warc direct marketing is dead 2
TRANSCRIPT
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Brand and Direct are outdated terms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
Our solution…
Connected Response
Consumers
Technology
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
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
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