1. Or how Paper mail and Email work together
to seduce the consumer

2. Welcome to
1

3. Everything you
always wanted to know about …
2

4. Agenda
The Post
■ Some key figures about E & P
■ When do I use E or P?
■ What are the advertisers’ questions & challenges concerning E & P?
■ The strenghts of both media: Key assets, tips and success stories
■ The future is on-line?
3 Cases illustrating the power of the mix
■ Belgacom/ Alcatel: Philip De Cleen & Steven Van Dingenen
(Duval Guillaume)
■ Nutricia: Laurent Van Duyse (Wanabe)
■ Scottex & The best of Cannes: Geoffrey Hantson (Duval Guillaume)
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5. 4 special guests for you today…
Nivea
Anne Portzenheim – Global Communication Manager
Citibank
Michel De Bolle - Marketing Director
Deutsche Bank
Philippe Etienne - Head of Campaign Management
OgilvyOne & OgilvyInteractive
Koen Van Impe - Managing Director
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6. 1. Some key figures
about these media

7. Direct Mail is still on the rise
Turnover Increase
Mio euro
238
224 227 + 4.8 %
221
214 + 12.2 %
212
2002 2003 2004 2005 2006 2007
Usage increase:
8% of non direct mail users will start
with Direct Mail in 2008*
* Direct Advertiser Survey, Post
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8. Addressed Direct Mail represents 10,3%
of gross media spendings
Internet; 2,8%
Gross media
investments Regional Weeklies; Cinema; 0,6%
4,4%
by Media Type
Jan - June Postering; 7,2%
Television; 34,2%
Magazines; 8,7%
Direct Mail; 10,3%
Radio; 10,9% Dailies; 20,8%
Mass Media (Cim MDB-Mediaxim): 1.560,5 Mio eur
Direct Mail (La Poste-Mediaxim): 179.4 mio eur
Source: Mediaxim CIM-MDB, Pige DM La Poste-Mediaxim
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9. The strength of direct mail,
the MAIL MOMENT…
97%
opens Consumers
mailbox spend
every day 1’52’’ per
mail
… but
receives
only 2
DM/ week … and behind
every letterbox
is a unique
78%
person
is
you can target
opened
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10. Frequency of consulting e-mail is less
intensive than paper mail
E-Mailbox Potential Reach* Letterbox Reach**
No 0 3% Weekly
No 33 33
8 Less often
21 Weekly Yes 100 97% 97 Daily
Yes 67
57% 38 Daily
Total Frequency Total Frequency
* Source: TNS 2007
** Source: MAS 2005
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11. Total online advertising market
2006 - 2007
Total market
Gross invoiced prices in €
+41%
77.656.628
55.255.140
2006 2007
Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”)
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12. Channel evolution
2006 - 2007
Evolution 2006 - 2007
in 000 €
60.000 +37%
50.000
40.000
30.000
20.000 +82%
10.000 +9% +24% -6% +79%
2006
2007
0
Display Keyword Content E-mail Newsletter Other
Integration
5%
Source: IAB AdEx 2007; Sales Houses (+ Agencies for “Keyword”)
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13. ?
2. When do I need
to use E or P?

14. 13

15. Consumers are “bombed” by a few 1000
mass messages every week
Weekly number of advertising messages per capita
350+ outdoor ads
400 press ads/inserts
2+ DM pieces
3 cinema ads Opportunity for Direct !
200 TV ads
20 e-mail ads
150 radio ads
1000’s of ambient ads ...
Source: Mindshare - Henley Centre (and TNS Media & Post survey)
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16. High acceptance of 1-2-1 advertising
With regards to advertising in the following media, would you say there is …?
Dm (Averages) 8,40% 74% 18%
E-Mails (Averages) 12,10% 68% 20%
cinema (n=678) 5% 70% 25%
dailies (n=981) 3% 71% 26%
magazines (n=1046) 3% 62% 36%
free press (n=991) 3% 61% 37%
radio (n=1058) 2% 59% 39%
door-to-door (n=1149) 4% 44% 41% 11%
internet (n=747) 3% 44% 54%
tv (n=1122) 1% 22% 77%
0% 20% 40% 60% 80% 100%
not enough enough too much sticker
* Source: TNS 2007
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17. ?
3. What are your
questions
& challenges?

18. 17

19. Points of attention
Creativity
Content
Challenges of the E Challenges of the P
Spam Cost
Capture attention Flexibility / reactivity
Coverage Keep data-base up to date
E-mail address collection & qualification Data-base qualification
Opt-in addresses Environment
Multiple e-mail addresses
Intrusive character
Abuse of e-mail usage
Anti-spam filters
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20. And what about the privacy rules?
• E = Opt-in = I Agree
• P = Opt-out = Information + No Reaction (on document or later)
Opt-in exceptions:
• Soft opt-in
- 3 conditions
client for “similar” product
+ opt-out at data collection
+ ”unsubscribe” (opt-out)
- info@post.be
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21. 4. The strengths
of both media

22. 21

23. What do you measure after
an E-mail campaign?
# of opened messages 26,00%
Return on investment 27,00%
Clickthrough tracking 31%
# interactors per link
Clickthrough behaviour on campaignpages
# of unique interactors
# unsubscribes
# of bounces 61%
# of clicks per link
Total number of clicks
# of number of forwarded messages 82%
brandawareness 95%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: Emailgarage
Base:Users of each medium and give an answer
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24. What do you measure after
a DM campaign?
Margin on Costs of the
Additional Sales media campaign
ROI
■ # of reactions Costs of the
media campaign
■ # of appointments
■ # of sales
■ # of postal returns
Margin on Probability Average Average
Additional to redeem ( short term long term )
Sales coupon margin margin
■ Cost of campaign
■ Acquisition cost by contact
■ Life time value of the consumer
Database
■ … Production
Costs of hiring &
Cost cost Mailing
the media mainten- Coupon
creation (printing cost
campaign ance
ROMI cost
routing)
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25. Measure the real things
Percentage of respondents
Recall having
Opened it Read it Recall content Intent to act
received it
“Do you remember “Can you describe “Do you have intention to
“What did you do with
receiving a DM?” the DM?” react?”
the DM?”
Average
Based on 21 cases 55 35 28 22 10
Conversion rate
average* 59 73 78 40
Based on 21 cases
* Conversion rate average is an average of different conversion rates and doesn't correspond to conversion rate between average
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26. The power of Direct Mail
1 2 3 4
High recall Brand Sales Loyalty
rate perception activation building
DM gets high DM improves DM is a strong DM builds strong
recall rates even brand perception sales activator long term
of complex relations with
messages your customer
>50% of
brand attributes 15% to 200%
extra sales >25% more
2 to 20 times improved
loyal
better recall
customers
5
Boosting
of ROI Integrated with other media DM
increases the ROI of your
campaigns with at least 20%
Source: Post – 15 DM pilot surveys N: > 25.000
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27. The strengths of both media
E-mail Physical mail
■ Easy to react, to get information ■ Appreciated – not intrusive
■ Cost ■ Targetting
■ Can be set up quickly ■ Sales Activation
Advantages ■ Personnalisation ■ Acquisition
■ Measurability ■ Complex information
■ Short messages ■ High opening and reading rate
■ Can be surprising and original
■ Own list ■ To promote image & brand value
■ Newsletters ( top of mind ) ■ Involving Capturing attention
When to ■ Punctual Information & more ■ Giving usefull, detailed trustworthy
use ? frequent use information
■ Generate traffic on website ■ Urges to react (vouchers)
■ Magazines
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28. 5. The future is
on-line?

29. 28

30. The future is on-line?
The answer is NO… the future is DIRECT!
■ Certainly there is an evolution!
■ On-line media has become mainstream
■ There will always be people that prefer paper mail
■ A magazine remains a certain value
■ Objectives of both media are different
■ And a good combination of both always create more impact
What will be the future
for your brand?
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31. But the future is about the integration of E & P
■ 70% of belgian companies integrate e-mail marketing in their mediamix
■ 66% of them declare to be satisfied of the objectives reached
+255%
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9
E-Mail only DM + E-mail
In one of the pilots we ran with our customers,
adding DM to email multiplied by 2.5 the number
of final orders *
* IAB - E-mail Marketing Cookbook
** Study E loves P – Pilot Research
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32. Thank you for your attention
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