2. Agenda
Background & Objectives
Assessing the communication investments & usage
Advertisers’ perception of Direct Marketing
Cross-media campaigns
Conclusions
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 2
3. Who is International Post Corporation ?
The International Post Corporation is an association of 24 postal
operators in Europe, North America and the Asia-Pacific region. IPC
provides its members with systems and programmes that ensure that
international mail is delivered efficiently and competitively.
IPC represents the majority of the world’s mail, with its members
delivering eighty percent of global mail volumes – more than 330 billion
letters each year. Together, providing nearly 2.4 million jobs.
Based in Brussels, with an international staff from 16 countries, IPC is
an organisation governed by a Board composed of CEOs from eleven
member posts plus the Chief Executive of IPC.
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM
4. Introduction
IPC Direct Marketing Intelligence is a research tool developed to estimate marketing &
communication expenditure, media usage and perceptions of direct mail (both addressed and
unaddressed) within advertisers’ marketing mix
The survey covers 6 countries ( US , France , the Netherlands , Belgium , UK and Sweden) .
Its methodology, adapted from existing projects conducted by Deutsche Post, includes
interviews with advertisers as well as a desk research component. IPC worked in 2008 with
IPSOS market research group to conduct telephone interviews, personal interviews and
analysis.
Insights gained from the benchmarking opportunities arising from conducting comparable
studies in multiple countries, will support the development of direct marketing as a whole,
growing its share of marketing & communication budgets. Understanding the dynamics within
direct marketing media across a range of markets at different level of online development, will
provide a clear picture of how advertisers can best leverage the unique strengths of direct mail
as a communication medium.
The following report focuses on the Belgian media market .
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 4
5. Key questions addressed by IPC study
What is the actual total media spending in Belgium and the media usage rate ?
How is direct mail perceived by advertisers versus other media ?
How many cross-media campaigns do advertisers run ?
In what ways can direct mail become a more highly valued media?
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 5
6. IPC Direct Marketing Intelligence
Methodology
Step Aim
Classification of media channels and structuring
1 of sectors and industry codes
2 Quantitative Desk Qualitative
research research research
Weighting and
fusion of
3 information
Consolidation &
validation
Results and information reflecting the entire
market
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 6
7. Survey Description
Primary research amongst senior executives with Marketing &
Communication expenditure responsibility, managing directors or business
owners
1,027 interviews with additional 8 in-depth interviews amongst national
Top100 advertisers
Robust sampling structure, developed in cooperation with market research
Results weighted and extrapolated to represent total universe of companies
in Belgium (with an annual advertising budget of more than 0.25m € per
year)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 7
8. Methodology – Universe structure
The results are valid for all companies with an advertising budget of at least €
0.25 m/ year
Industry Sectors
Country
Trade Services Manufacturing Industry Total
US 634,000 1,222,000 428,000 2,284,000
DE 383,000 530,000 346,000 1,259,000
UK 172,000 280,000 136,000 587,000
FR 230,000 282,000 141,000 653,000
NL 93,000 153,000 83,000 328,000
BE 48,000 51,000 29,000 128,000
SE 41,000 74,000 38,000 153,000
TOTAL 1,601,000 2,592,000 1,201,000 5,392,000
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 8
9. Universe structure : classification of Sectors
The universe of companies is divided by sectors and constructed with 3 levels
of detail:
First Level
Trade Services Manufacturing
Second Level
Manufacturing
Trade Finance Public Services Other Services
Industries
• Trade (Wholesale, • Banks • Non-profit • Media • Construction Sector
Retail) • Insurances • Utilities (Energy, • Travel/ Tourism • Agriculture
• FMCG (food, • Other financial Telecom) • Leisure/ • Mining
Third Level
household services • Government Entertainment • Production
products, etc.) • Health services • Automotive repairs
• Mail order • Education • Other services
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 9
10. Media Channels covered
Direct Marketing
Classic Other
Traditional Media Media
Online Marketing Classic Media with
Direct Marketing Response
Addressed E-Mail Marketing Print with Print Events
Mailings Internet Site response Insert Promotional
Unaddressed mail Banner Advertising Insert with Outdoor Campaigns
Outbound response Loyalty
Paid Search TV
Telemarketing Outdoor with Magazines
Radio
Inbound response Fax
Cinema
Telemarketing TV with response Advertising
Mobile Marketing Radio with
response
Cinema with
response
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 10
11. Topics
Background & Objectives
Assessing the communication investments & usage
Advertisers’ perception of Direct Marketing
Cross-media campaigns
Conclusions
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 11
12. IPC Direct Marketing Intelligence
Total Marketing & Communication Expenditure
• Development of concept/ design
• External agency fees
• Printing/ preparation of material & mailings
• Set-up of software / hardware maintenance
• Address/ lists/ telephone charges
• Postage
• Delivery/ technical implementation
• Costs of processing of responses
• Call centres/ Hotlines
• Other costs from external suppliers
• Directly attributable salaries &
expenditures excluding overheads
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 12
13. Marketing & Communication Expenditure –
Belgium 2007
Direct Marketing accounts for 39% of all advertising expenditure
( full costing basis)
Total Marketing & Communication Expenditure 2007
(full costing) € 7.40 billion
Direct Marketing
Other
€ 2.86 bn.
€.1.35 bn. Unaddressed Mail
Direct Mail
6%
12%
18%
Online
Classic Media 8%
€ 3.18 bn. 6% Telemarketing
7%
43% Classic
media with
response
mechanism
Data: All values in € bn - those costs include both external and internal costs
Base: All companies with a turnover of at least € 0.25m /year: Universe: 128,376 companies (n=1,027)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 13
14. Direct Marketing cost structures – Belgium
Very different cost structures from one direct marketing type to another .
Total Expenditure External Costs
(in € bn) (in € bn)
External costs Internal costs
TV + radio
w. response 87 13 0.11 0.09
Print advertising w.r. 77 23 0.33 0.25
Online 72 28 0.42 0.30
Direct Mail 71 29 0.89 0.63
Unaddressed
mail 63 37 0.40 0.25
Outdoor w. response 54 46 0.07 0.04
E-mail 48 52 0.13 0.06
Telemarketing 27 73 0.47 0.13
Data: All values in %
Base: All companies with a turnover of at least 0.25 m €/year; N=128,376 companies (n=1,027)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 14
15. Very different Direct Marketing external cost
structures by media type – Belgium
Direct Mail Online Print w.r. Unaddr. Telemar- TV + Radio E-Mail Outdoor
Mail keting w.r. w.r.
in bn € 0.63 0.30 0.25 0.25 0.13 0.09 0.06 0.04
9%
19% 16%
Creation 24% 24%
11% 29%
35%
49%
Production
18% 31% 19%
50% 60%
36%
Delivery 27%
36%
Response 52% 35%
44% 6%
Management 23%
27%
2% 10%
0%
Others 3% 24% 7% 3%
18% 1%
2% 12% 3% 9% 11%
4% 4% 7%
Data: All values in %
Base: All companies with a turnover of at least 0.25 m €/year; N=128,376 companies (n=1,027)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 15
16. Marketing & Communication investments by Sector –
Belgium 2007
Highest proportion for direct marketing is for trade. This is driven by high direct
mail investment (18%) .
Trade Finance Services
17%
31%
12%
4%
4%
33%
Tot .Dir Marketing : Tot .Dir Marketing : Tot.Dir Marketing :
48,201 companies 43 %
46 % 36 %
TOTAL €bn 2.24 TOTAL €bn 0.81 TOTAL €bn 4.01
Telemark /Unadd.Mail 0.34 Telemark /Unadd. Mail 0.13 Telemark /Unadd.Mail 0.51
Direct Mail 0.40 Direct Mail 0.10 Direct Mail 0.35
Online 0.16 Online 0.03 Online 0.34
Response mechanism 0.14 Response mechanism 0.03 Response mechanism 0.26
Classic advertising 1.03 Classic advertising 0.27 Classic advertising 1.93
Other advertising 0.18 Other advertising 0.25 Other advertising 0.62
Data: All values in € bn
Base: All companies with a turnover of at least € 0.25m /year: Universe: 128,376 companies (n=1,207)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 16
17. Marketing & Communication investments
by Sector – Belgium 2007
Other Services Public Services Manufacturing
Tot. Dir Marketing : Tot. Dir Marketing : Tot.Dir Marketing :
38 % 33 %
14,640 companies 31 %
TOTAL €bn 2.30 TOTAL €bn 0.90 TOTAL €bn 1.14
Telemark /Unadd. Mail 0.31 Telemark /Unadd. Mail 0.07 Telemark /Unadd.Mail 0.06
Direct Mail 0.18 Direct Mail 0.07 Direct Mail 0.12
Online 0.24 Online 0.07 Online 0.08
Response mechanism 0.15 Response mechanism 0.08 Response mechanism 0.10
Classic advertising 1.33 Classic advertising 0.33 Classic advertising 0.23
Other advertising 0.09 Other advertising 0.28 Other advertising 0.55
Data: All values in € bn
Base: All companies with a turnover of at least € 0.25m /year: Universe: 50,883 companies
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 17
18. Communication channel usage (%)
Belgium
Internet has the highest usage rate (70%) , followed by print advertising (49%) , trade fairs (37%)
& Direct mail (34%)
Direct Marketing : Classic Advertising (with/without response mechanisms) :
Internet Site 70 Print advertising
34 Inserts
Direct Mail
E-Mail 32 Outdoor
17 Radio
Unaddressed mail
TV Overall
Banner advertising 14
With response
mechanisms
Telemarketing 11 Other Advertising :
Trade fairs 37
Inbound telemarketing 9
Customer magazines 13
Outbound telemarketing 6
Promotional camp. 9
Paid-search 4 Couponing 9
Mobile Marketing Fax advertising 4
2
Data: All values in %
Base: All companies with a turnover of at least 0.25 m €/year; N=128,376 companies (n=1,027)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 18
19. Usage of Direct Marketing Media by company type
(BtoC or BtoB) : unaddressed is more used in BtoC than in BtoB whereas
addressed mail suits very well for all businesses
Data: All values in %
Base: All companies with turnover of at least € 0.25m /year N=128,376 companies (n=1,027)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 19
20. Direct Marketing usage and investments
Direct mail activities account for:
• 31% of direct marketing investments
• 12% of total marketing and communication investments
• 34% usage
IPC DMI 2007
Direct Mail
Investments
Total investments € 0.89 bn
Internal costs € 0.26 bn
External Costs € 0.63 bn
Direct Marketing Expenditure
Data: All values in %
Base: All companies with a turnover of at least € 0.25m /year: Universe: 128,376 companies (n=1,027)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 20
21. Direct Marketing usage by sector (%)
• Online and e-mail advertising is highest for services
• Direct mail has a low user share for public services
Trade Manufacturing Services Financial Services Public Services
Industry
Online * 70 62 82 68 68
35 34 37 37 26
Direct Mail
33 21 40 35 32
E-Mail
48 20 23 27 21
Print with. resp.
Unaddressed 17 18 12 29 22
Mail
8 7 14 17 22
Telemarketing
4 15 1 6 3
Outdoor with response
TV & Radio with response.
3 1 4 5 7
N= 48,201 N= 29,292 N= 30,623 N= 5,620 N= 14,640
(n = 284) (n = 237) (n = 250) (n = 125) (n = 131)
Data: All values in % * Online: Internet Site,
Base: All companies with a turnover of at least 0.25 m €/year: n = actual interviews N = weighted data to reflect universe Banners & Paid searches
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 21
22. Topics
Background & Objectives
Assessing the communication investments & usage
Advertisers’ perception and expectations of Direct
Marketing
Cross-media campaigns
Conclusions
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 22
23. Advertiser perception of Direct Marketing
effectiveness - Belgium
- Direct mail scores very well on all communication objectives
- Unaddressed mail are best in acquiring new customers
Existing Customer Retention Short Term sales to End Brand Image Advertising Product Advertising Acquisition of new
Customers Customers
Addressed Addressed 1 TV advertising 50 TV advertising TV advertising with
1 57 1 direct mail 43 with response 1 with response 72 1 72
direct mail response
2 Internet Site 40 2 Unaddressed 35 2 Internet Site 43 2 Ads in newspaper, etc 40 Unaddressed
mail with response 2 mail 42
E-mail 3 Addressed 41
3 27 3 Internet Site 31 direct mail 3 Addressed 36 Ads in newspaper, etc
marketing direct mail 3 with response 40
Outbound TV advertising 4 Ads in newspaper, etc 31 Outbound
4 telemarketing 22 4 28 with response 4 Internet Site 36 4 39
with response telemarketing
Unaddressed Unaddressed
5 17 5 Ads in newspaper, etc 27 5 mail 28 Unaddressed 5 Internet Site 35
mail with response 5 mail 28
Inserts in newspapers, E-mail Outdoor advertising 6 Outdoor advertising 33
6 15 6 26 6 27 6 Outdoor advertising 24 with response
etc. with response marketing with response with response
Outdoor advertising Outbound 7 Addressed 32
7 Ads in newspaper, etc 14 7 23 7 16 direct mail
with response with response telemarketing 7 Inserts in newspapers, 20
etc. with response
Outbound 8 Radio advertising 14 Inserts in newspapers,
Inbound 8 telemarketing 23 with response 8 24
8 telemarketing 9 Outbound etc. with response
8 telemarketing 18
9 Inserts in newspapers, 9
9 Mobile 3 9 Inserts in newspapers, 10 etc. with response E-mail
Marketing etc. with response 9 E-mail 17 9 12
marketing marketing
Outdoor advertising 10 E-mail 6 Mobile
10 with response 2 Inbound marketing Internet banner 10 6
10 telemarketing 9 10 6 Marketing
advertising
11 Internet banner 1
advertising Mobile 11 Internet banner 4 Inbound 11 Internet banner 6
11 Marketing 4 advertising 11 5 advertising
telemarketing
12 TV advertising 0
with response Internet banner 12 Mobile 2 Mobile Radio advertising
12 4 Marketing 12 2 12 with response 5
advertising Marketing
13 Radio advertising 0
with response Paid for 13 Paid for 1 Inbound
13 2 internet search 13 Paid for 1 13 4
internet search internet search telemarketing
14 Paid for 0
internet search Radio advertising 14 Inbound 0 Paid for
14 0 telemarketing 14 Radio advertising 1 14 3
with response with response internet search
Data: All values in %
Base: All companies using the specific medium
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 23
24. Effectiveness of Direct Marketing Media
Addressed direct mail scores very well on all dimensions
BE
Data: All values in %
Base: All companies using the specific direct marketing medium
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 24
25. Effectiveness of Direct Marketing Media
Direct Mail versus other Direct Marketing Media – Belgium
Data: All values in %
Base: All companies using the specific direct marketing medium
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 25
26. Main reasons for using Direct Mail
Direct mail users perceive Direct Mail as a creative communication
tool , delivering good and measurable results
Users Non-Users
Direct mail allows room for
creativity 65
Direct Mail campaigns
always produce good 49
results
The success of Direct Mail
can be measured 45
effectively in terms of ROI
Data: All values % - Agree / Completely agree
Base: All companies with a turnover of at least 0.25 m €/year: Universe 128,376 companies (n=1,027)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 26
27. Developing Direct Mail - Belgium
Requirements by Level of Usage
- High demand for evaluation of campaign process by heavy users.
- Medium users require more support for creation and address management
Users of Direct Mail
Total Heavy Medium
Low Users
Users Users
Evaluation of campaign process 13 +24 -5 0
Creation 12 -1 +10 -6
Address management 11 +4 +10 +1
Dispatch and selection 5 -4 +3 -1
Production of the mailing 3 -1 +1 0
Response management 2 0 -2 +1
None of these 55 -21 -17 +6
Data: All values in %
Base: All companies whose using direct mail or unaddressed mail (n=507)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 27
28. Topics
Background & Objectives
Assessing the communication investments & usage
Advertisers’ perception of Direct Marketing
Cross-media campaigns
Conclusions
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 28
29. Cross-media campaigns - Belgium
- Only 21% of advertisers are running multi-media campaigns , using most often 2 media
- Very few cross-media users include 3 or more medias in their campaigns
User Share of Cross-Media Campaigns Number of campaigns in 2007:
112,393 campaigns
User of cross-media campaigns
Ø number of campaigns per company:
Non-User of cross-media campaigns
4.9 campaigns/ year
2 media
85,535 companies
23,060 companies 3 media
4 media or
more
Data: All values in %
Base: All companies with a turnover of at least 0.25 m €/year and which are doing direct marketing; N= 108,595 companies (n=913)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 29
30. Cross-media campaigns users profile
Cross-media campaigns most often used by public services , trade & finance
User Share by Sector User Share by Company size
Public
Services Small
Trade
Medium
Finance
Large
Services
Manufacturing
Industries
Data: All values in %
Base: All companies with a turnover of at least 0.25 m €/year and which are doing direct marketing; N= 108,595 companies (n=913)
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 30
31. Cross-media Campaigns
Most frequent media combinations
BE
- Addressed direct mail is used in 20% of cross-media campaigns
- The most frequent cross-media combination is print + Internet site (9%)
9%
7% 7% 6% 6%
4% 4% 4% 3% 3%
Internet site + Addressed Addressed Internet site + Addressed Print + TV TV + Radio Print + E‐mail Print + Internet
Print direct mail + direct mail + e‐mail direct mail + e‐ Unaddressed banner
print internet site mail doordrops advertising +
Inserts in
newspapers +
Outdoor
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 31
32. Topics
Background & Objectives
Assessing the communication investments & usage
Advertisers’ perception of Direct Marketing
Cross-media campaigns
Conclusions
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 32
33. Key Findings Direct Marketing
Belgium
The media landscape is increasingly fragmented across online and
offline media
Direct Marketing had in 2007 a market share of 39% of total advertising
expenditure ; in trade & service sectors , direct marketing represents 46%
Cost structures are very different from one direct marketing tool to
another : in e-marketing , internal costs are relatively higher than the ones
in direct mail
Cross-media campaigns are used by 21% of the companies .
In 1 out of 5 cross-media campaign , direct mail is used .
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 33
34. Key Findings – Direct Marketing Belgium
The media landscape is increasingly fragmented across online and
offline media
Direct Marketing had in 2007 a market share of 39% of total advertising
expenditure ; in trade & service sectors , direct marketing represents 46%
Cost structures are very different from one direct marketing tool to
another : in e-marketing , internal costs are relatively higher than the ones
in direct mail
Cross-media campaigns are only used by 21% of the companies .
71% of those campaigns use only 2 media . In 1 out of 5 cross-media
campaigns , direct mail is used .
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 34
35. Key Findings – Addressed Direct Mail
Belgium
Accounts for 12 % of total media investments and 31% of direct
marketing expenditure
Is relatively more important in trade and financial services sectors
31% of companies use Direct Mail
Direct Mail is perceived as a specially effective media for customer
retention and generating short-term sales . It is also highly effective for
improving brand image and delivering detailed product information .
Direct Mail is appreciated for its creative possibilities , its measurable
and proven ROI
Heavy Direct Mail users are mainly concerned with campaign
evaluation whereas medium users are focussing on correct addres
management and creation .
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM 35
36. Key Findings – Unaddressed Direct Mail
Belgium
Unaddressed direct maill accounts for nearly 6 % of all media
investments and for 15% of Direct Marketing investments
17% of companies ( mainly BtoC) are using unaddressed mail
Main advantages are its capability of generating short term sales
and acquiring new customers
Source : IPC Direct Marketing Intelligence 2008 –Report BELGIUM