warc direct marketing is dead 2

Direct Response is Dead: long live Connected Response

What’s in storetoday

The DR model is broken

Brand and Direct are outdated terms

But there’s a new way…

In Short, Direct Response Advertising is…

Advertising with a call to action

..which is tracked

…evaluated (CPR/CPA/ROI)

…and optimised

Core PPC

Cons PPC

Inserts

HDS

DRTV

Core BRTV

Cold DM

Cons BRTV

VOD

Typically it involves the following media …

DRTV Fractional Press Leaflets Digital

But the Direct Response Model has been facing some tough challengesResponse rates in long term decline

Circulations falling

Clutter and congestion

Cost Pers rising2009 2010 2011 2012 2013

0.000970%0.000811% 0.000834%

0.000596%

0.000301%

TV Phone response rates have declined by 69% in 5

years

Phone RR%

Sep-20

07 Tota

l

Nov-20

07 Tota

l

Jan-2

008 T

otal

Mar-20

08 Tota

l

May-20

08 Tota

l

Jul-2

008 T

otal

Sep-20

08 Tota

l

Nov-20

08 Tota

l

Feb-20

09 Tota

l

Apr-20

09 Tota

l

Jun-2

009 T

otal

Aug-20

09 Tota

l

Oct-20

09 Tota

l

Dec-20

09 Tota

l

Feb-20

10 Tota

l

Apr-20

10 Tota

l

Jun-2

010 T

otal

Aug-20

10 Tota

l

Oct-20

10 Tota

l

Dec-20

10 Tota

l

Feb-20

11 Tota

l

Apr-20

11 Tota

l

Jun-2

011 T

otal

Aug-20

11 Tota

l

Oct-20

11 Tota

l

Dec-20

11 Tota

l

Feb-20

12 Tota

l

Apr-20

12 Tota

l

Jun-2

012 T

otal

Aug-20

12 Tota

l

Oct-20

12 Tota

l

Jan-2

013 T

otal

Mar-20

13 Tota

l

May-20

13 Tota

l

Jul-2

013 T

otal

Sep-20

13 Tota

l

Nov-20

13 Tota

l

Jan-2

014 T

otal

0.0000%0.0002%0.0004%0.0006%0.0008%0.0010%0.0012%0.0014%0.0016%0.0018%0.0020%

£-

£2.0

£4.0

£6.0

£8.0

£10.0

£12.0

£14.0

£16.0

Phone Call Response Rate vs PPC CPCAvg. CPC Resp %

Resp

onse

Rat

e

Cost

per

Clic

k

As clients move to reliance on an auction model, business models struggle

rr% -75%

Cpc x5

We had to develop a new way of thinking

One that’s suited to a super connected world

Three underlying causes

Consumers

Technology

Google

Our solution…

Connected Response

Consumers

Technology

Google

All media can drive some form of response now…

Up to 10k interactionsper week from OOH

20-30k interactions from peak TV campaign

1,000s interactions from Cinema

20% of peak airtime out performs daytime

Understand the algorithmEverything is connected

Never miss an opportunity toInteract - no dead ends

Nurture, convince, entice, don’t just sellConsumers

Technology

Google

Unravelling the connectivity of a response journey unlocks growth

There is an increasing amount of evidence that Social and SEO are linked

Understand the algorithmEverything is connected

Never miss an opportunity toInteract - no dead ends

Nurture, convince, entice, don’t just sellConsumers

Technology

Google

So, our plans move from this…

So, our plans move from this…to this

52,000 5,200Extra clicks

108BB sales+10-20% CR+5-10% CTRPPC PPC clicks

SEO 360,000 20% of 1.8m untapped SEO clicks in 3 mths

0.3%Conversion rate

1,080BB sales

Social Signals

60,000 Likes/ follows/

Shares / re-tweets

30BB sales

eCRM activity - 0.005% x 10 waves

Direct 5,500 Calls (0.001%)

3%Phone CR

165 BB sales

19,500 Web (+1% more efficient

X 13 weeks)

1.5%Web CR

293BB sales

£4.3m Spend550m impacts

Prospect Pool 55,000

ContentInteractions (0.01%)

0.3%Retargeted

clicks

165BB sales

0.3%Phone

Conversion rate

165BB sales

SEO value can have a massive impact on campaign performance

Product X

Which we measure on a connected response dashboard

Social Signals

SEO Rank

Prospect Pools

Media Schedule

Campaign Performance Outcome

Intermediate

Stimulus

System KPIs

We need a broader range of KPIs to monitor the health of the system

Link to site

EntertainViral LinkSEO impact

Product infoLink to YouTubeProspect poolSEO impact

Bespoke Landing Page

TV Campaign

This campaign drove socially amplified content at scale with significant impact on SEO ranking

O2 SEO Visibility dwarves its competition

5xSocial

Visibility

50% more SEO

visibility

10% betterSPS

Building brand metrics

Driving prospect pools

Delivering sales now

“Sprinting the marathon”

All advertising does both a brand job and a response job

Solution addresses short and longer term metrics together

Builds on traditional DR model to unlock SEO growth