is better .Eye View Digital reports a 50% decline in video viewing after 60 seconds.
Be sure to try a call to action at the end.
Then upload to your website and to video sharing sites including YouTube, Blip.tv, Vimeo, Viddler and Metacafe. Finally, promote your video everywhere including Linkedin, Twitter, Facebook, digg and StumbleUpon.
Email – Segment Lists and Personalize the email message based on exhibited behavior.
By Sending relevant emails to targeted segments of your email list, you can help ensure that your customers and prospects are getting information about the products and services that most interested them.
What Actions Will Drive Business Today?continued
Print/Electronic - . In short your print newspaper ad today is seen by at least 35% fewer potential customers.
The only thing that is dropped faster than circulation in the last 10 years is ad revenues. So, if you are a loyal advertiser. you need to cut your presence or your ad rate by 40% to remain even.
If Newspaper advertising has always performed well for your business, shift 15% of your spend to the electronic version and test the results.
Mobile - In the US 25 percent of mobile web users are already close to being mobile-only and they rarely use a desktop, laptop or tablet. Launch a mobile version of your website ASAP.
According to Compuware 2012 a staggering 57 percent of consumers will not recommend a business with a poorly designed mobile site. Similarly, 40 percent of consumers will go to a competitor’s site after a bad mobile experience
Social Media – The question is not whetheryou should be doing social media but how much. Create short (150 to 350 word) fun pieces with enticing headlines that contain at least 4 of your keywords.
What Results Can I Expect?
Direct Mail –
- Response rates are down more than 25% and costs are up.
+ Smaller, more targeted direct mail campaigns can still yield new business.
While Return on Investment (ROI) has declined to $7 for every dollar invested it is
still somewhat effective if targeted and personalized.
+ A survey of hospital marketing professionals by Acsys Interactive, a Farmington, Conn.-based digital media marketing firm, found that 12.9% of respondents said that online videos are extremely effective and 33.7% said they are very effective.
+ The Pew Internet & American Life Project survey found that one in four Internet users has watched an online video about health.
–Jupiter Research shows that on average, untargeted email campaigns have open rates of only 20%, a click through of only 9.5% and conversion rates of only about 1%.
+ On the other hand, targeted email campaigns have a 33% open rate on average, a 14% click-through rate, and a conversion rate of 3.9%.
+ Segmenting can bring in up to 10 times more revenue compared to when all subscribers on a list get sent the same message. An ROI of $28.50 as reported by DMA for each dollar spent is still impressive. The average ROI reported by Marketing Sherpa after surveying 2,735 Marketers was much higher at $77.
What Results Can I Expect? continued
Print/Electronic - In the end, newspaper advertising is probably in a death spiral. Get out now and re-direct your spend.
Print Newspaper and Magazine ROI has dropped below $10 according to the DMA survey and is likely to continue to decline each year.
At the same time Display ads in electronic versions is $19.57.
Mobile - 64% of smartphone owners are now using their mobile devices to shop online and worldwide mobile payment transactions will surpass $171.5 billion in 2012, up 62% from $106 million last year according to technology research leader, Gartner.
According to DMA the fastest growing direct marketing medium is also the newest. Mobile marketing ROI is rising and is expected to top $11 this year.
Social Media – The question is not whetheryou should be doing social media but how much. ROI on social media networking is the hardest to track. The DMA Survey places it at $12.45. Test and then Test again.