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  High Performance Marketing & Advertising
                          Janet Rubio, Engauge
                           Tim Suther, Acxiom


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The iDirect Revolution
It was going to be a great
            century…
after getting the 20th behind us
First Decade 21st Century

   • The DotCom Crisis
   • 9/11 Terror Crisis
   • Hurricane Katrina Crisis
   • War in Iraq Crisis
   • Disappearing Arctic Ice Crisis
   • War in Afghanistan Crisis
   • Housing Crisis
   • Unemployment Crisis
   • Health Care Crisis
   • Marketing Crisis
  … And 15 more months to go
The time is now




      “We need to reinvent the way
        we market to consumers”
       A.G.Lafley, Procter & Gamble CEO Chairman
Lots of talk. Not much else.




                   March 26, 2007
The 4 fundamentals of iDirect Marketing
The same old wasteful advertising



             2008: $142 billion
                Down 2.7%


        2009 Forecast: Down 5.1%
Will they ever learn?




  $2 trillion down the drain in the 20th century

Yes!!! TWO TRILLION DOLLARS

   And it only gets worse in the 21st century
The New Reality



      Millions of us are
      playing, working,
  flirting and socializing
          online and
   producing oceans of
           data . . .
The Great Disconnect


               Email Marketing
              Search Marketing
            Friendship Marketing
              Mobile Marketing
            Interactive marketing
              Digital Marketing
               Direct Marketing
The Ultimate Connection




           Direct is Digital
           Digital is Direct
Lafley’s dream come true




       Sponsored by Engauge, a customer engagement marketing agency
What the Book Reinvents


       What was mistakenly seen as disparate
         disciplines are one and the same
       Optimizing each consumer engagement
   Direct goes emotional with new iDTV Advertising
     Media allocation for a mass networking era
     Holding customers in the palm of your hand
      Email Monetizer life support for customers
       iBrands: the new face of the consumer
         The new “Test. Test. Test.” mandate
What is iDirect Marketing?



    iDirect is the future of marketing. It is
     the growth engine at the confluence
       of Digital and Direct that enables
        customer engagement to drive
         a better ROI than ever before.
What iDirect marketers do



 iDirect marketers go directly to like-minded
 people with an awesome awareness of each
 person’s needs, lifestyle and behaviors.


 They create online, on-going engagement that
 spreads across the internet from person to person
 for accountable, profitable outcomes.
The “i” is what now drives Direct


                     iDirect is
   interactive, information-driven, insightful,
                innovative, iterative,
                        and
    grounded in what the intersection of the
      internet and direct marketing practices
       make possible today as never before.
And now . . . over to Tim Suther for more on
 the Engauge and Acxiom vision of an
 iDirect marketing future

       Thanks for being here today
Send us your tweets
  on Twitter.com


Use hash tag #AcxiomSeries
The iDirect Revolution
…continued 
     Tim Suther
     SVP, Multichannel Marketing Services
     Tim.Suther@acxiom.com
     001-630-944-0416
     www.acxiom.com

     http://www.linkedin.com/in/timsuther
     http://twitter.com/timsuther
     http://www.slideshare.net/TimSuther
Living next to the train tracks

                      $112 billion                        of advertising is wasted each year in the US alone




                      $4 trillion                 excess brand valuation




                      22%     of Americans feel advertising is credible…compared to 45% for talk shows




                      42%     of consumer media consumption is online




                      7%   of disposable income is now saved – was 0%
Change May Be Necessary
The Four Fundamentals 
 of iDirect Marketing
1.  Data is the new black
      The Differentiated Value of Customers




                                              30%   of customers deliver the majority of profits




                                              50%   Add nothing




                                              20%   Cost companies money




SAS
1.  Data is the new black
   Know the “who” when they’re “there”

      Awareness                           Purchase




                                         Up/Cross-sell
Shopping & Consideration
2.  Optimization hinges on a 360˚ view
    Remember every interaction and learn



•    Explicit & inferred preferences

•    Wants & needs

•    Motivations & attitudes

•    Social influence circle

•    Cross-channel behavior
                                           http://www.youtube.com/watch?v=9hq5jZrFTbE
2.  Optimization hinges on a 360˚ view
    The interrelated and overlapping effects of media
                                             Display Viewthrough Effect




                                            comScore
McKinsey/BAI




                                              eHarmony/Dynamic Logic
3.  The confluence of insight & media

                          •   With most media, you never
                              know who you’re gonna get.
                              – ~80% online ad spend delivered
                                to wrong audience. comScore 2009
                          •   Knowing who determines:
                              – How much to invest…if anything
                              – What to say…without guessing
                          •   The typical marketing problem:
                              – Over-invest in low value
                                relationships
                              – Under-invest in high value
                                relationships
3.  The confluence of insight & media
            A look at “who” at world class brands
                        Cadillac                                         American Express
UV Index




                                                UV Index
                PersonicX Consumer Segments                    PersonicX Consumer Segments


                         Hershey                                            Allstate
UV Index




                                                    UV Index




                PersonicX Consumer Segments                    PersonicX Consumer Segments
                                                                               Source: Acxiom comScore (July 2009)
3.  The confluence of insight & media
                  …and at leading publishers
                                   MSN                                      Yahoo
                                96 MM UV’s                               148 MM UV’s
UV Index




                                                        UV Index
                          PersonicX Consumer Segments              PersonicX Consumer Segments


                                   eBay                                      AOL
                                56 MM UV’s                                70 MM UV’s
UV Index




                                                        UV Index




                          PersonicX Consumer Segments              PersonicX Consumer Segments

           Acxiom, comScore
4.  It’s about accountability & execution



      63% or 30%?
             CMOs ability to set v execute strategy




        80% or 8%?
   A superior brand experience? CEOs view v their customers
4.  It’s about accountability & execution
   So, now what?



1. Identify customer value

2. Invest proportionally

3. Engage accordingly

4. Measure acquired customer
  value
                                   “Run the picket fence!”
The Four Fundamentals…Summarized
 Hidden in plain sight
• Data is the new black

• Optimization hinges on a 360˚ view

• Confluence of insight & media

• Accountability & execution



     These are the lessons of iDirect marketing
     These are the lessons of direct marketing
iDirect at work…

  4x “orders per thousand”             $200M revenue / $4.5M
  – Connecting print & digital         OpEx savings
  3x applications; 5x online           – Connecting call center & digital
  revenue; same head count             $100M/yr EBIT impact
  – Connecting call center & digital   – Multichannel connection
  2x online bookings                   9-figure/yr revenue impact
  – Connecting outbound & website      – Multichannel connection
  7.5x website spend
  – Connecting mobile & email
  17x response
  – Connecting TV & offline
10 Easy Money Ideas for an iDirect mindset
   “The Idea”                                           “How & Why”                                                   “The Benefit”
        1) Reduce wasted ad impressions,         1)   Use Relevance-X Display to concentrate online           1)   3-5X revenue / ad dollar at other clients
           concentrate spend on highest               ad spend and then follow with Relevance-X TV.                Existing customers respond 17X to
           value consumers
                                                                                                                   prospects to digital TV ads

        2) Recognize & connect with social       2)   Use Relevance-X Social to recognize socially active     2)   Match against 500M socially active
           media influencers                          customers & prospects and implement and track                individuals (~60-70% of any email list)
                                                      your direct social media marketing initiatives

        3) Engage customers and prospects        3)   Use Impact-X Mobile integrated with                     3)   Avg. mobile purchaser has higher income
           via mobile lifecycle messaging             Impact-X Email for likely halo effect                        & spends 2X over Web-only.

        4) Examine call center patterns, use     4)   Identify high-volume drivers of calls proactively       4)   $2M / year cost displacement & $200M / yr
           email to pre-empt expensive                deliver relevant content to address needs that would         influenced revenue at another client.
           personal support                           have solved the reason for those calls.

        5) Connect Web analytics with            5)   Impact-X allows you to follow the digital               5)   2X website conversions achieved at
           outbound messaging                         footprints to recalibrate your outbound                      another client.
                                                      marketing initiatives
        6) When chat available on site, offer    6)   Email a branded transcript back to site                 6)   This is the highest performing email
           to send a branded transcript of the        visitors. Include buttons to “buy” or to                     application at another client.
           chat.                                      “subscribe” to other services.

        7) Perform an organic search audit       7)   Identify opportunities to improve organic               7)   72% of Google clicks are organic. A
                                                      visibility, potentially reduce paid search.                  proper audit enables more free traffic


        8) Implement lead scoring when           8)   Build / implement predictive models to screen out low 8)     The bottom three deciles can likely
           receiving third party leads                value leads provided. Consider a test with Acxiom            be eliminated without impacting
                                                      CoReg services and / or e-list rental.                       conversions.
        9) Improve the site experience           9)   Target and test content with Impact-X Site. Implement   9)   Personalized site experiences
                                                      Relevance-X analytics tags to measure conversion             drive 4–15X ROI.
                                                      funnel progress by lifestage segment.
        10) Retarget site visitors that do not   10) Relevance-X Display Retargeting : 53% of                 10) Remarketing generates $4–10 revenue
            convert                                  shopping carts abandon. Remarket based on                    per ad dollar.
                                                     specific site behavior / lifestage.
Summary

• iDirect is a new paradigm formed at the intersection of
  digital technologies and direct marketing practices
• iDirect is interactive, information-driven, insightful,
  innovative, individualized and iterative
• Focus on the 4 fundamentals of iDirect marketing
• Take the easy money
Thank You




   The global interactive marketing services company



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Tweeting now? Use #AcxiomSeries




              Don’t Miss Our Next Event

          Omni Channel Marketing
               David Daniels, Forrester
                       Feb 1, 2010
          Live in Miami, FL at EEC Conference
Sign up at Acxiom.com: /promotions/GlobalMarketingPerformance

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The 4 fundamentals of iDirect Marketing

  • 1. Tweeting now? Use #AcxiomSeries High Performance Marketing & Advertising Janet Rubio, Engauge Tim Suther, Acxiom www.facebook.com www.linkedin.com www.twitter.com www.youtube.com www.delicious.com /acxiomcorp /companies/acxiom /acxiom /user/AcxiomCorporation /Acxiom
  • 3. It was going to be a great century… after getting the 20th behind us
  • 4. First Decade 21st Century • The DotCom Crisis • 9/11 Terror Crisis • Hurricane Katrina Crisis • War in Iraq Crisis • Disappearing Arctic Ice Crisis • War in Afghanistan Crisis • Housing Crisis • Unemployment Crisis • Health Care Crisis • Marketing Crisis … And 15 more months to go
  • 5. The time is now “We need to reinvent the way we market to consumers” A.G.Lafley, Procter & Gamble CEO Chairman
  • 6. Lots of talk. Not much else. March 26, 2007
  • 8. The same old wasteful advertising 2008: $142 billion Down 2.7% 2009 Forecast: Down 5.1%
  • 9. Will they ever learn? $2 trillion down the drain in the 20th century Yes!!! TWO TRILLION DOLLARS And it only gets worse in the 21st century
  • 10. The New Reality Millions of us are playing, working, flirting and socializing online and producing oceans of data . . .
  • 11. The Great Disconnect Email Marketing Search Marketing Friendship Marketing Mobile Marketing Interactive marketing Digital Marketing Direct Marketing
  • 12. The Ultimate Connection Direct is Digital Digital is Direct
  • 13. Lafley’s dream come true Sponsored by Engauge, a customer engagement marketing agency
  • 14. What the Book Reinvents What was mistakenly seen as disparate disciplines are one and the same Optimizing each consumer engagement Direct goes emotional with new iDTV Advertising Media allocation for a mass networking era Holding customers in the palm of your hand Email Monetizer life support for customers iBrands: the new face of the consumer The new “Test. Test. Test.” mandate
  • 15. What is iDirect Marketing? iDirect is the future of marketing. It is the growth engine at the confluence of Digital and Direct that enables customer engagement to drive a better ROI than ever before.
  • 16. What iDirect marketers do iDirect marketers go directly to like-minded people with an awesome awareness of each person’s needs, lifestyle and behaviors. They create online, on-going engagement that spreads across the internet from person to person for accountable, profitable outcomes.
  • 17. The “i” is what now drives Direct iDirect is interactive, information-driven, insightful, innovative, iterative, and grounded in what the intersection of the internet and direct marketing practices make possible today as never before.
  • 18. And now . . . over to Tim Suther for more on the Engauge and Acxiom vision of an iDirect marketing future Thanks for being here today
  • 19. Send us your tweets on Twitter.com Use hash tag #AcxiomSeries
  • 20. The iDirect Revolution …continued  Tim Suther SVP, Multichannel Marketing Services Tim.Suther@acxiom.com 001-630-944-0416 www.acxiom.com http://www.linkedin.com/in/timsuther http://twitter.com/timsuther http://www.slideshare.net/TimSuther
  • 21. Living next to the train tracks $112 billion of advertising is wasted each year in the US alone $4 trillion excess brand valuation 22% of Americans feel advertising is credible…compared to 45% for talk shows 42% of consumer media consumption is online 7% of disposable income is now saved – was 0%
  • 24. 1.  Data is the new black The Differentiated Value of Customers 30% of customers deliver the majority of profits 50% Add nothing 20% Cost companies money SAS
  • 25. 1.  Data is the new black Know the “who” when they’re “there” Awareness Purchase Up/Cross-sell Shopping & Consideration
  • 26. 2.  Optimization hinges on a 360˚ view Remember every interaction and learn • Explicit & inferred preferences • Wants & needs • Motivations & attitudes • Social influence circle • Cross-channel behavior http://www.youtube.com/watch?v=9hq5jZrFTbE
  • 27. 2.  Optimization hinges on a 360˚ view The interrelated and overlapping effects of media Display Viewthrough Effect comScore McKinsey/BAI eHarmony/Dynamic Logic
  • 28. 3.  The confluence of insight & media • With most media, you never know who you’re gonna get. – ~80% online ad spend delivered to wrong audience. comScore 2009 • Knowing who determines: – How much to invest…if anything – What to say…without guessing • The typical marketing problem: – Over-invest in low value relationships – Under-invest in high value relationships
  • 29. 3.  The confluence of insight & media A look at “who” at world class brands Cadillac American Express UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments Hershey Allstate UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments Source: Acxiom comScore (July 2009)
  • 30. 3.  The confluence of insight & media …and at leading publishers MSN Yahoo 96 MM UV’s 148 MM UV’s UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments eBay AOL 56 MM UV’s 70 MM UV’s UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments Acxiom, comScore
  • 31. 4.  It’s about accountability & execution 63% or 30%? CMOs ability to set v execute strategy 80% or 8%? A superior brand experience? CEOs view v their customers
  • 32. 4.  It’s about accountability & execution So, now what? 1. Identify customer value 2. Invest proportionally 3. Engage accordingly 4. Measure acquired customer value “Run the picket fence!”
  • 33. The Four Fundamentals…Summarized Hidden in plain sight • Data is the new black • Optimization hinges on a 360˚ view • Confluence of insight & media • Accountability & execution These are the lessons of iDirect marketing These are the lessons of direct marketing
  • 34. iDirect at work… 4x “orders per thousand” $200M revenue / $4.5M – Connecting print & digital OpEx savings 3x applications; 5x online – Connecting call center & digital revenue; same head count $100M/yr EBIT impact – Connecting call center & digital – Multichannel connection 2x online bookings 9-figure/yr revenue impact – Connecting outbound & website – Multichannel connection 7.5x website spend – Connecting mobile & email 17x response – Connecting TV & offline
  • 35. 10 Easy Money Ideas for an iDirect mindset “The Idea” “How & Why” “The Benefit” 1) Reduce wasted ad impressions, 1) Use Relevance-X Display to concentrate online 1) 3-5X revenue / ad dollar at other clients concentrate spend on highest ad spend and then follow with Relevance-X TV. Existing customers respond 17X to value consumers prospects to digital TV ads 2) Recognize & connect with social 2) Use Relevance-X Social to recognize socially active 2) Match against 500M socially active media influencers customers & prospects and implement and track individuals (~60-70% of any email list) your direct social media marketing initiatives 3) Engage customers and prospects 3) Use Impact-X Mobile integrated with 3) Avg. mobile purchaser has higher income via mobile lifecycle messaging Impact-X Email for likely halo effect & spends 2X over Web-only. 4) Examine call center patterns, use 4) Identify high-volume drivers of calls proactively 4) $2M / year cost displacement & $200M / yr email to pre-empt expensive deliver relevant content to address needs that would influenced revenue at another client. personal support have solved the reason for those calls. 5) Connect Web analytics with 5) Impact-X allows you to follow the digital 5) 2X website conversions achieved at outbound messaging footprints to recalibrate your outbound another client. marketing initiatives 6) When chat available on site, offer 6) Email a branded transcript back to site 6) This is the highest performing email to send a branded transcript of the visitors. Include buttons to “buy” or to application at another client. chat. “subscribe” to other services. 7) Perform an organic search audit 7) Identify opportunities to improve organic 7) 72% of Google clicks are organic. A visibility, potentially reduce paid search. proper audit enables more free traffic 8) Implement lead scoring when 8) Build / implement predictive models to screen out low 8) The bottom three deciles can likely receiving third party leads value leads provided. Consider a test with Acxiom be eliminated without impacting CoReg services and / or e-list rental. conversions. 9) Improve the site experience 9) Target and test content with Impact-X Site. Implement 9) Personalized site experiences Relevance-X analytics tags to measure conversion drive 4–15X ROI. funnel progress by lifestage segment. 10) Retarget site visitors that do not 10) Relevance-X Display Retargeting : 53% of 10) Remarketing generates $4–10 revenue convert shopping carts abandon. Remarket based on per ad dollar. specific site behavior / lifestage.
  • 36. Summary • iDirect is a new paradigm formed at the intersection of digital technologies and direct marketing practices • iDirect is interactive, information-driven, insightful, innovative, individualized and iterative • Focus on the 4 fundamentals of iDirect marketing • Take the easy money
  • 37. Thank You The global interactive marketing services company www.facebook.com www.linkedin.com www.twitter.com www.youtube.com www.delicious.com /acxiomcorp /companies/acxiom /acxiom /user/AcxiomCorporation /Acxiom
  • 38. Tweeting now? Use #AcxiomSeries Don’t Miss Our Next Event Omni Channel Marketing David Daniels, Forrester Feb 1, 2010 Live in Miami, FL at EEC Conference Sign up at Acxiom.com: /promotions/GlobalMarketingPerformance