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DMA Research

STATISTICAL FACT BOOK

2015

The Definitive Source for

Marketing’s Most Important

Benchmarks

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About D

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theDMA.org/bookstore |2015 Statistical Fact Book

Research

This edition includes editorial pieces from key thought leaders

from the industry. Special thanks to: Bruce Biegel,

Samantha Braverman, Kevin Dean, Laurie B. Beasley,

Justin Honaman, Lois Brayfield, Jim Davidson, Scott Ellis,

Matt Blumberg, Michael J. Becker, Murray Izenwasser,

Angie Moore, and Jerry Cerasale. We hope these chapter

introductions will help the data tell a story of the trends and

positive outlooks by channel or industry segments.

The production of this report required the skills and

perseverance of several people. The DMA research team

reviewed thousands of documents to find the information most

relevant for marketers. A special thanks to: Robert Traino,

Creative Director and Yvonne Polanco, Production Lead, who

made it possible to deliver a beautiful book to market in both

print and digital formats. And especially to Michelle Tiletnick,

Editor, and Meaghan Bradley, Research Coordinator, who

spent countless hours working at the individual level with

contributors, as well as going through advertising journals,

news sites, blogs and research studies to find relevant

information.

Finally, thank YOU, the marketeer, who lives - data-driven

and omnichannel - and learns from their customers and

campaigns each and every day.

Please feel free to contact me if you have questions or

comments regarding this publication.

Gina Scala

Vice President, DMA Education & Research

Direct Marketing Association, Inc.

[email protected]

(212) 790-1440

mailto:[email protected]

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Table of Contents

DIRECT MARKETING OVERVIEW .................................................................. 1

Do You Plan to Reduce Head Count? ................................................................. 4

Do You Plan to Add Staff in the Next Three Months? .................................... 4

Do You Have a Hiring Freeze? ............................................................................ 5

2014 Direct Response Advertising Salaries ...................................................... 6

2014 Direct Response Advertising Salaries (Continued) ............................... 7 Demographics of Consumers Purchasing by Mail, Phone or

Internet ................................................................................................................. 8 Demographics of Consumers Purchasing by Mail, Phone or

Internet (Continued) ........................................................................................... 9 Purchasing Behavior of Mail, Phone or Internet Buyers ............................... 10 Key Demographics of Smart or Connected Device Users Versus

Non-Users ........................................................................................................... 11 Top Cross-Channel Barriers and Challenges for Marketers ........................ 11 How is Your Marketing Integrated Across Channels? ................................... 12 Marketing Team Structure .................................................................................. 12 Top Challenges to Creating a Complete Customer View ............................ 13 Which Three Marketing Channels Offer the Greatest

Opportunities over the Next Year? ............................................................... 14 Single Most Important Factor which Enables Effective

Orchestration of Cross-Channel Marketing Activities ................................ 15 Average Face Values Distributed and Redeemed for Coupons ................. 16 Average Coupon Redemption Rates ................................................................ 17 2014 US “Measured Media” Spending .......................................................... 18 2014 US “Direct & Digital” Spending ............................................................. 18 Spending on Various Data-Driven Marketing Media Channels .................. 19 Process for Reusing and Repurposing Content ............................................... 20 Content Creation for Targets/Segments ......................................................... 20 Frequency of Content Audit................................................................................ 21

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Research Table of Contents

Most Important Factors in Choosing a Marketing Automation System ................................................................................................................. 21

Most Useful Metrics Used for Measuring Marketing Automation Performance ...................................................................................................... 22

Most Important Objectives for Your Inbound Marketing Strategy in the Year Ahead ............................................................................................ 22

Most Effective Tactics Used for Inbound Marketing Purposes Versus Most Difficult to Execute ..................................................................... 23

Marketing Vehicle Frequency ............................................................................ 24 When Buyers Reveal Themselves to Vendors ................................................. 25 Sales Closure Rate ............................................................................................... 25 Why the Sales Team Isn’t Closing with Qualified Prospects........................ 26 Contact Center Measurements Relied on ......................................................... 27 Contact Center Technology Being Used........................................................... 27 Primary Benefits of Personalization .................................................................. 28 Personalization Capabilities .............................................................................. 28

DATA ........................................................................................ 29

Data-Driven Marketing Economy (DDME) Value Added .............................. 32

Total Data-Driven Marketing Economy (DDME) Value Added Employment ........................................................................................................ 33

Summary of DDME Value Added Revenues by Dependence on ILCD Exchanged Among Firms ........................................................................ 34

DDME 2012 Employment: Total, and Dependent on Exchange of Data Among Firms ............................................................................................ 35

DDME Induced Employment ................................................................................ 36

Worldata List Price Index ................................................................................... 37 Top Data Marketing Challenges ....................................................................... 38 Sources of Data ................................................................................................... 39 How Soon do you Expect to See a Positive ROI From Data-

Related Marketing Expenditures? ................................................................ 40 Frequency of Data Cleaning ............................................................................ 40 Benefit of Using Data in Making Decisions ..................................................... 41 Status of Data-Driven Marketing Today and Vision for the Future ........... 42 Department with Primary Responsibility for Marketing Data ..................... 43 Top Obstacles to Data Driven Marketing ....................................................... 43 Collaboration Between IT and Marketing When it Comes to

Sharing Customer Data ................................................................................... 44 Priority of Integrating Marketing Technology and Data ............................. 44 In-house Capabilities Dependent on Data ...................................................... 45 Spending on Data-Driven Marketing, Compared to Previous

Quarter ............................................................................................................... 45 Revenue Derived From Data-Driven Marketing, Compared to

Previous Quarters ............................................................................................. 46 Profitability Derived From Data-Driven Marketing, Compared to

Previous Quarters ............................................................................................. 46

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Data-Driven Marketing Staffing Levels, Compared to

Previous Quarters ............................................................................................. 47 Most Effective Sources of Marketing Data Used ......................................... 47 Types of Data Used for Marketing Purposes.................................................. 48 Importance of Data Quality/Completeness for Marketing

Segmentation and Targeting ......................................................................... 48 Drivers for Turning Data into Insights ............................................................... 49 Use of Predictive Analytics ................................................................................. 50 Value of Data ....................................................................................................... 50 Reason for Data Inaccuracy ............................................................................... 51 Owner of Central Data Quality Strategy ....................................................... 51 Data Hygiene Techniques Used ........................................................................... 52 Channels to Collect Consumer Contact Data................................................... 52

DIRECT MAIL ................................................................................ 53

Number of Mail Order Purchases Within the Last Year by Education of Household Head ........................................................................ 56

Mail Received by Households ............................................................................ 57 Response Rates to Standard Mail (A) Advertising

Solicitations ....................................................................................................... 57 Response Rates to First-Class Advertising Solicitations ................................ 58 Treatment of Standard Mail (A) Piece by Shape .......................................... 59 Usefulness of Standard Mail (A) Piece by Shape ......................................... 60 Standard Mail (A) Reaction by Industry .......................................................... 61 Response to Standard Mail (A) Pieces by Income ......................................... 62 Response to Standard Mail (A) Piece by Age of Head of

Household ........................................................................................................... 63 Standard Mail (A) Response to Advertising by Shape ................................. 64 Intended Response Rates for Major Industries by Enclosure

of Reply Envelopes/Cards .............................................................................. 65 Standard Mail Industry Usage of Reply Mail ................................................ 66 Standard Mail (A) Response to Advertising by Familiarity

with Organization ............................................................................................. 67 Receipt of First-Class and Standard Mail (A) by Number of

Mail Order Purchases Made in the Past Year ............................................ 67 Advertising Generating Response ................................................................... 68 Response to Standard Mail (A) Piece by Age of Head of

Household ........................................................................................................... 68 Standard Mail (A) Addressee by Industry — Merchants ............................. 69 Standard Mail (A) Addressee by Industry — Financial .............................. 69 Standard Mail (A) Addressee by Industry — Services ............................... 70 Standard Mail (A) Addressee by Industry — Fundraising ......................... 70 Treatment of Advertising Mail ........................................................................... 71 Standard Mail (A) Content of Mail Piece ....................................................... 71 Standard Mail (A) by Shape ............................................................................. 72 Average Number of Mail Pieces Received Per Week ................................ 72

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Response to First-Class Advertising from Financial Services Subsegments .................................................................................................... 73

Response to Standard Mail (A) Envelopes and Cards from Financial Services Subsegments .................................................................... 73

Standard Mail (A) Receipt by Number of Credit Cards .............................. 74 Standard Mail (A) Receipt by Number of Financial Accounts

and Insurance Policies ..................................................................................... 74 Standard Mail (A) Pieces from Insurance Companies ................................... 75 Standard Mail (A) Pieces from Credit Card Industry ................................... 76 Lettershop Operations ......................................................................................... 77 Brochures ................................................................................................................ 78 Self-Mailing Formats ............................................................................................ 79 Reply Cards/Order Forms ................................................................................. 79 Outer (or Carrier) Envelopes ............................................................................. 80 Bind-In Order Form Envelopes ........................................................................... 80 Litho Letters (Not Personalized) ........................................................................ 81 Laser Letters (Personalized) .............................................................................. 81 Business Reply Envelopes (BRE) ......................................................................... 81 Direct Mail — Sample Working Budget ......................................................... 82 Total Number of Mail Pieces (All Classes) Attributed to

Direct Mail: 1990 – 2013 .............................................................................. 83 Percent of Coupons Distributed, Food vs. Non-Food ..................................... 84 Coupons Redeemed, Food vs. Non-Food ......................................................... 84 Coupon Redemption ............................................................................................. 85 Redemption Rates By Method ............................................................................ 86 US Direct Mail Marketing Spend ...................................................................... 87 Total Data Spend for Direct Mail ..................................................................... 88

RETAIL & CATALOG .................................................................... 89

Estimated Quarterly US Retail Sales: Total and E-commerce* ........................................................................................................ 93

Loyalty Program Memberships .......................................................................... 93 Loyalty Program Membership Activity ............................................................. 94 Loyalty Program Membership Type ................................................................. 94 How Willing Would You Be to Shop at Retailers Who Have

Experienced Credit card Security Breaches in the Last Year? ................................................................................................................... 95

Which of the Following Payment Methods Would you Use to Purchase Winter Holiday Gifts? ............................................................... 96

Smartphone Owners Shopping Preferences ................................................... 97 Tablet Owners Shopping Preferences ............................................................. 97 Online Shoppers Preference .............................................................................. 97 Online Shoppers Who Own a Smartphone .................................................... 97 Purchasing Behavior of Mail, Phone or Internet Buyers ................................ 98 Top Sites Searched for Coupons .................................................................... 100 Categories Searched Online for Coupons ................................................... 101 Effect of Amazon on Your Business ................................................................ 102

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Use of Amazon ................................................................................................... 102 The Top 100 Fastest-Growing Omnichannel Retailers .............................. 103 Reasons for Cart Abandonment ..................................................................... 107 Importance of Customer Reviews when Making a Buying

Decision ............................................................................................................ 107 Likelihood of Purchasing a Product Suggested by a

Website Based on your Interests and Past Purchases ............................ 108 Why do you Buy Products Online Instead of In -Store? ........................... 109 Why do you Buy Products In-store Instead of Online? .............................. 110 Which of the Following In-store Technologies Would Make

Your Shopping Experience Better?............................................................. 111 How Often do you Buy Products Using the Following

Shopping Channels? ...................................................................................... 112 Catalogs .............................................................................................................. 113 Catalogs Mailed Per Year (2001 – 2014) ................................................ 116 Number of Print and Online Catalogs .......................................................... 116 2014 Direct Response Catalog Advertising Salaries ............................... 117 2014 Direct Response Catalog Advertising Salaries

(continued) ....................................................................................................... 118 Catalog Effectiveness ....................................................................................... 118 Belief About Print as a Marketing Vehicle ................................................... 119 10 Biggest Mistakes in Catalog Merchandise Presentation ..................... 119 Purpose of Print Catalogs ................................................................................ 120 Changes in Catalog Circulation ...................................................................... 120 Methods of Prospecting To Be Used in the Next 12 months ..................... 121 Catalogers Offering Free Shipping .............................................................. 121 Catalogers Offering Free Shipping in Emails .............................................. 122

INTERNET ................................................................................... 123

Hours Spent Online Per Week ...................................................................... 125 Internet Purchasers Who Browse in Retail and Buy Online ....................... 125 Views about Buying Online and in Local Stores .......................................... 126 Does Buying Online Affect Purchasing in Traditional Retail

Stores? ............................................................................................................ 126 Average Monthly Purchasing ......................................................................... 127 US Adult Digital Coupon Users, 2011 – 2016 ............................................ 127 Pricing Guidelines for PURL and Landing Page Marketing ..................... 128 2014 Internet Marketing Salaries ................................................................. 129 Demographics of Consumers Purchasing Online.......................................... 130 Purchasing Behavior of Online Buyers .......................................................... 132 Percent of Adults with Internet-Connected TV .............................................. 133 Percent of Adults who Find Video Ads on Each Device

Useful ............................................................................................................... 133 Digital Ad Spending Worldwide, 2012 – 2018 ........................................ 134 US Digital Ad Spending, 2012 – 2018........................................................ 134 Spending on Digital Advertising, 2014 ........................................................ 135 Preferred Method of Access to Multichannel Retailers .............................. 136

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Appeal of Shopping Conveniences to Millennials ....................................... 136 Importance of Options When Checking Out Online ................................... 137 Actions Taken to Qualify for Free Shipping ................................................ 137 Preference in Delivery Location ...................................................................... 138 Digital Marketing Goals .................................................................................. 138 Digital Marketing Success Metrics .................................................................. 139 Digital Marketing Challenges ......................................................................... 139 The Changing Importance of Video as Content .......................................... 140 Marketing Videos Produced Annually........................................................... 140 Conversion Performance of Video Compared to Other

Content Types ................................................................................................. 141 How Is the ROI of Video Changing? .............................................................. 141 Video Content Budget ...................................................................................... 142 Video as Lead Quality & Opportunity Indicator ........................................ 142 Single Most Exciting Opportunity – 2014 vs. 2015 ................................... 143 We are Going to be Experimenting Heavily with Digital

Next Year........................................................................................................ 143 Monthly Online Radio Listening ...................................................................... 144 Devices Used to Listen to Online Radio ........................................................ 144 Channel Most Essential to Consumers ............................................................ 145 How is your Organization’s Digital Marketing Effectiveness

Changing? ....................................................................................................... 145 Comparing the Most Effective Tactics Used with the Most

Difficult Tactics to Execute ............................................................................ 146 Marketing to Shopping Cart Abandoners .................................................... 147 Top Goals of Website Redesign .................................................................... 148 Changes in Digital Marketing Budgets ......................................................... 148 Positions Being Hired in the Next 12-18 Months ........................................ 149 Programmatic Advertising CPM Growth – Mobile vs.

Desktop ............................................................................................................ 150

SEARCH ..................................................................................... 151

Most Effective SEO Tactics Versus Most Difficult to Execute ..................... 155 Most Important Objectives for Your SEO Strategy in the

Year Ahead .................................................................................................... 156 Most Challenging Obstacles to Achieving Important SEO

Objectives ....................................................................................................... 156 Satisfaction with Monthly Lead Volume ........................................................ 157 Demand Generation Metrics ........................................................................... 157 Understanding of Demand Generation ROI ................................................ 158 Demand Generation Investment Increase Outlook ..................................... 158 Location-Related Searches on Google ......................................................... 159 Same Day Delivery-Related Searches on Google ..................................... 159 Nearby-Related Searches on Google .......................................................... 159 Google Share of US Paid Search .................................................................. 160 Year-Over-Year Growth by Device Class ................................................... 160 Share of US Mobile Organic Search by Engine Q4 2014 ....................... 161

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Search Spend Growth YOY by Quarter 2013 - 2014 ............................. 162 Mobile Search Advertising YOY Growth by Device Q4

2014 ................................................................................................................ 162 Q4 2014 US Mobile Search Spend Share by Device ............................... 163 Search Metrics .................................................................................................. 163 Search Metrics Year Over Year – by Device .............................................. 164 Programmatic Display Metrics ........................................................................ 164 Programmatic Display Metrics – by Vertical ............................................... 164 Programmatic Display Metrics – by Publisher Growth YOY .................... 164 Which of the Following Types of Activities Does Your

Organization Carry Out, or Manage on Behalf of Clients? ............................................................................................................. 165

The Most Important Success Metrics for Search Engine Optimization ................................................................................................... 166

Objectives for Search Engine Optimization ................................................. 167 Most Important Metrics for Measuring Paid Search

Marketing ........................................................................................................ 168 Impacts of Trends and Technologies .............................................................. 169 Objectives for Paid Search ............................................................................. 170 Integration of SEO Efforts with Digital Marketing Disciplines .................. 171

EMAIL ........................................................................................ 173

Household Email Capability by Income ........................................................ 176 Household Email Capability by Age of Household .................................... 177 Click Rates by Industry ..................................................................................... 178 Click Rates by Personalization ........................................................................ 179 Click Rates by Subject Line Length ................................................................. 179 Open Rates by Personalization ...................................................................... 180 Non-Bounce, Open and Click Rates ............................................................... 180 Most Effective Tactic for Email List Growth Purposes Versus

Most Difficult to Execute ............................................................................... 181 What are the Most Challenging Obstacles to Your Email List

Growth Success? ............................................................................................. 182 What is the Average Number of Fields you Require on

Registration Forms Used for Email List Growth Purposes? ..................... 182 How Email Customers are Segmented .......................................................... 183 Email Remarketing Campaigns ....................................................................... 184 How Email Creative Is Optimized .................................................................. 184 Types of Email Tests Conducted ..................................................................... 185 Retailers Using Shopping Cart Recovery Campaigns ................................ 185 What Email Subscribers Want ........................................................................ 186 Email Campaign Cadence – Top 500 Retailers.......................................... 187 Amount of US Emails Sent per Month as Part of Marketing

Efforts or Transactional and Business Email .............................................. 188 Amount of US Emails Sent per Month as Part of Marketing

Efforts or Transactional and Business Email .............................................. 188

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Percent of US Companies Who Used a Tool or Feature in Past 12 Months ............................................................................................... 189

Mobile Email Opens in 2014 .......................................................................... 190 Mobile Email Opens in 2014 .......................................................................... 190 Mobile Email Opens in 2014 – Women ....................................................... 190 Mobile Email Opens in 2014 – Men ............................................................. 190 Reasons for Signing Up to Receive Email from Companies

Seeking Business ............................................................................................. 191 Types of Discounts or Offers Preferred ........................................................ 191 How Comfortable Are You Providing Each of These

Personal Information Elements to a Company That Has Products or Services you are Considering Purchasing? .......................... 192

Types of Welcome Messages ......................................................................... 192 Types of Discounts ............................................................................................. 193 Inbox Placement Rates ..................................................................................... 193 Inbox Placement by Industry ........................................................................... 194 Complaints per 10,000 Messages ................................................................. 195 Daily Messages Received (Inbox only) ......................................................... 195 Total Data Spend for Email ............................................................................ 196 From Which of the Following Places Have you Made

Purchases That Were Influenced by a Company’s Email? ..................... 196 How Often Would You Like to Receive Promotional Emails

From Companies That You Do Business With? .......................................... 197 What Are Your Views of Reminder Emails That Tell You

When ou Have an Item in Your Online Shopping Cart That Has Not Yet Been Purchased? ............................................................ 198

In Which of the Ways Would You Like Company Emails to Change? ........................................................................................................... 199

MOBILE MARKETING ................................................................. 201

US Adult Mobile Coupon Users, 2013 ― 2016 .......................................... 205 Use of Mobile Phone Functions ....................................................................... 205 What Types of Mobile Advertising is Your Company

Engaged In? ................................................................................................... 206

US Retail m-commerce Sales, 2013―2019 ................................................ 206

US Retail m-commerce Sales, By Device, 2013―2019 ........................... 207 How Often Do You Incorporate Mobile Promotions into

Your Annual Marketing Calendar? ............................................................ 207 What Percentage of your Total Marketing Budget Will Go

to Mobile in 2014? ........................................................................................ 208 What Can Users Do with Your App? ............................................................. 208 What Are Your Aims for Your Mobile Apps? .............................................. 209 Total US Internet Usage in Minutes (Billions) by Platform ......................... 210 Share of Mobile App Time Spent .................................................................. 210 m-Commerce Share of Total Digital Commerce Dollars ............................ 211 Top 15 Smartphone Apps ............................................................................... 212

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Mobile Engagement* Frequency .................................................................... 213 Mobile Engagement* Time of Day ................................................................ 214 Mobile Channel Preference ........................................................................... 214 Monthly Global Mobile Data Traffic ............................................................. 215 Mobile-Connected Devices .............................................................................. 215 Smartphones and Mobile Data Traffic ......................................................... 215 Opinions on Access to Protections for Advertising-Related

Data Collection............................................................................................... 216 Opinions on Tools that Provide Transparency and Control

Over How Data Is Collected on Mobile Devices ..................................... 216 Appeal of Mobile Apps ................................................................................... 217 Free Mobile Apps .............................................................................................. 217 What Would Make You More Likely to Shop on Mobile? ........................ 218 Mobile Purchases by Device ........................................................................... 218 Mobile Phone Activity by Device ................................................................... 219 What Would Be the Right Number of Text Messages per

Month That Would Keep You Engaged and Opted in? ........................ 219 If You Could Select a Communication Preference From a

Business, Which Would You Choose? ......................................................... 220

SOCIAL MEDIA .......................................................................... 221

Benefits of Social Media Marketing .............................................................. 224 Commonly Used Social Media Platforms ...................................................... 225 Weekly Time Commitment for Social Media Marketing ........................... 225 2014 Social Media Salaries ........................................................................... 226 What is the Most Important Objective Your Clients are

Trying to Achieve Through Social Media Marketing? ........................... 227 Effective Ratings of Tactics Among B2B Users ............................................. 228 Effective Ratings of Tactics Among B2C Users ............................................ 229 Percentage of B2B Marketers Who Use Various Social

Media Sites to Distribute Content ............................................................... 230 Percentage of B2C Marketers Who Use Various Social

Media Sites to Distribute Content ............................................................... 231 How Often B2C Marketers Publish New Content ....................................... 231 B2B Content Marketing Spending (Over Next 12 Months) ..................... 232 B2C Content Marketing Spending (Over Next 12 Months) ...................... 232 Coupon Method Usage .................................................................................... 233 How Do You Feel about the Number of Deals/Savings You

Receive in a Given Day via Email, Text, and Social?............................. 233 Why Millennials “Like” a Company/Brand on Social Media ................... 234 Where Millennials Make Purchases after Viewing

Something on a Social Media Platform .................................................... 235 Likelihood of Millennials Making a Purchase If Twitter and

Facebook Had a “Buy” Button .................................................................... 235 Social Networking Sites ................................................................................... 236 Twitter .................................................................................................................. 237 Pinterest ............................................................................................................... 238 Instagram ............................................................................................................ 239

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LinkedIn ................................................................................................................ 240 Facebook ............................................................................................................. 241 Social Media Spending as a Percentage of Marketing

Budgets ............................................................................................................ 242 How Well Social Media Is Integrated with Strategy Over

Time .................................................................................................................. 242 How Effectively Social Media Is Integrated with Strategy ....................... 243 Changes in Social Media Spending Across Sectors .................................... 243 Social Network Ad Spending per Social Network User,

2013−2016 .................................................................................................... 244 To What Extent are Analytics Used to Gauge Social Media

Marketing Performance? .............................................................................. 245 Which of the Following Metrics Are Tracked to Gauge

Social Media Marketing Performance? .................................................... 245 How Well Buyer’s “Convert” Because of Content ....................................... 246 Buying Stage with Content Marketing Most Effective ................................ 246 Content Marketing Problems ........................................................................... 247 Content Marketing Barriers ............................................................................. 248 Content Effectiveness Measurements ............................................................. 248 Social Media Audience Demographics by Gender .................................... 249 Social Media Audience Demographics by Age .......................................... 249 Social Media Audience Demographics by Income ..................................... 250 Social Media Posts per Week by Industry................................................... 250 Image Posts per Week by Industry ................................................................ 251 Facebook Posts per Week by Industry ......................................................... 251 Tweets per Week by Industry ......................................................................... 252 Case Study: Coordinating Email and Facebook ......................................... 253 Case Study: Coordinating Email and Facebook ......................................... 254

NONPROFIT ............................................................................... 255

Nonprofit Volumes 2008–2011* ................................................................... 258

Nonprofit Standard Mail (A) Treatment of Mail Piece by Shape ............................................................................................................... 258

Nonprofit Standard Mail (A) Usefulness of Mail Piece by Shape ............................................................................................................... 259

Nonprofit Standard Mail (A) Industry by Shape ........................................ 260

Nonprofit Standard Mail Reaction by Industry ........................................... 261

Nonprofit Standard Mail (A) by Content by Industry ................................ 261

Nonprofit Standard Mail (A) Response to Advertising by Shape ............................................................................................................... 262

Percent of Nonprofit Standard Mail (A) Containing A Request for Donations by Age of Head of Household .......................... 262

Median Average Gift by Vertical and Donation Type ............................. 263 Median Conversion Rates for Donation Emails and Year-

Over-Year Percent Change ......................................................................... 264 Types of Nonprofits / Charities Donated to in the Past Year

by Donors ........................................................................................................ 265 Giving Channels Used in Past Two Years by Donors ................................. 266

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Effectiveness Ratings of Social Media Platforms ........................................ 267 Content Marketing Challenges that Nonprofit Professionals

Face .................................................................................................................. 268 Nonprofit Content Marketing Usage ............................................................. 269 US Charitable Giving By Year ....................................................................... 270 12-Month Giving Trend .................................................................................... 270 Sector Forecast 2015 ....................................................................................... 271 Importance of Communications Channels to Nonprofits ............................. 271 How Often Nonprofits Expect to Email Appeals in 2015 ......................... 272 How Often Nonprofits Expect to Direct Mail Appeals in

2015 ................................................................................................................ 272 How Often Nonprofits Expect to Send E-Newsletters in

2015 ................................................................................................................ 273 If Americans had $10 to Give or Donate Online, Who

Would they Give to? .................................................................................... 273 How Americans Support Social or Environmental Issues

Online ............................................................................................................... 274 What Motivates Americans to Participate in a Social or

Environmental Effort Online ......................................................................... 275 Average Funds Raised on Individual Crowd-funded Pages ..................... 275 Average Funds Raised on Campaign Crowd-funded Pages ................... 275

HISTORICAL POSTAL RATES ....................................................... 277

Postal Rate Changes: Standard Mail (A) — (Formerly

Third Class) ...................................................................................... 279-286

APPENDIX: CONSUMER DEMOGRAPHICS ................................. 287

Total Population By Sex and Race: 2010 .................................................... 287

Median Income by Race: 2009 ...................................................................... 288

Average Annual Expenditures by Age: 2009 ............................................. 288

Income per Capita by Large Metropolitan Area: 2007–2009 ................................................................................................................ 289

Income per Capita by State: 2000 vs. 2010 .............................................. 297

SOURCE CONTACT INDEX ......................................................... 299

Research

Overview

theDMA.org/bookstore | 2015 Statistical Fact Book 1

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Chapter 1: Direct Marketing Overview

Following a strong 2014—where the economy expanded steadily and data-driven marketing quietly and consistently surpassed spending forecasts—the marketing community, including marketers as well as the vast supply chains that support them, has good reason to feel confident about its prospects for 2015. Overall, the economy is expected to continue growing, and as unemployment rates continue to drop and wages rise, practitioners will feel increasingly emboldened about investment opportunities (in talent, training, data, technology and related solutions). Appetite for investment among the marketing services community has been robust for some time; the complex marketing technology and services landscape has consolidated over the last several years as technology solutions have been acquired by larger “end-to-end” stack providers or adjacent point solutions. In 2015, while investment priorities may begin to shift and marketing organizations are likely to prioritize realizing value from investments made previously (including with respect to integrating disparate point solutions, aggregating data sources and re-engineering processes to fuel omnichannel efforts), technology and solutions providers may increasingly turn to a new type of investment—the data that brings their capabilities to life. Though data and technology have had a symbiotic relationship for some time, 2015 will see a full convergence as vendors will increasingly integrate (and offer) data products and solutions to drive value from their tools and marketers begin to realize that a dual focus on technology and data (as well as the infrastructure changes required to support use of both) will drive transformative value in 2015 and beyond.

2 2015 Statistical Fact Book | theDMA.org/bookstore

Research Chapter 1: Direct Marketing Overview

Highlighting this tremendous trend, Winterberry Group recently released its proprietary data market sizing numbers for the first time since 2010, revealing that U.S. marketers are expected to spend $11.5 billion on data and related solutions in support of their targeted marketing efforts across the three most prominent channels (direct mail, email and display advertising) in 2015. This expected spending represents aggregate growth of more than a billion dollars over five years and is being driven, in large part, by advances in technology, including the growth of data management platforms (DMPs) and programmatic media buying and execution solutions.

Though the convergence of data and technology is likely to drive substantial growth—and value—for marketers and the broad range of solutions providers that support them, additional trends for 2015 will likely include the following:

Programmatic approaches are poised to continue rapid ascension; these data- and technology-driven transactions accounted for $10.6 billion in spending in 2014 (up from $4.24 billion the previous year), and we expect that number to rise to $14.88 billion in 2015, accounting for 55 percent of all display advertising spending;

Programmatic opportunities for TV—or “data-driven TV”—will begin to emerge as an area of interest among sophisticated marketers. Early use cases are likely to center on audience buying rather than real-time bidding transactions, as prices and processes are still being sorted. However, major brands are looking to invest as they increasingly expect the same performance and accountability from their TV investments that they have become accustomed to in the digital display space;

Social media marketing will continue its rise to prominence; social CRM went mainstream in 2014 for acquisition and retention efforts, offering noticeable lift for clients. We expect marketers to apply social IDs to cross-device audience recognition in 2015 and begin to focus on social commerce, attribution and measurement;

Audience engagement tools (campaign management, ESPs, etc.) have begun adopting the “customer journey mapping” term in support of omnichannel efforts, and we expect to see enhanced integration—from data architecture, channel support and measurement—in the year ahead. Practitioners may engage with “orchestration” solutions to help deliver on omnichannel objectives;

The Internet of Things (“IoT”), which will include 50 billion connected devices over the next five years, will reach a tipping point in 2015; marketers will begin parsing some of this information to establish high priority use cases and connect the appropriate data;



Beacon technology, offering location recognition for relevant targeting, will become commonplace, while a more substantial opportunity will emerge around data collection. Some retailers have begun testing use cases, but 2015 should see wider adoption—along with consumer opt in; and

More consolidation, IPOs and deals: 2014 saw $126.1 billion in addressable merger and acquisition deal value, and high valuations are likely to continue through the start of 2015. Companies with first-party and compiled data will be in high demand as will those with early adoption as larger players continue building “stacks” to own (or offer) the entire audience insight, management, engagement and measurement continuum.

Authored by:

Bruce Biegel Senior Managing Director Winterberry Group DMA Board Member

Samantha Braverman Manager Winterberry Group

Chapter Highlights

62% of companies planned to add staff in the first quarter of 2015.

In 2014, an account executive of an advertising agency made on average $75,400.

Over 55% of adult mail, phone or Internet purchasers are women.

45% of marketers say that social media marketing offers them the greatest opportunity in the next year.

Direct and digital spending was $142.7 billion in 2014.



DO YOU PLAN TO REDUCE HEAD COUNT?

Percentage of Companies Expecting to Reduce Head Count

Source: Bernhart Associates Executive Search Employment Survey, 2015. The survey was not conducted for Q3 2011 and 2012 or Q2 2013. As of 2014, the survey was conducted on an annual basis instead of quarterly.

DO YOU PLAN TO ADD STAFF IN THE NEXT THREE MONTHS?

Percentage of Companies Expecting to Add Staff


4% 4%

8%

6%

4%

5%

6%

5%

3%

0%

2%

4%

6%

8%

10%

Q1 2011 Q2 2011 Q4 2011 Q1 2012 Q2 2012 Q4 2012 Q1 2013 Q3 2013 Q1 2015

52%

45% 40%

52% 50% 46% 47% 49%

62%

0%

10%

20%

30%

40%

50%

60%

70%

Q1 2011 Q2 2011 Q4 2011 Q1 2012 Q2 2012 Q4 2012 Q1 2013 Q3 2013 Q1 2015


Research Research Chapter 1: Direct Marketing Overview

DO YOU HAVE A HIRING FREEZE?

Percentage of Companies That Have a Hiring Freeze


16% 16%

20%

19%

13%

21%

14%

12%

5%

0%

10%

20%

30%

Q1 2011 Q2 2011 Q4 2011 Q1 2012 Q2 2012 Q4 2012 Q1 2013 Q3 2013 Q1 2015



2014 DIRECT RESPONSE ADVERTISING SALARIES

Crandall Associates, Inc., an executive recruiting firm, has determined the salaries by the following process: 1) Discussions with employers, from presidents to personnel officers, nationally, in companies varying in geographic areas, number of employees, and sales volume; 2) Personal interviews and discussions with professionals in Direct Marketing and Online Marketing at all salary levels, working from coast to coast; 3) Analysis of information collected as a result of discussions with potential candidates nationally, with adjustments made for the “fudge” factor. Copies of the full salary guide with 52 functions and regional salary variations are available for $75 from Crandall Associates, Inc., 6 Litchfield Road, Suite 316, Port Washington, NY 11050, 516.767.6800.

Account Executive — Advertising Agency

The Account Executive is the point person for the clients to whom they are assigned.

DUTIES: Assigned to specific clients, the Account Executive is responsible for advising the client, and the development and execution of programs designed by the agency, including direct mail, space ads, television, e-marketing, and in some agencies, catalogs. Works with creative directors, art directors

and copywriters, media experts, market researchers, and production and traffic professionals to insure maintenance of media schedule within budgetary guidelines. Responsible for reflecting client thoughts and the final acceptance of agency’s program.

Salary Range

Low $61,100

Average $75,400

High $80,200

General Manager — Advertising Agency

The “last word” on the client accounts under his or her

direction, this position has the final approval of all agency client projects. This person is the primary contact to senior level marketing professionals on the client side, and must meet with the expectations while ensuring the integrity of the agency’s beliefs.

DUTIES: Oversees the development of internal and client

business strategy, builds external relationships while maintaining internal ones, develops expertise in a client’s product/service and industry, oversees account reviews and analysis, participates in new business development and pitches, provides input for annual and quarterly revenue

forecasts, and negotiates contractual agreements between client and agency.

Salary Range

Low $143,700

Average $172,700

High $216,500

Director Client Services — Advertising Agency

Client Service Directors solve marketing problems for the

agency’s clients, maintaining a friendly and profitable relationship, and manage a team of account professionals.

DUTIES: Responsible for development of the staff, day-to-day supervision and monitoring of agency account executives, and for the strategic development and implementation of client programs within budgetary guidelines. Guides marketing, creative, media and production activities, and participates in

securing client approval of cost estimates. As a senior manager, participates in the acquisition of new clients as a member of the new business team. With a keen understanding of the realities of agency competition, insures maximum cost-effectiveness for clients and relentlessly pursues the achievement of client goals.

Salary Range

Low $85,600

Average $101,800

High $126,400

Database Manager

In corporations both large and small, there has been an

increased importance placed on the database function. The database manager models and manipulates the data to create meaningful insights about the customers.

DUTIES: Designs and/or enhances databases in alliance with the marketing department and research professionals, incorporating significant information including, but not limited to, customer psychographic and demographic

attributes, purchasing patterns and preferences. Develops models, including response, predictive, conversion and zip, providing insight for marketing decisions to increase sales, market share and profitability. Expert at segmentation and list enhancement techniques. Ability to use information to gain meaningful insight into customer purchase motivation.

Salary Range

Low $90,700

Average $99,800

High $117,000

Note: All salary information from Crandall Associates, Inc. is absolutely copyright-protected. This material may not be photocopied or otherwise reprinted in any other communication unless permission is directly granted by Crandall Associates, Inc. 516.767.6800. Source: Crandall Associates, 2015.



2014 DIRECT RESPONSE ADVERTISING SALARIES (CONTINUED)

Marketing Analytics Director

Always in demand, even in the ancient epoch of the slide rule, the market research professional has risen in eminence with the development of the computer and analytical tools, and now plays a leading role in all phases of Direct Marketing.

DUTIES: Responsible for evaluation, analysis and

implementation of research and statistical techniques to develop marketing insights, improve marketing plans, increase response rates, minimize credit risks and decrease buyer attrition. Develops and initiates market segmentation programs utilizing demographic, psychographic and usage

data. Conducts front- and back-end analysis and product performance measures. Tracks competitor mailing and product programs. Prepares departmental reports. Presents forecasts to management. May supervise a staff of manager(s) and analyst(s).

Salary Range

Low $131,900

Average $142,200

High $151,000

Director Marketing

Computers, seminars, toys or dog food…all are the domain of Marketing Directors, selling to corporations or individual consumers. They are charged with turning merchandise or services into profits.

DUTIES: Full profit and loss and budgetary responsibility for

the marketing of products and services to business and institutional customers, as well as consumers, through non-catalog media. Supervises internal creative department, or advertising agency, in development and execution of promotional material. Oversees marketing staff, research

activities and production departments. Final decision on media selection often, but not always, limited to direct mail, e-marketing efforts and space ads in trade and business-oriented publications. Determines positioning and pricing to increase market share and monitors competitors.

Salary Range

Low $103,100

Average $122,500

High $146,900

Media Planner/Analyst Multichannel

Long after the lights have dimmed in other offices, this professional evaluates the past and ponders the future to ensure that the next Direct Marketing or Telesales program achieves its goals, within an established budget.

DUTIES: For the needs of the client, recommends the size and scope of a myriad of media options, including, but not restricted to, direct mail, space, TV, broadcast, co-op vehicles, package inserts and, more recently, cable and Internet promotions. Maintains current status reports of promotion

budget, plans media schedules and proposes new test vehicles and formats. Meets with list brokers, space salespeople, and other media vendors. Analyzes front- and back-end results on a timely basis, determines seasonal trends, and maintains an alertness for statistical inferences and variances in response rates.

Salary Range

Low $51,200

Average $55,900

High $63,800

Marketing Manager

Hitting a target that’s always shifting, demographically and geographically, is the specialty and challenge of the Consumer Direct Marketer. Lifestyle changes, aging

populations, and dual income families impact on all promotions.

DUTIES: Responsible for the development of the budget. Determines the marketing position and pricing, directs creative department in production of a myriad of direct marketing promotional vehicles, including but not limited to,

direct mail, space advertisements, e-marketing efforts, freestanding inserts, bounce backs, billing and package inserts, and even matchbook covers. Participates in the selection of product or services sold, credit and collection policies, list approval. Reviews results of front- and back-end

analysis, sometimes presented by research department, and uses information to improve the profit picture.

Salary Range

Low $79,900

Average $87,500

High $102,500

Note: All salary information from Crandall Associates, Inc. is absolutely copyright-protected. This material may not be photocopied or otherwise reprinted in any other communication, unless permission is directly granted by Crandall Associates, Inc. 516.767.6800. Source: Crandall Associates, 2015.



DEMOGRAPHICS OF CONSUMERS PURCHASING BY MAIL, PHONE OR INTERNET

Mail, Phone or Internet Buyers

(000) % of Total

Total adult mail, phone or Internet purchasers 148,450 100%

Gender

Male 65,810 44.3%

Female 82,640 55.7%

Age

18 – 24 15,435 10.4%

25 – 34 27,555 18.6%

35 – 44 27,134 18.3%

45 – 54 27,562 18.6%

55 – 64 25,847 17.4%

65+ 24,917 16.8%

Mean Age 47

Education

Post Graduate 24,303 16.4%

Graduated College 29,643 20.0%

Attended College 45,705 30.8%

Graduated High School 39,166 26.4%

Did not graduate high school 9,633 6.5%

Marital status - respondent

Never married 37,874 25.5%

Presently married 83,803 56.5%

Divorced/separated/widowed 26,774 18.0%

Employment status

Employed full-time (30+ hours) 80,064 53.9%

Employed part-time (<30 hours) 16,664 11.2%

Retired 24,102 16.2%

Homemaker 8,964 6.0%

Household income

<$10,000 7,259 4.9%

$10,000 – $14,999 5,063 3.4%

$15,000 – $24,999 8,915 6.0%

$25,000 – $34,999 11,608 7.8%

$35,000 – $49,999 17,325 11.7%

$50,000 – $74,999 27,814 18.7%

$75,000 – $99,999 22,414 15.1%

$100,000 – $149,999 25,218 17.0%

$150,000 – $249,999 16,435 11.1%

>$250,000 8,809 5.9%

(Continues on following page)



DEMOGRAPHICS OF CONSUMER PURCHASING BY MAIL, PHONE OR INTERNET

(Continued)


(000) % of Total

Number of adults in household

One 25,524 17.2%

Two 85,348 57.5%

Three or four 33,226 22.4%

Five or more 4,335 2.9%

Number of children

One 22,785 15.3%

Two 20,130 13.6%

Three or more 10,274 6.9%

None 95,261 64.2%

Presence of children by age

< 2 years 8,017 5.4%

2 – 5 years 18,378 12.4%

6 – 11 years 21,079 14.2%

12 – 17 years 20,271 13.7%

Anyone in this household expecting a baby 3,790 2.6%

Census regions

Northeast 28,310 19.1%

Midwest 31,515 21.2%

South 53,291 35.9%

West 35,334 23.8%

Kind of residence

Own (any) 106,800 71.9%

Rent (any) 38,314 25.8%

Moved into present residence in last 12 months 11,231 7.6%

Source: Experian Marketing Services, 2015.



PURCHASING BEHAVIOR OF MAIL, PHONE OR INTERNET BUYERS

Types of merchandise purchased in the last 3 months Mail, phone or Internet Buyers

(000) % of Total

Accessories 16,666 11.2%

Apparel – men’s 23,135 15.6%

Apparel – women’s 32,636 22.0%

Apparel – children’s 12,754 8.6%

Automotive products 8,984 6.1%

Airline tickets 19,496 13.1%

Hotels/tours 18,968 12.8%

Other travel services/packages 3,632 2.4%

Alcoholic beverages 3,117 2.1%

Baby supplies 6,201 4.2%

Banking/financial services 8,045 5.4%

Books/e-books 30,539 20.6%

Computers 4,141 2.8% Other computer products (software/accessories) 9,470 6.4%

Cosmetics 8,970 6.0%

DVDS/Blu-rays 15,933 10.7%

Electronics/appliances 11,162 7.5%

Flowers 6,348 4.3%

Food/groceries 9,868 6.6%

Footwear/shoes 20,112 13.5%

Gardening 3,998 2.7%

Gourmet gift baskets/assortment 1,884 1.3%

Home furnishings 8,789 5.9%

Housewares 8,769 5.9%

Insurance 4,755 3.2%

Music (downloads/CDs) 18,682 12.6%

Office supplies 5,883 4.0%

Pet supplies/products 8,873 6.0%

Prescription drugs 12,613 8.5%

Other health/medical items 5,942 4.0%

Sporting goods/equipment 9,092 6.1%

Tickets for movies 9,253 6.2%

Tickets for concerts 10,241 6.9%

Tickets for sporting events 4,635 3.1%

Tickets for other events 6,091 4.1%

Toys/games 13,079 8.8%

Video games/systems 7,782 5.2%

Other products/services 22,993 15.5%




KEY DEMOGRAPHICS OF SMART OR CONNECTED DEVICE USERS VERSUS NON-USERS

Male Age Graduated

college

Racial or ethnic

minority

Household income

Kids in home

Use any smart device 54% 39.3 37% 39% $120,466 66%

Use wearable device 53% 39.3 42% 35% $184,281 70%

Use smart entertainment device

58% 38.2 38% 44% $135,120 65%

Use smart home device 56% 38.5 38% 41% $135,709 69%

Do not use any smart device 45% 50.5 25% 32% $62,042 56%

Source: Experian Marketing Services, “The Internet of Things: Opportunities through the rise in smart devices,” November 2014.

TOP CROSS-CHANNEL BARRIERS AND CHALLENGES FOR MARKETERS

Source: Experian Marketing Services, “2015 Digital Marketer: Benchmark and Trend Report.”

5%

10%

18%

19%

22%

24%

25%

25%

31%

31%

32%

0% 5% 10% 15% 20% 25% 30% 35%

Other

Too many vendors/agencies

Accurate contact data

Revenue attribution

Budget

Campaign coordination/execution

No clear roadmap - unsure what to do next

Understanding customer behavior

Company's current technology

Organizational structure

Linkage - no single customer view



HOW IS YOUR MARKETING INTEGRATED ACROSS CHANNELS?


MARKETING TEAM STRUCTURE


Siloed, unaligned, 17%

Siloed, aligned, 50%

Coordinated, 29%

Customer journeys through channels,

4%

35%

32%

33%

30%

31%

32%

33%

34%

35%

36%

Our marketing team is fullyintegrated

Our marketing teams are somewhatintegrated

Our marketing teams are brokenout by channel



TOP CHALLENGES TO CREATING A COMPLETE CUSTOMER VIEW


4%

7%

7%

10%

34%

37%

39%

43%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Don't know

We don't have challenges creating a completecustomer view

Other

Too much data

Lack of relevant technology

Inability to link different technologies

Siloed departments

Poor data quality



WHICH THREE MARKETING CHANNELS OFFER THE GREATEST OPPORTUNITIES OVER THE NEXT YEAR?

Source: Econsultancy, “Cross-Channel Marketing Report,” 2014.

5%

1%

2%

3%

3%

5%

7%

8%

10%

12%

13%

15%

18%

20%

23%

31%

34%

40%

45%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Other

Radio

Outdoor advertising

Newspapers (print media)

Telemarketing

Direct mail

Mobile messaging (SMS/MMS)

Television

Affiliate marketing

Online display advertising

Mobile and web push notifications

Mobile apps

Web retargeting

Paid search

Mobile web

SEO (natural search)

Website

Email

Social media marketing



SINGLE MOST IMPORTANT FACTOR WHICH ENABLES EFFECTIVE ORCHESTRATION OF CROSS-CHANNEL MARKETING ACTIVITIES


1%

3%

7%

8%

8%

10%

11%

11%

21%

22%

1%

4%

4%

10%

5%

14%

8%

12%

23%

21%

0% 5% 10% 15% 20% 25%

Other

Automated marketing programs

Ownership and accountability

Single customer view

Joined-up organizational structure

Sufficient resources (including budget and staff)

Team knowledge and experience

Joined-up technology and systems

Understanding customer journey

A clearly defined strategy

Agency Respondents Company Respondents



AVERAGE FACE VALUES DISTRIBUTED AND REDEEMED FOR COUPONS Total US CPG Coupon Distribution and Redemption Volume/All Media

Source: Valassis, “NCH Annual Topline US CPG Coupon Facts,” 2015.

$1.35

$1.43

$1.54 $1.55 $1.53

$1.62

$1.72

$1.12 $1.16

$1.22 $1.29 $1.27 $1.26

$1.32

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

2008 2009 2010 2011 2012 2013 2014

Average Face Value Distributed Average Face Value Redeemed



AVERAGE COUPON REDEMPTION RATES

Percent of Manufacturers’ Coupons Distribution Quantity That Is Redeemed by Media

Channel Market 2014

Free-standing insert Non-Food 0.5%

Food 0.8%

Magazine Non-Food 0.5%

Food 0.9%

Direct mail Non-Food 2.7%

Food 6.5%

Regular in-pack Non-Food 3.3%

Food 3.2%

In-pack cross-ruff Non-Food 1.3%

Food 2.5%

Instant on-pack Non-Food 28.6%

Food 22.9%

On-shelf distributed Non-Food 7.5%

Food 12.1%

Handout electronic checkout Non-Food 6.7%

Food 6.9%

All other handouts in-store Non-Food 2.8%

Food 4.9%

All other handouts away from store Non-Food 2.4%

Food 4.3%

Digital home-printed Non-Food 11.5%

Food 15.7%

Digital paperless Non-Food 4.9%

Food 9.2%

Military Non-Food 5.2%

Food 11.9%

Source: Valassis/NCH Marketing Services, Inc., “Coupon Facts Report,” 2015.



2014 US “MEASURED MEDIA” SPENDING: $124.3BB

Source: Winterberry Group, 2015.

2014 US “DIRECT & DIGITAL” SPENDING: $142.7BB

Note: Insert Media includes FSIs and statement inserts; Display and Search reflect spending on desktop and mobile. Source: Winterberry Group, 2015.

Television, $68.5

Newspapers, $16.9

Magazines, $15.1

Radio, $15.9

Outdoor, $7.2 Cinema, $0.7

Direct Mail, $46.0

Teleservices, $41.5

Search, $24.2

Display, $23.4

Other Digital, $5.5 Email, $2.1



SPENDING ON VARIOUS DATA-DRIVEN MARKETING MEDIA CHANNELS SCALE OF 1 TO 5, WHERE 1 INDICATES SPEND DECREASED SIGNIFICANTLY AND 5 INDICATES SPEND INCREASED

SIGNIFICANTLY.

Source: Winterberry Group/DMA Quarterly Business Review, Q4 2014.

3.2

3.4

3.2

2.9

2.8

3.5

3.3

3.0

3.3

3.4

3.4

2.9

3.0

3.2

3.4

3.2

2.9

2.9

3.4

3.3

3.0

3.3

3.3

3.4

2.9

3.0

3.1

3.4

3.3

2.9

2.9

3.5

3.4

3.0

3.3

3.3

3.5

2.9

2.9

0 0.5 1 1.5 2 2.5 3 3.5 4

Tablets

Search (SEO/content optimization)

Rich media / video

Gaming

Teleservices

Social media

Search (SEM)

Place-based media / Digital out-of-home

Online display advertising

Mobile

Email

Direct response broadcast

Direct mail (inc. catalog)

2014 2013 2012



PROCESS FOR REUSING AND REPURPOSING CONTENT

Source: Curata, “Content Marketing Tactics & Technology Planner,” 2015.

CONTENT CREATION FOR TARGETS/SEGMENTS


22%

60%

15%

4%

29%

56%

13%

2%

0%

10%

20%

30%

40%

50%

60%

70%

We have a specificprocess in place to ensureoptimal content reuse and

repurpose

Content reuse andrepurpose happens

sporadically

We do not reuse orrepurpose content today,but this will change in the

coming year

We do not reuse orrepurpose content and

have no plans to changethat

All Companies Leaders

68%

55%

36% 36%

25%

61%

66%

44%

50%

24%

0%

10%

20%

30%

40%

50%

60%

70%

80%

By product/businessunit

By buyer persona By vertical By stage in buyingcycle

By geography

All Companies Leaders



FREQUENCY OF CONTENT AUDIT


MOST IMPORTANT FACTORS IN CHOOSING A MARKETING AUTOMATION SYSTEM

Source: Ascend2 and Research Partners, “Marketing Automation Benchmark Summary Reports,” July 2014.

Quarterly, 18%

Semiannually, 14%

Annually, 24%

Biannually, 8%

Never, 36%

8%

12%

17%

19%

25%

25%

27%

33%

34%

40%

41%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Landing page builder

Message personalization

Website visitor ID and tracking

CRM included

Lead capture and management

Lead segmentation and scoring

Pricing and/or pricing model

Email and campaign management

All-in-one solution

Ease of use

Analytics and reporting



MOST USEFUL METRICS USED FOR MEASURING MARKETING AUTOMATION PERFORMANCE

Source: Ascend2 and Research Partners, “Marketing Automation Benchmark Summary Reports,” July 2014.

MOST IMPORTANT OBJECTIVES FOR YOUR INBOUND MARKETING STRATEGY IN THE YEAR AHEAD

Source: Ascend2 and Research Partners, “Inbound Marketing Research Summary Report,” September 2014.

17%

21%

29%

32%

32%

40%

42%

57%

0% 10% 20% 30% 40% 50% 60%

Website traffic

Open/click-through rate

Pipeline value generated

Leads generated

Cost per lead

Lead generation ROI

Revenue generated

Lead conversion rate

9%

16%

29%

31%

44%

46%

48%

49%

0% 10% 20% 30% 40% 50% 60%

Reduce Marketing Costs

Improve Analytics and Reporting

Increase Web Page Traffic

Increase Brand Awareness

Increase Lead Quality

Increase Sales Revenue

Improve Lead Quality

Increase Conversion Rates



MOST EFFECTIVE TACTICS USED FOR INBOUND MARKETING PURPOSES VERSUS MOST DIFFICULT TO

EXECUTE

Source: Ascend2 and Research Partners, “Inbound Marketing Research Summary Report,” September 2014.

20%

20%

39%

24%

26%

26%

30%

54%

8%

15%

21%

27%

33%

38%

54%

59%

0% 20% 40% 60% 80%

Mobile marketing

Press and public relations

Inbound tactic integration

Blogging or guest blogging

Website design optimization

Social media/social networking

Search engine optimization

Marketing content creation

Most effective tactics Most difficult tactics



MARKETING VEHICLE FREQUENCY

Source: Real Results Marketing, “Distributor Marketing Survey,” October 2014.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Not At All

Annually

Quarterly

Monthly

Weekly

Daily



WHEN BUYERS REVEAL THEMSELVES TO VENDORS

Source: Demand Metric, “Enhancing the Buyer’s Journey: Benchmarks for Content & the Buyer’s Journey,” 2014.

SALES CLOSURE RATE

Source: Demand Metric, “The Metrics of Bad Sales Interactions: A Sales Experience Benchmark Report,” 2014.

25%

53%

22%

0%

10%

20%

30%

40%

50%

60%

Early: as soon as they know theyhave a need

Midway: after they have a shortlistof solutions

Late: when they're ready to buy

8%

14%

22%

16%

11%

8%

6%

10%

4%

0%

1%

0% 5% 10% 15% 20% 25%

I don't know

10% or less

11 to 20%

21 to 30%

31 to 40%

41 to 50%

51 to 60%

61 to 70%

71 to 80%

81 to 90%

Over 90%



WHY THE SALES TEAM ISN’T CLOSING WITH QUALIFIED PROSPECTS

Source: Demand Metric, “The Metrics of Bad Sales Interactions: A Sales Experience Benchmark Report,” 2014.

9%

14%

15%

15%

18%

21%

31%

35%

60%

0% 10% 20% 30% 40% 50% 60% 70%

Company reputation

Product or service availability

Product or service quality issues

Other reasons

Failure of marketing team to perform

Terms or conditions of doing business

Lack of compelling product/service

Failure of sales team to perform

Product or service price



CONTACT CENTER MEASUREMENTS RELIED ON

Source: Multichannel Merchant, “MCM Outlook: Contact Center,” 2014.

CONTACT CENTER TECHNOLOGY BEING USED

Source: Multichannel Merchant, “MCM Outlook: Contact Center,” 2014.

20%

31%

21%

32%

34%

24%

32%

18%

46%

35%

30%

31%

36%

48%

50%

0% 10% 20% 30% 40% 50% 60%

Conversion Rate

Average call handle time

First-call resolution rate

Service level

Customer satisfaction scores

2014 2013 2012

18%

15%

20%

42%

17%

18%

25%

21%

16%

19%

25%

25%

27%

30%

33%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Automatic Call Distributors (ACDs)

Quality monitoring software

Voice over Internet Protocol (VoIP)

None

Workforce management software

Web chat

CRM applications

Live chat

2014 2013



PRIMARY BENEFITS OF PERSONALIZATION

Source: Teradata and Econsultancy, “Enterprise Priorities in Digital Marketing,” September 2014.

PERSONALIZATION CAPABILITIES


14%

29%

34%

36%

37%

47%

0% 10% 20% 30% 40% 50%

Lower acquisition costs

Increase conversions

Increased revenue from existing lines

New revenue

Improved performance

Improved customer experience

14%

19%

30%

33%

39%

45%

51%

0% 10% 20% 30% 40% 50% 60%

No personalization

Real-time personalization(dynamic content delivery based on behavior and/or

profile data)

Prospecting personalization(profiling prospects during lead gen process by role,

industry, etc.)

Backward-looking personalization(based on past purchases, content viewed in past visits,

etc.)

Segment-level personalization(frequent customer, M/F, etc.)

Basic personalization(unique naming in emails, etc.)

Customer lifecycle personalization(phase of purchase process, new customer, retention,

etc.)

Overview


Research

DA

TA

NO

NP

RO

FIT

RETA

IL

CA

TALO

G

MA

IL

SO

CIA

L

MO

BILE

SEA

RC

H

INTER

NET

EMA

IL

CO

NS

UM

ER

PO

STA

L

DIR

ECT

M

AR

KETIN

G

Chapter 2: Data

It’s sure to be a tumultuous and exciting year as consumers become ever more connected and powerful, data becomes more prolific, and marketers seek revolutionary new ways to win the ongoing affection of their best customers. Successful omnichannel marketing requires more personalized and relevant brand experiences with consumers that are delivered at the right place and at the right time. As confirmed by this

year’s DMA Statistical Fact Book, marketers recognize that robust

technology, automation, and data and analytics will continue to be the pervasive success factor to ensure that direct marketers and the advertising world effectively collaborate to architect the ultimate omnichannel consumer experience. One of the more exciting marketing trends transforming the advertising world is programmatic media buying. I predict that in this coming year we will see programmatic hasten the transformation of advertising from a media-driven to an audience-driven model to enable marketers to purchase their audiences across any media. Targeting will shift from building an audience to meet a publisher’s demographics to finding your ideal audience and engaging them where they live online and beyond with greater precision. In the past, a marketer trying to reach 18-34-year-old males probably wouldn’t buy many ads on Gourmet or Bon Appetit’s digital platforms. Common logic dictates that they would be more likely to subscribe to other publications such as Details or Men’s Health. But through


Research Chapter 2: Data

addressable media and programmatic buying, marketers can now find that 1 to 5 percent of men in that age group do in fact visit Gourmet or Bon Appetit. It’s quite possible today to cost-effectively target that exact segment of visitors through the purchase of audience-specific segments across several digital mediums. Why will this be the year where addressability and programmatic drive better audience targeting? A short history lesson is required. Every time a medium becomes digital it becomes addressable at the household level and every time that happens the data and the tools for planning, targeting and communicating in that medium change. Throughout the history of direct marketing, this has always been the case. Nearly four decades ago, this happened in direct mail, then it was telemarketing, then it was email, then it was site optimization, then it was social, then it was display, and now we're seeing the evolution take hold in TV. So it's very reasonable to believe that at some point in the near future most media will be transacted around a household level audience and resemble something that very much looks like a mailing list. To make this work, marketers must ensure that their consumer data is accurate, insightful and, most importantly, that customers’ identities are resolved across various channels and devices. They’re seeking platforms that provide data hygiene, segmentation, modeling, identification and linkage tools to enable a comprehensive view of consumers that will fuel precise interactions. In 2015, marketers will increasingly turn to technologies that automate and measure customer interactions. And while there may be a number of platforms and suites to choose from, marketers can’t simply buy technology and expect nirvana. They’ll need to strike the right balance between business strategy, automation technology, service, data expertise, and advanced analytics in order to execute successful cross-channel campaigns. And they will face many challenges along the way. A new global survey from Experian Marketing Services shows that organizational silos are hindering a single customer view and exacerbating data quality issues. In fact, 32 percent of marketers surveyed cited data linkage issues and 31 percent cited their company’s current technology as barriers to cross-channel marketing success.



Given this trend, I predict that 2015 will also be the year that marketing planning systems truly accommodate audience-driven advertising. In recent years, Data Management Platforms (DMPs) have been all about enabling display advertising, but now they’re expanding into mobile Web, mobile apps and television ad delivery. Over the next year-plus, marketers will expect the planning screen on their DMP software to show them who is watching a sporting event on television, on the Internet or on their smartphone at a given moment in time so they can address them instantaneously and simultaneously. The year 2015 will be about buying audiences across channels, devices and platforms in a precisely targeted and effective way. Authored by:

Kevin Dean Senior Vice President, Global Product Management Experian Marketing Services

Chapter Highlights

The US data-driven marketing economy was responsible for employment of about 676,000 people.

47% of marketers are already seeing a positive ROI from data-related marketing expenditures.

43% of companies say that marketing owns or control customer data.

Over one-fifth (21.4%) of marketers say that analyzing data is their top data marketing challenge.

99% of companies think some form of data is essential to marketing success.



DATA-DRIVEN MARKETING ECONOMY (DDME) VALUE ADDED

Total DDME Value-Added Revenues and Dependence on Data Exchange

$ Millions Percent

Total contribution to the data-driven marketing economy $156,000

100%

Value added by services that depend directly on data exchanged or rented among firms

$32,000

21%

Value added by services that indirectly depend on data exchanged or rented among firms

$78,000

50%

Subtotal: Combined value added by services directly or indirectly dependent on data exchanged or rented among firms

$110,000 71%

Remainder: Value added by services that do not depend on data exchanged or rented among firms because it is generated and captured within single firms

$46,000 29%

Source: “The Value of Data: Consequence for Insight, Innovation & Efficiency in the U.S. Economy,” John Deighton, Harold M. Brierley, Professor of Business Administration, Harvard Business School and Peter A. Johnson, Adjunct Professor, Columbia University.

For the full report, please visit ddminstitute.thedma.org.

http://ddminstitute.thedma.org/


Research Research Chapter 2: Data

TOTAL DATA-DRIVEN MARKETING ECONOMY (DDME) VALUE-ADDED EMPLOYMENT

Total DDME Value-Added Employment and Dependence on Data Exchange Employees Percent

Total Employment Attributable to DDME Value-Added Revenues

676,000 100%

Employment added by services that depend directly on data exchanged or rented among firms

139,000 21%

Employment added by services that indirectly depend on data exchanged or rented among firms

336,000 50%

Subtotal: Combined Employment added by services directly or indirectly dependent on data exchanged or rented among firms

475,000 70%

Remainder: Employment added by services that do not depend on data exchanged or rented among firms because it is generated and captured within single firms

201,000 30%






SUMMARY OF DDME VALUE-ADDED REVENUES BY DEPENDENCE ON ILCD EXCHANGED AMONG

FIRMS

The Data-Driven Marketing Economy Value created by firms that rely on individual-level consumer data computed by summing firm revenues net of data that they purchase or media for which they are reimbursed

DDME Business Segment

Total contribution of the sector to the data-driven

marketing economy

Value added by

services that depend directly

on data exchanged or rented among

firms

Value added by services

that indirectly depend on data exchanged or rented among

firms

Value-added by services that do not depend on

data exchanged or rented among firms because it

is generated and captured within

single firms

($ Millions)

% of Total

($ Millions)

% of Total

($ Millions)

% of Total

($ Millions)

% of Total

Agency holding companies $7,000 4% $1,000 3% $4,000 5% $2,000 4%

General independent agencies $6,000 4% $1,000 3% $4,000 5% $1,000 2%

Digital agencies $2,000 1% $0 0% $1,000 1% $1,000 2%

Direct/CRM agencies $2,000 1% $1,000 3% $1,000 1% $0 0%

Measurement/analytics $3,000 2% $1,000 3% $0 0% $2,000 4%

Digital audience assembly

$14,000 9% $7,000 22% $4,000 5% $3,000 7%

Search audience assembly

$19,000 12% $2,000 6% $2,000 3% $15,000 33%

Audience targeting $4,000 3% $4,000 13% $0 0% $0 0%

List and database service providers

$7,000 4% $3,000 9% $4,000 5% $0 0%

Postal production $32,000 21% $1,000 3% $24,000 31% $7,000 15%

Email customer delivery $1,000 1% $1,000 3% $0 0% $0 0%

Teleservices $10,000 6% $2,000 6% $6,000 8% $2,000 4%

Mobile customer targeting

$2,000 1% $0 0% $0 0% $2,000 4%

Commerce – eCommerce

$34,000 22% $4,000 13% $22,000 28% $8,000 17%

Commerce – Loyalty $5,000 3% $2,000 6% $1,000 1% $2,000 4%

Commerce – Fulfillment $9,000 6% $0 0% $4,000 5% $5,000 11%

Total $156,000 100% $32,000 100% $78,000 100% $46,000 100%






DDME 2012 EMPLOYMENT: TOTAL AND DEPENDENT ON EXCHANGE OF DATA AMONG FIRMS

(DIRECT PLUS INDIRECT DEPENDENCE.)


DDME Employment

Employment added by

services directly or indirectly dependent on

data exchanged or rented among firms

% of Total % of Total

Agency holding companies 30,000 4% 21,000 4%

General independent agencies 25,000 4% 24,000 5%

Digital agencies 7,000 1% 6,000 1%

Direct/CRM agencies 8,000 1% 11,000 2%

Measurement/analytics 12,000 2% 6,000 1%

Digital audience assembly 62,000 9% 48,000 10%

Search audience assembly 82,000 12% 17,000 4%

Audience targeting 18,000 3% 18,000 4%

List and database service providers 31,000 5% 30,000 6%

Postal production 138,000 20% 110,000 23%

Email customer delivery 5,000 1% 4,000 1%

Teleservices 43,000 6% 35,000 7%

Mobile customer targeting 11,000 2% 1,000 0%

Commerce – eCommerce 146,000 22% 115,000 24%

Commerce – Loyalty 21,000 3% 15,000 3%

Commerce – Fulfillment 37,000 5% 18,000 4%

Total 676,000 100% 475,000 100%

Source: “The Value of Data: Consequence for Insight, Innovation & Efficiency in the U.S. Economy,” John Deighton,

Harold M. Brierley, Professor of Business Administration, Harvard Business School and Peter A. Johnson, Adjunct Professor, Columbia University.





DDME-INDUCED EMPLOYMENT


DDME Incremental-Induced

Employment

Portion of previous column

that depends on data exchanged from firms

Agency holding companies 46,000 33,000

General independent agencies 39,000 37,000

Digital agencies 11,000 9,000

Direct/CRM agencies 12,000 10,000

Measurement/analytics 21,000 11,000

Digital audience assembly 96,000 67,000

Search audience assembly 127,000 13,000

Audience targeting 23,000 23,000

List and database service providers 47,000 33,000

Postal production 213,000 137,000

Email customer delivery 7,000 6,000

Teleservices 66,000 54,000

Mobile customer targeting 16,000 1,000

Commerce – eCommerce 224,000 77,000

Commerce – Loyalty 32,000 16,000

Commerce – Fulfillment 58,000 14,000

Total 1,038,000 540,000






WORLDATA LIST PRICE INDEX

Source: Worldata Inc., 2015.

$132

$108

$137

$124

$111

$91

$92

$93

$116

$84

$162

$171

$93

$137

$140

$248

$74

$388

$510

$595

$134

$115

$140

$129

$115

$93

$94

$96

$121

$88

$165

$167

$92

$140

$143

$251

$68

$407

$460

$545

$136

$110

$133

$129

$116

$92

$93

$95

$115

$87

$164

$165

$92

$134

$112

$212

$64

$402

$415

$527

$0 $75 $150 $225 $300 $375 $450 $525 $600 $675

Attendees/members

Books and CDs

Business mags, controlled

Business mags, paid circulation

Business merchandise buyers

Consumer book buyers

Consumer magazines

Consumer merchandise buyers

Databases/masterfiles

Donors

Newsletters

Public sector

Small business

Medium-large business

Permission-based small business email

Permission-based email mediumlarge BtoB

Permission-based BtoC email

Permission-basedinternational email

Data purchase - small business

Data purchase - medium-large business

Winter 2015

Winter 2014

Winter 2013



TOP DATA MARKETING CHALLENGES

Source: Infogroup, “Big Data’s Big Payday: Marketers Approach ROI Tipping Point in 2015.”

21.9%

17.0%

13.8%

13.4%

10.7%

11.2%

5.8%

20.5%

17.4%

15.2%

15.2%

18.9%

4.5%

5.3%

21.1%

14.2%

15.5%

13.8%

12.1%

10.8%

7.3%

21.3%

16.0%

14.8%

13.9%

13.1%

9.5%

6.3%

0% 5% 10% 15% 20% 25%

Analyzing data

Applying data

Collecting data

Protecting customer data and privacy

Cleaning data

Real-time data

Personalization

Overall

Leaders

Up-and-Comers

Laggards



SOURCES OF DATA


9.4%

10.7%

14.7%

14.3%

28.1%

23.2%

25.4%

35.7%

37.1%

11.5%

13.8%

17.7%

12.3%

29.2%

34.6%

43.8%

49.2%

53.1%

14.3%

12.6%

14.8%

20.9%

36.1%

38.3%

34.3%

47.8%

56.1%

11.8%

12.2%

15.4%

16.4%

31.5%

31.7%

33.0%

43.5%

48.1%

0% 10% 20% 30% 40% 50% 60%

Co-op Lists

Social media profiles/posts

Contact center interactions

Web browsing history

Sales database

Data append services

Email interactions

Third-party lists

Customer purchase history

Overall

Leaders

Up-and-Comers

Laggards



HOW SOON DO YOU EXPECT TO SEE A POSITIVE ROI FROM DATA-RELATED MARKETING

EXPENDITURES?


FREQUENCY OF DATA CLEANING


1%

1%

5%

20%

20%

47%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

We have no plans

More than 5 Years

2-5 years

Within 2 years

2015

We have already started

34%

25%

24%

17%

22%

21%

30%

27%

19%

26%

29%

27%

26%

24%

27%

23%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Annually

Quarterly

Monthly

Weekly

Overall

Leaders

Up-and-Comers

Laggards



BENEFIT OF USING DATA IN MAKING DECISIONS

Source: Teradata, “2015 Teradata Global Data-Driven Marketing Survey.”

31%

43%

44%

49%

58%

59%

43%

56%

57%

67%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Faster decision

Identified a new opportunity, new competitiveadvantage

More efficient use of resources, reduced cost

Better business result

More accurate decision

2014 2013



STATUS OF DATA-DRIVEN MARKETING TODAY AND VISION FOR THE FUTURE

Source: Teradata, “2015 Teradata Global Data-Driven Marketing Survey”.

4%

4%

6%

8%

43%

34%

3%

3%

7%

9%

48%

30%

4%

12%

47%

6%

28%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Data marketing is not on our radar screen

Tried to integrate data-driven strategy, gave up dueto challenges/inefficiencies

Thinking about it, planning, nothing done yet

Some experience, have begun using it on an ad hocbasis

Strategic, interacting with business systems, productdevelopment, customer experience, etc.

Embedded and used system-wide, part of the standardway of doing business

Status of Data-Driven Marketing in Your Company (2013)

Status of Data-Driven Marketing in Your Company (2014)

Vision for the Role of Data-Driven Marketing One Year from Now



DEPARTMENT WITH PRIMARY RESPONSIBILITY FOR MARKETING DATA


TOP OBSTACLES TO DATA DRIVEN MARKETING


43% Marketing

owns/controls customer data

12% Marketing accesses

data through external vendors

42% Marketing accesses data from internal IT

46%44%

36%34%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Data security challenges Not a funding priority Commitment - lack of consensusthat data-driven marketing is

important

Lack of appropriate CRMdatabase

Lack of needed data within thedepartment



COLLABORATION BETWEEN IT AND MARKETING WHEN IT COMES TO SHARING CUSTOMER DATA


PRIORITY OF INTEGRATING MARKETING TECHNOLOGY AND DATA


0% 0%

13%

37%

56%

0% 1%

10%

40%

49%

0%

10%

20%

30%

40%

50%

60%

They do notcollaborate

Not well at all Fairly well Somewhat well Extremely well

Among Senior Executive

Among Day-to-Day Teams

12%

32% 31%

6%

19%

14%

45%

25%

6%

10%

0%

10%

20%

30%

40%

50%

The highest priorityfor our marketing

organization

A top priority A medium-levelpriority

A low priority Not a priority forour marketingorganization

Technology Integration

Data Integration



IN-HOUSE CAPABILITIES DEPENDENT ON DATA


SPENDING ON DATA-DRIVEN MARKETING, COMPARED TO PREVIOUS QUARTER

Scale of 1 to 5, where 1 indicates spending decreased significantly and 5 indicates spending increased significantly


22%

25%

33%

34%

37%

38%

49%

0% 10% 20% 30% 40% 50%

Real-time content optimization

Advanced segmentation (recency-frequency-monetaryanalysis, etc.)

Real-time media buying/optimization

Behavioral retargeting

Single customer view

Analyzing multiple datasets for correlations

Customer journey analysis

3.30

3.40

3.30

3.50

3.20

3.30

3.20

3.10

3.19 3.21

3.12

3.23

3.32

3.12 3.13

2.90

3.00

3.10

3.20

3.30

3.40

3.50

3.60

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q32014

Q42014



REVENUE DERIVED FROM DATA-DRIVEN MARKETING, COMPARED TO PREVIOUS QUARTERS

Scale of 1 to 5, where 1 indicates revenue decreased significantly and 5 indicates revenue increased significantly


PROFITABILITY DERIVED FROM DATA-DRIVEN MARKETING, COMPARED TO PREVIOUS QUARTERS

Scale of 1 to 5, where 1 indicates profitability decreased significantly and 5 indicates profitability increased significantly


3.30

3.60

3.30

3.40

3.30

3.44

3.34 3.38

3.32

3.42

3.32

3.46

3.24

3.36 3.34

2.90

3.00

3.10

3.20

3.30

3.40

3.50

3.60

3.70

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q32014

Q42014

3.30

3.40

3.20 3.20 3.20

3.26 3.23 3.23 3.24

3.33 3.36

3.28

3.18

3.23

3.30

2.90

3.00

3.10

3.20

3.30

3.40

3.50

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q32014

Q42014



DATA-DRIVEN MARKETING STAFFING LEVELS, COMPARED TO PREVIOUS QUARTERS

Scale of 1 to 5, where 1 indicates staffing decreased significantly and 5 indicates staffing increased significantly


MOST EFFECTIVE SOURCES OF MARKETING DATA USED

Source: Ascend2/Research Partners, “Data-Drive Marketing Research Summary Report,” November 2014.

3.20 3.20 3.20 3.20 3.20

3.10 3.09

3.01

3.16 3.15

3.13

3.10

3.16

3.09

3.12

2.90

2.95

3.00

3.05

3.10

3.15

3.20

3.25

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q32014

Q42014

8%

16%

17%

27%

28%

44%

45%

60%

0% 10% 20% 30% 40% 50% 60% 70%

Online ads

3rd party lists

Paid search

Organic search

Social media

Email

Website

Analytics



TYPES OF DATA USED FOR MARKETING PURPOSES


IMPORTANCE OF DATA QUALITY/COMPLETENESS FOR MARKETING SEGMENTATION AND TARGETING


91%

46% 41%

0%

20%

40%

60%

80%

100%

Internally owned data Data from channel or marketingpartners

Data purchased from third parties

Very Important 84%

Somewhat Important

15%

Not Important 1%



DRIVERS FOR TURNING DATA INTO INSIGHTS

Source: Experian, “The Data Quality Benchmark Report,” 2015.

1%

2%

4%

28%

51%

37%

49%

45%

37%

53%

0% 10% 20% 30% 40% 50% 60%

Don't know

None

Other

Driving more traffic from onechannel to another

Wanting to find new customers

Customization of future campaigns

Wanting to increase the value ofeach customer

Secure future budgets

Wanting to determine pastmarketing campaign performance

Wanting to understand customerneeds



USE OF PREDICTIVE ANALYTICS

Source: Experian Data Quality, “The Data Quality Benchmark Report,” 2015.

VALUE OF DATA


7%

6%

3%

27%

20%

35%

36%

32%

33%

30%

0% 10% 20% 30% 40%

Don't know

None

Other

Influence productdevelopment

Influence M&A activity

Enter new markets

Modify business processes

Predict lifetime value ofeach customer

Drive marketing automation

Influence marketingmessaging

99%

of companies think some

form of data is essential to marketing success



REASON FOR DATA INACCURACY


OWNER OF CENTRAL DATA QUALITY STRATEGY


3%

35%

61%

28%

22%

22%

26%

23%

16%

0% 10% 20% 30% 40% 50% 60% 70%

Other

Lack of internal communication betweendepartments

Human error

Inadequate data strategy

Inadequacies in relevant technology

A lack of relevant technology

Lack of internal manual resources

Insufficient budget

Inadequate senior management support

Chief Data Officer 29%

Chief Information Officer/Chief

Technology Officer 23%

Chief Financial Office 12%

Data Governance Officer 13%

Chief Marketing Officer 11%

Chief Customer Service Officer

4%

Other 3%

Don't Know 6%



DATA HYGIENE TECHNIQUES USED

Source: Experian Data Quality, “The State of Cross-Channel Marketing Report,” December 2014.

CHANNELS TO COLLECT CONSUMER CONTACT DATA


45%

40%

29% 27%

55%

36%

44%

33% 35%

44%

16%

23%

0%

10%

20%

30%

40%

50%

60%

Data hygiene provider Confirmed Opt In(COI) at acquisition

Confirmed Opt In(COI) for inactives

None

Total Retail Only Nonretailers

60%

54%

46% 44%

34% 32%

26%

10%

0%

10%

20%

30%

40%

50%

60%

70%

Website Face-to-face Call center Physicalstore

Mobilewebsite

Mobileapplication

Catalog Other

Overview


Research

DA

TA

NO

NP

RO

FIT

RETA

IL

CA

TALO

G

MA

IL

SO

CIA

L

MO

BILE

SEA

RC

H

INTER

NET

EMA

IL

CO

NS

UM

ER

PO

STA

L

DIR

ECT

M

AR

KETIN

G

Chapter 3: Direct Mail

For decades, direct mail was the workhouse of direct marketing. Then came the Internet, and some marketers migrated to far less expensive contact methods like email, online advertising and search marketing. The total number of direct mail pieces mailed each year steadily declined. However, direct mail has been holding its own in recent years and some indicators point to resurgence. According to the most recent USPS Household Diary Study, overall mail volume was down only slightly and standard mail volume actually increased. In fact, the percentage of total mail volume attributed to direct mail has steadily grown year by year, from 39.9% in 1990 to 56.9% in 2014.1 Lower overall mail volumes should make it easier for a marketer’s piece to stand out in the mailbox. But since the decline is primarily in first class, the competition in standard class advertising mail has become more intense. Marketers might want to consider making their pieces less promotional and more “official looking” like increasingly rare bills and statements (since more and more transactions are done online) to get the attention of a busy consumer. As in past years, there are some encouraging trends. Response rates for most marketers have declined significantly since 1987, which accounts for a lower mail volume. But response rates for department store direct mail have increased 2.5 times during that same period. When mailing first class, both department stores and

1 The DMA/USPS Revenue, Pieces and Weight by Classes of Mail and Special Services for fiscal years 1990 – 2014, p. 66.


Research Chapter 3: Direct Mail

credit card marketers have seen their response rates double between 1987 to 2013.2 Department stores may have better geographic and customer information that allows them to target more selectively. Credit card companies may have better data on their best prospects, justifying the higher cost of first class mail. Does better data translate to better response? That hypothesis is supported by user diaries, where most retailers get very high scores for “read immediately” and “found useful”3 Better targeting with higher response rates makes direct mail more affordable. But the ultimate cost per order or per lead are always what count, and better response rates and better conversion with direct mail can offset the postage and printing costs that you don’t have with electronic media. Direct mail is also one of the most track-able and measurable of all media, boosting the quality of analytics for the campaign overall. A multichannel marketer knows when mail is arriving, and can use this knowledge to turn on the tap for such other touch points as email and telemarketing. Thus direct mail benefits other media and can boost the overall effectiveness of the multi-touch campaign. For a final bright spot, take a look at the “will respond by age” numbers on page 63 of our report. Positive intent by 18-21 year olds more than tripled from 2012 to 20134. Perhaps marketers have learned how to target emerging consumers with relevant messages and offers. A new generation is reading your mail, and paying attention. Now it’s up to you to train them and nurture them to become lifelong consumers and enthusiasts for direct mail marketing. Authored by:

Laurie B. Beasley President, Beasley Direct Marketing, Inc., www.BeasleyDirect.com President, The Direct Marketing Association of Northern California www.DMAnc.org

2 USPS Household Diary Study, 2014, p. 61. 3 USPS Household Diary Study, 2014, p. 61. 4 USPS Household Diary Study, 201, p. 61.

http://www.beasleydirect.com/

http://www.dmanc.org/



Chapter Highlights

Among mail piece types, postcards are most likely to be read; 51% are read by recipients.

More people actually respond when a courtesy-reply, rather than a business-reply, envelope is provided.

Standard mail comprises a greater share of the mail received over first-class, most noticeably in households in which 11+ mail order purchases are made.

The overall volume of direct mail went down in 2014 to 84.4 billion, but direct mail as a percentage of all mail went up from last year to 56.9%.

2.8 billion coupons were redeemed in 2014.

US direct mail marketing spend was up in 2014 to $46.0 billion.



NUMBER OF MAIL ORDER PURCHASES IN THE LAST YEAR BY EDUCATION OF HOUSEHOLD HEAD

PERCENTAGE OF HOUSEHOLDS, POSTAL YEARS 1987, 2012 AND 2013

No. of Purchases

<8th Grade Some High School High School Some College

1987 2012 2013 1987 2012 2013 1987 2012 2013 1987 2012 2013

0 65.5 74.0 66.6 53.9 61.3 65.4 41.7 55.0 56.7 38.0 50.4 54.6

1 – 2 14.8 7.4 17.9 16.8 7.7 10.7 22.5 10.9 10.6 20.7 11.8 11.9

3 – 5 10.7 5.3 3.8 17.2 11.6 7.6 19.0 10.7 10.6 22.0 9.9 12.0

6 – 10 4.7 4.3 3.3 6.1 6.8 8.3 9.1 8.7 8.5 11.1 10.7 9.1

11 – 15 2.9 4.2 5.2 2.4 1.9 2.0 4.1 5.7 3.8 2.7 5.2 3.8

16 – 30 0.5 1.8 2.6 1.1 4.3 1.9 2.4 4.8 4.6 2.8 5.5 4.0

31+ 0.2 3.1 0.7 0.5 4.2 3.1 0.6 3.9 3.9 0.5 5.7 3.0

Don’t know/ No answer

0.7 0.0 0.0 2.1 2.1 0.9 0.8 0.3 1.3 2.1 0.8 1.5

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

No. of Purchases

Technical School College Post Graduate Total*

1987 2012 2013 1987 2012 2013 1987 2012 2013 1987 2012 2013

0 37.2 47.9 52.8 38.0 44.1 50.8 27.0 38.0 46.0 42.2 50.6 54.6

1 – 2 16.3 11.4 12.7 18.5 12.4 12.9 19.5 10.9 12.6 19.6 11.1 12.0

3 – 5 20.2 11.4 11.2 21.8 11.6 10.4 22.7 13.0 11.4 19.5 10.8 10.4

6 – 10 12.8 14.1 8.1 11.9 12.0 9.8 16.4 12.6 11.2 10.0 10.2 9.0

11 – 15 6.2 4.3 5.1 4.1 6.2 4.8 7.2 7.3 5.1 3.9 5.5 4.1

16 – 30 3.7 5.6 5.7 2.6 6.8 5.4 5.2 9.0 6.7 2.5 5.8 4.7

31+ 2.6 4.9 3.4 0.9 5.6 4.7 1.1 7.9 5.0 0.7 5.1 3.8

Don’t know/ No answer

1.2 0.3 1.1 2.1 1.3 1.3 1.3 1.2 2.0 1.4 0.9 1.3

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

*Includes pieces for which no response was given for education attainment. Source: USPS Household Diary Study, 2014.


Research Research Chapter 3: Direct Mail

MAIL RECEIVED BY HOUSEHOLDS

Percentage of Total Mail Received

*Includes First-Class and Standard Mail packages. Source: USPS Household Diary Study, 2014

RESPONSE RATES TO STANDARD MAIL (A) ADVERTISING SOLICITATIONS

Percentage of Pieces

*Fluctuations may be due to small sample sizes. Source: USPS Household Diary Study, 2014.

First-class, 43.8%

Standard regular mail, 56.7%

Standard nonprofit mail, 13.1.8%

Periodicals, 4.8%

Packages & shipping services*, 3.0%

12.0

8.0 7.2

15.1

10.2

6.6

31.0

4.7 3.8 3.0

10.1

4.7

0

5

10

15

20

25

30

35

Department store Credit card Auto dealers Telephone Medical Insurance

Perc

ent

ag

e o

f Pie

ces

1987 2013



RESPONSE RATES TO FIRST-CLASS ADVERTISING SOLICITATIONS

Percentage of Pieces

*Fluctuations may be due to small sample sizes. Source: USPS Household Diary Study, 2014.

9.5

5.8

4.1

6.7

21.2

8.9

18.7

11.0

2.8 3.4

10.1

1.6

0

5

10

15

20

25

30

Departmentstore

Credit card Auto dealers Telephone Medical Insurance

Perc

enta

ge o

f Pie

ces

1987 2013



TREATMENT OF STANDARD MAIL (A) PIECE BY SHAPE AS PERCENTAGE OF MAIL PIECES RECEIVED BY HOUSEHOLDS

Treatment

Letter-Sized Envelope Larger than Letter

Envelope Detached Label

Postcard Postcard

2012 2013 2012 2013 2012 2013 2012 2013

Read by member of household

33.2 32.7 39.9 41.1 30.8 24.7 55.9 50.5

Read by more than one member of household

4.2 4.0 8.2 7.3 3.0 4.7 10.3 7.2

Looked at, but not read

18.7 19.0 17.7 18.9 22.8 25.3 12.3 11.6

Discarded 31.8 34.3 23.4 23.0 36.5 36.6 17.1 23.5

Set aside 3.6 2.8 6.5 4.9 1.7 1.8 2.3 4.1

Don’t know/No response

8.5 7.1 4.4 4.8 5.3 6.9 2.1 3.2

Total mail received by households

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Treatment

Catalog not enclosed in Envelope

Flyers Newspapers/ Magazines

Total*

2012 2013 2012 2013 2012 2013 2012 2013

Read 33.0 34.1 34.3 36.4 35.8 32.4 35.3 34.7

Read by more than one member of household

11.0 9.9 16.7 8.5 13.7 16.0 7.6 7.1

Looked at, but not read

13.7 13.0 9.0 17.0 12.5 11.3 16.6 16.9

Discarded 18.2 18.6 13.2 25.6 15.9 15.8 25.6 27.5

Set aside 14.7 13.7 13.8 5.3 10.3 10.3 6.0 5.7


9.4 10.7 13.0 7.3 11.9 14.1 8.8 8.1


100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Source: USPS Household Diary Study, 2014. *Total includes pieces for which no response was given as to shape.



USEFULNESS OF STANDARD MAIL (A) PIECE BY SHAPE As Percentage of Mail Pieces Received by Households

Usefulness

Letter-Size Envelope Larger than Letter

Envelope Detached Label Postcard Postcard

2012 2013 2012 2013 2012 2013 2012 2013

Useful 28.1 26.8 43.3 42.9 24.0 25.2 50.7 50.9

Interesting 12.3 12.0 13.7 12.9 11.8 8.4 13.2 8.8

Not interesting 50.1 53.2 37.7 38.4 58.8 58.9 33.0 36.3

Objectionable 0.9 0.9 0.7 0.6 0.1 0.5 0.9 0.9


8.7 7.1 4.5 5.2 5.3 6.9 2.2 3.2


100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Usefulness

Catalog not enclosed in Envelope Flyers Newspapers/Magazines

Total*

2012 2013 2012 2013 2012 2013 2012 2013

Useful 51.4 51.1 46.2 44.6 53.0 56.8 39.9 38.7

Interesting 22.0 20.3 11.7 12.4 15.7 11.6 13.6 13.3

Not interesting 16.9 17.6 33.3 35.0 18.9 17.4 36.9 39.1

Objectionable 0.2 0.3 0.5 0.6 0.6 0.2 0.6 0.7


9.5 10.8 8.4 7.3 11.9 14.1 8.9 8.2


100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Source: USPS Household Diary Study, 2014. *Total includes pieces for which no response was given as to shape.



STANDARD MAIL (A) REACTION BY INDUSTRY As Percentage of Mail Received by Households

Industry

Percent Pieces Read Immediately

Set Aside Percent Pieces Found Useful

Percent Pieces Will Respond

To*

2012 2013 2012 2013 2012 2013 2012 2013 Financial Credit card 27.3 26.3 1.7 2.4 17.1 18.1 3.4 4.7 Bank 41.9 39.2 1.7 2.5 28.1 25.7 7.3 5.5 Insurance company 38.2 30.4 3.4 3.2 47.2 22.3 9.6 4.7 Real estate/mortgage 32.6 30.8 6.8 1.2 23.2 15.3 5.5 2.3 Investments 30.5 40.3 10.4 7.3 20.8 49.2 1.7 8.3 Total Financial 32.2 30.9 3.2 3.0 23.4 22.6 5.0 5.0 Merchants Supermarkets 70.1 70.7 6.2 4.0 74.5 73.7 42.9 43.3 Department store 70.7 68.2 6.3 7.6 72.5 72.5 30.4 31.0 Specialty store 41.1 57.4 7.2 7.0 45.9 59.9 11.5 19.5 Mail Order company 57.4 42.1 13.9 13.2 60.8 47.6 19.8 11.9 Restaurant 48.7 44.9 4.2 9.6 39.5 53.5 13.2 18.6 Publisher 50.9 47.0 5.2 4.8 53.4 41.5 25.6 15.1 Auto Dealer 40.6 36.1 2.3 1.7 18.8 18.4 7.2 3.8 Online auction 49.9 71.2 2.9 0.0 44.0 37.6 10.4 12.1 Total Merchants 53.2 52.7 8.5 8.6 54.2 54.5 19.2 19.4 Services Telephone 25.9 28.0 3.1 2.3 16.5 17.3 4.2 3.0 Other utilities 56.4 47.5 4.9 4.4 46.7 37.6 11.4 8.7 Medical 38.1 38.3 2.2 3.0 27.7 29.0 10.7 10.1 Other professional 40.7 45.3 5.2 1.5 30.5 19.4 13.0 4.9 DVD/Blu-ray/Video game rental 54.1 61.8 2.5 0.0 45.4 44.5 11.3 14.1 Craftsman 53.0 23.2 1.9 1.3 46.2 15.7 15.2 2.4 Leisure service 40.5 48.8 3.3 5.2 32.3 42.9 11.6 10.9 Auto maintenance 57.3 53.8 1.8 1.9 28.0 46.3 22.8 14.7 Roadside assistance 26.4 35.4 4.5 3.6 18.5 29.8 2.8 12.5 Total Services 36.5 35.9 2.9 2.7 27.5 26.1 7.9 6.9 Government Federal 57.4 63.5 6.6 8.4 54.2 64.9 22.8 21.1 Non-federal 61.7 64.4 5.3 9.1 57.1 63.1 24.3 18.3 Social, Charitable or Political Union/professional 49.9 55.8 7.8 8.9 43.5 52.3 7.1 11.7 Church 45.8 33.9 14.9 3.7 54.6 21.9 23.7 8.1 Veterans 58.7 54.0 4.8 1.6 51.3 42.5 17.2 8.2 Educational 44.0 33.6 6.2 4.7 39.4 25.9 10.8 8.1 Charities 59.1 53.1 2.8 10.0 59.6 40.5 29.3 17.0 Political 41.8 26.8 2.2 0.4 32.2 14.9 8.9 4.8 AARP 42.8 52.0 8.1 7.5 47.6 47.7 7.7 16.1 Total Social, Charitable or Political 45.6 34.6 4.5 3.2 38.8 25.1 10.8 8.5

*Of pieces containing an advertisement or request for funds.

Source: USPS Household Diary Study, 2014.



RESPONSE TO STANDARD MAIL (A) PIECES BY INCOME

Postal Years 1987, 2012 and 2013

READ IMMEDIATELY

Income Percent Pieces Per Household Per Week

1987 2012 2013 1987 2012 2013 Less Than $7k 43.0 42.4 38.9 1.6 1.6 1.3 $7k – $9.9k 41.0 56.6 49.8 2.1 1.9 .1

$10k – $14.9k 45.0 41.0 41.8 2.6 1.9 2.0

$15k – $19.9k 45.0 50.0 45.3 2.9 2.9 2.4 $20k – $24.9k 42.5 42.6 44.0 2.8 2.4 2.6 $25k – $29.9k 44.2 47.2 43.7 3.5 3.4 3.0 $30k – $34.9k 41.4 47.2 43.7 3.6 3.4 3.0

$35k – $49.9k 41.4 45.1 46.7 3.9 3.5 3.7 $50k – $64.9k 41.1 47.0 43.6 4.4 4.0 3.9 $65k – $79.9k 40.4 45.0 41.2 6.1 4.5 4.1 $80k – $99.9k 31.4 41.2 40.9 4.4 4.4 4.2 $100k+ 34.5 38.4 39.0 5.3 5.3 5.1

FOUND USEFUL


1987 2012 2013 1987 2012 2013 Less Than $7k 36.0 33.5 30.4 1.4 1.2 1.0 $7k–$9.9k 37.1 37.1 42.1 1.9 1.3 1.8 $10k – $14.9k 39.6 33.0 35.2 2.3 1.5 1.7 $15k – $19.9k 41.9 38.2 36.8 2.7 2.2 2.0 $20k – $24.9k 42.8 34.0 36.1 2.8 1.9 2.2 $25k – $29.9k 40.4 40.8 35.8 3.2 3.0 2.5 $30k – $34.9k 40.4 40.8 35.8 3.5 3.0 2.5 $35k – $49.9k 41.9 41.4 40.7 4.0 3.1 3.2 $50k – $64.9k 42.2 43.6 40.3 4.6 3.7 3.6 $65k – $79.9k 40.5 42.6 38.5 6.1 4.3 3.9 $80k – $99.9k 34.7 40.1 39.3 4.9 4.3 4.1 $100k+ 32.0 38.4 39..4 4.9 5.3 5.1

WILL RESPOND*


1987 2012 2013 1987 2012 2013 Less Than $7k 17.5 14.1 16.1 0.5 0.4 0.4 $7k–$9.9k 12.6 16.0 19.2 0.5 0.4 0.7 $10k – $14.9k 17.7 14.1 15.2 0.8 0.5 0.6 $15k – $19.9k 15.3 18.1 11.5 0.8 0.8 0.5 $20k – $24.9k 15.6 14.2 12.5 0.9 0.6 0.6

$25k – $29.9k 14.8 17.0 13.3 1.0 1.1 0.8 $30k – $34.9k 14.8 17.0 13.3 1.1 1.1 0.8 $35k – $49.9k 14.8 15.3 13.4 1.1 1.0 1.0 $50k – $64.9k 14.8 13.2 12.9 1.3 1.0 1.1 $65k – $79.9k 11.1 13.6 12.0 1.4 1.3 1.1 $80k – $99.9k 10.9 11.3 12.8 1.3 1.1 1.3 $100k+ 10.1 10.9 10.7 1.3 1.4 1.3

*Of pieces identified by respondents as containing an advertisement or request for funds. Note: 2010/2011 numbers for income levels $25–$29.9K are identical to those in $30–$34.9K since categories used to collect data only included $25–$34.9K. Source: USPS Household Diary Study, 2014.



RESPONSE TO STANDARD MAIL (A) PIECE** BY AGE OF HEAD OF HOUSEHOLD

(Indicating Will Respond**) Postal Years 2012 and 2013

**Of pieces containing an advertisement or request for funds. Source: USPS Household Diary Study, 2014.

12.4%

8.2% 9.0%

10.8%

14.1% 12.9%

13.8% 13.6% 13.1%

4.1%

9.5% 9.6%

13.5% 13.8% 13.3%

13.2%

12.1%

14.8%

0%

10%

20%

18-21 22-24 25-34 35-44 45-54 55-64 65-69 70-74 75+

2013 2012



STANDARD MAIL (A) RESPONSE TO ADVERTISING BY SHAPE

(If Mail Piece Contained Advertising or Request for Donation)

Response Letter Size Envelope Larger Than Letter Size Envelope

1987 2012 2013 1987 2012 2013

Yes 12.8 8.8 8.5 16.5 15.4 16.0 No 69.6 79.9 80.9 62.1 71.4 71.1

Maybe 13.1 11.3 10.6 16.7 13.1 12.2

No Answer 4.5 0.0 0.0 4.8 0.0 0.0 Total 100.0 100.0 100.0 100.0 100.0 100.0

Response Detached Label Postcard Postcard

1987 2012 2013 1987 2012 2013

Yes 8.6 8.6 5.0 15.4 21.8 20.4

No 69.5 80.7 80.5 63.6 58.1 61.6

Maybe 10.5 10.7 14.5 13.6 20.1 18.1

No Answer 11.4 0.0 0.0 7.4 0.0 0.0 Total 100.0 100.0 100.0 100.0 100.0 100.0

Response Catalog Not in Envelope Flyers

1987 2012 2013 1987 2012 2013

Yes 16.1 12.6 12.5 15.6 17.0 15.6 No 46.6 51.9 50.1 54.2 63.2 65.2

Maybe 32.5 35.6 37.4 21.2 19.8 19.2

No Answer 4.8 0.0 0.0 9.1 0.0 0.0 Total 100.0 100.0 100.0 100.0 100.0 100.0

Response Newspapers/Magazines Total*

1987 2012 2013 1987 2012 2013

Yes 10.2 8.4 11.0 14.6 12.9 12.3 No 44.3 73.7 73.7 58.6 68.4 69.6

Maybe 16.9 17.9 15.3 19.9 18.7 18.1

No Answer 28.6 0.0 0.0 7.0 0.0 0.0 Total 100.0 100.0 100.0 100.0 100.0 100.0




INTENDED RESPONSE RATES FOR MAJOR INDUSTRIES BY ENCLOSURE OF REPLY ENVELOPES/CARDS

Postal Years 2012 and 2013


13.6%

25.9%

34.6%

12.6%

24.0%

12.9%

44.9%

1.2%

0% 10% 20% 30% 40% 50%

Publisher

Mail order

Department store

Credit card

Percentage of Households

Business-Reply Envelopes

2013

2012

17.2%

17.7%

38.8%

10.2%

30.1%

12.0%

23.0%

11.1%

0% 10% 20% 30% 40% 50%

Publisher

Mail order

Department store

Credit card

Percentage of Households

Courtesy-Reply Envelopes

2013

2012



STANDARD MAIL INDUSTRY USAGE OF REPLY MAIL

Postal Fiscal Years 1987, 2012 and 2013

Industry Business Reply Courtesy Reply

1987 2012 2013 1987 2012 2013

Financial

Credit card 57.8 60.0 58.8 15.4 6.7 5.9

Bank 36.1 14.6 16.8 10.4 4.8 5.2

Insurance company 62.7 29.7 31.0 10.1 5.7 5.2

Real estate/mortgage 19.1 7.5 7.5 4.1 1.0 2.1

Investments N/A 7.8 10.0 N/A 2.9 1.7

Total Financial 48.7 36.4 36.7 11.1 5.5 5.1

Merchants

Supermarkets 1.1 1.0 1.5 0.8 1.7 0.9

Department store 7.0 1.0 1.0 4.4 2.6 1.6

Specialty store 6.9 0.8 0.7 12. 1.4 1.8

Mail order company 21.9 6.4 7.2 47.2 18.3 16.3

Restaurant 2.1 0.1 1.1 0.6 0.4 0.8

Publisher 30.2 44.7 46.2 25.2 17.3 13.9

Auto dealer 8.9 1.7 1.9 2.5 2.5 1.2

Online auction N/A 5.0 27.1 N/A 8.2 1.7

Total Merchants 15.8 8.0 7.9 21.3 9.4 8.6

Services

Telephone 53.1 3.8 3.7 9.0 2.2 1.9

Other utilities 24.7 38.1 26.7 9.4 7.4 5.2

Medical 13.2 7.1 4.8 4.0 3.6 2.6

Other professional 26.2 9.1 8.1 12.6 0.9 3.8

DVD/Blu-ray/Video game rental N/A 3.6 25.7 N/A 6.6 0.0

Craftsman 60.7 4.8 6.7 6.4 3.1 1.6

Leisure service 21.2 6.3 5.5 10.2 5.7 3.2

Auto maintenance N/A 1.3 1.4 N/A 1.2 0.7

Roadside assistance N/A 56.8 50.8 N/A 17.9 12.6

Total Services 26.8 10.1 8.3 9.3 4.0 2.9

All Manufacturers 10.4 8.6 9.2 5.3 8.5 13.4

Government

Federal N/A 9.3 6.0 N/A 3.5 2.6

Non-federal 5.7 4.2 4.3 14.4 15.4 10.6

Total Social, Charitable or Political 18.0 16.2 10.4 .

10.4N/A

10.9 7.2

Total Non-household Mail Received by Households 18.7 15.5 15.1 16.4 6.7 5.9

Total Pieces Per Household Per Week 1.5 1.4 1.3 1.3 0.6 0.5




STANDARD MAIL (A) RESPONSE TO ADVERTISING BY FAMILIARITY WITH ORGANIZATION

Would Respond to Advertising if Pieces Contained an Advertisement or Request for Donation and was from One Organization Only


RECEIPT OF FIRST-CLASS AND TOTAL STANDARD MAIL (INCLUDING NON-PROFIT MAIL) BY MAIL

ORDER PURCHASES MADE IN THE PAST YEAR

Postal Fiscal Years 1987, 2012 and 2013

Mail Order Purchases First-Class Mail Standard Mail (Including Nonprofit Mail)

1987 2012 2013 1987 2012 2013

0 7.0 7.4 6.8 7.5 10.5 10.4

1 8.7 7.7 7.3 9.5 11.3 12.0

2 8.2 7.9 8.0 9.5 13.2 12.7

3-5 9.5 8.3 7.8 10.8 12.7 13.5

6-10 11.3 9.3 7.9 13.8 15.8 14.5

11+ 12.3 9.6 8.8 15.2 15.7 16.9


21.6

5.7 4.6

18.9

2.3

4.6

18.4

2 1.4

0

5

10

15

20

25

Previous customer Organization known Organization unknown

Per

cent

age

of R

ecip

ient

s In

dica

ting

Wou

ld

Res

pond

to

1987 2012 2013



ADVERTISING GENERATING RESPONSE

By Mail Class, Postal Years 1987, 2012 and 2013

*Includes both advertising only and advertising stuffer-enclosed mail for 1987. For 2011/2012, includes advertising only. **Standard Mail (A) and nonprofit Standard Mail (A) include requests for donations. Source: USPS Household Diary Study, 2014.

RESPONSE TO STANDARD MAIL (A) PIECE BY AGE OF HEAD OF HOUSEHOLD

Postal Years 1987, 2012 and 2013 (Percentage of Mail Received by Household)

Age of Head Set Aside Found Useful Read Immediately

1987 2012 2013 1987 2012 2013 1987 2012 2013

18 – 21 10.3 7.1 2.3 53.5 31.0 30.9 46.9 62.8 23.5

22 – 24 6.9 4.3 5.3 35.7 43.1 29.8 35.6 45.0 41.2

25 – 34 8.4 4.1 4.6 42.7 36.8 35.5 40.4 38.4 37.1

35 – 44 7.8 6.0 6.5 40.8 42.0 39.2 39.9 42.2 40.6

45 – 54 7.8 6.0 6.9 38.8 41.2 40.2 39.6 43.9 41.3

55 – 64 9.2 7.9 5.4 41.2 42.2 40.5 45.0 43.3 44.4

65 – 69 7.4 4.6 5.5 38.1 37.3 43.0 42.5 44.5 47.1

70 - 74 7.3 6.3 4.4 37.6 36.7 36.6 43.8 43.1 44.6

75+ 7.3 5.9 4.8 37.6 36.4 35.0 43.8 45.0 40.2

62.8 Source: USPS Household Diary Study, 2014.

11.1

14.6

17.9

9.9

12.3

14.8

10.2

11.8

14.1

0

5

10

15

20

First-class* Standard mail (A) Standard mail (A) nonprofit**

Perc

ent

ag

e o

f Pie

ces

Will

Resp

ond

to

1987 2012 2013



STANDARD MAIL (A) ADDRESSEE BY INDUSTRY — MERCHANTS

Postal Years 1987, 2012, and 2013 (Percentage of Pieces Addressed to Household Members or Occupant/Resident)

Merchants

Percentage of Pieces Addressed to Specific Household Members

Percentage of Pieces Addressed to

Occupant/Resident

1987 2012 2013 1987 2012 2013

Supermarkets 11.1 61.2 64.9 87.7 38.1 34.0

Department store 68.3 90.9 91.9 30.9 8.4 7.6

Mail order company 95.8 96.4 95.5 3.3 1.8 2.3

Specialty store 56.4 84.7 83.9 43.0 14.5 15.0

Publisher 72.0 79.6 76.7 25.8 16.9 20.4

Restaurant 21.3 15.5 11.4 77.6 84.3 87.8

Auto dealers 88.7 81.6 84.8 8.6 18.2 14.8

Online auctions N/A 85.1 94.5 83.3 14.9 5.5

Total Merchants* 72.1 85.3 84.8 26.7 13.4 13.7 *Totals may not equal exactly 100% due to unreported categories.


STANDARD MAIL (A) ADDRESSEE BY INDUSTRY — FINANCIAL

Postal Years 1987, 2012 and 2013 (Percentage of Pieces Addressed to Household Members or Occupant/Resident)

Financial


Percentage of Pieces Addressed to

Occupant/Resident

1987 2012 2013 1987 2012 2013

Credit card 97.1 96.8 96.2 2.0 0.8 1.7

Bank 89.8 84.3 86.9 8.7 14.0 10.6

Investments N/A 96.0 95.1 N/A 3.2 3.8

Insurance company 93.2 90.9 93.5 5.5 5.9 3.2

Real estate/mortgage 72.8 70.9 79.8 26.7 17.5 19.6

Total Financial 92.1 92.5 93.0 6.8 5.1 4.6

*Fluctuations may be due to small sample size. Source: USPS Household Diary Study, 2014.



STANDARD MAIL (A) ADDRESSEE BY INDUSTRY — SERVICES


Services


Percentage of Pieces Addressed to Occupant/Resident

1987 2012 2013 1987 2012 2013

Telephone 94.6 69.2 73.1 4.7 27.9 24.0

Other utilities 90.4 90.1 90.2 2.4 7.8 7.6

Medical 77.2 73.5 70.0 22.7 24.7 28.2

Other professional 91.0 89.7 78.9 6.5 9.4 20.9

Leisure service 85.2 94.5 95.1 14.5 3.8 3.8

DVD/Blu-ray/video game rental company

N/A 47.0 68.3 N/A 53.0 31.7

Auto maintenance N/A 81.6 84.8 N/A 17.8 14.6

Roadside assistance N/A 93.3 95.6 N/A 1.5 1.6

Craftsman 41.9 71.2 73.8 57.2 26.6 24.9

Total Services 81.5 76.0 77.2 17.5 21.7 20.9 87.5


STANDARD MAIL (A) ADDRESSEE BY INDUSTRY — FUNDRAISING


Fundraising


Percentage of Pieces Addressed to Occupant/Resident

1987 2012 2013 1987 2012 2013

Union or professional organization

89.6 95.2 86.9 10.4 3.0 12.7

Church 79.4 90.6 47.1 15.9 9.4 50.7

Veterans N/A 63.6 85.9 N/A 26.8 14.1

Educational 87.9 91.5 93.3 11.4 6.4 6.2

Charities 98.1 69.3 82.5 1.9 30.7 12.4

Political campaign 87.3 90.4 88.4 12.1 9.3 9.4

AARP* 100.0 95.1 91.8 0.0 1.6 4.8

Total Fundraising 88.3 90.0 87.5 10.7 8.9 10.7




TREATMENT OF ADVERTISING MAIL



STANDARD MAIL (A) CONTENT OF MAIL PIECE

(Percentage of Standard Mail (A) Received by Households) Postal Years 1987, 2012 and 2013


20.6

21.4 22.8

20.8

24.2

20.1

0

5

10

15

20

25

30

Read Scan Don’t read

2013 2012

Perc

enta

ge o

f Hou

seho

lds

80.9

1.2

10.9 7.0

82.9

0.7

12.7

2.2

84.6

0.5

11.2

1.9

0

20

40

60

80

100

Advertisement Fund request Newsletter/information/other

Don't know/no response

Perc

ent

ag

e o

f Pie

ces

1987

2012

2013



STANDARD MAIL (A) BY SHAPE

Postal Years 1987, 2012 and 2013 (Number of Pieces)

Shape 1987 2012 2013

Letter-Size Envelope 1.8 3.5 3.5

Larger Envelope 1.3 0.2 0.2

Total Envelope 3.1 3.7 3.7

Detached Label Card 0.6 0.1 0.1

Postcard 0.2 0.2 0.2

Catalog (Not in Envelope) 1.5 1.4 1.3

Flyers/Circulars 2.1 3.2 3.3

Magazines/Newsletters 0.2 0.3 0.2

Other/Don’t know/No answer 0.1 0.1 0.1

Total Pieces Received per Household

7.8 8.9 8.9


AVERAGE NUMBER OF MAIL PIECES RECEIVED PER WEEK


13.8

11.7

9.6 9.8 8.9 8.9

10.9 10.1

11.4 10.9 10.4 10.2

24.7

21.8 21.0 20.7

19.3 19.1

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013

Pie

ces

of

Mail

Standard Mail All Other Total



RESPONSE TO FIRST-CLASS ADVERTISING FROM FINANCIAL SERVICES SUBSEGMENTS

Source: USPS Household Diary Study, 2014. RESPONSE TO STANDARD MAIL (A) ENVELOPES AND CARDS FROM FINANCIAL SERVICES SUBSEGMENTS


3.4

7.3

5.5

1.7

4.75.5

4.7

2.3

0

5

10

15

Credit card Bank Insurance companies Real estate/mortgage

Perc

enta

ge

of P

iece

s El

iciti

ng R

esp

onse

2012

2013

5.9

2.9

5.3

1.3

11.0

3.8

1.62.4

0

3

6

9

12

15

Credit card Bank Insurance companies Real estate/mortgage

Per

cent

age

of P

iece

s E

liciti

ng R

espo

nse

20122013



STANDARD MAIL (A) RECEIPT BY NUMBER OF CREDIT CARDS



STANDARD MAIL (A) RECEIPT BY NUMBER OF FINANCIAL ACCOUNTS AND INSURANCE POLICIES



12.5

9.3

6.4

4.0

11.9

10.0

7.0

4.8

12.2

9.8

7.4

4.9

0

5

10

15

20

High (8+) Medium (4-7) Low (1-3) None

Pie

ces

per

Hous

eho

ld p

er

Week

Number of Credit Cards

1987

2012

2013

11.0

8.0

4.9

2.7

11.1

8.2

5.5

3.7

11.2

8.1

5.9

3.7

0

5

10

15

20

High (10+) Medium (6-9) Low (1-5) None

Pie

ces

per

Hous

eho

ld p

er

Week

Number of Accounts and Policies

198720122013



STANDARD MAIL (A) PIECES FROM INSURANCE COMPANIES

Actions Elicited by Mail Piece by Familiarity with Organization (Percentage of Pieces) Postal Years 1987, 2012 and 2013

READ IMMEDIATELY

FOUND USEFUL

SET ASIDE

WILL RESPOND

Note: Percentages do not add up to 100% due to multiple responses. Source: USPS Household Diary Study, 2014.

56.7

31.1

20.2

57.8

20.5 26.2

53.1

19.3 25.2

0

20

40

60


198720122013

48.2

20.8

8.5

51.1

10.9 5.8

46.8

10.8 8.5

0

20

40

60


198720122013

5.6 6.7

1.9

5.9

1.9 2.4 5.5

2.8 1.5

0

5

10

15

20


198720122013

12.9

5.4

1.9

12.3

1.7 0.3

11.1

0.7 1.1

0

5

10

15

20


1987

2012

2013



STANDARD MAIL (A) PIECES FROM CREDIT CARD INDUSTRY

Actions Elicited by Mail Piece by Familiarity with Organization (Percentage of Pieces) Postal Years 1987, 2012 and 2013

READ IMMEDIATELY

FOUND USEFUL

SET ASIDE

WILL RESPOND

Note: Percentages do not add up to 100% due to multiple responses. Source: USPS Household Diary Study, 2014.

51.4

28.4 30.2 40.8

14.5 17.2

39.4

11.8 18.3

0

20

40

60


198720122013

40.0

17.7 21.3 29.7

5.1 4.0

29.9

4.8 7.8 0

20

40

60


198720122013

7.2 7.9 4.2

2.3 1.3 0.9 3.6

1.3 1.4 0

5

10

15


198720122013

9.3 5.6

7.8 5.9

0.3 1.2

7.7

0.6 1.4 0

5

10

15


198720122013



MODDERN MARKETING DIRECT MAIL BALLPARK – BUDGET COSTIMATOR™

The sole purpose of these Costimator Tables is to aid direct marketers in the initial stages of planning cost-effective direct mail campaigns. Because of production-cost variables (labor, materials, overhead, workload, markup, etc.), Costimator prices may be as much as 15% to 25% higher or lower than actual supplier quotations. Usually, however, mailers who seek competitive bids from different vendors - and who allow enough turnaround time for economical production - will be able to meet (or likely beat) these Costimator prices.

In some cases, dramatic cost reductions can be achieved by purchasing odd-lot, remnant, or surplus paper stocks (paper often accounts for 40% to 60% of printing costs)—or by scheduling out-of-season production runs (hungry suppliers may be more interested in recovering overhead expenses than making a profit). Mail marketers are well-advised to obtain quotes not only from vendors, but also from printing brokers and production-oriented agencies. (They frequently know where the real “bargain” deals are hiding and waiting to be exploited.)

Costimator prices do not include creative costs (copy, design, photography, etc.) or the expense of outputting camera-ready art. Likewise, the cost of proofing and special prepress work should also be added.

Source: Moddern Marketing – www.moddern.com.

LETTERSHOP OPERATIONS

Price includes CASS, postal qualification, base laser programming, simplex laser 11" as 2-up rolls, bowed and fold, insert, sort, and mail.

Cost Per Thousand

Inserted into #10 or 25,000 50,000 100,000 250,000 500,000

6 x 9 Envelopes One item $41.40 $35.55 $32.00 $29.45 $28.25

Two items $42.00 $36.15 $32.55 $30.00 $28.75

Three items $42.60 $36.75 $33.15 $30.50 $29.25

Four items $43.15 $37.35 $33.75 $31.00 $29.80

Five items $43.75 $37.90 $34.35 $31.55 $30.30 Affix stamp (price per thousand) $5.55

Source: Moddern Marketing – www.moddern.com

http://www.moddern.com/




BROCHURES

Cost Per Thousand

Color 10,000 50,000 100,000 250,000 500,000

Brochure 6 x 7 plus bleed fold to 3 ½ x 6

Printed on 60# text coated two sides—file output included with proof. Carton pack.

2/1 $85.30 $24.45 $16.60 $12.00 $10.35

2/2 $91.20 $25.80 $17.30 $12.35 $10.55

Brochure 8 ½ x 11 no bleed fold to 3 5/8 x 8 ½

Printed on 60# white offset—file output included with price. Carton pack.

2/1 $93.60 $30.90 $23.40 $18.55 $16.70

2/2 $100.75 $32.45 $24.20 $18.95 $17.00

4/4 $114.75 $35.35 $25.65 $19.55 $17.35

Brochure 11 x 17 no bleed fold to 5 ½ x 8 ½

Printed on 60# white offset—file output included with proof. Carton pack.

2/1 $114.30 $48.10 $39.40 $33.90 $31.75

2/2 $121.50 $49.70 $40.25 $34.45 $32.20

4/4 $135.20 $52.55 $41.85 $35.15 $32.60

Brochure 11 x 17 no bleed fold to 5 ½ x 8 ½

Printed on 60# text coated on two sides—file output included with proof. Carton pack.

2/2 $168.00 $84.65 $77.40 $67.90 $64.95

4/4 $195.05 $90.70 $81.70 $70.10 $66.30

Brochure 17 x 22 no bleed fold to 8 ½ x 11 and spine glued


2/2 $262.90 $92.50 $71.45 $59.60 $55.70

4/4 $304.10 $101.05 $76.00 $61.85 $57.10

Brochure 17 x 22 plus bleed fold to 8 ½ x 11 and saddle wire stitched


2/2 $224.70 $120.20 $102.60 $89.65 $85.15

4/4 $255.25 $127.00 $107.70 $92.10 $86.65





SELF-MAILING FORMATS

Cost Per Thousand

Color 10,000 50,000 100,000 250,000 500,000

Self-Mailing format — 6 x 7 double postcard fold to 3 ½ x 6 Printed on 7-point BRC matte—file output included with proof. Price includes paper, manufacturing, inkjet address spot glue close, and mail. NCOA, CASS, data processing, and postage would be additional.

2/1 $154.80 $62.60 $47.25 $38.15 $34.05

2/2 $158.20 $63.35 $47.90 $39.00 $34.75

Self-Mailing format — 8 ½ x 11 fold to 5 ½ x 8 ½ Printed on 7-point BRC matte—file output included with proof. Price includes paper, manufacturing, inkjet address spot glue close, and mail. NCOA, CASS, data processing, and postage would be additional.

2/1 $173.75 $76.60 $61.20 $50.45 $44.85

2/2 $180.45 $79.75 $73.25 $52.45 $45.85

Self-Mailing format — 11 x 17 fold to 8 ½ x 11 Printed on 9-point BRC matte—file output included with proof. Price includes paper, manufacturing, inkjet address spot glue close, and mail. NCOA, CASS, data processing, and postage would be additional.

2/1 $193.95 $200.40 $112.95 $103.50 $98.00

2/2 $277.05 $134.95 $116.15 $104.80 $99.05

4/4 $315.95 $156.80 $111.75 $111.75 $93.80


REPLY CARDS/ORDER FORMS


COST PER THOUSAND

COLOR 10,000 50,000 100,000 300,000

3 ½ x 5 ½ no bleed, flat trim Printed on 7-point hi-bulk offset.

2/1 $67.25 $16.80 $9.90 $5.60

2/2 $73.85 $18.10 $10.55 $5.85

5 ½ x 8 ½ no bleed, flat trim Printed on 7-point hi-bulk offset.

2/1 $72.65 $20.95 $10.94 $9.85

2/2 $78.80 $22.35 $11.49 $10.20

Order form — 3 ½ x 5 ½ no bleed, flat trim Printed on 60# white offset—file output included with proof. Carton pack.

2/1 $64.85 $15.85 $9.15 $4.90

2/2 $70.85 $17.05 $9.75 $5.15

Order form 5 ½ x 8 ½ no bleed, flat trim Printed on 60# white offset—file output included with proof. Carton pack.

2/2 $68.55 $19.10 $12.65 $8.45

4/4 $74.30 $20.35 $13.50 $8.75





OUTER (OR CARRIER) ENVELOPES

Printed on 24# white wove, flexo print, and standard window placement. Web side seam style envelopes.

Cost per Thousand

Number Size Color Window 10,000 50,000 100,000 250,000

6 3/4 3 5/8 x 6 1/2 1 none $49.05 $21.60 $15.50 $13.90

6 3/4 3 5/8 x 6 1/2 1 cello $51.85 $24.30 $18.10 $16.45

6 3/4 3 5/8 x 6 1/2 1 open $50.25 $22.75 $16.50 $14.90

6 3/4 3 5/8 x 6 1/2 2 none $56.35 $23.30 $16.45 $14.45

6 3/4 3 5/8 x 6 1/2 2 cello $59.20 $26.10 $19.00 $17.05

6 3/4 3 5/8 x 6 1/2 2 open $57.75 $24.50 $17.45 $14.45

9 3 7/8 x 8 7/8 1 none $51.15 $23.55 $17.25 $15.60

9 3 7/8 x 8 7/8 1 cello $53.70 $20.10 $19.60 $18.10

9 3 7/8 x 8 7/8 1 open $52.10 $24.80 $18.00 $16.40

9 3 7/8 x 8 7/8 2 none $58.60 $25.35 $18.15 $16.20

9 3 7/8 x 8 7/8 2 cello $61.15 $27.85 $20.55 $18.55

9 3 7/8 x 8 7/8 2 open $59.55 $26.30 $18.95 $16.95

10 4 1/8 x 9 1/2 1 none $52.70 $25.15 $18.80 $17.20

10 4 1/8 x 9 1/2 1 cello $55.30 $27.70 $21.15 $19.55

10 4 1/8 x 9 1/2 1 open $53.70 $26.05 $19.60 $17.95

10 4 1/8 x 9 1/2 2 none $60.20 $26.90 $19.70 $17.75

10 4 1/8 x 9 1/2 2 cello $62.75 $29.45 $22.10 $20.15

10 4 1/8 x 9 1/2 2 open $61.15 $27.85 $20.50 $18.55

N/A 6 x 9 1 none $59.45 $31.60 $24.00 $22.40

N/A 6 x 9 1 cello $62.30 $34.35 $26.60 $24.95

N/A 6 x 9 1 open $60.70 $32.75 $25.00 $23.30

N/A 6 x 9 2 none $66.90 $33.35 $24.95 $22.95

N/A 6 x 9 2 cello $69.75 $36.10 $27.50 $25.55

N/A 6 x 9 2 open $68.15 $34.50 $25.95 $23.95


BIND-IN ORDER FORM ENVELOPES

Cost Per Thousand

Ink 10,000 50,000 100,000 250,000 500,000

8.5 x 17, no bleed, trim, fold to 8.5 x 8.5 with a 3.5 formed envelope, with remoist glue and perforation. Stock: 60# white offset

1/1 $137.85 $49.00 $38.15 $28.90 $25.25

2/2 $160.00 $53.75 $40.70 $30.40 $26.30

8.5 x 13, no bleed, trim, fold to 8.5 x 5.5 with a 3.5 formed envelope, with remoist glue and perforation Stock: 60# white offset

1/1 $139.40 $44.90 $33.15 $23.30 $19.20

2/2 $162.10 $49.65 $35.70 $24.30 $20.15






LITHO LETTERS (NOT PERSONALIZED)

Cost Per Thousand

Ink 10,000 50,000 100,000 300,000

8.5 x 11, no bleed, fold to #10 or 6 x 9 OSE, on 60# offset; file output with proof. Carton pack.

1/1 $84.00 $27.50 $20.70 $16.15

2/1 $90.10 $28.80 $21.50 $16.55

11 x 17, no bleed, fold to #10 or 6 x 9, on 60# supplied offset; file output with proof. Carton pack.

2/1 $105.10 $43.25 $35.30 $28.30

2/2 $111.40 $44.75 $36.15 $30.65


LASER LETTERS (PERSONALIZED)

Cost Per Thousand

Ink 10,000 50,000 100,000 300,000

8.5 x 11, no bleed, printed on 60# offset; supplied 2-up for laser imaging.

1/1 $156.80 $51.80 $39.95 $29.40

2/1 $183.00 $59.90 $43.00 $30.60

8.5 x 11, no bleed, printed on 60# offset; supplied as cut sheet for laser imaging.

2/1 $180.95 $89.00 $72.15 $56.25

2/2 $205.80 $94.35 $75.05 $57.40


BUSINESS REPLY ENVELOPES (BRE)

Printed on 24# white wove

Cost per Thousand

Number Size Color Window 10,000 50,000 100,000 250,000

6 ¾ 3 5/8 x 6 1/2 1 none $49.05 $21.60 $15.50 $13.90

6 ¾ 3 5/8 x 6 1/2 1 cello $51.85 $24.30 $18.10 $16.45

6 ¾ 3 5/8 x 6 1/2 1 open $50.25 $22.75 $16.50 $14.90

6 ¾ 3 5/8 x 6 1/2 2 none $56.35 $23.30 $16.45 $14.45

6 ¾ 3 5/8 x 6 1/2 2 cello $59.20 $26.10 $19.00 $17.05

6 ¾ 3 5/8 x 6 1/2 2 open $57.75 $24.50 $17.45 $14.45







DIRECT MAIL — SAMPLE WORKING BUDGET

Great N. American Widget Corporation, Consumer Solo-Mailing Campaign, Two-for-One Widget Offer (Approximate Net Quantity 100,000 — Scheduled Drop Date 6/30/13)

CREATIVE

1. Preliminary copy/headlines/layout/dummies $750.00

2. Copy including revisions $6,500.00

3. Computer layouts (headlines, text, illustrations) $3,500.00

4. Contingency $500.00

SUBTOTAL $11,250.00

ART AND PREPARATION

1. Photography $1,800.00

2. Model fees $1,000.00

3. Photo direction $750.00

4. Prepress $3,500.00

5. Contingency $2,000.00

SUBTOTAL $9,050.00

PRINTING AND PRODUCTION — 105,000 (5% overs)

1. 2-page letter 2/1, 8.5 x 11 — folds to 5 ½ x 8 ½ - $ 30.85/M $3,239.25

2. 8-page brochure, 4/4, 17 x 22 flat-folded to final size 5 ½ x 8 ½ — no binding — $77.40/M $8,127.00

3. Reply Card 3 ½ x 5 ½; 2/2 @ $10.55/M $1,107.75

4. BRE — #6 ¾; 1/0; no window — $15.50/M $1,627.50

5. Outer envelope — 6 x 9; 2/0; one window — $27.50/M $2,887.50


SUBTOTAL $17,989.00

MAILING LISTS

1. Mail order respondents 80M — $100.00/M $8,000.00

2. Active magazine subscribers 45M — $ 70.00/M $3,150.00


SUBTOTAL $12,350.00

COMPUTER PROCESSING

1. Reformatting, data conversion, etc. $650.00

2. Laser programming — $195 (base) $162.50 (add’l programs) $195.00

2. Merge/purge (115M) — up to 3 lists — $1.95/M $224.25

3. Reports and lookup directory printout (per lot) $65.00


SUBTOTAL $1,634.25

LETTERSHOP PRODUCTION

1. Image letter (1 side), split, fold, insert components, sort, tie, and mail @ $33.75/M $3,375.00

2. Apply standard A stamp — $5.55/M $555.00

3. Audit and pull samples $350.00


SUBTOTAL $4,680.00

ALLOCATED FEES

1. Ad agency $9,000.00

2. Consultant $3,500.00


SUBTOTAL $13,550.00

POSTAGE — includes no discounts $25,500.00

1. Automated standard A base rate — $255.00/M

BUDGETED GRAND TOTAL $96,003.25





TOTAL NUMBER OF MAIL PIECES (ALL CLASSES) ATTRIBUTED TO DIRECT MAIL: 1990 – 2014

Year Total # USPS Pieces Total # Direct Mail Pieces Percentage of Total Volume

attributed to Direct Mail

1990 166,300,000 66,340,332 39.9%

1991 165,850,000 66,404,601 40.0%

1992 166,443,391 66,577,261 40.0%

1993 171,219,994 69,715,897 40.7%

1994 177,062,220 73,382,560 41.4%

1995 180,733,705 75,194,773 41.6%

1996 182,680,802 75,831,380 41.5%

1997 190,888,060 81,329,049 42.6%

1998 197,943,197 87,163,478 44.0%

1999 201,576,282 89,637,850 44.4%

2000 207,882,151 93,816,885 45.1%

2001 207,462,563 93,709,170 45.2%

2002 202,821,854 91,479,395 45.1%

2003 202,184,664 94,248,011 46.6%

2004 206,105,744 99,105,938 48.1%

2005 211,742,711 104,258,020 49.2%

2006 213,137,703 105,672,117 49.6%

2007 210,603,097 113,057,605 53.8%

2008 201,128,003 108,151,636 53.8%

2009 175,363,436 91,093,787 51.9%

2010 169,154,120 91,699,510 54.2%

2011 166,460,877 92,429,764 55.5%

2012 159,858,854 86,659,650 54.2%

2013 155,280,499 87,298,707 56.2%

2014 151,926,681 84,419,007 56.9%

*The total number of direct mail volume is determined from the following percentage approximations agreed upon by the USPS and DMA. Due to changes in USPS classifications and marketer practices, DMA’s methodology for calculating direct mail has changed. In the old calculation, before 2006, numbers are for 95% of standard mail (A), 7.5% of First Class, 85% of Standard Mail (B) Bounded Print Matter, and 2% International. In the new calculation after 2007, numbers are 15% of First Class, 95% of Standard Mail, 85% of BPM.

Source: The DMA/USPS Revenue, Pieces and Weight by Classes of Mail and Special Services for fiscal years

1990 – 2014.



COUPONS DISTRIBUTED, FOOD VS. NON-FOOD In Billions

Source: Inmar “2015 Coupons Trends: 2014 Year-End Report.”

COUPONS REDEEMED, FOOD VS. NON-FOOD In Billions


128.9139.6

125.0 129.9 133.8119.2

180.2196.6

186.8 183.3194.9 199.9

0

50

100

150

200

2009 2010 2011 2012 2013 2014

Num

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s

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2.1 2.22.3

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1.21.1

1.2

0.91.0 1.0

0

1

2

3

2009 2010 2011 2012 2013 2014

Num

ber

of

Cou

pon

s

Food Non-Food



COUPON REDEMPTION

In Billions


2.6

3.3 3.3 3.5

2.9 2.9 2.8

0

1

2

3

4

2008 2009 2010 2011 2012 2013 2014

Num

ber o

f Cou

pons

Red

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ed



REDEMPTION RATES BY METHOD

Method 2011 2012 2013 2014

Bounceback 7.08% 4.50% 8.00% 5.56%

Color run-of-press 0.38% 0.47% 0.30% 2.73%

Consumer relations 17.82% 19.51% 17.68% 28.08%

Direct home delivery 14.97% 0.63% 1.29% 1.07%

Direct mail 3.22% 4.29% 4.43% 3.90%

Direct mail co-op 2.38% 1.80% 1.75% 2.31%

Direct mail with sample 1.44% 3.00% 0.92% 1.44%

Electronic checkout 7.03% 7.73% 6.63% 6.93%

Electronic kiosk 4.24% 5.54% 3.32% 5.30%

Electronic shelf 8.74% 13.42% 11.17% 9.48%

Freestanding insert 0.51% 0.55% 0.48% 0.42%

Handout 2.86% 3.66% 3.95% 3.40%

Handout co-op 1.54% 1.334% 2.77% 2.49%

Handout in-store with sample 3.68% 4.53% 4.40% 5.45%

Handout off-store location 3.11% 3.14% 2.98% 2.45%

Handout off-store location co-op 0.74% 1.81% 2.34% 1.12%

Handout off-store location with sample 2.36% 2.71% 3.09% 2.47%

Hospital sample 4.02% 2.51% 3.91% 2.36%

In-ad 0.64% 0.61% 0.46% 0.48%

In-pack 5.20% 5.63% 3.63% 3.50%

In-pack cross ruff 1.75% 2.08% 1.75% 0.93%

Instant redeemable 23.78% 18.68% 23.80% 20.28%

Instant redeemable cross ruff 10.21% 13.72% 12.15% 10.03%

Internet 7.57% 12.61% 10.09% 12.17%

Magazine on-page 0.38% 0.42% 0.29% 0.31%

Magazine pop-up 0.55% n/a n/a n/a

Military handout 9.97% 9.18% 10.07% 8.67%

Military magazine 1.85% 2.41% 2.62% 2.55%

Military shelf pad 20.33% 16.83% 18.02% 8.54%

Newspaper co-op 0.24% 0.45% 0.37% 0.33%

Newspaper run-of-press 0.26% 0.19% 0.41% 0.23%

On-pack 13.27% 12.76% 12.49% 10.93%

On-pack cross ruff 3.44% 3.72% 3.16% 4.65%

Shelf box 12.12% 9.71% 10.08% 9.60%

Shelf pad 12.32% 11.94% 10.88% 11.42%

Sunday supplement 0.33% 0.07% 0.66% 0.19%

Source: Inmar “2015 Coupons Trends: 2014 Year-End Report”.



US DIRECT MAIL MARKETING SPEND

In Billions


45.6 45.3 44.3 44.8

46.0

$0

$10

$20

$30

$40

$50

2010 2011 2012 2013 2014



TOTAL DATA SPEND FOR DIRECT MAIL

In Billions


$9.80 $9.76 $9.53

$8.74

$9.09 $9.30

$6

$7

$8

$9

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Research Chapter 4: Retail & Catalog

messaging and content through each. Very few retailers have achieved this “state” but the ones that have invested, are seeing reduced cost of inventory, reduced out-of-stocks, and increased ability to forecast, target and promote products to specific consumer segments. A top priority for retailers will be to connect the dots – breaking down internal organizational silos limiting cross-channel shopper engagement – and creating a comprehensive customer profile and thus, relevant marketing and engagement messages. Content-Rich Experiences. If you shop online, you will note the many new and different ways that products are curated to you as a shopper. No longer are “flat” product pictures the norm. We now have 3-D images, 360-views of products, close-up views of fabric, video that demonstrates the product, YouTube mini-ads showing products “at play,” and live, real-time updated customer reviews of the product. Content sells the product as much as look, fit, and feel. Savvy retailers are using multimedia content to make the shopping experience more engaging. Retailers recognize that shoppers want to be entertained and informed as they browse the web (or store) and make purchase decisions. Content-rich experiences extend beyond the web to the store. Retailers will continue to find new ways to differentiate the in-store shopp0ing experience from the one shoppers find online – testing, trialing, and sampling new ways of engaging with shoppers in store thereby keeping the store relevant in the retail landscape. Big Data “Buzz” Disappears. Analytics Shines Bright. Retail, like many other industries, is looking to leverage new and different types of data to maximize profits. Expect technology investments to pick up as political, economic (housing, jobs, salaries), market, and consumer sentiment indicators point in a positive direction. While retailers are, at times, slow to adopt data-enabled insights and analytics best practices, a small subset of global retailers are heavily investing in new people resources, data and analytic discovery platforms, and new analytic tools that go well beyond traditional vertical and horizontal views of the business. New analytics, insights, and resulting decisions will fuel the “potential” for growth while maximizing existing investments – and allow for faster business decisions based on new performance metrics. From a customer experience perspective, in a world of increasing choice, algorithms curate and drive a unique data-driven experience focused on convenience for customers. Built in feedback loops, ease of access and user experience are at the heart of marketing strategy.



Mobility No Longer The E-xception. E-commerce has been growing for years, but now consumers are shifting away from purchasing items on their laptop or desktop and are now buying via their phone or tablet (a trend that has grown substantially the last two years). Mobile payment capabilities will grow exponentially as retailers look to deploy apps with capability similar to Starbucks and with the growing adoption of Apple Pay. While cash is still accepted at many retailers, cashless check-out will be an evolving trend (airlines are already training customers for this eventuality). Note that most retailers will say that cash can never go away completely (due to consumers not having credit cards, bank accounts, or smartphones) but cashless will grow substantially with the capability. Financial institutions, payment networks, mobile network operators, merchants, and mobile technology providers all have a vested interest in the deployment of a profitable mobile wallet solution and are battling for their own piece of the action. From a loyalty perspective, expect an increase in personalized offers, services, and rewards (vs. traditional points programs). Digital Marketing Spend Blast-Off. Mobile is quickly becoming the primary mechanism consumers are using to consume media. Because mobile is being used in conjunction with other devices, retailers must connect behaviors and interactions across channels. If not, retailers are missing out on the context in which the consumer is engaging. From an engagement perspective, according to a recent survey, over 80% of marketers are doing some sort of personalization, but only 19% are doing it in real time. Most are missing out on context. Digital channels represent 25% of today's total marketing budgets, and with the adoption of smartphones, digital commerce, and growth of social networks, digital marketing spend is expected to grow to one third by 2017. The rise of digital channels comes with its own challenges as they can be difficult to integrate with existing systems in place within the retailer’s ecosystem (due to inflexible, costly-to-change back-end IT systems). Integration is essential to communicating across departments, and focusing the business in support of strategy, be it customer centricity or operational. Marketers will continue to look to agencies over internal IT resources to help move forward marketing capabilities creating more CIO-CMO dynamic tension. When marketers have the ability to manage some or all of their key digital technologies without having to rely on IT/technical resources -- the effects are found in: time to market, ability to quickly trial new capabilities, ability to react quickly to consumer preference changes, and on the ability to test/learn creative concepts.



Marketers are increasingly aware of inconsistencies between their own marketing channels (emails, websites) and paid channels (display, mobile and social advertising), and they are grappling with how to bring this all together. Retail marketers are realizing that they need a more holistic approach to interaction management. Bottom Line…to win with shoppers your competition is pursuing, you must do things your competition is not doing! Authored by:

Justin Honaman Managing Partner - CPG / Retail North America Teradata

Chapter Highlights: Retail

There were 3.3 billion loyalty program memberships in 2014.

The average US household is enrolled in 29 loyalty programs but is active in only 12.

Because of Amazon, 18.4% of merchants have had to offer more competitive pricing.

Michael Kors is the #1 fastest-growing omnichannel retailer.

28% of consumers have abandoned their shopping cart because of unexpected shipping costs.


Research Research Chapter 4: Retail & Catalog

ESTIMATED QUARTERLY US RETAIL SALES: TOTAL AND E-COMMERCE*

Quarter (adjusted numbers)

Retail Sales (Millions of Dollars) E-commerce as a

Percent of Total Total E-commerce

4th quarter 2014 (p) 1,187,169 79,567 6.7

3rd quarter 2014 1,185,773 77,789 6.6

2nd quarter 2014 1,174,741 75,080 6.4

1st quarter 2014 1,149,198 69,426 6.2

4th quarter 2013 1,145,128 69,426 6.1

3rd quarter 2013 1,141,077 66,930 5.9

2nd quarter 2013 1,126,486 64,653 5.7

1st quarter 2013 1,118,329 61,720 5.5

4th quarter 2012 1,105,348 59,642 5.4

3rd quarter 2012 1,089,700 57,020 5.2

4.2

*E-commerce sales are sales of goods and services where an order is placed by the buyer or price and terms of sale are negotiated over an Internet, extranet, Electronic Data Interchange (EDI) network, electronic mail, or other online system. Payment may or may not be made online. (Estimates are based on data from the Monthly Retail Trade Survey and administrative records.)

Source: US Department of Commerce, February 2015.

LOYALTY PROGRAM MEMBERSHIPS In Billions

Source: COLLOQUY, Loyalty Census, 2015.

3.3

2.6

2.1

0 0.5 1 1.5 2 2.5 3 3.5

2014

2012

2010



LOYALTY PROGRAM MEMBERSHIP ACTIVITY


LOYALTY PROGRAM MEMBERSHIP BY TYPE


Retail 39%

Travel & Hospitality 27%

Financial 17%

Emerging Platforms 13%

Other 4%

The average US household is enrolled in 29 loyalty

programs but is active in only 12.



HOW WILLING WOULD YOU BE TO SHOP AT RETAILERS WHO HAVE EXPERIENCED CREDIT CARD

SECURITY BREACHES IN THE LAST YEAR?

Total Gender Age Marital Status

Male Female 18-34 35-49 50-59 60+ Married Not Married

Extremely willing

18% 23% 14% 20% 18% 20% 12% 18% 18%

Somewhat willing

41% 44% 40% 43% 40% 34% 44% 44% 39%

Somewhat unwilling

26% 20% 31% 26% 26% 30% 24% 27% 26%

Extremely

unwilling 14% 13% 16% 10% 16% 17% 20% 12% 17%

Education Income

Some College or Less

College Grad + Less than $50K $50K or More

Extremely willing 16% 20% 17% 20%

Somewhat willing 40% 43% 38% 45%

Somewhat unwilling 27% 26% 28% 24%

Extremely unwilling 17% 11% 18% 10%

Source: RetailMeNot, “BreakOut Report,” December 2014.



WHICH OF THE FOLLOWING PAYMENT METHODS WOULD YOU USE TO PURCHASE WINTER HOLIDAY

GIFTS?

Total Gender Age Marital Status

Male Female 18-34 35-49 50-59 60+ Married Not Married

Cash 69% 65% 72% 73% 64% 76% 62% 68% 71%

Debit cards 56% 54% 58% 62% 60% 57% 42% 55% 57%

Credit cards 49% 51% 48% 40% 49% 52% 64% 57% 41%

PayPal 37% 40% 34% 44% 40% 37% 21% 38% 35%

Google Wallet 5% 8% 2% 6% 9% 3% 1% 4% 5%

Apple Pay 4% 5% 3% 5% 6% 3% 1% 4% 4%

Mobile payment apps

4% 5% 3% 7% 4% 2% - 4% 4%

Source: RetailMeNot, “BreakOut Report,” December 2014.

Education Income

Some College or Less College Grad + Less than $50K $50K or More

Cash 73% 64% 74% 63%

Debit cards 57% 54% 60% 52%

Credit cards 39% 63% 37% 64%

PayPal 35% 38% 36% 37%

Google Wallet 4% 5% 4% 6%

Apple Pay 2% 6% 2% 6%

Mobile payment apps

3% 5% 3% 5%



SMARTPHONE OWNERS SHOPPING PREFERENCES

Source: Bronto Software, “Bronto’s Consumers Tell All Series,” 2015.

TABLET OWNERS SHOPPING PREFERENCES


ONLINE SHOPPERS PREFERENCE


ONLINE SHOPPERS WHO OWN A SMARTPHONE


39% prefer shopping on an app

61% prefer shopping on a mobile web browser

31% prefer shopping on an app

69% prefer shopping on a mobile web browser

10% prefer buying on a smartphone

7% prefer buying on a tablet

63% of online shoppers own a smartphone

1-in-3 reported owning a basic mobile phone




Merchants purchased within the last 3 months Mail, Phone or Internet Buyers

(000) % of Total

1-800-CONTACTS 2,322 1.0%

1-800-FLOWERS 4,290 1.8%

1-800-PETMEDS 1,341 0.6%

6PM.COM 1,455 0.6%

ABERCROMBIE & FITCH 873 0.4%

AMAZON 69,445 29.7%

AMERICAN APPAREL 461 0.2%

AMERICAN EAGLE OUTFITTERS 2,034 0.9%

ANN TAYLOR 1,176 0.5%

ITUNES STORE 21,305 9.1%

APPLE STORE 6,402 2.7%

BANANA REPUBLIC 1,448 0.6%

BARNES & NOBLE 6,444 2.8%

BED BATH & BEYOND 4,684 2.0%

BELK 1,319 0.6%

BEST BUY 8,946 3.8%

BJ'S 994 0.4%

BLAIR 1,593 0.7%

BLOOMINGDALE'S 802 0.3%

BLUEFLY *196 *0.1%

BROOKSTONE 722 0.3%

CABELA'S 2,994 1.3%

CHADWICKS OF BOSTON 475 0.2%

CHICO'S 753 0.3%

COLDWATER CREEK 884 0.4%

COSTCO 4,613 2.0%

CRATE & BARREL 843 0.4%

CVS 5,231 2.2%

DELL 1,725 0.7%

DILLARD'S 1,630 0.7%

DISNEY 3,127 1.3%

DRUGSTORE.COM 1,799 0.8%

EA (ELECTRONIC ARTS) 696 0.3%

EBAY 23,283 10.0%

EDDIE BAUER 1,001 0.4%

EDIBLE ARRANGEMENTS 1,309 0.6%

FINGERHUT 1,878 0.8%

FOOT LOCKER 1,817 0.8%

FTD 833 0.4%

GAMESTOP 2,918 1.2%

GAP 2,165 0.9%

GILT 314 0.1%

GOOGLE PLAY 5,043 2.2%

GROUPON 9,879 4.2%

(Continued on next page)




(Continued)

Merchants purchased within the last 3 months Mail, Phone or Internet Buyers

(000) % of Total

HALLMARK 1,426 0.6% HAMMACHER SCHLEMMER *342 *0.1% HARRY & DAVID 894 0.4% THE HOME DEPOT 7,090 3.0% HP (HEWLETT-PACKARD) 853 0.4% HSN 2,533 1.1% IKEA 1,433 0.6%

J. CREW 1,266 0.5% JCPENNEY 8,204 3.5% KMART 4,070 1.7% KOHL'S 7,612 3.3% L.L. BEAN 4,427 1.9% LANDS END 3,357 1.4% LANE BRYANT 1,751 0.7% LIVE NATION 777 0.3% LIVINGSOCIAL 2,354 1.0% LOFT 924 0.4% LORD & TAYLOR 737 0.3% LOWE'S 4,209 1.8% MACY'S 8,464 3.6% MICHAELS 1,052 0.4% MICROSOFT 1,422 0.6% NEIMAN MARCUS 1,007 0.4% NEWEGG.COM 1,884 0.8% NORDSTROM 2,954 1.3% OFFICE DEPOT 2,668 1.1% OFFICEMAX 1,252 0.5% OLD NAVY 5,013 2.1% ORIENTAL TRADING 1,136 0.5% OVERSTOCK.COM 2,195 0.9% PETCO 1,743 0.7% PETSMART 2,120 0.9% POTTERY BARN 978 0.4% QVC 4,823 2.1% RAKUTEN.COM (FORMERLY BUY.COM) *917 *0.4% REI (RECREATIONAL EQUIPMENT INC) 890 0.4% RED ENVELOPE *188 *0.1% RUE LA LA 268 0.1% SAKS FIFTH AVENUE 385 0.2% SAM'S CLUB 3,236 1.4% SEARS 4,846 2.1% SEPHORA 1,945 0.8% SHOEBUY.COM 606 0.3% SHOES.COM 669 0.3% SHOP.COM *280 *0.1% SONY 580 0.2% STAPLES 2,820 1.2%

(Continued on next page)




(Continued)

Merchants purchased within the last 3 months


(000) % of Total

STUBHUB 1,040 0.4%

TALBOTS 679 0.3%

TARGET 10,450 4.5%

TELEFLORA 499 0.2%

TICKETMASTER 4,555 1.9%

TOYS "R" US/BABIES "R" US 3,972 1.7%

URBAN OUTFITTERS 412 0.2%

VICTORIA'S SECRET 4,725 2.0%

VISTAPRINT 1,497 0.6%

WALGREENS 6,884 2.9%

WALMART 21,106 9.0%

WEST ELM 402 0.2%

WILLIAMS-SONOMA 715 0.3%

ZAPPOS.COM 3,342 1.4% * Indicates small sample size. Projections may be unstable, use with caution.


TOP SITES SEARCHED FOR COUPONS

Source: Valassis,”2K14 Shopper Marketing Report,” 2014.

68.0%

85.0%

91.0%

92.0%

96.0%

0% 20% 40% 60% 80% 100%

Social networking

Search engines

Retailer websites

Manufacturer/brand websites

Coupon websites



CATEGORIES SEARCHED ONLINE FOR COUPONS

Source: Valassis,”2K14 Shopper Marketing Report,” 2014.

14.0%

14.0%

17.0%

21.0%

22.0%

22.0%

25.0%

36.0%

38.0%

53.0%

0% 20% 40% 60%

Home improvement

Services

Household items

Electronics

Entertainment

Pet

Clothing

Dining

Personal care/hygiene products

Groceries



EFFECT OF AMAZON ON YOUR BUSINESS

Source: Multichannel Merchant, “MCM Outlook: Operations and Fulfillment,” 2014.

USE OF AMAZON

Source: Multichannel Merchant, “MCM Outlook: Operations and Fulfillment,” 2014.

Have had to offer more competitive pricing, 18.4%

Pressure to ship faster, 12.8%

Pressure to offer free shipping,

23.2%

Have had to sell in the marketplaces,

16.8%

None, 28.8%

Marketplace selling, 47.2%

FBA, 2.8% Global selling, 4.6%

We are not using Amazon, 45.4%



THE TOP 100 FASTEST-GROWING OMNICHANNEL RETAILERS

Rank Company 2012 FY Sales 2013 FY Sales Percentage

Change

1 Michael Kors $1,237,100,00 $2,094,757,000 69.33%

2 Wolverine Worldwide $1,640,838,000 $2,691,100,000 64.01%

3 PVH Corp. $5,540,821,000 $7,806,140,000 40.88%

4 Ascena Retail $3,353,300,000 $4,714,900,000 40.60%

5 Conn’s $714,267,000 $991,840,000 38.86%

6 Restoration Hardware $1,193,046,000 $1,550,961,000 30.00%

7 Under Armour $1,834,921,000 $2,332,051,000 27.09%

8 Charles & Colvard $22,450,498 $28,487187 26.89%

9 Black Diamond Equipment $48,801,000 $60,405,000 23.78%

10 Lumber Liquidators $813,327,000 $1,000,240,000 22.98%

11 Gaiam $127,242,000 $155,463,000 22.18%

12 Amazon.com $61,093,000,000 $74,452,000,000 21.87%

13 Kate Spade & Company (Formerly Fifth & Pacific)

$1,043,403,000 $1,264,935,000 21.23%

14 ULTA $2,220,256,000 $2,670,573,000 20.28%

15 Bassett Furniture $269,672,000 $321,286,000 19.14%

16 Overstock.com $1,099,289,000 $1,304,217,000 18.64%

17 SKECHERS $1,560,321,000 $1,846,361,000 18.33%

18 Joe’s Jeans $118,642,000 $140,183,000 18.16%

19 Tumi $398,551,000 $467,438,000 17.28%

20 lululemon athletica $1,370,358,000 $1,591,188,000 16.11%

21 Vitacost.com $330,680,000 $382,744,000 15.74%

22 The Finish Line $1,443,365,000 $1,670,410,000 15.73%

23 Cabela’s $2,778,903,000 $3,205,632,000 15.36%

24 Bed Bath & Beyond $9,499,890,000 $10,914,585,000 14.89%



25 Francesca’s $296,373,000 $340,325,000 14.83%

26 Vitamin Shoppe $950,902,000 $1,087,469,000 14.36%

27 Fossil $2,857,508,000 $3,259,971,000 14.08%

28 eBay $14,072,000,000 $16,047,000,000 14.03%

29 Keurig Green Mountain $3,859,198,000 $4,358,100,000 12.93%

30 CafePress $217,786,000 $245,856,000 12.89%

31 Nautilus $193,926,000 $218,803,000 12.83%

32 Blue Nile $400,035,000 $450,008,000 12.49%

33 PriceSmart $1,999,364,000 $2,239,266,000 12.00%

34 MarineMax $524,456,000 $584,497,000 11.45%

35 Haverty Furniture $670,073,000 $746,090,000 11.34%

36 Carter’s $2,381,734,000 $2,638,711,000 10.79%

37 Tractor Supply Co. $4,664,120,000 $5,164,784,000 10.73%

38 Urban Outfitters $2,794,925,000 $3,086,608,000 10.44%

39 Decker’s Outdoor Corp. $1,414,398,000 $1,556,618,000 10.06%

40 Dollar General $16,022,128,000 $17,504,167,000 9.25%

41 Apple $156,508,000,000 $170,910,000,000 9.20%

42 ValueVision Media (ShopHQ) $586,820,000 $640,489,000 9.15%

43 99-Cent Only Stores $1,531,696,000 $1,668,651,000 8.94%

44 O’Reilly Automotive $1,488,385,000 $1,621,234,000 8.93%

45 Dover Saddlery $86,342,000 $93,843,000 8.69%

46 Williams-Sonoma $4,042,870,000 $4,387,889,000 8.53%

47 Nike $23,331,000,000 $25,313,000,000 8.50%

48 GNC $2,430,000,000 $2,630,300,000 8.24%

49 Zumiez $669,393,000 $724,337,000 8.21%

50 La-Z-Boy $1,231,676,000 $1,332,525,000 8.19%



51 Tandy Leather Factory $72,720,624 $78,284,585 7.65%

52 Oxford Industries $855,542,000 $917,097,000 7.19%

53 Steve Madden $1,227,072,000 $1,314,223,000 7.10%

54 Neiman Marcus $4,345,374,000 $4,648,249,000 6.97%

55 The Sherwin-Williams Company $9,534,462,000 $10,185,532,000 6.83%

56 Coach $4,763,180,000 $5,075,390,000 6.55%

57 Dick’s Sporting Goods $5,836,119,000 $6,213,173,000 6.46%

58 Harley-Davidson $4,942,582,000 $5,258,290,000 6.39%

59 CDW $10,128,200,000 $10,768,600,000 6.32%

60 AutoZone $8,603,863,000 $9,147,530,000 6.32%

61 Tiffany & Co. $3,794,249,000 $4,031,130,000 6.24%

62 Crocs $1,123,301,000 $1,192,680,000 6.18%

63 Tilly’s $467,291,000 $495,837,000 6.11%

64 Dollar Tree $7,394,500,000 $7,840,300,000 6.03%

65 Advance Auto Parts $1,329,201,000 $1,408,813,000 5.99%

66 Costco $97,062,000,000 $102,870,000,000 5.98%

67 The TJX Companies $25,878,372,000 $27,422,696,000 5.97%

68 Lowe’s $50,521,000,000 $53,417,000,000 5.73%

69 Signet Jewelers $3,983,400,000 $4,209,200,000 5.67%

70 The Home Depot $74,754,000,000 $78,812,000,000 5.43%

71 Ross Stores $9,721,065,000 $10,230,353,000 5.42%

72 Foot Locker $6,182,000,000 $6,505,000,000 5.22%

73 Office Depot $10,695,652,000 $11,242,000,000 5.11%

74 V.F. Corporation $10,766,020,000 $11,302,350,000 4.98%

75 ANN Inc. $2,375,509,000 $2,493,491,000 4.97%

76 DSW $2,257,778,000 $2,368,668,000 4.91%



77 Rocky Mountain Chocolate

Factory $34,627,000 $36,315,000 4.87%

78 Estee Lauder $9,713,600,000 $10,181,700,000 4.82%

79 HSN Inc. $3,266,739,000 $3,403,983,000 4.20%

80 Hibbett Sports $818,700,000 $851,965,000 4.06%

81 1-800-Flowers.com $707,517,000 $735,497,000 3.95%

82 Pier I Imports $1,704,885,000 $1,771,743,000 3.92%

83 Nordstrom $11,762,000,000 $12,166,000,000 3.43%

84 Tupperware $2,583,000,000 $2,671,600,000 3.40%

85 Lifetime Brands $486,842,000 $502,721,000 3.26%

86 Gap $15,651,000,000 $16,148,000,000 3.18%

87 Tuesday Morning $812,782,000 $838,314,000 3.14%

88 Sport Chalet $349,883,000 $360,645,000 3.08%

89 L Brands $10,458,651,000 $10,773,199,100 3.01%

90 CVS $123,120,000,000 $126,761,000,000 2.96%

91 PC Connection $2,158,873,000 $2,221638,000 2.91%

92 Liberty Interactive Corp. (QVC) $10,018,000,000 $10,307,000,000 2.88%

93 Express $2,157,227,000 $2,219,125,000 2.87%

94 Sally Beauty Supply $3,523,644,000 $3,622,216,000 2.80%

95 Kirkland’s $448,365,000 $460,563,000 2.72%

96 Select Comfort $934,978,000 $960,171,000 2.69%

97 American Apparel $617,310,000 $663,941,000 2.69%

98 Stein Mart $1,232,366,000 $1,263,571,000 2.53%

99 Calloway’s Nursery $45,551,000 $46,644,000 2.40%

100 PetSmart $6,758,237,000 $6,916,627,000 2.34%

Source: "Retail Online Integration, May/June 2014".



REASONS FOR CART ABANDONMENT

Source: Visual Website Optimizer, "VWO eCommerce Survey 2014.”

IMPORTANCE OF CUSTOMER REVIEWS WHEN MAKING A BUYING DECISION


28%

23%

16%

13% 12%

8%

0%

5%

10%

15%

20%

25%

30%

Unexpectedshipping cost

Had to create anew user account

Was justconductingresearch

Payment securityconcerns

Confusingcheckout

Couldn't findcoupon code

Important, 55%

Indifferent, 22%

Not Important, 23%



LIKELIHOOD OF PURCHASING A PRODUCT SUGGESTED BY A WEBSITE BASED ON YOUR INTERESTS AND PAST PURCHASES


Important, 55%

Indifferent, 29%Not Likely, 55%



WHY DO YOU BUY PRODUCTS ONLINE INSTEAD OF IN -STORE?

*No 2013 comparison available.

Base: 1011 (2014), 1002 (2013)

Note: Respondents had to rank their three most important factors.

Source: PwC Total Retail Survey, 2015.

3%

4%

4%

10%

11%

18%

20%

25%

30%

33%

40%

47%

52%

3%

1%

7%

7%

16%

18%

22%

27%

29%

44%

59%

0% 10% 20% 30% 40% 50% 60%

Other

Social media interactions via Facebook, Twitter, etc.(e.g., sharing a link, liking a brand, or posting a

comment)

I have a wider variety of return options*

Better product information than in-store

Receiving a promotion via email or text/SMSmessage (e.g., coupons/vouchers)

Looking for a particular brand/product

Customer reviews of products available online

I can only get some products online

Easier to compare and research products/offers thanin-store

Wider variety of products than in-store

No need to travel to a physical store*

I can shop 24/7 online

Lower prices/better deals than in-store

2013 2014



WHY DO YOU BUY PRODUCTS IN-STORE INSTEAD OF ONLINE?


Base: 1011 (2014), 1002 (2013)



1%

2%

5%

8%

9%

13%

13%

16%

16%

22%

23%

28%

29%

55%

56%

2%

4%

5%

13%

13%

12%

17%

30%

11%

27%

27%

60%

64%

0% 10% 20% 30% 40% 50% 60% 70%

Other

I don't trust online payment methods*

My favorite retailers don't have an online store

It's easier to trust the brand/store

Store staff are very helpful*

I simply enjoy shopping in the physical store becauseof the atmosphere

I find the location convenient (e.g., close to publictransport, parking, easy access from home or work)

To support local retailers

To get the lowest price

I'm able to return items easily

Quicker delivery than if purchased online

I'm more certain about fit/suitability of the product

I'm more comfortable buying perishable products in-store

I'm able to see, touch and try merchandise

To get the product immediately

2013 2014



WHICH OF THE FOLLOWING IN-STORE TECHNOLOGIES WOULD MAKE YOUR SHOPPING EXPERIENCE

BETTER?


Base: 1011 (2014), 1002 (2013)



16%

4%

7%

9%

11%

13%

16%

18%

19%

25%

36%

40%

33%

4%

8%

12%

10%

10%

15%

21%

21%

45%

0% 10% 20% 30% 40% 50%

None of the above

"Mirrors" that can share your picture with friends

Video walls that show the product(s) selected and/oravailable

QR codes that allow you to access additional content

Pay for an item through the store's app

Using your mobile phone to pay for your shopping

Sales associates with tablets to show you alternativeproducts

Sales associates who can take payment without goingto the cash register

Real time, personalized offers*

In-store WiFi with fast, simple login

Self-service checkout*

Ability to check other store or online stock quickly

2013 2014



HOW OFTEN DO YOU BUY PRODUCTS USING THE FOLLOWING SHOPPING CHANNELS?

Note: The definition provided for next generation wearables in the survey was (e.g., Google glass).


3%

3%

4%

4%

4%

5%

8%

4%

4%

9%

5%

9%

21%

37%

6%

4%

14%

8%

13%

38%

30%

10%

4%

13%

20%

14%

25%

18%

9%

4%

7%

17%

7%

5%

3%

67%

80%

53%

47%

53%

6%

4%

0% 20% 40% 60% 80% 100%

TV shopping

Next generationwearables

Online via tablet

Catalog/magazine

Online via mobile phoneor smartphone

Online via PC

In-store

Daily Weekly Monthly Few times a year Once a year Never



Chapter Overview: Catalog

Despite prognosticators heralding its demise, catalog is experiencing a resurgence, as the amount of mailed catalogs rose in 2014 to 11.1 billion. Even in a growing digital economy, 68% of companies surveyed rated the catalog as “effective” or “highly effective.” Why? Because the “ink on paper” experience provides a unique marketing experience that only a catalog can provide. It provides a proactive, three-dimensional, tactile experience that is not easily ignored (or deleted) while offering an opportunity to present a collection of stories around a brand and its products. However, it is NOT business as usual as marketers agree that best practices are no longer formulaic. For catalog executives, I’ve found the following topics remain top of mind: 1. The role of the catalog has evolved. Most agree that it is NOT

a channel but rather an opportunity to drive both prospects and customers alike to DO something. It is a strong, proactive call-to-action, driving customers to a retail store, website or social media. Multichannel Merchant conducted a study in 2014, in which they asked marketers to rate the importance of a catalog’s roles. The top three most highly ranked purposes of the catalog were 1) as a mobile traffic driver, 2) customer retention tool and 3) web traffic driver. In fact, many new catalogs mailed are from traditional brick-and-mortar brands, manufacturers interested in selling direct to the consumer and even online brands interested in driving more traffic to their site. In many cases, a catalog is part of a multi-touch strategy, driving engagement to position the brand for a future product or service sale. Another rising trend is that of the brand “look book” that leans heavily on editorial content positioned alongside a collection of products. This indicates that marketers understand that a catalog is not just a transactional tool; it’s a critical part of the overall marketing mix and an important vehicle for brand engagement.

2. Acquisition and retention models are challenged. Relying on cooperative databases for customer acquisition and reactivation has garnered mixed results. While it still remains the go-to resource for many, those that do not challenge or test the models find that it provides shrinking response rates. The KPIs that measure success of customer acquisition and retention efforts are becoming more customized than in the



past, while more powerful tools for match-backs and attribution have become available. Innovative software allows for unprecedented integration for online and offline channels allowing one to inform the other. Astute marketers glean individualized web browsing data to serve up dynamic content and personalized offers, and the most engaged online shoppers become valuable prospects in the print channel.

3. The consumer is responding to a new aesthetic. The proliferation of design shows (Project Runway, HGTV), and the rise of the visual web (Pinterest, Instagram) are testaments to a consumer who is more keen to design than ever - no matter the demographic. And the new aesthetic is clean, authentic, highly emotive, and tells a unique story. In the mail, tests prove the same is true for catalog design. This creates an enormous tension between the traditional catalog best practices and the newer, simpler look. Traditionally, catalog marketers have been ruled by square-inch analysis, demanding that every inch in a catalog pays for its space. As online sales make attribution back to the catalog less reliable, and the importance of brand has become apparent, allocating space is a much bigger challenge. Eye-flow, hot spots, square-inch analysis and graphic hierarchy are still important organizational guides, however, they must live within the overarching brand message. This requires investing in editorial space to differentiate a brand, tell a story or even create pages that appear more like a look book. As an ongoing initiative, each title must test the combination that is right for THEIR brand. Catalog design must quickly DISRUPT the reader, create DESIRE and then DRIVE them either online or to a store. This process requires creative talent to be strategic thinkers that understand not only how consumers think, but how they process brand messages.

4. Rising postal costs demand efficiency. In a 2014 survey conducted by Multichannel Merchant, 77% of respondents planned to use catalog as a prospecting vehicle in the next 12 months. However, postal increases could potential derail these plans by shrinking marketing budgets. It’s critical that catalogers become involved with their state legislatures and industry efforts (both the DMA and the ACMA) to protect against future exigent rate hikes becoming a painful reality. The Postal Reform Act is an ongoing debate within Congress. The good news is there will be USPS incentives allowing efficiencies in circulation strategies, as well as new opportunities for integrating web-based data capture with



USPS delivery technology that holds much promise for the future. On another legislative front, Internet taxation continues to be a threat for all catalogers as the expense to collect taxes for 14,000 different taxing jurisdictions will be very painful if it comes to pass.

5. Merchandise continues to be the belle of the ball. At their best, catalogs are the perfect tactic for a brand that sells a collection of products that are unique or exclusive. Without this unique merchandise position companies will continue to see market erosion from online competition and most notably from Amazon. It’s critical that brands remain vigilant in seeking and creating new products while keeping a close eye on consumer trends. Again, square-inch analysis tells us what has sold in the past, and can’t replace savvy merchants that predict trends that align with their brand. Merchants must be nimble, using modeled forecast tools that allow for benchmark inventory loss.

The new catalog world is faster, smarter and more stylish than ever due to revolutions in design and data. In the coming year, brands that innovate, excite, and find new ways to connect with the consumer will leapfrog the competition. The smartest companies will find ways to connect print and online channels, and craft-marketing messages and campaigns that reflect and anticipate the needs of customers. Authored by:

Lois Brayfield CEO J.Schmid & Assoc., Inc.

Chapter Highlights: Catalog

The volume of mailed catalogs dropped in 2014 to 11.1

billion.

On average a catalog copywriter’s salary was $62,800 in 2014.

One of the biggest mistakes in catalog merchandise presentation is busy backgrounds and surfaces.

Almost a third of marketers plan to increase their catalog circulation by 1% to 10%.

77.7% of marketers plan to use catalog as a method of prospecting in the next 12 months.



CATALOGS MAILED PER YEAR (2001 – 2014) In Millions

Note: These figures are extrapolated from the USPS Revenue, Pieces, and Weight report. Before 2007, 18% of all Standard Mail (A) is catalogs. 85% of all Board Printed matter mail is catalogs. In 2008, there was change in service categories of mail. So now catalogs represent 90% of Standard Mail carrier route, 60% of Standard Mail flats, and 10% of Bounded Material flats.

Source: DMA/USPS Revenue, Pieces, and Weight Report for Fiscal Year 2014.

NUMBER OF PRINT AND ONLINE CATALOGS Distinct Publications

8,971 8,910

3,022 3,100

534 503

0

2,000

4,000

6,000

8,000

10,000

2013 2014

Online & Print Catalogs Online Only Print only

Source: MediaFinder.com, “National Directory of Catalogs,” 2014.

16,661 16,61617,248

18,16419,161 19,441 19,621

16,898

13,68412,738 12,497

11,795 11,92011,140

0

5,000

10,000

15,000

20,000

25,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Est

imat

ed N

umbe

r of

Cat

alog

s M

aile

d



2014 DIRECT RESPONSE CATALOG ADVERTISING SALARIES

Crandall Associates, Inc., an executive recruiting firm, has determined the salaries by the following process: 1) Discussions with employers, from presidents to personnel officers, nationally, in companies varying in geographic areas, number of employees and sales volume; 2) Personal interviews and discussions with professionals in Direct Marketing and Online Marketing at all salary levels, working from coast to coast; 3) Analysis of information collected as a result of discussions with potential candidates nationally, with adjustments made for the “fudge” factor. Copies of the full salary guide with 52 functions and regional salary variations are available for $75 from Crandall Associates, Inc., 6 Litchfield Road, Suite 316, Port Washington, NY 11050, 516.767.6800.

Art Director — Catalog

The Art Director gives the catalog its direction and aura. Also acts as the conciliator between the Merchandising and Marketing experts.

DUTIES: Responsible, under the leadership of the Creative Director, for the look and feel of a catalog, the Art Director constantly struggles with “square inch” formulas for space allocation made by marketing and merchandising executives. Designs with copy and, in the great majority of catalogs, photographic and/or graphic images, to make presentation of a three-dimensional product within the limited confines of a printed page. Also responsible for revisions and additions to an existing format or other promotional offering; and, in some cases, the company website. Experienced with paper, type, photography, illustrations and printing.

Salary Range

Low $49,400

Average $51,700

High $60,000

Copywriter — Catalog

If the company has 100 products, or 200, the creative team must write professionally for each one with a fresh and vibrant theme.

DUTIES: Working within the most stringent confines of inches, catalog writers bring to life a valve, or a suit or a book, without deviation from the specifications, the quality, essence or contents of the product, often enhancing it with the benefits. Frequently working from a specifications sheet, writes for a printed page, often but not always accompanied by a photograph or illustration. Creates on paper (or online) an image for the consumer at home or a buyer in the office. Details particulars of the product or the service offered in the catalog or website, and answers questions before they are asked, and with skill, reduce returns.

Salary Range

Low $52,500

Average $62,800

High $78,500

Catalog Circulation Manager

The Circulation Manager is responsible for developing short- and long- term circulation strategies to meet customer goals.

DUTIES: With creative insight, develops and tests many media, including direct mail packages, e-marketing efforts, list rentals and exchanges, space ads, statement stuffers, bounce backs, package and free standing inserts ,and alternative media programs to acquire new customers. Responsibility for cost and profitability of acquisition efforts. Develops greater analysis and utilization of internal database. Establishes inquiry programs to develop circulation. Maintains contact and negotiates with list brokerage firms and list managers and knowledgeable in merge-purge, enhancement techniques and segmentation.

Salary Range

Low $82,500

Average $90,300

High $113,700

Catalog Marketing Manager

Equivalent to a product manager in a consumer package goods environment, the Marketing Manager for a catalog is responsible for day-to-day marketing, creative and operations of one catalog, or often, two or three.

DUTIES: Carries profit and loss responsibilities for a high volume catalog or a number of smaller ones, generally under the guidance of the catalog marketing director. Develops and executes budget. Decides the positioning, theme, pricing, marketing approach, creative thrust and media selection. Supervises production by internal or external facilities to ensure mailing schedules. Reviews fulfillment procedures to maintain expeditious delivery of customer orders. Confers with research department and is conversant and knowledgeable in CRM analysis.

Salary Range

Low $66,000

Average $75,900

High $89,800

Note: All salary information from Crandall Associates, Inc. is absolutely copyright-protected. This material may not be photocopied or otherwise reprinted in any other communication, unless permission is directly granted by Crandall Associates, Inc. 516.767.6800. Source: Crandall Associates, Inc. 2015.



2014 DIRECT RESPONSE CATALOG ADVERTISING SALARIES (CONTINUED)

Creative Director — Catalog

Responsible for representing all of the catalog products in their best light, usually with only a couple of inches in which to display and describe each product.

DUTIES: Within the limits of a page and budgetary considerations, directs copywriters, art directors, traffic department and often, production in the theming, design and execution of layouts for catalogs. Uses photography and/or illustrations to reflect and achieve marketing objectives. Frequently acts in the same function for multiple catalogs targeted at diverse market segments. Responsible for order forms, direct mail packages, space advertisements, television, websites, cable, packaging, and ancillary creative materials, particularly if retail operations are involved, and liaising with the online marketing group.

Salary Range

Low $103,500

Average $111,700

High $150,600

Catalog Marketing Director

The professional responsible for preparing and executing corporate marketing plans, budgets, short- and long- term catalog strategy, and profit and loss responsibilities. Continually seeks new markets.

DUTIES: Supervises marketing managers and manages teams of creative, merchandising, list, production, research, customer service and telesales professionals. Evaluates market share and monitors competition. Continually explores customer database to develop new products. Examines development of new markets. Explores alternative media for customer acquisition. Monitors sales of ancillary products to broaden catalog or launch new ones. Keeps abreast of legislative and postal regulations. Represents the corporation at industry functions.

Salary Range

Low $94,500

Average $115,800

High $124,100

Note: All salary information from Crandall Associates, Inc. is absolutely copyright protected. This material may not be photocopied or otherwise reprinted in any other communication, unless permission is directly granted by Crandall Associates, Inc. 516.767.6800. Source: Crandall Associates, Inc. 2015.

CATALOG EFFECTIVENESS

Source: Real Results Marketing, “Print Catalogs: Why They Are Alive and Well.”

Ineffective, 7%

Very effective, 13%

Effective, 55%

Neither effective nor ineffective,

26%



BELIEF ABOUT PRINT AS A MARKETING VEHICLE

Source: Real Results Marketing, “Print Catalogs: Why They Are Alive and Well.” 10 BIGGEST MISTAKES IN CATALOG MERCHANDISE PRESENTATION

Source: Glenda Shasho Jones, Shasho Jones Direct, Inc.

Dying/Dead 25%

Alive 48%

Transition 27%

1. Mediocre or poor photography 2. Busy backgrounds and surfaces 3. Disorganized presentations 4. Weak selling efforts 5. Lack of product detail 6. Poor propping or styling 7. Poor model selection 8. Underestimating merchandise shot size 9. Lack of appropriate aspiration in presentation 10. Inadequate or inappropriate copy

“Fluff” copy, missing information, lack of personality



PURPOSE OF PRINT CATALOGS (Rated on the importance of each of the following on a scale of 1-10 where 10 is most important)

Source: Multichannel Merchant, “MCM Outlook: Catalog,” 2014.

CHANGES IN CATALOG CIRCULATION


3.6

7.2

7.3

7.4

7.85

8.25

8.25

0 2 4 6 8 10

Store traffic driver

Reactivation tool

Prospecting Tool

Branding

Web traffic driver

Customer retention tool

Mobile traffic driver

1.9%

3.9%

16.5%

25.2%

5.8%

14.6%

32.0%

0% 5% 10% 15% 20% 25% 30% 35%

Decrease by more than 20%

Decrease by 11% to 20%

Decrease by 1% to 10%

Will keep circulation the same

Increase by more than 20%

Increase by 11% to 20%

Increase by 1% to 10%



METHODS OF PROSPECTING TO BE USED IN THE NEXT 12 MONTHS


CATALOGERS OFFERING FREE SHIPPING

Source: Data compiled from offers received by Who’s Mailing What! (www.whosmailingwhat.com), the world’s most complete online library of multichannel direct mail and email campaigns from across the U.S. markets. It’s powered by Direct Marketing IQ (www.directmarketingiq.com), the go-to source for all things direct marketing and part of the Target Marketing Group at NAPCO Media.

47.5%

48.5%

66.0%

68.0%

77.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Print ads

PPC

Email

Facebook

Catalog

912

1,971 1,891

1,997 1,844

282

581 476

545 462

0

500

1,000

1,500

2,000

2,500

Jan - July 2014 2013 2012 2011 2010

Total Catalogs Received # Offering Free Shipping

http://www.whosmailingwhat.com/

http://www.directmarketingiq.com/



CATALOGERS OFFERING FREE SHIPPING IN EMAILS

Source: Data compiled from offers received by Who’s Mailing What! (www.whosmailingwhat.com), the world’s most complete online library of multichannel direct mail and email campaigns from across the U.S. markets. It’s powered by Direct Marketing IQ (www.directmarketingiq.com), the go-to source for all things direct marketing and part of the Target Marketing Group at NAPCO Media.

80,585 76,167 74,331

67,197

59,677

25,305 24,464 21,919

17,487 13,911

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Jan - Nov. 2014 2013 2012 2011 2010

Cataloger Emails Received # Offering Free Shipping

http://www.whosmailingwhat.com/

http://www.directmarketingiq.com/

Overview


Research

DA

TA

NO

NP

RO

FIT

RETA

IL

CA

TALO

G

MA

IL

SO

CIA

L

MO

BILE

SEA

RC

H

INTER

NET

EMA

IL

CO

NS

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PO

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Chapter 5: Internet

In a relatively short period of time, we have seen the Internet evolve from the novel “Information Superhighway” to the “Internet of Everything,” quickly clawing its way into all areas of daily life. Few technologies ever achieve such ubiquity, and even fewer experience such an accelerated evolution. In less than a generation, the Internet has gone from the labs of academia into the homes and pockets of people in every corner of the globe. In its infancy, the Internet primarily provided a way for people to consume information, share ideas and connect to a world outside of their immediate geography. Hardware was expensive, connections were slow and the information available was limited. Still, you could spend hours chatting with people who shared a common interest. Primitive search engines could direct you to newspaper articles you could never access in your town. Information was everywhere … if you could actually find it. As this push and pull of information in dial-up’s early days sparked the demand for the Internet to fulfill one’s every whim and desire, hardware became cheaper, Internet speeds became faster and folks figured out how to start making money. Retailers established an online presence and eventually e-commerce was born, transitioning the interest in simply consuming information online into consuming products and services without having to leave home. Fast-forward to 2015. It’s difficult to imagine life without constant access to high-speed Internet. It’s changed the way we consume all media. Once-prevalent industries, such as radio, television and publishing, have struggled to find success in this digital age when consumers expected everything to be fast and high-def.


Research Chapter 5: Internet

Today’s Internet has even disrupted social norms as mobile devices show up at the dinner table and personal moments are posted for the world to see. The impact of these expectations and behavioral shifts is not necessarily negative though. The entire planet is now able to connect in a way that would have been unimaginable only a few decades ago. Governments have passed legislation to, in most cases, protect the online activity of citizens. As much as this may all seem like a dramatic change for some, there’s an entire generation that has never known life without the Internet. Even though e-commerce was born during this revolution, it has also experienced a massive transformation in recent years. The adoption of mobile devices, the rise of social media and an ever increasing number of ways consumers can connect have led retailers to rethink how they market to their customers. But no one channel or device has emerged as the best way to communicate with customers. The formula of message, timing, channel and device can’t be perfected because the e-commerce landscape is constantly changing. Retailers must strive to better understand the expectations and needs of these connected consumers to find success. Marketers must look beyond the one-to-many strategies that may have been effective in the Internet’s infancy and find ways to create relevant, one-to-one marketing that reaches the customer when and where they want to shop. Luckily, today’s technology can make once impossible marketing strategies a reality with a few clicks. The data presented in this chapter reveals how consumers are using mobile devices and online media to enrich their daily lives and research purchases. This 360-degree insight into consumer behavior can help retailers identify opportunities to keep up with consumers and anticipate how their behaviors will evolve and shift over time. Authored by:

Jim Davidson Director of Research Bronto Software

Chapter Highlights: Retail

112.5 million adults redeemed an online coupon in 2014.

In 2014, on average, a website manager had a salary range of $80,500.

Nearly 115 million US adults bought something online in 2014.

One-third of adults had an Internet-connected TV in 2014.

In 2014, over $24 billion was spent on search and $23.4 billion was spent on display.


Research Research Chapter 5: Internet

HOURS SPENT ONLINE PER WEEK

Source: USC Annenberg School Center for the Digital Future, “The 2014 Digital Future Report.”

INTERNET PURCHASERS WHO BROWSE IN RETAIL AND BUY ONLINE

*Base - Americans who use the Internet. Source: USC Annenberg School Center for the Digital Future, “The 2014 Digital Future Report.”

9.4

20.4 20.5

0

5

10

15

20

25

30

2000 2012 2013

53%

74% 77%

0%

20%

40%

60%

80%

100%

2000 2012 2013

Perc

ent of

Use

rs



VIEWS ABOUT BUYING ONLINE

Internet Users Who Agree or Strongly Agree

22%25% 23% 21%

0%

10%

20%

30%

40%

50%

2009 2010 2012 2013

Res

pons

e

Uncomfortable with lack of face-to-face contact when ordering online

*No data available for 2011. Source: USC Annenberg School Center for the Digital Future, “The 2014 Digital Future Report.”

DOES BUYING ONLINE AFFECT PURCHASING IN TRADITIONAL RETAIL STORES?

Internet Users Who Buy Online

38%

30%

41% 39%

7% 10% 10% 9%

49%54%

60%

51%

0%

10%

20%

30%

40%

50%

60%

70%

2009 2010 2012 2013

Res

pons

e

Not reduced at all Somewhat reduced Reduced a lot

*Data not available for 2011. Source: USC Annenberg School Center for the Digital Future, “The 2014 Digital Future Report.”



AVERAGE MONTHLY PURCHASING

Adult Internet Users

32%

58%

9%

0%

21%

60%

18%

1%

14%

24%

62%

0%0%

10%

20%

30%

40%

50%

60%

70%

$0 $1 - $100 $101 - $1,000 $1,000+

2010 2012 2013

*Data not available for 2011 Source: USC Annenberg School Center for the Digital Future, “The 2014 Digital Future Report.”

US ADULT DIGITAL COUPON USERS, 2012 – 2016

2016 2012 2013 2014 2015

Adult digital coupon users (Millions)

92.3 103.5 112.5 120.8 126.9

Percent change YOY 4.8% 12.0% 8.7% 7.4% 5.0%

Percent of adult Internet users 48.0% 52.0% 55.0% 57.5% 59.0%

Note: Internet users ages 18+ who redeemed a digital coupon/code via any device for online or offline shopping at

least once during the calendar year; includes group-buying coupons.

Source: eMarketer, November 2014.



PRICING GUIDELINES FOR PURL AND LANDING PAGE MARKETING

The employment of Personalized URL (PURL) Marketing and Campaign Landing Page marketing has increased dramatically since 2005. Engaging customers and prospects with targeted relevant content substantially increased customer LTV.

There are many factors that affect pricing for the development of any PURL/Landing Page Program. Following are some parameters of likely pricing guidelines.

Program Setup:

To initiate any PURL campaign and architect the program, including reporting, there are typical set-up fees that include creating a customized dashboard, importing the records, prepping the records, segmenting and filtering as instructed, and setting up all likely reporting features. Because size and

scopes of projects vary widely, the range below is broad.

$3,000 – $8,000

Creative Importing/Conversion:

Typically an agency develops creative on behalf of its clients, but there are instances where the creative is prepared by an agency and then repurposed for PURL/Landing Page creation and distribution by a third party. The agency or third party will have to import, convert, and tag the code where necessary.

Again, a broad range is shown; until the strategy has been derived, it is unclear how many pages will be necessitated. $3,000 – $8,000

PURL/Landing Page Creation:

Once the creative is imported and there is a clear understanding of the program objectives, the necessary pages

are then created. This is generally a short turnaround, unless the creative is extraordinarily complex. Per Page: $750 – $1,500

Per Message Fees:

Once the program is set up and all measuring/reporting functions are in place, the fees become transactional. Similar to

print, email pricing improves with volume. Per message: $0.10 for small quantities to less than $ $0.03 for very large quantities.

Reporting:

Marketers are then given administrative access to reporting modules, but there may be instances where it might be

preferred that the agency pull periodic reports. Depending on frequency and total, a complete price will be provided.

Microsite:

A separately hosted campaign-driven site that can be used in lieu of a PURL or Landing Page. Microsites are normally less

than 12 pages and are launched and then taken down at a pre-determined future date. Costs can range from $10,000 - $50,000 depending on the number of pages and overall site functionality.

*These are the fees typically associated with executing a PURL/Landing Page campaign. For any other fees, or for custom applications, prices are better furnished upon an understanding of the deliverable. Source: Moddern Marketing – www.moddern.com.




2014 INTERNET MARKETING SALARIES


Manager Digital Marketing

The online channels are drawing many new recruits to the field of direct marketing. The traditional direct marketing manager’s sibling, the Manager Digital Marketing, has emerged as a very desirable position managing a source that is growing by leaps and bounds.

DUTIES: Accesses and utilizes all relevant research and sales support tools in order to stay current in the online marketplace. Drives sales and customer retention through the website experience. Recommends product, content and marketing programs to support company marketing plans. Monitors and reports on the online sales and traffic results for the website. Builds infrastructures and processes for enabling and executing web contacts. Works closely with the marketing and IT teams to drive and execute various projects.

Salary Range

Low $71,500

Average $82,700

High $91,400

Vice President Digital Marketing

The ability to respond quickly to trends in a rapidly changing environment is one that makes or breaks success in the interactive online world.

DUTIES: Responsible for providing strategy and direction for all online marketing strategies, including social media, branding, and communications. Oversees and directs online marketing channels, including paid and organic search initiatives, email marketing, and media partnerships potentially including mobile, social and video. Interact with top line management for both online and offline internal departments to drive continuous sales growth through the online channel. Oversees relationships with vendors, affiliates, and other companies’ that buy online leads. Manages and merchandising the company website, including user interface of the visual merchandising, product merchandising, site navigation and shoppability, transaction processing, onsite promotion management and site analytics.

Salary Range

Low $137,900

Average $162,700

High $188,400

Website Manager

The website is the storefront — or at least the corporate brochure — for the organization, and it takes a savvy professional to present it well. An effective Website Manager keeps them coming back again and again.

DUTIES: Responsible for developing and executing marketing communications, focusing on building the company’s website customer base. Responsible for growth of page impressions, unique users, web subscribers, and registered users against target. Studies the analysis of site traffic and user surveys to gain understanding of customer purchase patterns. Responsible for the overall “look and feel” of the website, and ensuring consistency with the company’s brand image. Manages copyright and management of digital licensing tied to content. Keeps abreast of web-related developments and evaluates new revenue opportunities.

Salary Range

Low $68,600 Average $80,500

High $91,300

Email Marketing Manager

There is no more “direct” response in direct marketing than the email channel. Campaign results can be determined with unprecedented speed, and adjusted accordingly. This person is responsible for all aspects of planning and execution, including calendar management, creative development, productions and analytics.

DUTIES: Drives and executes email marketing communications to create awareness and interest, resulting in customers returning to purchase new and additional products. Develops and executes regularly scheduled “push” campaigns and special promotions. Develops and oversees the executions of e-newsletters and other regularly scheduled e-marketing campaigns. Must have an understanding of CAN-SPAM. Interfaces with analytics, testing and CRM teams and is responsible for email service provider selection and vendor evaluation.

Salary Range

Low $70,200

Average $75,600

High $89,300

Please note: All salary information from Crandall Associates, Inc. is absolutely copyright-protected. This material may not be photocopied or otherwise reprinted in any other communication unless permission is directly granted by Crandall Associates, Inc. 516.767.6800.

Source: Crandall Associates, Inc. 2015.



DEMOGRAPHICS OF CONSUMERS PURCHASING ONLINE

Online Buyers

(000) % of Total

Total number of adults purchasing online 114,847 100%

Gender

Male 50,997 44.4%

Female

63,850

55.6%

Age

18 – 24 12,620 11.0%

25 –34 24,388 21.2%

35 – 44 23,507 20.5%

45 – 54 22,285 19.4%

55 – 64 19,309 16.8%

65+ 12,739 11.1%

Mean age 44

Education

Post graduate 21,535 18.8%

Graduated college 26,438 23.0%

Attended college 37,233 32.4%

Graduated high school 25,096 21.7%

Did not graduate high school 4,546 4.0%

Marital status — respondent

Never married 30,010 26.1%

Presently married 67,879 59.1%

Divorced/separated/widowed 16,958 14.8%

Employment status

Employed full-time (30+ hours) 68,750 59.9%

Employed part-time (<30 hours) 13,148 11.4%

Retired 13,159 11.5%

Homemaker 6,651 5.8%

Household income

<$10,000 3,312 2.9%

$10,000–$14,999 2,042 1.8%

$15,000–$24,999 4,225 3.7%

$25,000–$34,999 7,436 6.5%

$35,000–$49,999 12,651 11.0%

$50,000–$74,999 22,367 19.5%

$75,000–$99,999 19,179 16.7%

$100,000–$149,999 22,411 19.5%

$150,000–$249,999 14,417 12.6%

>$250,000 7,826 6.8%




DEMOGRAPHICS OF CONSUMERS PURCHASING ONLINE

(Continued)

Online Buyers

(000) % of Total

Number of adults in household

One 16,744 14.6%

Two 68,861 60.0%

Three or four 26,060 22.7%

Five or more 3,183 2.8%

Number of children

One 18,671 16.3%

Two 17,402 15.2%

Three or more 8,891 7.7%

None 69,884 60.8%

Presence of children by age

Under 2 years 7,244 6.3%

2 – 5 years 15,407 13.4%

6 – 11 years 18,222 15.9%

12 – 17 years 17,212 15.0%

Anyone in this household expecting a baby 3,177 2.8%

Census regions

Northeast 21,514 18.7%

Midwest 24,874 21.7%

South 40,305 35.1%

West 28,154 24.5%

Kind of residence

Own (any) 84,523 73.6%

Rent (any) 28,437 24.8%

Moved into present residence in last 12 months 9,763 8.5%




PURCHASING BEHAVIOR OF ONLINE BUYERS

Online Buyers

(000) % of Total

Total number of adults purchasing online (including mobile app) 114,847 100%

Types of merchandise purchased in last 3 months

Accessories 15,099 13.1%

Apparel —men’s 19,964 17.4%

Apparel — women’s 27,574 24.0%

Apparel — children’s 11,233 9.8%

Automotive products 7,674 6.7%

Airline tickets 17,564 15.3%

Hotels/tours 17,406 15.2%

Other travel services/packages 3,268 2.8%

Alcoholic beverages 2,238 1.9%

Baby supplies 5,800 5.0%

Banking/financial services 6,773 5.9%

Books/e-books 27,737 24.2%

Computers 3,552 3.1%

Other computer products (software/accessories) 8,827 7.7%

Cosmetics 7,624 6.6%

DVDS/ Blu-rays 14,041 12.2%

Electronics/appliances 10,256 8.9%

Flowers 5,340 4.6%

Food/groceries 7,100 6.2%

Footware/shoes 17,239 15.0%

Gardening 3,072 2.7%

Gourmet gift baskets/assortment 1,536 1.3%

Home furnishings 7,988 7.0%

Housewares 7,630 6.6%

Insurance 3,541 3.1%

Music (downloads/CDs) 17,394 15.1%

Office supplies 5,358 4.7%

Pet supplies/products 7,373 6.4%

Prescription drugs 8,785 7.6%

Other health/medical items 4,716 4.1%

Sporting goods/equipment 8,318 7.2%

Tickets for movies 8,172 7.1%

Tickets for concerts 9,450 8.2%

Tickets for sporting events 4,357 3.8%

Tickets for other events 5,521 4.8%

Toys/games 11,844 10.3%

Video games/systems 6,736 5.9%

Other products/services 19,559 17.0%




PERCENT OF ADULTS WITH INTERNET-CONNECTED TV

Source: Experian Marketing Services, “Cross-device Video Analysis.”

PERCENT OF ADULTS WHO FIND VIDEO ADS ON EACH DEVICE USEFUL

Source: Experian Marketing Services, “Cross-device Video Analysis.”

25%

30%

34%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2012 2013 2014

36%

17%

9%

39%

28%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

18 - 34 35 - 49 50+

Smartphone Tablet



DIGITAL AD SPENDING WORLDWIDE, 2013 – 2018

IN BILLIONS

Source: eMarketer, December 2014.

US DIGITAL AD SPENDING, 2013 – 2018

2017

2013 2014 2015 2016 2018

Digital ad spending (Billions)

$43.11 $50.73 $58.61 $67.09 $74.77 $82.96

Percent change YOY

17.1% 17.7% 15.5% 14.5% 11.4% 11.0%

Percent of total media ad spending 25.2% 28.2% 31.0% 33.5% 35.6% 37.5%

Note: Includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets, and includes all the various formats of advertising on those platforms; data through 2012 is derived from IAB/PwC data

Source: eMarketer, December 2014.

$121.47

$146.42

$170.50

$197.48

$224.34

$252.02

$0

$50

$100

$150

$200

$250

$300

2013 2014 2015 2016 2017 2018



SPENDING ON DIGITAL ADVERTISING, 2014 IN BILLIONS

Note: Social Technology and Services excludes social display and social search spend; Other Mobile excludes mobile display and mobile search spend.

Source: Winterberry Group analysis of multiple sources, 2015.

$24.2

$3.0 $2.1

$23.4

$2.1

$0.4

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

Search Social technologyand services

Lead generation &affiliate services

Display Email Other mobile



PREFERRED METHOD OF ACCESS TO MULTICHANNEL RETAILERS

Source: UPS Pulse of the Online Shopper Study, 2014.

APPEAL OF SHOPPING CONVENIENCES TO MILLENNIALS


4%

4%

7%

41%

44%

5%

10%

11%

13%

61%

0% 10% 20% 30% 40% 50% 60% 70%

Through a catalog (by calling or ordering through themail)

Online via smartphone (Internet browser or application)

Online via tablet (Internet browser or application)

In a physical store

Online via my desktop or laptop computer

Research ProductsPurchasing Products

33%

33%

35%

36%

37%

41%

41%

43%

0% 10% 20% 30% 40% 50%

In store mobile notifications or messages

Roaming checkout from an associate with a phone ortablet

A touch screen or voice activated sign to interact with toreceive information, make purchase or arrange delivery

Ability to purchase items in a window display for same-day delivery

Mobile checkout with my own phone or tablet while instore

Electronic shelf labels I can scan to learn more about theproduct, check availability or make a purchase

An in-store kiosk that allows you to order products thatare either out of stock in store or not sold in stores

Electronic receipts sent to me via email or text



IMPORTANCE OF OPTIONS WHEN CHECKING OUT ONLINE


ACTIONS TAKEN TO QUALIFY FOR FREE SHIPPING


81%

63% 62%

54% 51% 51% 50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Free shippingoptions

Provideestimated

delivery dateand shippingcosts early inthe process

Estimated orguaranteed

delivery date

Having avariety ofpaymentoptions

Remember me- save my

shopping cartitems and

orderinformation

Personal loginto save

purchasingpreferences

Order history,so I can see

everything I'vebought

16%

30%

31%

35%

47%

50%

58%

0% 10% 20% 30% 40% 50% 60% 70%

Purchase an alternative product that was pricedabove the retailer's free shipping threshold

Delay making my purchase to wait for a freeshipping offer

Join a loyalty program to qualify for free shipping

Choose ship-to-store

Search online for a promo code for free shipping

Choose slowest transit time offered on a retailer's sitebecause it's free

Add more items to a cart to qualify for free shipping



PREFERENCE IN DELIVERY LOCATION


DIGITAL MARKETING GOALS

Source: Demand Metric, “Digital Marketing: Targeting Audiences & Adopting New Strategies,” 2014.

2%

3%

4%

5%

5%

7%

74%

0% 20% 40% 60% 80%

Delivery locker

Another retail location such as a grocery orconvenience store

To another authorized pickup location (i.e. - The UPSStore)

To my workplace

Friend or family member

To the retailer's store from which I purchased theproduct online

To my home/residence

11%

49%

59%

73%

84%

0% 20% 40% 60% 80% 100%

Other goals

Growth of existing accounts

Lead nurturing

Branding

New customer acquisition



DIGITAL MARKETING SUCCESS METRICS


DIGITAL MARKETING CHALLENGES


8%

9%

33%

36%

37%

41%

49%

54%

55%

64%

0% 10% 20% 30% 40% 50% 60% 70%

Other

None

Program ROI

Sales opportunities identified

Marketing qualified leads

Impressions

Revenue generated

Number of inquiries

Pages views

Click-thrus

4%

14%

19%

25%

25%

28%

32%

35%

37%

39%

42%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Other challenges

Difficulty integrating with key systems

Difficulty selecting optimal channel mix

Ability to market to prospects in real-time

Difficulty measuring ROI

Cost

Conversion rates

Developing effective content or creative

Ability to precisely target prospects

Ability to better track and measure results

Lack of staff, technology, resources



THE CHANGING IMPORTANCE OF VIDEO AS CONTENT

Source: Demand Metric, “Video Content Marketing: Identifying Metrics & Measuring Impact,” 2014.

MARKETING VIDEOS PRODUCED ANNUALLY


0% 0%

5%

32%

63%

0%

10%

20%

30%

40%

50%

60%

70%

Far less important Somewhat lessimportant

Not changing Somewhat moreimportant

Far more important

25%

26%

32%

9%

8%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Less than 5

5 to 10

11 to 50

51 to 100

More than 100



CONVERSION PERFORMANCE OF VIDEO COMPARED TO OTHER CONTENT TYPES


HOW IS THE ROI OF VIDEO CHANGING?


0%

2%

27%

52%

19%

0% 10% 20% 30% 40% 50% 60%

Much worse

Somewhat worse

About the same

Somewhat better

Much better

26%

1%

25%

48%

0% 10% 20% 30% 40% 50%

Unknown

Declining

Same

Better



VIDEO CONTENT BUDGET


VIDEO AS LEAD QUALITY & OPPORTUNITY INDICATOR


1% 2%

28%

53%

16%

0%

10%

20%

30%

40%

50%

60%

Significantlydecreasing

Slightly decreasing Staying the same Slightly increasing Significantlyincreasing

9%

1%

3%

18%

52%

17%

0% 10% 20% 30% 40% 50% 60%

I don't know

Very ineffective

Somewhat ineffective

Neither effective/ineffective

Somewhat effective

Very effective



SINGLE MOST EXCITING OPPORTUNITY – 2014 VS. 2015

Source: Econsultancy and Adobe, “Adobe Quarterly Digital Intelligence Briefing: 2015 Digital Trends,” 2015. WE ARE GOING TO BE EXPERIMENTING HEAVILY WITH DIGITAL NEXT YEAR

Source: Econsultancy and Adobe, “Adobe Quarterly Digital Intelligence Briefing: 2015 Digital Trends,” 2015.

4%

10%

10%

10%

10%

18%

15%

20%

5%

6%

7%

7%

11%

11%

13%

15%

22%

0% 5% 10% 15% 20% 25%

Video

Marketing automation

Multichannel campaign management

Social

Big data

Personalization

Mobile

Content marketing

Customer experience

2015

2014

64% 69%

27% 21%

9% 10%

0%

20%

40%

60%

80%

100%

2014 2015

Agree Neutral Disagree



MONTHLY ONLINE RADIO LISTENING

Source: Edison Research, “The Infinite Dial,” 2015.

DEVICES USED TO LISTEN TO ONLINE RADIO


5% 7%

12%

17% 16% 15%

21% 20% 21%

27% 27%

34%

39%

45% 47%

53%

0%

10%

20%

30%

40%

50%

60%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% Listening to Online Radio in last month

66% 64%

34%

12%

2%

73%

61%

32%

18%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Smartphone Desktop/Laptop Tablet TV connected toInternet

Internet-connectedaudio system (e.g.,

Sonos)

2014 2015



CHANNEL MOST ESSENTIAL TO CONSUMERS


HOW IS YOUR ORGANIZATION’S DIGITAL MARKETING EFFECTIVENESS CHANGING?

Source: Ascend2 and Research Partners, “Digital Marketing Strategy,” September 2014.

42%

5%

14%

37%

54%

4%

9%

30%

0%

10%

20%

30%

40%

50%

60%

Internet Newspaper Radio Television

2010 2015

Effectiveness is Improving, 71%

Not changing or reached a plateau,

25%

Effectiveness is worsening, 4%



COMPARING THE MOST EFFECTIVE TACTICS USED WITH THE MOST DIFFICULT TACTICS TO EXECUTE

Source: Ascend2 and Research Partners, “Digital Marketing Strategy,” September 2014.

19%

34%

23%

42%

49%

39%

23%

11%

8%

9%

24%

38%

43%

47%

48%

54%

0% 10% 20% 30% 40% 50% 60%

E-commerce

Mobile/SMS

Paid search / PPC

Content

Social media

Search engine optimization

Website/blogs

Email




MARKETING TO SHOPPING CART ABANDONERS

Source: Multichannel Merchant, “MCM Outlook: E-commerce”, 2014.

62.9%

42.7%

20.2% 16.9%

14.5%

0%

10%

20%

30%

40%

50%

60%

70%

Email Retargeting Live chat Telemarketing Pop-up windowreminder



TOP GOALS OF WEBSITE REDESIGN

Source: Multichannel Merchant, “MCM Outlook: E-commerce,” 2014.

CHANGES IN DIGITAL MARKETING BUDGETS

Source: Mondo, “The Future of Digital Marketing”, 2015.

19.3%

27.7%

31.1%

31.1%

32.8%

46.2%

49.6%

52.9%

52.9%

64.7%

0% 10% 20% 30% 40% 50% 60% 70%

Cross-channel capabilities

Incorporate social media elements

Add advanced merchandising features

Increase use of personalization

Speed up/refine search function

Make navigation easier

Improve SEO

Increase conversion rate

Mobile/tablet responsive design

Update or refresh the look of the site

In the next 12-18 months, 80% will increase their digital

marketing budget



POSITIONS BEING HIRED IN THE NEXT 12-18 MONTHS

Source: Mondo, “The Future of Digital Marketing,” 2015.

22%

24%

27%

28%

30%

33%

44%

54%

0% 10% 20% 30% 40% 50% 60%

Product/Brand

Creative services

Operations

Search/SEO

Mobile strategy

Big data/analytics

Content creation

Digital/social



PROGRAMMATIC ADVERTISING CPM GROWTH – MOBILE VS. DESKTOP

Notes: Compares each day's CPM to annual average CPM to show i.e. (Day Average CPM/Sample Period Average CPM) 1multiplied by 100. Desktop includes data from desktop and laptop; mobile includes mobile and tablet. Source: sovrn, 2015.

Overview


Research

DA

TA

NO

NP

RO

FIT

RETA

IL

CA

TALO

G

MA

IL

SO

CIA

L

MO

BILE

SEA

RC

H

INTER

NET

EMA

IL

CO

NS

UM

ER

PO

STA

L

DIR

ECT

M

AR

KETIN

G

Chapter 6: Search

As the Statistical Fact Book goes to press, Google is rolling out its Mobile Usability algorithm update and search marketers worldwide are holding their breath to see what impact it will have. No different to prior years, the pace of change in search continues to be fast and furious. And with these changes comes the need for search marketers to display creative and technical dexterity in a

marketplace that is increasingly competitive, measurable, expensive

and sometimes whimsical. However, the one constant in the search landscape is the ever present demand for new leads. With this has come increasing CPCs as marketers fight for fewer and fewer quality leads - nobody goes to Google first to see if Amazon has the product they’re looking for - allowing Bing to become an increasingly viable and often more cost-effective network, albeit smaller, for certain keyword audiences. However, it is the significant impact of this latest algorithm update that is likely to make the headlines in 2015. It will set the stage for the coming years; impacting not only organic rankings for searches from smartphones (only for generic keywords), which is where the majority of search marketers have been focusing their time, and the conversation, but also on paid search campaigns. And with mobile usability being one of the signals that impact Q scores, it is hard to believe that the weighting of that mobile usability signal will not increase in line with the April 21st update and that organizations with paid media campaigns pointing to non-mobile friendly sites will find their CPCs increase, just to maintain current visibility levels. User First So while 2014 may have been seen as the ‘year of mobile’, the mobile usability update will once and for all draw a line under the


Research Chapter 6: Search

mobile-first “debate” and place ‘users first’ or ‘digital first’, depending on your perspective. The clear outcome from these changes will be increased pressure on marketers to deliver the content consumers want, whenever and wherever that may be, on their device/screen of choice; bringing with it the need for search marketers to ‘know their customer’ and related behavior by device/screen. And while landing page and conversion page web analytics data will be pored over to better understand how the smartphone user behaved, it will be the conversion path pages and exit pages that are key data points in delivering a better mobile user experience. Device Focus or Screen Size Focus And with smartphones being the focus of everyone’s attention, it begs the question, is it the device that is all important or the screen size? Sure, mobile usability is critical and Google wants users to have the optimal smartphone experience – or prepare to be penalized accordingly – but what about the ads and ad revenue from mobile. It comes as no shock to anybody that paid search advertising targeted to mobile devices is hard to justify, in ROI or ROAS terms, oftentimes due to the fact that some of the most important ad formats simply aren’t viewable on smartphones. How often do you see PLAs on your smartphone? How well do display ads render, if they render? So, if mobile usability is as much about ad viewability and clickability as it is user experience, don’t search marketers requires better metrics for the mobile audience? Better Metrics With discussions on attribution raging across marketing departments worldwide and the targeting of mobile still not delivering acceptable returns, search marketers should prepare for the ‘next’ metric from Google – multi-device conversion rate. It has been clear for some time that in search, one of the most measurable advertising medium on the planet, mobile ROI is the red-headed stepchild; treated and measured like desktop but yearning to be social, mobile ROI and mobile device targeting is often ignored because it simply doesn’t cut it when it comes to campaign ROI. Well, that’s about to end. With multi-device conversion metrics, mobile will at last have a metric that is reflective of its weight in the conversion path, calling for search marketers, website owners and UX specialists to analyze and respond to the any-device or any-screen user. Search Data and Tools The increasing limitation of search-term data available via 3rd party platforms continued in 2014. Search term data from AdWords stopped being available via 3rd party tags and as we head into 2015 and 2016 there is no reason to believe this trend will decline. At the same time, search terms, both organic and paid are available via Google’s tools and platforms, whose features and functionality are expanding on an almost monthly basis.



To that end, Webmaster Tools has become increasingly robust in recent times, accelerated by the mobile usability update, and is no longer just the domain of webmasters but provides mission critical information for digital marketers, including aggregated organic search queries. Alongside Webmaster Tools, Google Analytics’ capabilities make it increasingly hard to justify the harder to implement and more expensive enterprise web analytics platforms. And with the account-linking capabilities within the Google ecosystem, the combined analytics and reporting power means that regardless of incumbent systems and platforms, every search marketer should log on to these tools direct; if for no other reason than to see the data, reporting and views available, all of which will aid their search optimization efforts. The Role of Search Despite all of these changes, and the continued evolution of the tools available to search marketers, the role of search remains constant; being able to define, target and measure the pre-customer audience anywhere in the world using any language and know that every single searcher is undertaking a search with the idea of taking another action in order to do something else. And as all search specialists will agree, if you put the user first, and listen to what they want, when and where, search is the best real-time market testing and listening tool available!

Authored by: Scott Ellis SVP, Client Solutions Adworthy

Chapter Highlights

In 2014, a search engine marketing marketer made on average, $80,400.

Among marketers, quality content creation is not only the most effective SEO tactic but also the most difficult to execute.

The leading objective of SEO strategy in 2015 will be lead generation followed closely by increase web traffic and improve natural search rankings.

Roughly 1 in 5 searches on Google are related to location.

Google owned the majority (85.6%) of US mobile organic search in Q4 2014.



2014 SEARCH ENGINE MARKETING SALARIES


Search Engine Marketing Manager

One of the best ways to generate website traffic is through Search Engine Marketing. The SEM Manager works with the marketing and technical teams to create and manage pay-per-click advertising strategies and keyword research to maximize click value and the overall customer experience.

DUTIES: Responsible for PPC new keyword development and testing, and executing tactics that increase revenue, site traffic, conversion and margins. Manage day-to-day search marketing activities across multiple search engines (Google, Yahoo!, MSN, Bing, etc.) including the campaign planning, implementation, budget management and optimization of paid search campaigns. Responsible for bid optimization and monitors and analyzes campaigns to meet revenue, and traffic goals. Develops testing plans and implements new strategies and researches and manages affiliate and online advertising programs.

Salary Range

Low $71,800

Average $80,400

High $97,400

Search Engine Optimization Manager

Top 10 positioning in search engines is the most effective form of online marketing. Mystery shrouds how to accomplish this. Enter the Search Engine Optimization Manager.

DUTIES: With the vast majority of all new visitors to a website originating from major search engines, it is essential that every business implement a search engine optimization marketing campaign that allows customers to find them ahead of the competition. The Search Engine Optimization Manager develops and maintains keyword phrases that have a high amount of search traffic, conducts site analysis to ensure the site is user-friendly and optimized, reviews writing to maximize search engine ranking, and creates a program in which links are utilized. Domain name selection, link building and keyword research are of critical importance. It takes skill and time to ensure that the website is ranked above competitors, while still achieving maximum return on investment.

Salary Range

Low $70,400

Average $77,800

High $92,300

Please note: All salary information from Crandall Associates, Inc. is absolutely copyright protected. This material may not be photocopied or otherwise reprinted in any other communication unless permission is directly granted by Crandall Associates, Inc. 516.767.6800.

Source: Crandall Associates, Inc. 2015.


Research Research Chapter 6: Search

MOST EFFECTIVE SEO TACTICS VERSUS MOST DIFFICULT TO EXECUTE

Source: Ascend2 and Research Partners, “SEO Marketing Benchmark Summary Report,” 2014.

21%

13%

44%

32%

26%

29%

29%

47%

9%

17%

25%

28%

34%

37%

46%

57%

0% 20% 40% 60%

Mobile Search Optimization

Local Search Optimization

Link Building

Frequent Blogging

Social Media Integration

Frequent Website Updating

Keyword Research/Management

Quality Content Creation




MOST IMPORTANT OBJECTIVES FOR YOUR SEO STRATEGY IN THE YEAR AHEAD


MOST CHALLENGING OBSTACLES TO ACHIEVING IMPORTANT SEO OBJECTIVES


14%

21%

24%

29%

35%

53%

55%

55%

Improve analytics and reporting

Increase content development

Attribute sales revenue to SEO

Improve brand awareness

Increase traffic conversion rate

Improve natural search rankings

Increase website traffic

Increased lead generation

0% 10% 20% 30% 40% 50% 60%

18%

26%

27%

29%

30%

32%

40%

44%

Identifying new keywords

Lack of quality content

Optimizing content with keywords

Attributing sales to SEO

Lack of an effective strategy

Understanding search algorithms

Limited SEO skills in-house

Limited SEO budget

0% 10% 20% 30% 40% 50%



SATISFACTION WITH MONTHLY LEAD VOLUME

Source: Demand Metric, “Demand Generation & SEO: Identifying the Impact of SEO on Demand Generation,” 2014.

DEMAND GENERATION METRICS


7%

33% 35%

24%

1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Very dissatisfied Dissatisfied Neutral Satisfied Very satisfied

4%

24%

25%

35%

36%

36%

39%

48%

49%

65%

67%

69%

78%

Other metrics

Lead flow/volume

Cost of new customer acquisition

Cost per lead/qualified lead

Marketing Qualified Leads (MQLs)

Pipeline created

Sales Qualified Leads (SQLs)

Revenue generated

Leads by source

Conversion rates

Email open rates

Leads generated

Web traffic

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%



UNDERSTANDING OF DEMAND GENERATION ROI


DEMAND GENERATION INVESTMENT INCREASE OUTLOOK


6%

38%

42%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Very precise Within acceptableaccuracy range

Vague We don't know

50%

51%

55%

60%

62%

63%

74%

75%

83%

Content syndication

Online event/webinars

Paid media

Earned media

Email marketing

Landing page testing

Social media

SEO

Website experience

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%



LOCATION-RELATED SEARCHES ON GOOGLE

Source: Google, Think With Google Infographic, 2015.

SAME DAY DELIVERY-RELATED SEARCHES ON GOOGLE


NEARBY-RELATED SEARCHES ON GOOGLE


Roughly 1 in 5 searches on Google are related to

location.

Searches for "same day delivery" shopping grew

2x this past February compared to 2010.

Searches for "nearby" have grown 5x since 2011

as people look for what's around them.



GOOGLE SHARE OF US PAID SEARCH

Source: Merkle | RKG Q4 2014 Digital Marketing Report, 2015.

YEAR-OVER-YEAR GROWTH BY DEVICE CLASS


84.5% 81.9% 83.2%

79.9%

0%

20%

40%

60%

80%

100%

Ad Spend Clicks

2013-Q4 2014-Q4

78%

34%

14%

48%

28%

3%

20%

4%

11%

0%

20%

40%

60%

80%

100%

Phone Table Desktop

Ad Spend Clicks CPC



SHARE OF US MOBILE ORGANIC SEARCH BY ENGINE Q4 2014


Google, 85.6%

Yahoo, 8.4%

Bing, 5.6%



SEARCH SPEND GROWTH YOY BY QUARTER 2013 - 2014

Source: IgnitionOne,”Q4 2014 Digital Marketing Report,” 2015.

MOBILE SEARCH ADVERTISING YOY GROWTH BY DEVICE Q4 2014


1.7%

7%

12.6% 12.1%

8.3% 9.0%

2.1%

11.0%

0%

2%

4%

6%

8%

10%

12%

14%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

YoY

Change i

n S

pend

27%

69%

78%

33%

5%

50%

37% 37%

-9%

0%

-20%

0%

20%

40%

60%

80%

100%

Impressions Clicks Spend CTR CPC

Phone Tablet



Q4 2014 US MOBILE SEARCH SPEND SHARE BY DEVICE


SEARCH METRICS Q1 2015

Impressions Clicks Spend CTR CPC eCPM

YOY Total -19.6% 4.1% 25.5% 29.5% 20.6% 56.1%

QoQ Total -26.2% -9.1% 9.9% 23.2% 20.9% 49.0%

Google YOY -31.8% -3.2% 19.3% 40.6% 23.3% 73.3%

Yahoo YOY 31.2% 26.9% 46.1% -0.5% 15.2% 14.5%

Retail YOY -19.4% -3.7% -1.1% 19.4% 2.7% 22.6%

Travel YOY -27.7% 12.4% 21.9% 55.5% 8.5% 68.7%

Source: IgnitionOne, 2015.

Phone, 49.7% Tablet, 50.3%



SEARCH METRICS YEAR OVER YEAR – BY DEVICE Q1 2015

Impressions Clicks Spend CTR CPC eCPM

Computer -21% 7% 25% 35% 17% 57%

Mobile 26% 21% 81% -4% 49% 44%

Tablet 24% 13% 39% -9% 24% 12%


PROGRAMMATIC DISPLAY METRICS Q1 2015

Impressions Spend eCPM

YOY -18% 34% 64%

QOQ -6% -1% 5%


PROGRAMMATIC DISPLAY METRICS – BY VERTICAL Q1 2015


Retail YOY -20% 26% 58%

Auto YOY -27% 34% 82%

Travel YOY -10% 42% 58%


PROGRAMMATIC DISPLAY METRICS – BY PUBLISHER GROWTH YOY Q1 2015


Google 23% 21% -2%

Facebook -90% 46% 72%

All -6% 22% 27%




Which of the Following Types of Activities Does Your Organization Carry Out, or Manage on Behalf of Clients?

Source: SEMPO and Econsultancy, “State of Search Marketing Report 2013.”

89%

78%75%

63%

54%

50%

0%

20%

40%

60%

80%

100%

Search engineoptimization

(SEO/organic search)

Paid searchmarketing (pay-per-click/search engine

advertising)

Social mediamarketing (e.g. social

networks, Twitter,blogging)

Email marketing Digital displaymarketing

Mobile marketing



THE MOST IMPORTANT SUCCESS METRICS FOR SEARCH ENGINE OPTIMIZATION

What are the three most important metrics you use for gauging the success of search engine optimization?


0%

5%

27%

1%

19%

13%

11%

32%

18%

43%

79%

36%

5%

4%

4%

21%

5%

18%

12%

11%

39%

32%

34%

73%

35%

4%

0% 20% 40% 60% 80%

Cost of generating sale offline

Customersatisfaction/advocacy

Customer engagement

Return on ad spend

Brand Perception/awareness

Click-through rates

Value of sales/leads

Keyword rankings

Return on investment

Conversion rate

Traffic volume

Number of sales/leads

Profitability of sales

Agencies Companies



OBJECTIVES FOR SEARCH ENGINE OPTIMIZATION

What is the most important objective your clients are trying to achieve through search engine optimization?


38%

34%

21%

5%

2%

34%

26% 26%

11%

3%

22%

34%

29%

14%

1%

0%

10%

20%

30%

40%

To generate leads To drive traffic towebsite

To sell products,services or content

directly online

To increase brandawareness/enhance

reputation

To improvecustomer

service/customersatisfaction

2011 2012 2013



MOST IMPORTANT METRICS FOR MEASURING PAID SEARCH MARKETING

What are the three most important metrics you use for gauging the success of paid search marketing?


1%

1%

13%

26%

7%

24%

18%

7%

47%

65%

36%

34%

11%

3%

1%

7%

28%

6%

21%

20%

4%

53%

61%

29%

48%

12%

0% 10% 20% 30% 40% 50% 60% 70%

Cost of generating sale offline

Customer satisfaction/advocacy

Customer engagement

Return on ad spend

Brand perception/awareness

Click-through rates

Value of sales/leads

Keyword rankings

Return on investment

Conversion rate

Traffic volume

Number of sales/leads

Profitability of sales

Agencies Companies



Impacts of Trends and Technologies

In the context of your paid search marketing efforts, how would you describe the impact of the following trends and technologies?


55%

31% 26%

19%

8%

38%

53%

45%

47%

41%

7%

16%

29% 34%

51%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

The increased use ofmobile by consumers

Google's EnhancedCampaigns and

changes to AdWords

Integration withsocial media

Bid managementtechnology

Ad blocking

Highly Significant Significant Not Significant



OBJECTIVES FOR PAID SEARCH

What is the most important objective your clients are trying to achieve through paid search?


36%

44%

16%

3%

1%

32%

35%

18%

10%

5%

40%

36%

13%

9%

2%

0%

10%

20%

30%

40%

50%

To sell products,services or content

directly online

To generate leads To drive traffic towebsite


reputation

To improve customerservice/customer

satisfaction

2011 2012 2013



INTEGRATION OF SEO EFFORTS WITH DIGITAL MARKETING DISCIPLINES

To what degree are your SEO efforts integrated with the following digital marketing disciplines?


12%

20%

26%

46% 50%

53%

43%

56%

51%

38%

37% 34%

45%

24% 23%

16% 13% 13%

0%

20%

40%

60%

80%

100%

Contentmarketing

Paid searchmarketing

Social mediamarketing

Mobilemarketing

Email marketing Digital displaymarketing

Not Integrated Somewhat Integrated Highly Integrated

Overview


Research

DA

TA

NO

NP

RO

FIT

RETA

IL

CA

TALO

G

MA

IL

SO

CIA

L

MO

BILE

SEA

RC

H

INTER

NET

EMA

IL

CO

NS

UM

ER

PO

STA

L

DIR

ECT

M

AR

KETIN

G

Chapter 7: Email

Email Marketing in 2015: The More Things Change Repeat after me: People like email marketing. Last December, at the end of another tumultuous year for email marketers, I summed up my retrospectives with this important reminder. New technology and trends challenged marketers to keep up with consumers and mailbox providers, new best practices and rules emerged, and through it all email marketing continued to deliver exceptional ROI because people continued to respond positively to the commercial messages that reached their inboxes. They simply liked what marketers sent. In 2015, even as the email marketing landscape becomes more complex, this uncomplicated assertion is more obvious. This past holiday shopping season yielded the most recent evidence of consumers’ connection to email: People got more email from retailers, of course, but instead of showing signs of inbox overload or marketing fatigue, they responded by reading more, buying more, and complaining less. To mailbox providers and senders alike, the message was clear: Commercial email is broadly welcomed – even valued – by subscribers.

Marketers shouldn’t take all the credit, though. They owe a debt to mailbox providers whose increasingly accurate reputation-based and engagement-based filtering technology kept inboxes largely free from the clutter of truly unwanted messages that suppress response and erode trust. And reputable brands across the world still lost more than 13% of their messages to blocking and bulking. Navigating spam filters remains tough today, even for sophisticated senders with clear permission to contact consumers.


Research Chapter 7: Email

The definition of “reputable” has evolved, too. Our most recent research into how mailbox providers assess sending reputations revealed a massive shift away from the middle. Senders whose reputations were once good enough to avoid the worst deliverability problems are increasingly lumped in with the known bad actors. They’re struggling to reach consumers at all. Meanwhile, senders with very good reputations are struggling to reach the inbox with the consistency of their elite competitors. They’re falling behind the best senders in their categories. The top senders are also distancing themselves from the pack in fraud protection. A vanguard of the biggest and most progressive brands was already using authentication-based solutions to prevent phishing attacks from reaching subscribers at the start of 2015. Hundreds more have since followed their lead to authenticate their mailstreams and block suspicious messages using the DMARC standard. By this time next year subscribers are likely to notice which brands attract less fraud and which appear to place them at risk more often, but consumer perception may not be reluctant marketers’ biggest problem. Google issued a stark warning in February to senders that are slow to embrace authentication: DMARC records (or lack of DMARC records) may soon become part of Gmail’s inbox placement decisions, potentially restricting marketers’ access to their account holders. This is a key gatekeeper effectively telling senders, “If you won’t use readily available technology to protect your subscribers from fraud, we’ll do it for you.” That should sound ominous to many marketers, especially as other mailbox providers follow suit. Nevertheless progressive email marketers appear to be positioned for an exceptional year. Building awareness of email security and the brands doing the most to protect their users, increasing consumer control and continually more refined efforts by mailbox providers to deliver the messages that people want, and top senders’ commitment to maintaining great reputations are all contributing to a strong future for the most profitable channel. Don’t forget, though, that email marketing’s success ultimately hinges on one essential truth: People like it. Authored by:

Matt Blumberg Co-founder and CEO Return Path, Inc. DMA Board



Chapter Highlights

In 2013, 95.7% of adults 25 – 34 have a personal computer, and 80.4% have broadband access.

Subject line testing is the most popular (98%) among marketers followed closely by creative testing (95%).

84% of email subscribers want personalized emails.

As of Q4 2014, the majority – 52% – of opens now occur on either a smartphone or tablet.

80.1% of subscribers sign up to receive emails from a company because they want discounts.



HOUSEHOLD EMAIL CAPABILITY BY INCOME Entry Overview (Percentage of Households) Postal Fiscal Years 2012 and 2013

Capability Under $7K $7K–$9.9K $10K–$14.9K $15K–$19.9K

2012 2013 2012 2013 2012 2013 2012 2013

Have personal computer 48.6 63.1 46.1 56.8 48.6 58.3 62.2 65.3

Have Internet access 3.2 5.0 1.3 2.3 4.2 5.2 3.6 1.4

Have broadband access 30.6 47.4 38.9 33.6 36.9 39.9 49.3 53.5

62 2

Capability $20K–$24.9K $25K–$34.9K $35K–$49.9K $50K–$64.9K

2012 2013 2012 2013 2012 2013 2012 2013




Capability $65K–$79.9K $80K–$99.9K $100K–Over

2012 2013 2012 2013 2012 2013

Have personal computer 94.3 93.8 96.4 96.3 98.0 97.7

Have Internet access 2.7 2.2 1.5 1.9 1.1 1.4

Have broadband access 84.6 82.9 88.8 86.2 91.9 89.8

Note: Broadband access includes any form of Internet access other than dial-up.



Research Research Chapter 7: Email

HOUSEHOLD EMAIL CAPABILITY BY AGE OF HOUSEHOLD

Entry Overview (Percentage of Households) Postal Fiscal Years 2012 and 2013

Capability 18–21 22–24 25–34 35–44 45–54

2012 2013 2012 2013 2012 2013 2012 2013 2012 2013

Have personal computer 86.7 86.9 93.0 93.8 94.3 95.7 92.9 95.7 87.0 89.9

Have Internet access 0.0 5.8 0.0 2.3 1.2 0.6 2.1 1.4 3.5 2.5

Have broadband access 67.9 58.7 80.3 66.8 82.5 80.4 82.8 81.8 76.6 78.2

Capability 55–64 65–69 70–74 75+

2012 2013 2012 2013 2012 2013 2012 2013




72.8 Note: Broadband access includes any form of Internet access other than dial-up




CLICK RATES BY INDUSTRY

Source: MailerMailer LLC, “Email Marketing Metrics Report.” October 2014.

3.2%

2.3%

2.1%

0.4%

1.3%

2.7%

2.4%

2.6%

1.9%

1.3%

2.4%

2.0%

1.3%

2.6%

1.6%

1.5%

2.7%

2.6%

0.7%

0.8%

1.1%

3.3%

2.6%

1.2%

1.1%

2.1%

1.9%

2.1%

0.7%

1.8%

2.2%

3.6%

0.8%

1.1%

0% 1% 2% 3% 4%

Transportation

Sports, fitness & recreation

Science & biotechnology

Restaurant, bar & night club

Religious

Recruitment & staffing

Real estate

Pet & animal services

Other

Nutrition & pharmaceuticals

Museums & galleries

Marketing, advertising & PR

Manufacturing & distribution

Leisure, travel & tourism

Legal services

Journalism, publishing & printing

IT services

Home

Hobbies

Healthcare

Government & politics

Food, beverage & agriculture

Fashion & beauty

Family services

Event planning

Entertainment

Education

Deals & coupons

Computers, electronics & software

Business supplies & services

Association & organization

Arts & crafts

Architecture & construction

Accounting & finance



CLICK RATES BY PERSONALIZATION


CLICK RATES BY SUBJECT LINE LENGTH

In Characters


1.1%

3.1%

1.8%

3.4%

0%

1%

2%

3%

4%

5%

Subject line onlypersonalized

Message onlypersonalized

Not personalized Both subject line &message

personalized

Clic

k R

ate

2.4% 2.2% 2.1%1.6% 1.7%

0%

1%

2%

3%

4%

5%

4 to 15 16 to 27 28 to 39 40 to 50 51+

Clic

k R

ate



OPEN RATES BY PERSONALIZATION


NON-BOUNCE, OPEN AND CLICK RATES

Source: Epsilon, “Q4 2014 Email Trends and Benchmarks Study,” 2015.

9.8%

17.6%

11.4%

5.3%

0%

5%

10%

15%

20%

Subject line onlypersonalized

Message onlypersonalized

Not personalized Both subject line &message personalized

Ope

n R

ate

96.0% 96.4% 96.1% 95.7% 96.1% 96.4% 96.4% 96.0% 96.6%

27.4% 31.1% 28.5% 29.5% 30.9% 32.9% 30.8% 31.5% 32.2%

4.5% 5.1% 4.3% 4.5% 4.4% 4.3% 4.0% 4.0% 4.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Non-Bounce Open Rate Click-Through



MOST EFFECTIVE TACTIC FOR EMAIL LIST GROWTH PURPOSES VERSUS MOST DIFFICULT TO EXECUTE

Source: Ascend2/Research Partners, “Email List Growth Survey Summary Report.” January 2015.

11%

14%

20%

22%

29%

30%

42%

43%

21%

31%

39%

21%

40%

12%

22%

16%

0% 10% 20% 30% 40% 50%

Call Center / In-store Email Capture

Email Forward-to-a-Friend

Paid Search Campaigns

Purchase Process

Social Media Sharing

Upcoming Events

Content Downloads

Website Access

Most Difficult Tactics Most Effective Tactics



WHAT ARE THE MOST CHALLENGING OBSTACLES TO YOUR EMAIL LIST GROWTH SUCCESS?


WHAT IS THE AVERAGE NUMBER OF FIELDS YOU REQUIRE ON REGISTRATION FORMS USED FOR

EMAIL LIST GROWTH PURPOSES?


12%

17%

19%

23%

39%

40%

43%

44%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Unsubscribe rate

SPAM regulatory compliance

Social audience conversion

Externally sourced list quality

Strategy effectiveness

Email list hygiene/accuracy

List growth expertise

Content relevance/value

11%

61%

25%

4%

0%

10%

20%

30%

40%

50%

60%

70%

1 Field (Email Only) 2 to 4 Fields (Short Form) 5 to 7 Fields (MediumForms)

8 or More Fields (LongForm)



HOW EMAIL CUSTOMERS ARE SEGMENTED

Source: Experian, “The State of Cross-Channel Marketing Report,” December 2014.

88%

84% 82%

80% 78%

67%

57%

49% 47%

44%

38% 36%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



EMAIL REMARKETING CAMPAIGNS


HOW EMAIL CREATIVE IS OPTIMIZED


11%

16%

25%

26%

31%

40%

43%

44%

55%

67%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Browse on sale

Back in stock

Replenishment

Abandoned form or activity

None at this time

Category browse-based

Abandoned shopping cart series (more than one message)

Product browse-based

Thank you for purchase (not order or ship confirmation)

Abandoned shopping cart (one message)

12%

16%

22%

25%

27%

32%

35%

53%

53%

0% 10% 20% 30% 40% 50% 60%

We don't do any of these

Mobile Segmentation

Device versioning

We don't do any of these, but we plan on it

Movable Ink's Device Targeter

Promoting mobile applications

Rich text mobile version

Responsive design

Optimized email dimensions



TYPES OF EMAIL TESTS CONDUCTED


RETAILERS USING SHOPPING CART RECOVERY CAMPAIGNS

Source: Listrak, 2014 Research Report and Look Back. Sixth Annual Study of Email Tactics Used by the Internet Retailer1000.

8%

34%

37%

45%

46%

54%

55%

61%

64%

76%

77%

95%

98%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

I don't currently test

Multivariate

Friendly form

Mobile optimization

Number of products

Product placement

Pre-header text

Day of week

Frequency

Time of day

Call to action

Creative

Subject line

34.3%

32.7%

33.5%

32%

32%

33%

33%

34%

34%

35%

Top 500 Retailers Second 500 Retailers Total 1000 Retailers



WHAT EMAIL SUBSCRIBERS WANT

Source: Listrak, 2014 Research Report and Look Back. Sixth Annual Study of Email Tactics Used by the Internet Retailer1000.

84%

69%

82%

77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Want personalized emails Will share more personalinformation

Want more emails per weekas long as they're relevant

Are more likely to purchasefrom personalized email



EMAIL CAMPAIGN CADENCE – TOP 500 RETAILERS

MESSAGE ONE

MESSAGE TWO

MESSAGE THREE

MESSAGE FOUR

24.0%

42.7%

15.8%

9.4%

2.3%5.8%

0%

15%

30%

45%

Sent within onehour of

abandonment

Sent between 1‐24hours

Waited 2 days Waited 3 days Waited 4 days Waited 5 or moredays

41.7%35.2%

7.7%3.3%

12.1%

0%

15%

30%

45%

Sent within 24 hours offirst message

Waited 2 days Waited 3 days Waited 4 days Waited 5 or more days

13.2%

24.5%

4.5% 6.7%

51.1%

0%

15%

30%

45%

60%

Sent within 24 hours ofsecond message

Waited 2 days Waited 3 days Waited 4 days Waited 5 or more days

16.7%

41.6%

25.0%

16.7%

0%

15%

30%

45%

Sent within 24 hours of thirdmessage

Sent between 2‐7 days Sent between 8‐14 days Sent over 15 days



AMOUNT OF US EMAILS SENT PER MONTH AS PART OF MARKETING EFFORTS OR TRANSACTIONAL

AND BUSINESS EMAIL

Source: Mailjet & Radius, Global Email Marketing Research Study, November 2014.

AMOUNT OF US EMAILS SENT PER MONTH AS PART OF MARKETING EFFORTS OR TRANSACTIONAL

AND BUSINESS EMAIL


11%

14%

18%

25%

31%

0% 5% 10% 15% 20% 25% 30% 35%

2,500,000+

2,000,000 - 2,499,999

1,500,000 - 1,999,999

1,000,000 - 1,499,999

500,000 - 999,999

35% 34% 34%

28% 28% 28% 27%

26%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Account for newproduct releases

It's part of ourbusiness

model/policy

Communicateimportant

company/industrynews

Account for theseason

Account forholiday periods

Account for largeevents

Consumers opt-infor more contact

Geographicalreasons



PERCENT OF US COMPANIES WHO USED A TOOL OR FEATURE IN PAST 12 MONTHS


31%

33%

35%

34%

33%

32%

34%

35%

40%

37%

38%

32%

42%

38%

36%

37%

0% 10% 20% 30% 40% 50%

Historical campaign comparison

Ability to adjust email frequency

Dedicated IPs

Social media integration

Email inbox preview

Real-time analytics

Whitelists

Customizable email templates

Custom landing pages

Autoresponders

24/7 customer service

Subscriber segmentation

Email/campaign tracking and reporting

Email delivery alerts

Email personalization

HTML editor



MOBILE EMAIL OPENS IN 2014

Source: LiveIntent, 2014.

MOBILE EMAIL OPENS IN 2014


MOBILE EMAIL OPENS IN 2014 - WOMEN


MOBILE EMAIL OPENS IN 2014 - MEN


Mobile (tablet and smartphone) email opens

grew 49% over the course of 2014

As of Q4 2014, the majority – 52% – of opens now occur on either a smartphone or

tablet.

Women opened an average 94% more emails

on tablets than smartphones.

Men opened an average 103% more emails on

tablets than smartphones.



REASONS FOR SIGNING UP TO RECEIVE EMAIL FROM COMPANIES SEEKING BUSINESS

Source: BlueHornet, “Consumer Views of Email Marketing,” 2014.

TYPES OF DISCOUNTS OR OFFERS PREFERRED


1.1%

4.6%

27.3%

29.9%

30.7%

35.9%

80.1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Other

I don't sign up for emails

To particpate in product research

If I love the brand

To get product/service updates

To receive tailored/exclusive offers

To receive discounts

2.8%

8.1%

22.4%

24.8%

42.0%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Other

Buy one, get one (BOGO)

A percentage discount

Free shipping

Money off the price



HOW COMFORTABLE ARE YOU PROVIDING EACH OF THESE PERSONAL INFORMATION ELEMENTS TO

A COMPANY THAT HAS PRODUCTS OR SERVICES YOU ARE CONSIDERING PURCHASING? (ON A SCALE OF 1 TO 7, WHERE 1 IS LEAST AND 7 IS MOST COMFORTABLE)


TYPES OF WELCOME MESSAGES

Source: Return Path, “How America’s Top Retails Set the Tone with Welcome Emails,” 2014.

3.1

3.5

4.2

4.9

4.9

5.1

5.3

0 1 2 3 4 5 6 7

Credit card number

Phone number

Physical address

Age

Name

Email

Gender

Offer, 25%

Other, 2%

Preferences, 4%

Thank you, 3%

Welcome, 64%

Confirmation, 1%



TYPES OF DISCOUNTS

Source: Return Path, “How America’s Top Retails Set the Tone with Welcome Emails,” 2014.

INBOX PLACEMENT RATES

Source: Return Path, “Inbox Placement Benchmark Report,” 2014.

25% discount, 1% 20% discount, 6%

15% discount, 24%

10% discount, 64%

Inbox, 83%

Spam, 6%

15% discount, 11%



INBOX PLACEMENT BY INDUSTRY

Source: Return Path, “Inbox Placement Benchmark Report,” 2014.

84%

82%

70%

43%

90%

81%

90%

74%

92%

87%

96%

91%

87%

86%

77%

84%

87%

79%

91%

91%

0% 20% 40% 60% 80% 100%

Travel, recreation, and leisure

Telecommunications

Technology

Software & Internet

Retail

Publishing, broadcast, Internet

Not For profit

Media & entertainment

Insurance

Hospitality

Health and beauty

Food & beverage

Finance

Education

Consumer services

Communications

Business services

Biotechnology

Automotive

Apparel



COMPLAINTS PER 10,000 MESSAGES

Source: Return Path, “State of the Inbox, Quarterly Snapshot: Q4 2014.”

DAILY MESSAGES RECEIVED (INBOX ONLY)

Source: Return Path, “State of the Inbox, Quarterly Snapshot: Q4 2014.”

63

70

84

72

109 109

0

20

40

60

80

100

120

Shopping Travel Finance News Entertainment Business

46%

25%

9% 6%

14%

0%

10%

20%

30%

40%

50%

60%

<6 6-10 11-15 16-20 >20



TOTAL DATA SPEND FOR EMAIL

In Billions


FROM WHICH OF THE FOLLOWING PLACES HAVE YOU MADE PURCHASES THAT WERE INFLUENCED

BY A COMPANY’S EMAIL?

Source: MarketingSherpa, 2015.

20% 22%

12%

8% 6%

1%

31%

0%

5%

10%

15%

20%

25%

30%

35%

Online only Primarily online,but also

occasionally in astore or over the

phone

Equally onlineand in a store orover the phone

Primarily in astore or over the

phone, butoccasionally

online

Only in a store orover the phone

Other I have nevermade purchases

that wereinfluenced by acompany's email

$0.24 $0.30

$0.37

$0.71

$0.94

$1.07

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

2010 2011 2012 2013 2014 2015E



HOW OFTEN WOULD YOU LIKE TO RECEIVE PROMOTIONAL EMAILS FROM COMPANIES THAT YOU

DO BUSINESS WITH?


86%

61%

15%

10%

4%

32%

9%

16%

4% 1%

9%

0%

20%

40%

60%

80%

100%

At leastmonthly

(Sub-Net)

At leastweekly

(Sub-Net)

Daily Twice aweek

Three timesa week

Weekly Twice amonth

Monthly Quarterly(once

every 3months)

Yearly Never



WHAT ARE YOUR VIEWS OF REMINDER EMAILS THAT TELL YOU WHEN YOU HAVE AN ITEM IN YOUR ONLINE SHOPPING CART THAT HAS NOT YET BEEN PURCHASED?


12%

5%

16%

8%

4%

2%

3%

17%

10%

12%

7%

6%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

I have never received an email reminder

None

They are annoying, and I wish brands would stopsending them

They are annoying, but I occasionally complete thepurchase after receiving them if there is a discount in

the email

They are annoying, but I occasionally complete thepurchase after receiving them

They are annoying, but I always complete thepurchase after receiving them if there is a discount in

the email

They are annoying, but I always complete thepurchase after receiving them

They are helpful, but do not affect my decision topurchase

They are helpful, and I occasionally complete thepurchase after receiving if there is a discount in the

email

They are helpful, and I occasionally complete thepurchase after receiving them

They are helpful, and I always complete the purchaseafter receiving if there is a discount in the email

They are helpful, and I always complete the purchaseafter receiving



IN WHICH OF THE WAYS WOULD YOU LIKE COMPANY EMAILS TO CHANGE?


15%

1%

7%

10%

12%

14%

6%

25%

1%

30%

6%

29%

20%

28%

0% 5% 10% 15% 20% 25% 30% 35%

None - I would not like company emails to change at all

Other

Send more text-only emails

Send fewer text-only emails

Send more visual emails (e.g. images, videos)

Send fewer visual emails (e.g., images, videos)

Send more non-promotional emails (e.g., newsletters,articles, videos, contests)

Send fewer non-promotional emails (e.g., newsletters,articles, videos, contests)

Send longer emails

Send shorter emails

Send emails less personalized to my individualpreferences and behavior

Send emails more personalized to my individualpreferences and behavior

Send fewer promotional emails (e.g., coupons, salesnotifications)

Send more promotional emails (e.g., coupons, salesnotifications)

Overview


Research

DA

TA

NO

NP

RO

FIT

RETA

IL

CA

TALO

G

MA

IL

SO

CIA

L

MO

BILE

SEA

RC

H

INTER

NET

EMA

IL

CO

NS

UM

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PO

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KETIN

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Chapter 8: Mobile Marketing

Entropic forces – natural forces that lead to a lack of order or predictability – rule the marketplace. In order to understand the marketplace and to create order and predictability, leading marketers, regardless of their size, understand that marketing is a data science. For decades, marketers like Procter & Gamble,

Walmart, The Coca-Cola Company, and the unnamed thousands

from around the world, have used, and in many cases invented, qualitative and quantitative research methodologies to generate data and insight around the effectiveness of their marketing efforts. They use these methodologies to generate inalienable facts, truths rather than subjective interpretations, around the current and future state of consumer's needs and the effectiveness of their marketing to fulfill those needs. They constantly adjust their methods to test, validate and revise their facts, their truths, to ensure that their understanding remains viable within an ever-evolving marketplace, as they strive to achieve the ultimate goal of marketing: to connect buyers and sellers through the exchange of mutual value with maximum effect and efficiency for both parties. Marketing science fights an ongoing battle against entropic forces while striving to achieve and maintain equilibrium. Marketers are constantly at risk of using too little or too many resources in an effort to achieve their goals. But to be truly successful, marketers must strive to apply the appropriate amount of resources to a given situation when working toward their goal. If they use too many resources they’re being wasteful, while if they use too few resources, they’re not taking full advantage of the opportunity. If they use the “right” amount of resources to achieve the goal, they may find a state of equilibrium.


Research Chapter 8: Mobile Marketing

In the digital era, marketing science is not getting any easier. In fact, it’s getting harder, more complicated and faster. Report after report informs and reinforces the fact that consumers’ media consumption patterns have irrevocably changed forever – consequence of their adoption and use of mobile phones and connected devices (tablets, fitness monitors, digital display, SmartTVs, cars, watches, etc.). People are spreading their attention across an ever-expanding number of devices along with countless forms of traditional media and digital enhanced media. Moreover, with the onslaught of new media, including social media, games and niche web, application and messaging channels serving a near infinite set of interests and demands, consumer attention is at a premium. Mobile Marketer magazine recently reported how an executive from GFK, a global leader in consumer insight, noted that the average attention span of consumers has dropped from about 12 minutes nearly two decades ago to eight seconds today. This blip of time is slightly less than the attention of the average goldfish. In other words, you have less than eight seconds to grab someone's attention, engage them and start to influence their behaviors or more specifically, to refocus them from being an unaware/anonymous shopper into a highly-aware and engaged loyal advocate. This is something we at mCordis refer to as the practice of Directed Shopping. While marketing in the digital era is increasingly more complex, it can also be deceptively simple. For example, Kimberly Clark has organized their marketing into four simple pillars: media, content, data and commerce. And, they have learned to influence commerce as a function of data-informed content that leads to effective storytelling in media (owned, paid, earned and shared media).

This framework is exactly what leading marketers are doing with the adoption of cutting edge solutions like programmatic advertising, content marketing and hyper-personalized SMS, MMS and push notification messaging. What’s unique about today’s digital age is the real-time signals, the digital exhaust that consumers are generating as they move through the digital and physical realms. Like crude oil, cutting-edge marketers are capturing a consumer’s digital exhaust, analyzing and refining and repurposing it so that they can engage consumers at real-time moments that matter. Marketers are shifting from “hope and trust,” to “test and learn” marketing. For example, in the advertising context, marketers no longer have to buy media in advance based on fixed media modeling while hoping the media mix is the right one and settling for average results of uncertain value. Instead, marketers can leverage automated systems that, in real-time, leverage data to place relevant ads, offers and messages (aka content) when and where an individual customer is most likely to respond, i.e., in the



grocery aisle after they’ve stood in front of a product for more than eight to thirty seconds. This customer-centric approach to marketing and advertising is driving results that matter to marketers - i.e., views, subscriptions, downloads, installs, store visits, and purchases—and delivering value to people. This new data-driven, fact-based approach to marketing is also shifting the marketer’s needs away from traditional paid media approaches. A few years ago, The Coca-Cola Company launched what it refers to as the Coca-Cola 2020 initiative – an initiative that has the company focusing more on creating relevant content to have a conversation with their customers rather than simply relying on mass-market paid media to generate awareness that can’t be measured. Adidas, Taco Bell, Dell Computers and countless others are also adopting this practice. Taco Bell's CMO Chris Brandt last month remarked, “people don’t necessarily want to be marketed to, so brands should look to create engagement and conversations at every consumer touch point.” (March, 2015). As illustrated by Gupta, data and facts are at the heart of modern marketing. In order to know what someone might find engaging

and to validate what they do, requires a discipline of listing and

response, a discipline in the digital-marketing world that takes advanced data measurement, management and marketing automation skills. Amazon, for instance, reportedly updates its website every 11 seconds in order to experiment, collect data, and optimize the experience it is giving its visitors. In a data-driven marketplace, marketers must adopt a test-and-learn strategy that includes data collection, listening and response. It is not getting any easier; it is just getting faster as consumers move throughout their lives in a constant circadian rhythm between digital and physical states. As we leave behind the age of “Mad Men”, an age characterized by creativity and messaging, and enter the age of “Math Men”, we will find that marketers can generate and leverage an ever-widening array of data and facts like those reported in this year’s Direct Marketing Association Statistical Fact Book. It is imperative that every marketer recognizes that marketing is a data science and begin to leverage facts to help guide their marketing journey. Authored by:

Michael J. Becker Co-founder & Managing Partner mCordis LLC



Chapter Highlights

Nearly 93 million US adults will use mobile coupons this year.

US Retail M-commerce sales will reach $76.79 billion in 2015.

Of all time spent on mobile apps, consumers spend 25% on social networking.

The number of mobile-connected devices exceeded the world’s population in 2014.

Almost 70% of consumers say they prefer business to communicate to them via email.


Research Research Chapter 8: Mobile Marketing

US ADULT MOBILE COUPON USERS, 2013 - 2016

Numbers in Millions

Note: Digital coupon users are Internet users who redeemed a digital coupon/code via any device for online or offline shopping at least once during the calendar year; includes group-buying coupons. Methodology: Estimates are based on the analysis of survey data from research firms, historical trends, company-specific data, and Internet and mobile adoption trends.

Source: eMarketer, November, 2014.

USE OF MOBILE PHONE FUNCTIONS

Source: USC Annenberg School Center for the Digital Future, “The 2014 Digital Future Report.”

61.4

78.7

92.5

104.1

0

20

40

60

80

100

120

2013 2014 2015 2016

54% 52%

20% 18%

62% 60%

23% 23%

82% 79%

43%

59%

77%

70%

43%

59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Text Messaging Take Pictures Play Games Access the Internet

2009 2010 2012 2013



WHAT TYPES OF MOBILE ADVERTISING IS YOUR COMPANY ENGAGED IN?


US RETAIL M-COMMERCE SALES, 2013 - 2019 NUMBERS IN BILLIONS

Note: Includes products or services ordered using the internet via mobile devices, regardless of the method of payment or fulfillment; excludes travel and event ticket sales; includes sales on tablets.

Source: eMarketer, February, 2015.

48%

56%

31% 33%

23%

54%

2%

44% 39%

20% 18% 15% 14%

39%

0% 0%

10%

20%

30%

40%

50%

60%

Mobile displayadvertising(banners)

Mobile searchmarketing

Location-basedtargeting

In-appadvertising

Push notifications Mobile displayadvertising

(video)

None of theabove

Other

2013 2014

$42.28

$58.07

$76.79

$98.61

$115.06

$133.35

$153.50

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

2013 2014 2015 2016 2017 2018 2019



US RETAIL M-COMMERCE SALES, BY DEVICE, 2013 - 2019

NUMBERS IN BILLIONS

2013 2014 2015 2016 2017 2018 2019

Tablet $26.43 $38.21 $52.22 $69.32 $82.27 $96.79 $112.76

% change 88.4% 44.6% 36.7% 32.8% 18.7% 17.6% 16.5%

Smartphone $14.80 $18.58 $23.04 $27.61 $31.07 $34.80 $38.96

% change 48.3% 25.6% 24.0% 19.8% 12.5% 12.0% 11.9%

Other mobile devices $1.06 $1.28 $1.54 $1.68 $1.73 $1.76 $1.78

% change 11.5% 20.9% 20.2% 9.1% 3.0% 2.0% 1.2%

Total $42.28 $58.07 $76.79 $98.61 $115.06 $113.35 $153.50

% change 69.4% 37.3% 32.2% 28.4% 16.7% 15.9% 15.1%

Note: Includes products or services ordered using the Internet via mobile devices, regardless of the method of payment or fulfillment; excludes travel and event ticket sales.

Source: eMarketer, February 2015.

HOW OFTEN DO YOU INCORPORATE MOBILE PROMOTIONS INTO YOUR ANNUAL MARKETING

CALENDAR?

Source: ChiefMarketer.com, 2014.

Not at all, 40%

Annually, 9%

Monthly, 19%

Quarterly, 22%

Weekly, 10%



WHAT PERCENTAGE OF YOUR TOTAL MARKETING BUDGET WILL GO TO MOBILE IN 2014?


WHAT CAN USERS DO WITH YOUR APP?


12.0%

21.0%

18.0%

40.0%

29.0%

11.0%

24.0%

27.0%

26.0%

38.0%

0% 10% 20% 30% 40% 50% 60%

Interact with other users

See live event info

Reviews/ratings

Get product specs

View video

Play a game

Access social channels

Customer service

Get a price quote

See a product demo

65%

17%

9% 5%

2% 2%

0%

10%

20%

30%

40%

50%

60%

70%

0-10% 11-20% 21-30% 31-50% 51-70% 71-100%



WHAT ARE YOUR AIMS FOR YOUR MOBILE APPS?


11%

10%

10%

12%

25%

26%

15%

24%

24%

15%

16%

24%

24%

12%

37%

43%

58%

28%

27%

0% 10% 20% 30% 40% 50% 60%

Other

Geographic location site/app accessed from

Time of day mobile site or app accessed

Type of device used to access mobile site/app

Email/other non-mobile sign-ups

Leads generated via mobile

Incremental sales via mobile

Content engagement

Bar code/QR/tag scans

Mobile coupons/offer redemptions

App engagement

App downloads

Opt-ins to receive alerts, other messaging

In-store traffic

Traffic pass-through to main website

Mobile site traffic

Click-throughs

Text message opens

Ad impressions



TOTAL US INTERNET USAGE IN MINUTES (BILLIONS) BY PLATFORM

Source: comScore, “The State of Mobile,” 2014.

SHARE OF MOBILE APP TIME SPENT

Source: comScore Mobile Metrix, U.S., Age 18+, June 2014.

401 429 495

131

442

521

11

124

143

0

200

400

600

800

1,000

1,200

December 2010 December 2013 July 2014

Desktop Smartphone Tablet

34%

25%

16%

8%

5%

5%

4% 4%

All Others

Social Networking

Games

Radio

Multimedia

Retail

Instant Messengers

Photos



M-COMMERCE SHARE OF TOTAL DIGITAL COMMERCE DOLLARS

Source: comScore m-Commerce Measurement, 2014.

1.8%

2.4%

3.6%

5.8%

6.6%

8.8%

9.0%

9.3%

8.1%

9.8%

11.3%

10.5%

8.6%

10.8%

11.7%

11.5%

11.1%

0% 2% 4% 6% 8% 10% 12% 14%

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014



TOP 15 SMARTPHONE APPS

Source: comScore, November 2014.

19.3%

19.8%

20.2%

20.6%

21.3%

21.4%

30.7%

40.3%

40.9%

41.8%

43.1%

50.8%

51.8%

52.1%

69.0%

0% 10% 20% 30% 40% 50% 60% 70%

Google+

iTunes Radio / iCloud

Amazon Mobile

Yahoo Stocks

Twitter

Apple Maps

Instagram

Gmail

Google Maps

Pandora Radio

Facebook Messenger

YouTube

Google Search

Google Play

Facebook

% Reach



MOBILE ENGAGEMENT* FREQUENCY

*Mobile engagement is when a customer chooses to connect with a business, either due to convenience or circumstance, in order to seek support for an issue or to assist them in researching and transacting business with the firm in question. Source: LogMeIn, “Effective Mobile Engagement,” 2014.

37%

33%

32%

31%

30%

34%

32%

32%

15%

14%

16%

13%

14%

28%

22%

15%

5%

5%

5%

5%

5%

10%

7%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80%

To ask a general question

To seek billing support

To make changes to account

To seek technical support about my mobile device

To see technical support about another product

To research products of services before buying

To actually buy products or services

To inquire about post-purchase issues

Sometimes Often All the time



MOBILE ENGAGEMENT* TIME OF DAY

*Mobile engagement is when a customer chooses to connect with a business, either due to convenience or circumstance, in order to seek support for an issue or to assist them in researching and transacting business with the firm in question. Source: LogMeIn, “Effective Mobile Engagement”, 2014.

MOBILE CHANNEL PREFERENCE

Preferred Mobile Contact Method Sales Support

Email 1 2

Voice call 2 1

Text message 3 3

Live chat 4 4

Social media 5 5 Mobile engagement is when a customer chooses to connect with a business, either due to convenience or circumstance, in order to seek support for an issue or to assist them in researching and transacting business with the firm in question. Source: LogMeIn, “Effective Mobile Engagement,” 2014.

17%

7%

4%

12%

4%

31%

25%

9%

35%

8% 8%

12%

6%

25%

7%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

When I thinkof something Ineed/when Iexperience

an issue

In the morningbefore work

In the morningat work

At lunch In theafternoon at

work

In the eveningafter work

Over theweekend

Work

Shop Seek Support



MONTHLY GLOBAL MOBILE DATA TRAFFIC

Source: Cisco Visual Networking Index [or VNI] Global Mobile Data Forecast, 2014–2019, 2015.

MOBILE-CONNECTED DEVICES Source: Cisco Visual Networking Index [or VNI] Global Mobile Data Forecast, 2014–2019, 2015.

SMARTPHONES AND MOBILE DATA TRAFFIC Source: Cisco Visual Networking Index [or VNI] Global Mobile Data Forecast, 2014–2019, 2015.

Monthly global mobile data traffic will surpass

24.3 exabytes by 2019.

The number of mobile-connected devices

exceeded the world’s population in 2014.

Because of increased usage on smartphones, they will reach three-quarters of mobile data

traffic by 2019.



OPINIONS ON ACCESS TO PROTECTIONS FOR ADVERTISING-RELATED DATA COLLECTION Thinking about your Internet surfing, do you think you should have access to similar protections and controls for advertising-related data collection (such as opt-out) on your smartphone or tablet that are available on desktop and laptop computers?

Source: Zogby Interactive Survey of 1,015 US adults, 10/03/15-10/05/14, Margin of Error +/-3.1 Percentage Points. Commissioned by Digital Advertising Alliance. OPINIONS ON TOOLS THAT PROVIDE TRANSPARENCY AND CONTROL OVER HOW DATA IS COLLECTED ON MOBILE DEVICES How do you feel about the following statement: Tools that provide me with transparency and control over how data is collected on my mobile device should disclose the identities of the companies serving relevant ads, and give me the option to choose which companies’ relevant ads I want to see (if any)?

Source: Zogby Interactive Survey of 1,015 US adults, 10/03/15-10/05/14, Margin of Error +/-3.1 Percentage Points. Commissioned by Digital Advertising Alliance.

Yes, 66.4%No, 7.6%

No opinion, 25.6%

46.3%

20.6%

15.5%

2.9%

1.5%

13.2%

Strongly agree

Somewhat agree

Neither agree nordisagree

Somewhat disagree

Strongly disagree

Not sure



APPEAL OF MOBILE APPS If you download mobile apps for your mobile phone or tablet, which of the following apps do you find most appealing?

Source: Zogby Interactive Survey of 1,015 US adults, 10/03/15-10/05/14, Margin of Error +/-3.1 Percentage Points. Commissioned by Digital Advertising Alliance. FREE MOBILE APPS Thinking of the free apps on your mobile devices, what percentage of them would you download again if you were required to pay for them?

Source: Zogby Interactive Survey of 1,015 US adults, 10/03/15-10/05/14, Margin of Error +/-3.1 Percentage Points. Commissioned by Digital Advertising Alliance.

Free or low-cost apps that are supported by

in-app ads, 35.7%

Free or low-cost apps that are supported by in-app purchases (such as games that prompt

you to make real-money purchaes to score more points),

10.1%More expensive apps that have no ads or in-app purchases, 2.7%

Do not download apps, 39.6%

No opinion, 11.9%

100 percent, 8.1%

About 75 percent, 6.8%

About 50 percent, 6.6%

About 25 percent, 15.1%None, 46.4%

No opinion, 17.0%



WHAT WOULD MAKE YOU MORE LIKELY TO SHOP ON MOBILE?

Source: Fluent, “Mobile Shopping Survey,” 2015.

MOBILE PURCHASES BY DEVICE

Source: Fluent, “Mobile Shopping Survey,” 2015.

17.6%

9.7%

15.8%

26.7%

30.2%

19.7%

12.5%

17.7%

21.5%

28.6%

0%

5%

10%

15%

20%

25%

30%

35%

Faster loading pages Easier navigation One-click purchase Increased security Other

Android IOS

47.7%

27.7%

12.1% 10.7%

1.8%

40.9%

26.4%

11.8%

18.7%

2.3%

0%

10%

20%

30%

40%

50%

60%

None 1-3 4-6 7+ N/A

Android IOS



MOBILE PHONE ACTIVITY BY DEVICE

Source: Fluent, “Mobile Shopping Survey,” 2015. WHAT WOULD BE THE RIGHT NUMBER OF TEXT MESSAGES PER MONTH THAT WOULD KEEP YOU ENGAGED AND OPTED IN?


28.9%

24.0%

5.6%4.0%

2.5%

14.0%

8.0%

13.0%

28.1%

26.0%

7.7%

4.1%2.5%

14.0%

5.5%

11.7%

0%

5%

10%

15%

20%

25%

30%

35%

Email Gaming Photos Shopping Social Surfing Voice None

Android IOS

1.0%

1.3%

8.4%

89.3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

8+ per week

6 to 8 per week

3 to 5 per week

1 to 2 per week



IF YOU COULD SELECT A COMMUNICATION PREFERENCE FROM A BUSINESS, WHICH WOULD YOU

CHOOSE?


Email, 69.7%

Direct Mail, 17.7%

Email & SMS

(Both), 5.2%

None, 5.0%

SMS, 1.8% Other, 0.7%

Overview


Research

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Chapter 9: Social Media

As social media continues to move well beyond megatrend and into commonplace business practice, it is important that we consider how far we have come and where social strategy is going. Reviewing the latest statistics, social media continues to permeate all aspects of connectivity to consumers and businesses – from mobile devices and “wearable” innovations, to healthy lifestyles and brand recognition:

Sixty four percent of businesses believe that social media offers a strong ROI, and have increased their marketing staff and budget accordingly.

Relying on social marketing to improve brand recognition continues to be the most popular strategy, with 77 percent of businesses listing it as their most important objective.

Seventy three percent of the youth segment thinks it is appropriate for company brands to interact with customers via social media.

The healthcare industry continues to grow in relevancy, with an engagement (response rate) of 16 percent in the social market.

Forty three percent of millennials share great deals on products through social media, almost on par with traditional coupons.

Facebook continues to lead the social marketplace with an overall usage rate of 94 percent, followed by Twitter (83 percent) and LinkedIn (71 percent).

Forty percent of adults access social media messaging through their phones. The popularity of other mobile devices (tablets and wearables) will continue to drive that number higher over the next few years.


Research Chapter 9: Social Media

But now that social media has surpassed its humble origins and businesses are expected to embrace this tactic as part of their B2C and B2B marketing toolbox, how do you reach your customers? How do you differentiate your brand and your message from your competitors? How do you lead? In 1964, author, philosopher and media theory pioneer Marshall McLuhan published one of his most popular books, Understanding Media: The Extensions of Man. It contains his most quoted principle that “the medium is the message,” in which the communication form, not the message itself, should be paramount to our interests. “The medium is the message,” when applied to social media’s infancy and widespread maturation and adoption over the years, is an apt comparison. Without the investment in the inner workings of social strategy, ranging from its business applications to the “apps” designed for its accessibility, there would not have been enough force to propel it to its current status. If you wanted to separate your business from the others, you led by adopting and understanding social media. Today, in order to lead in the social marketplace, it is necessary to focus on that latter half of McLuhan’s statement – “the message.” Statistics show that only 31 percent of businesses update their content on a daily basis, missing out on more frequent interactions and involvement with their loyal brand followers. Couple that with criticisms that current social content formats are “boring or uninspiring” or that “content quality is poor,” and the message is clear: adopting social strategy is now an expected part of business agility. Creating the content necessary to grow and maintain your audience is the new struggle that businesses will face. But keep in mind that the struggle – figuring out what works and what does not for social media content – is part of what has made the origins of the social marketplace so special. The trial - and - error stages have led to innovations beyond what was expected of this new medium, making it still (yes, still) an untapped potential and viable opportunity for large industries and small businesses alike to connect with their customers. The next step, making social media content more meaningful, will be defined by both businesses and customers – learning (together) the proper frequency and timing for social messaging, the most accessible and aesthetic formats for content presentation, and the most concise and compelling stories to tell your network of customers. This is where your potential and ROI are located. This is how you can lead. It’s time to start leading. Authored by:

Murray Izenwasser Marketing Practice Lead, Biztegra



Chapter Highlights

On average, a Social Media Manager’s salary was $77,000 in 2014.

Almost one-third (31%) of B2C marketers are publishing new content daily.

Currently, 9.4% of marketing budgets are spent on social media marketing, that number is expected to jump to 21.4% in five years.

Website traffic is the most looked-at metric to gauge social media marketing performance.

Real estate is posting the most social media posts per week with an average of 19.21%.



BENEFITS OF SOCIAL MEDIA MARKETING

Source: Social Media Examiner, “2014 Social Media Marketing Industry Report.”

50%

51%

58%

61%

66%

71%

72%

80%

92%

0% 20% 40% 60% 80% 100%

Improved sales

Reduced marketing expenses

Grown business partnerships

Improved search rankings

Generated leads

Provided marketplace insight

Developed loyal fans

Increased traffic

Increased exposure


Research Research Chapter 9: Social Media

COMMONLY USED SOCIAL MEDIA PLATFORMS


WEEKLY TIME COMMITMENT FOR SOCIAL MEDIA MARKETING


1%

6%

9%

11%

12%

13%

17%

28%

47%

54%

55%

57%

71%

83%

94%

0% 20% 40% 60% 80% 100%

Snapchat

Podcasting

Short-form Video

Social bookmarking

Geo-location

Forums

Social Review Sites

Instagram

Pinterest

Google+

Blogs

YouTube

LinkedIn

Twitter

Facebook

5.0%

3.0%

2.0%

4.0%

5.0%

9.0%

11.0%

27.0%

34.0%

2.0%

0% 10% 20% 30% 40%

More than 40

36 to 40

31 to 35

26 to 30

21 to 25

16 to 20

11 to 15

6 to 10

1 to 5

0 hours



2014 SOCIAL MEDIA SALARIES


Social Media Director

The position is responsible for creating strategy and implementing content on a variety of social platforms on behalf of a brand product or corporation. These days there is often an internal battle for “ownership” of the Social Media Director. This position may reside in the Marketing, E-commerce or PR departments.

DUTIES: Include online advocacy, writing editorial, community-outreach efforts and promotions. Develops the tone and voice of social media extensions to grow and engage audience. Manages presence via social networking sites including Facebook, Pinterest, Twitter, Google+, YouTube, posting on blogs, and other sites. Engages in dialogue and answering questions on behalf of the community. Solid knowledge and understanding of SEM and SEO and identifies ways to monetize social media initiatives. Identifies potential partner sites (brands, bloggers, etc.) and creates partnership marketing opportunities and be responsible for reputation management.

Salary Range

Low $85,900

Average $98,500

High $119,500

Social Media Manager

This is a newer position that every company, large or small, needs to fill. In a smaller organization, a part-timer or outsourced agency may meet the need, but any organization that ignores social media (even a restaurant or dog walker, let alone a company of greater size) does so at their own peril.

DUTIES: Implements social media strategy, by coordinating with various departments to ensure that the organization is speaking in “one voice” through social channels. Encourages adoption of relevant social media techniques into the corporate culture, and into all of the company’s products and services. Works with the product development team to ensures the social media tools (i.e., Pinterest icon) are kept up to date. Becomes an advocate of the company in social media spaces, responding to questions and/or issues, and engaging in dialogues, as appropriate. Communicates insights gained from social media monitoring to management, to help them evolve their strategies in a relevant and timely fashion.

Salary Range

Low $70,300

Average $77,000

High $88,600

Community Manager

A Community Manager is the face and voice of a company, managing communications in both directions. More oriented toward welcoming and maintaining the dialogue with connections than the Social Media Manager.

DUTIES: Responsible for creating content for social media channels, including customer relations, blog posts, articles and newsletters, public relations, and event planning. Willing to work around the clock to approve comments, keep the dialog going, and put out fires when necessary. Create and maintain relationships with bloggers. Manages online feedback forums, responding to comments where appropriate, and adding value to the user experience. Empathetic; champions the voice of the community; brand evangelists. Must have knowledge of emerging tools and platforms and social media. Utilizes social media monitoring tools to monitor interaction, and reports on metrics.

Salary Range

Low $46,100

Average $56,700

High $77,500

Please note: All salary information from Crandall Associates, Inc. is absolutely copyright-protected. This material may not be photocopied or otherwise reprinted in any other communication, unless permission is directly granted by Crandall Associates, Inc. 516.767.6800. Source: Crandall Associates, Inc. 2015.



WHAT IS THE MOST IMPORTANT OBJECTIVE YOUR CLIENTS ARE TRYING TO ACHIEVE THROUGH

SOCIAL MEDIA MARKETING?


51%

11%

16% 16%

6%

35%

20% 20%

16%

9%

77%

4% 5% 6% 8%

0%

20%

40%

60%

80%


reputation

To improve customerservice/customer satisfaction

To drive traffic to website To generate leads To sell products, services orcontent directly online

2011 2012 2013



EFFECTIVE RATINGS OF TACTICS AMONG B2B USERS

Source: 2015 B2B Content Marketing Trends—North America: Content Marketing Institute/MarketingProfs.

69%

64%

60%

60%

58%

58%

58%

58%

55%

54%

31%

36%

40%

40%

42%

42%

42%

42%

45%

46%

0% 20% 40% 60% 80% 100%

In-person events

Webinars/webcasts

Videos

Blogs

Case studies

White papers

Research reports

eNewsletters

eBooks

Microsites

Believe it's effective Believe it's less effective



EFFECTIVE RATINGS OF TACTICS AMONG B2C USERS

Source: 2015 B2C Content Marketing Trends—North America: Content Marketing Institute/MarketingProfs.

66%

63%

59%

58%

54%

54%

53%

49%

46%

45%

34%

37%

41%

42%

46%

46%

47%

51%

54%

55%

0% 20% 40% 60% 80% 100%

eNewsletters

In-person events

Illustrations/photos

Social media content - otherthan blogs

Blogs

Videos

Articles on your website

Mobile apps

Webinars/webcasts

Online presentations

Believe it's effective Believe it's less effective



PERCENTAGE OF B2B MARKETERS WHO USE VARIOUS SOCIAL MEDIA SITES TO DISTRIBUTE

CONTENT


20%

24%

33%

41%

64%

72%

84%

88%

94%

22%

22%

34%

40%

55%

73%

81%

85%

91%

12%

7%

26%

23%

39%

61%

80%

80%

83%

0% 20% 40% 60% 80% 100%

Vimeo

Instagram

Pinterest

SlideShare

Google+

YouTube

Facebook

Twitter

LinkedIn

2012 2013 2014



PERCENTAGE OF B2C MARKETERS WHO USE VARIOUS SOCIAL MEDIA SITES TO DISTRIBUTE

CONTENT


HOW OFTEN B2C MARKETERS PUBLISH NEW CONTENT


94%

84%

76%

71%

68%

59%

49%

0% 20% 40% 60% 80% 100%

Facebook

Twitter

YouTube

LinkedIn

Google+

Pinterest

Instagram

Daily, 31%

Multiple times per week, 17%

Weekly, 16%

Multiple times per month, 11%

Monthly, 10%

Less than once per month, 9%

Less than once per month, 9%

Unsure, 6%



B2B CONTENT MARKETING SPENDING (OVER NEXT 12 MONTHS)


B2C CONTENT MARKETING SPENDING (OVER NEXT 12 MONTHS)


Increase, 46%

Remain the same, 32%

Decrease, 2%

Unsure, 11%

Significantly increase, 9%

Increase, 50%

Remain the same, 26%

Decrease, 2%

Unsure, 13%

Significantly increase, 9%



COUPON METHOD USAGE

Source: Valassis/RedPlum Purse String Study, 2014.

HOW DO YOU FEEL ABOUT THE NUMBER OF DEALS/SAVINGS YOU RECEIVE IN A GIVEN DAY VIA

EMAIL, TEXT, AND SOCIAL?

Source: Valassis/RedPlum Purse String Study, 2014.

61%

45%

24%

20% 18%

0%

10%

20%

30%

40%

50%

60%

70%

Use mostly print andsome digital

Print out digital couponsfor use in stores

Use digital coupons onboth my computer and

my mobile

Use mostly digital andsome print

Use digital coupons justfor online purchases

22%

30% 28%

20%

16%

32% 34%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Overwhelmed Savvy/Smart Rewarded Underwhelmed

2013 2014



WHY MILLENNIALS “LIKE” A COMPANY/BRAND ON SOCIAL MEDIA

Facebook Twitter Pinterest

To support the brand 84% 78% 70%

To receive regular updates from brands 83% 47% N/A

To get a coupon or discount 66% 85% 41%

To research brands when I was looking for specific products/services 40% 34% 67%

Seeing my friends are already a fan, follower or have a board 36% 28% 36%

To share my interests/lifestyle with others 40% 35% 76%

To participate in contests 37% 37% 27%

A brand advertisement on TV, online or in print led me to like the brand 28% 25% 21%

Someone recommended me to like, follow or pin the brand 31% 21% 29%

To share my personal good experiences 26% 23% 38%

Source: University of Massachusetts Dartmouth, Center for Marketing Research, 2014.



WHERE MILLENNIALS MAKE PURCHASES AFTER VIEWING SOMETHING ON A SOCIAL MEDIA

PLATFORM


LIKELIHOOD OF MILLENNIALS MAKING A PURCHASE IF TWITTER AND FACEBOOK HAD A “BUY”

BUTTON


16%

35%

51%

15% 10%

14%

69%

55%

35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Facebook Twitter Pinterest

Online Only In-Store Only Both Online and In-Store

7%

28% 27%

36%

2% 5%

19%

24%

46%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Very likely Somewhat likely Somewhat unlikely Very unlikely No response

Facebook Twitter



SOCIAL NETWORKING SITES

% of Internet users who use social networking sites

Use Social

Networking Sites

All Internet Users 73%

Gender

Male 69%

Female 78%

Race/ethnicity

White, Non-Hispanic 72%

Black, Non-Hispanic 73%

Hispanic 79%

Age

18–29 90%

30–49 78%

50–64 65%

65+ 46%

Education attainment

Less than high school 74%

High school grad 69%

Some college 75%

College+ 75%

Household income

Less than $30,000/year 77%

$30,000 – $49,999 73%

$50,000 – $74,999 73%

$75,000+ 75%

Urbanity

Urban 76%

Suburban 72%

Rural 70%

Source: Pew Research Center’s Internet & American Life Project Survey conducted from July 18 – September 30, 2013. N = 5,112, composed of adults 18 and older.



TWITTER

% of Internet users who use Twitter

2013 2014

All Internet Users 18% 23%

Gender

Male 17% 24%

Female 18% 21%

Race/ethnicity

White, Non-Hispanic 16% 21%

Black, Non-Hispanic 29% 27%

Hispanic 16% 25%

Age

18 – 29 31% 37%

30 – 49 19% 25%

50 – 64 9% 12%

65+ 5% 10%


Less than high school/high school grad 17% 16%

Some college 18% 24%

College+ 18% 30%

Household income

Less than $30,000/year 17% 20%

$30,000 – $49,999 18% 21%

$50,000 – $74,999 15% 27%

$75,000+ 19% 27%

Urbanity

Urban 18% 25%

Suburban 19% 23%

Rural 11% 17%

Source: Pew Research Center’s Internet & American Life Project survey conducted from September 11-14 and September 18-21. N = 1,597 composed of Internet users 18 and older.



PINTEREST

% of Internet users who use Pinterest

2013 2014


Gender

Male 8% 13%

Female 33% 42%

Race/ethnicity



Hispanic 18% 21%

Age

18 – 29 27% 34%

30 – 49 24% 28%

50 – 64 14% 27%

65+ 9% 17%




College+ 25% 32%

Household income


$30,000 – $49,999 21% 28%

$50,000 – $74,999 21% 30%

$75,000+ 27% 34%

Urbanity

Urban 19% 25%

Suburban 23% 29%

Rural 17% 30%

Source: Pew Research Center’s Internet & American Life Project Survey conducted from September 11-14 and September 18-21. N = 1,597 composed of Internet users 18 and older.



INSTAGRAM

% of Internet users who use Instagram

2013 2014


Gender

Male 15% 22%

Female 20% 29%

Race/ethnicity



Hispanic 23% 34%

Age

18 – 29 37% 53%

30 – 49 18% 25%

50 – 64 6% 11%

65+ 1% 6%




College+ 15% 24%

Household income


$30,000 – $49,999 20% 23%

$50,000 – $74,999 15% 26%

$75,000+ 16% 26%

Urbanity

Urban 22% 28%

Suburban 18% 26%

Rural 6% 19%

Source: Pew Research Center’s Internet & American Life Project Survey conducted from September 11-14 and September 18 - 21. N = 1,597 composed of Internet users 18 and older.



LINKEDIN

% of Internet users who use LinkedIn

2013 2014


Gender

Male 24% 28%

Female 19% 27%

Race/ethnicity



Hispanic 13% 18%

Age

18 – 29 15% 23%

30 – 49 27% 31%

50 – 64 24% 30%

65+ 13% 21%




College+ 38% 50%

Household income


$30,000 – $49,999 13% 21%

$50,000 – $74,999 22% 31%

$75,000+ 38% 44%

Urbanity

Urban 23% 32%

Suburban 26% 29%

Rural 8% 14%




FACEBOOK

% of Internet users who use Facebook

2013 2014


Gender

Male 66% 66%

Female 76% 77%

Race/ethnicity



Hispanic 73% 73%

Age

18 – 29 84% 87%

30 – 49 79% 73%

50 – 64 60% 63%

65+ 45% 56%


Less than high school/High school grad 71% 70%


College+ 68% 74%

Household income


$30,000 – $49,999 76% 69%

$50,000 – $74,999 68% 74%

$75,000+ 69% 72%

Urbanity

Urban 75% 71%

Suburban 69% 72%

Rural 71% 69%




SOCIAL MEDIA SPENDING AS A PERCENTAGE OF MARKETING BUDGETS

Source: The CMO Survey (CMOsurvey.org), Highlights and Insights - August 2014, Figure 5.1.

HOW WELL SOCIAL MEDIA IS INTEGRATED WITH STRATEGY OVER TIME

Source: The CMO Survey (CMOsurvey.org), Highlights and Insights - August 2014, Figure 5.3.

9.4%

13.2%

21.4%

0%

5%

10%

15%

20%

25%

Current levels Over next 12 months In next 5 years

3.8 3.8 3.8 3.8 3.9 3.8 3.9

1

2

3

4

5

6

7

Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14

Mean Integration Level



HOW EFFECTIVELY SOCIAL MEDIA IS INTEGRATED WITH STRATEGY

Source: The CMO Survey (CMOsurvey.org), Topline Report - August 2014, page 23.

CHANGES IN SOCIAL MEDIA SPENDING ACROSS SECTORS

Overall

B2B Product

B2B Services

B2C Product

B2C Services

Current Social Media Spending

9.4% 9.5% 9.2% 10.4% 8.6%

Social Media Spending in the next 12 months

13.2% 12.6% 13.3% 15.0% 11.9%

Social Media Spending in the next 5 years

21.4% 19.9% 22.2% 22.8% 21.0%

Source: The CMO Survey (CMOsurvey.org), Highlights and Insights-August 2014, Figure 5.1.

11.5%

13.4% 14.9%

18.7% 19.5%

16.8%

5.3%

0%

5%

10%

15%

20%

25%

1Not at allIntegrated

2 3 4 5 6 7Very

Integrated



SOCIAL NETWORK AD SPENDING PER SOCIAL NETWORK USER, 2013−2016

Note: Social networks are sites where the primary activities involve creating a profile and interacting with a network of contacts by sharing status updates, comments, photos or other content. Methodology: Estimates are based on the analysis of various elements related to the ad spending market, including macro-level economic conditions, historical trends of the advertising market, estimates from other research firms, and consumer-internet usage trends. Source: eMarketer, September 2014.

$27.00

$38.06

$46.38

$54.59

$7.18 $9.61

$11.43 $13.01

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

2013 2014 2015 2016

North America Worldwide



TO WHAT EXTENT ARE ANALYTICS USED TO GAUGE SOCIAL MEDIA MARKETING PERFORMANCE?

Source: Ascend2 and Research Partners, “Social Media Strategy Research Benchmarks, December 2014.

WHICH OF THE FOLLOWING METRICS ARE TRACKED TO GAUGE SOCIAL MEDIA MARKETING

PERFORMANCE?

Source: Ascend2 and Research Partners, “Social Media Strategy Research Benchmarks,” December 2014.

Extensive use of analytics, 19%

Moderate use of analytics, 41%

Limited use of analytics, 35%

Do not use analytics, 5%

22%

28%

29%

41%

41%

51%

51%

64%

0% 10% 20% 30% 40% 50% 60% 70%

Brand awareness

Sales revenue

Search engine rankings

Conversion rate

Content reach

Engagement rate

Lead generation

Website traffic



HOW WELL BUYER’S “CONVERT” BECAUSE OF CONTENT


BUYING STAGE WITH CONTENT MARKETING MOST EFFECTIVE


2%

18%

36% 37%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Very poorly Moderately poorly Neutral Moderately well Very well

42% 44%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Early stage Middle stage Late stage



CONTENT MARKETING PROBLEMS


4%

10%

20%

22%

26%

27%

29%

29%

29%

35%

40%

58%

0% 10% 20% 30% 40% 50% 60%

None of these challenges exist for us

Other problems

Content quality is poor

Content breadth too narrow or broad

Content depth too deep or not deep enough

Prospects won't surrender contact info

Content formats are boring or uninspiring

Content isn't generating interest or attention

Long-form content too hard to absorb

Free content isn't generating leads well

Content quantity is insufficient

Content doesn't create engagement opportunities



CONTENT MARKETING BARRIERS


CONTENT EFFECTIVENESS MEASUREMENTS


7%

19%

25%

28%

30%

32%

53%

60%

66%

0% 10% 20% 30% 40% 50% 60% 70%

Other barriers

Limited market/competitor understanding

Production skills

Limited buyer understanding

Creative skills

Technical skills

Time/agility constraints

Budget constraints

Staffing/resource constraints

17%

48%

10% 14%

11%

0%

10%

20%

30%

40%

50%

60%

No measurements Basic measurements Measures of interest Measures of influence Measures ofengagement



SOCIAL MEDIA AUDIENCE DEMOGRAPHICS BY GENDER

Source: Vision Critical, “What Social Media Analytics Can’t Tell You About Your Customers,” 2014.

SOCIAL MEDIA AUDIENCE DEMOGRAPHICS BY AGE


49% 46% 39%

49%

51% 54% 61%

51%

0%

20%

40%

60%

80%

100%

Lurkers Dabblers Enthusiasts General Population

Male Female

25%

38% 38% 30%

35%

35% 39%

36%

40%

27% 23% 34%

0%

20%

40%

60%

80%

100%


18-34 35-54 55+



SOCIAL MEDIA AUDIENCE DEMOGRAPHICS BY INCOME


SOCIAL MEDIA POSTS PER WEEK BY INDUSTRY

Source: HubSpot, “2015 Social Media Benchmarks Report.”

11% 9% 9% 12%

28% 27% 26% 29%

61% 64% 65% 59%

0%

20%

40%

60%

80%

100%


$100,000 $50,000-$99,999 Under $50,000

4.18

6.02

7.68

8.43

8.5

8.71

9.94

14.17

19.21

0 5 10 15 20

Manufacturing

Consumer goods/retail/e-commerce

Healthcare

Business/financial services

Nonprofit/education

Hardware

Software/tech

Marketing services

Real estate



IMAGE POSTS PER WEEK BY INDUSTRY


FACEBOOK POSTS PER WEEK BY INDUSTRY


2.53

3.32

4.01

5.85

3.36

5.94

5.75

7.64

15.14

0 5 10 15 20

Manufacturing


Healthcare


Nonprofit/education

Hardware

Software/tech

Marketing services

Real estate

1.27

2.16

2.03

1.87

3.2

1.64

1.57

2.18

14.17

0 5 10 15 20

Manufacturing


Healthcare


Nonprofit/education

Hardware

Software/tech

Marketing services

Real estate



TWEETS PER WEEK BY INDUSTRY


2.8

4.08

4.57

4.54

6.68

5.54

6.21

8.68

5.61

0 2 4 6 8 10

Manufacturing


Healthcare


Nonprofit/education

Hardware

Software/tech

Marketing services

Real estate



CASE STUDY: COORDINATING EMAIL AND FACEBOOK

This case study example of one US retailer explores marketing and sales data through the lens of a customer and their path to purchase.

Source: Facebook, 2014.

Overview


Research

DA

TA

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G

Chapter 10: Nonprofit

The nonprofit industry has weathered many storms, yet has also seen tremendous success over the years in its fundraising and marketing. Direct marketing has been a critical part of this success and, in fact, its history. For decades we have tracked year-over-year “metrics” and have been experts at building upon traditional marketing efforts and results of the past. Yet, where we are today – and where we will be tomorrow is less about where we have been and more about our ability as a group of marketers and fundraisers to be nimble and embrace the introduction of new channels and the changing consumer landscape. The review of 2014 shows the advancement of our work. Yet, we also see the continued challenges we face within each channel and as we attempt to create an integrated approach with those channels. In the end, this is about how to most effectively and efficiently motivate consumers to support the many causes the industry represents. Yet, so much has changed over the more recent years; the industry has been put in position to change what have been long-standing strategies and approaches from a successful past. Nothing sums this up better than this quote from Seth Godin. "Our job is to make change. Our job is to connect to people, to interact with them in a way that leaves them better than we found them, more able to get where they’d like to go. Every time we waste that opportunity, every page or sentence that doesn’t do enough to advance the cause, is waste."

As an industry, we have always been about changing the world – now we challenge ourselves to change how we conduct marketing and fundraising through all the channels available.


Research Chapter 10: Nonprofit

The Great Myth about Direct Mail: As the past has shown and the future will continue to exhibit, direct mail did NOT die. It is still an extremely large part of nonprofit fundraising plans across the country. In many cases, direct mail is still the largest communication channel, yet costs continue to rise for this channel. This has and will continue to place pressure on the return on this channel investment which translates directly to the ability to retain as many constituents as possible to the mission of the organization. Retention is a key goal for all nonprofits and is a primary metric for all constituent segments. Due to the extensive use of direct mail, it is an important piece of the retention formula and puzzle. Nonprofits must continue to evolve their thinking from direct mail as a fundraising program to direct mail as just one of many fundraising techniques. Furthermore, today’s donors (and tomorrows) will be communicating across multiple channels – not just one channel. Therefore, we must continue to prioritize the integration of our channels - relative to timing, messaging and offers. The Changing Dynamic of the Telephone: Through the years, this channel has faced pressure due to regulations, consumer preference and the growing number of cell phones used throughout the country. Yet, it continues to show it is a very successful part of the marketing and fundraising plan. The industry has started to finely tune its use to accomplish specific goals. The phone creates the rare opportunity in mass marketing to engage directly with a donor or other constituent. Studies have shown that feedback and dialog is an important part of keeping constituents engaged with a brand. The phone not only enables that dialog, it has been proven over and over to positively impact the performance of other channels when there is integration. This channel will continue to be successful in the future when used with a laser focus and when integrated into a larger plan to retain valuable constituents. The Email Opportunity: As with direct mail, all the predictions around this channel did not come true. Email did not bring about the death of direct mail and did not become the most successful manner to raise mass marketing donor dollars. While it continues to be a low cost communication method, it is also challenged by the noise created with extensive email in the overall marketplace. While the ability to cut through the noise and stand out in the inbox is a challenge, nonprofits must deploy advanced segmentation and drive greater personalization to improve the effectiveness of this channel. The future of email success is also connected to the integration with other channels and understanding how to balance the cost efficiency of the channel with the fact that most consumers believe email is being overused by both commercial and non-commercial brands.



The Mysteries of Social Media: As seen in the data, social media continues to be a viable way for nonprofits to communicate and engage their constituents (and their constituent’s networks).

However, according to the studies across the industry it is not being

used optimally. Recent data suggests that 53% of nonprofits are not measuring their social media efforts AND 67% have no social media strategy, policies or goals documented. Many organizations have set up Facebook, Twitter, YouTube and more – yet there is no strategy or even a set of goals for what they want from these channels. For the future, nonprofits must create the strategy and social media plan and let the tools/channels flow from that. Additionally, social media must be funded properly in the future. Using social media effectively requires not only staffing but a content management plan to integrate across the channels. It is and will continue to be a very unique opportunity but must be managed for what it represents. Social media enables nonprofits to create engagement and should not be considered like any of the other marketing and fundraising channels. The direct marketing opportunities ahead for nonprofits are endless, yet are directly related to the ability of the industry to adapt as the marketplace changes. Not only are the channels and best practices evolving, but social media alone is changing how the marketplace wants to communicate with nonprofit brands. Nonprofits hold the key to their own direct marketing success as long as they embrace the changing dynamic of the channels available and how they fit into the overall communication puzzle. Authored by:

Angie Moore VP, Strategy & Development, eleventy marketing group

Chapter Highlights

In 2014, $456 billion was given to charities in the US.

28% of nonprofits expect to spend email appeals monthly in 2015.

If Americans had $10 to give or donate online, 47% of them would give to a nonprofit organization.

71% of Americans say they support social or environmental issues by voting to designate funds to a cause they care about.

$534.39 is the average funds raised for charity on individual crowdfunding pages.



NONPROFIT VOLUMES 2008 – 2011*

2011 2010 2009 2008

Regular 11,243,376,039 11,217,473,331 11,405,577,719 12,501,357,697

Enhanced Carrier Route

2,147,482,111 1,890,453,293 2,125,475,012 2,326,479,585

Total 13,390,858,150 13,107,926,624 13,531,052,731 14,827,837,283

*For FY2008 – 2010, the source documents are Postal Regulatory Commission library references filed in conjunction with the Annual C-Compliance Determination for each of those years, e.g., PRC-ACR2008-LR1. For FY2011, the source document is a USPS library reference, USPS-FY11-4[1].

NONPROFIT STANDARD MAIL (A) TREATMENT OF MAIL PIECE BY SHAPE

Postal Years 1987, 2012 and 2013 as Percentage of Mail Received by Households

Letter-Size Envelope

Larger than Letter Envelope

Postcard

1987 2012 2013 1987 2012 2013 1987 2012 2013


48.9 40.4 42.4 49.1 46.0 46.9 61.1 50.1 47.7

Read by more than one member of household*

N/A 4.7 3.9 N/A 6.5 8.0 N/A 10.1 8.8

Looked at 22.8 20.5 19.3 23.1 22.1 19.0 12.7 15.3 9.5

Discarded 11.2 19.5 18.7 9.6 12.8 14.0 13.2 18.9 26.7

Set aside 6.6 5.2 4.8 9.0 6.5 7.8 2.1 3.6 3.9

Don't know/no answer 10.5 9.7 10.9 9.3 6.0 4.3 10.9 1.9 3.3

Catalog Not in Envelope Flyer Newspaper/Magazine

1987 2012 2013 1987 2012 2013 1987 2012 2013


43.2 33.0 32.7 54.2 38.8 31.8 38.5 40.6 42.5

Read by more than one member of household*

N/A 9.7 8.0 N/A 7.6 6.5 N/A 10.7 12.8

Looked at 24.9 18.4 20.2 21.1 18.6 19.4 11.1 13.4 12.6

Discarded 10.9 23.6 23.6 11.2 25.2 33.1 5.9 15.9 12.4

Set aside 14.4 12.2 10.1 6.8 3.2 2.2 13.4 10.1 11.7

Don't know/no answer 6.5 3.2 5.5 6.7 6.6 7.0 31.2 9.4 8.0

*This code was not presented in household diaries prior to 1992. Source: USPS Household Diary Study, 2014.


Research Research Chapter 10: Nonprofit

NONPROFIT STANDARD MAIL (A) USEFULNESS OF MAIL PIECE BY SHAPE

Postal Years 2012 and 2013 as Percentage of Mail Received by Households


40.8

30.8

46.4 46.9 48.4

62.2

39 39.3

52 50.4

46.5

55.1

0

20

40

60

80

Letter sizeenvelope

Flyers Catalog (not inenv.)

Postcard Larger thanletter envelope

Newspaper/magazine

Perc

ent

ag

e o

f M

ail

Judg

ed U

sefu

l

2013

2012



NONPROFIT STANDARD MAIL (A) INDUSTRY BY SHAPE

Postal Years 1987, 2012 and 2013 as Percentage of Pieces

Industry Letter-Size Envelope

Larger than Letter Envelope

Postcard

1987 2012 2013 1987 2012 2013 1987 2012 2013

Medical 29.1 26.5 31.4 10.0 4.4 3.3 7.4 2.6 2.3

Union/professional 37.9 39.1 37.7 12.1 5.4 4.1 3.2 2.6 1.6

Church 43.4 65.0 66.4 8.6 3.8 3.2 2.3 2.9 1.6

Veterans 48.9 56.7 51.4 11.3 9.4 8.2 6.5 3.5 3.3

Educational 27.3 27.6 28.9 9.0 4.6 2.7 1.8 4.8 3.8

Charities 80.1 75.4 73.9 9.3 5.3 4.2 1.5 2.0 2.2

Political 28.9 50.7 22.1 13.6 5.5 2.5 3.0 1.9 2.5

AARP 79.3 88.8 89.0 11.0 2.2 1.4 4.2 0.0 1.1

Museum 49.0 46.9 36.8 14.9 3.2 2.9 5.9 3.6 4.7

Nonprofit publication 30.6 58.8 54.5 28.6 5.3 4.1 1.9 2.6 2.3

4.4

Industry Catalog Not in Envelope Flyer Newspaper/Magazine

1987 2012 2013 1987 2012 2013 1987 2012 2013

Medical 10.0 2.1 1.0 35.2 26.1 29.4 4.9 37.1 32.4


Church 3.0 1.6 1.3 35.9 12.9 14.4 5.6 13.2 12.7

Veterans 6.7 0.1 0.4 18.1 26.5 31.8 5.6 3.2 4.3

Educational 12.2 8.3 8.4 44.8 38.3 39.2 3.9 15.4 16.0

Charities 1.2 1.9 2.5 6.9 12.8 14.0 0.5 2.0 1.6

Political 0.6 0.2 0.0 52.6 40.4 71.8 0.7 0.9 0.5

AARP 0.9 0.3 0.0 2.7 6.6 5.5 2.0 1.4 1.4

Museum 19.7 12.9 11.6 8.9 27.7 30.6 0.5 5.4 12.2





NONPROFIT STANDARD MAIL REACTION BY INDUSTRY

Percentage of Pieces, Postal Years 1987, 2012 and 2013

Industry Read Immediately Found Useful Will Respond1

1987 2012 2013 1987 2012 2013 1987 2012 2013

Medical 46.3 43.2 49.3 46.1 41.1 42.8 13.4 5.7 8.3


Church 64.0 52.4 54.1 59.2 51.7 53.1 25.2 22.3 19.6

Veterans 56.0 44.9 49.1 44.3 39.5 44.1 22.6 17.0 16.4

Educational 48.0 47.5 41.8 49.1 41.7 41.0 13.2 8.8 7.6

Charities 44.6 41.7 44.4 28.3 33.9 35.2 17.7 13.9 13.0

Political 40.6 40.3 29.9 31.8 32.4 21.1 20.0 11.8 7.3

AARP 46.1 38.4 44.8 40.9 35.9 35.9 13.6 14.7 14.0

Museum 53.6 53.5 61.2 44.3 52.1 58.8 12.5 12.3 19.1


Total Mail Received 49.5 46.5 44.9 43.8 41.4 39.8 18.0 14.2 12.9

50.2 1Percent of pieces containing an advertisement or fundraising request. Note: Percentages represent row percentages within each industry classification; these do not sum to 100 due to the inclusion of multiple questions in this table. Source: USPS Household Diary Study, 2014.

NONPROFIT STANDARD MAIL (A) BY CONTENT BY INDUSTRY

Postal Years 1987, 2012 and 2013 as Percentage of Mail Received by Households

Industry

Advertising Fund Request Other Don’t Know/No

Answer

1987

2012

2013

1987

2012

2013

1987

2012

2013

1987

2012

2013

Medical 27.5 16.0 14.5 18.0 18.5 22.3 43.0 62.0 57.3 11.4 3.5 5.8

Union/professional 28.5 27.2 22.0 21.3 17.9 15.5 40.8 53.7 53.2 9.4 1.2 9.3

Church 14.7 9.0 9.3 30.5 54.4 50.3 44.8 32.6 35.8 10.0 3.9 4.6

Veterans 18.4 2.9 3.2 42.7 86.4 87.0 31.4 5.3 6.3 7.6 5.3 3.5

Educational 35.6 30.9 29.6 14.7 18.0 17.7 41.6 49.5 50.6 8.0 1.5 2.1

Charities 7.7 2.1 3.5 79.3 88.9 88.4 6.8 5.1 4.6 6.2 3.9 3.5

Political 4.3 0.0 0.0 28.1 36.6 14.1 56.2 60.7 84.2 11.4 2.7 1.8

AARP 65.8 50.8 53.3 7.6 15.4 21.9 13.9 21.3 16.1 12.7 12.5 8.7

Museum* 60.5 37.7 26.5 16.9 28.2 29.5 15.7 31.9 42.4 6.9 2.3 1.7

Nonprofit publication

62.4 13.2 11.5 3.7 55.2 50.7 19.0 27.8 34.0 14.9 3.8 3.8

Total Mail Received by Households

26.3 16.8 15.1 34.0 50.1 46.7 29.4 29.0 34.0 10.3 4.0 4.2




NONPROFIT STANDARD MAIL (A) RESPONSE TO ADVERTISING BY SHAPE



PERCENT OF NONPROFIT STANDARD MAIL (A) CONTAINING A REQUEST FOR DONATIONS BY AGE

OF HEAD OF HOUSEHOLD



15.3

18.9

9.5

19

10 8.7

12.9

16.7

19.0

10.9

17.0

7.5

9.7

14.2

0

5

10

15

20

Letter-sizeenvelope

Larger thanletter envelope

Catalog(not in env.)

Postcard Newspapers/magazine

Flyers Total

Per

cent

Who

Wou

ld R

espo

nd

20132012

41.6

28.6 27.5 33.7 34.4

39.3 40.7 40.7

47.5 44.5

41.1 42.5

50.6 56.5 59.1 59.8

35.8 35.8 38.3 39.4

47.4 53.7 54.1 54.7

0

10

20

30

40

50

60

70

18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 69 70 – 74 75+

Per

cent

of M

ail

Age of Head of Household

1987 2012 2013



MEDIAN AVERAGE GIFT BY VERTICAL AND DONATION TYPE

Industry First Online Donation

Repeat Online Donation

Non-Sustainer Online Donation

Sustainer Online Donation

Animal welfare $72.84 $64.02 $84.32 $26.66

Association & membership $58.96 $102.51 $69.33 $25.27

Canadian organization $106.19 $67.36 $129.95 $24.79

Christian ministries $153.05 $89.26 $150.61 $50.11

Disaster & international relief

$162.31 $102.67 $213.56 $43.75

Disease & health services $80.52 $98.95 $88.85 $37.24

Environment & wildlife $106.74 $75.96 $115.81 $21.18

Food bank $118.26 $104.82 $131.56 $41.22

Health – medical research $345.00 $167.53 $194.17 $60.66

Higher education $258.48 $341.71 $310.34 $74.04

Hospital foundation $105.95 $94.24 $137.80 $30.09

Hospitals $130.75 $140.75 $164.03 $34.94

Human & social services $163.28 $135.57 $174.78 $40.97

Jewish $151.50 $123.64 $109.77 $55.31

National nonprofit mailer $58.25 $66.37 $66.09 $21.78

Performing arts & libraries $115.70 $120.29 $166.15 $59.28

Public affairs $125.66 $94.12 $137.40 $25.94

Public broadcasting stations $72.41 $28.35 $71.77 $14.00

Team event $63.09 $86.82 $74.87 $38.58

Visitation $132.70 $139.04 $132.47 $41.05

TOTAL $101.62 $93.82 $118.74 $33.01

Source: Blackbaud, “Luminate Online Benchmark Report 2014.”



MEDIAN CONVERSION RATES FOR DONATION EMAILS AND YEAR-OVER-YEAR PERCENT CHANGE

Industry Fundraising Email

Conversion Rate FY 14 Median

Fundraising Email Conversion Rate Change FY13 FY14

Median

Animal welfare 0.07% -29.63%

Association & membership 0.04% 0.00%

Canadian organization 0.08% -35.00%

Christian ministries 0.05% -38.10%

Disaster & international relief 0.04% -12.50%

Disease & health services 0.04% 0.00%

Environment & wildlife 0.05% -32.47%

Food bank 0.14% -40.00%

Health – medical research 0.04% -14.29%

Higher education 0.02% -29.17%

Hospital foundation 0.04% -31.82%

Hospitals 0.04% 0.00%

Human & social services 0.04% 0.00%

Jewish 0.05% -44.44%

National nonprofit mailer 0.03% 0.00%

Performing arts & libraries 0.04% -30.95%

Public affairs 0.04% -25.00%

Public broadcasting stations 0.07% -35.63%

Team event 0.02% -37.50%

Visitation 0.05% -23.33%

TOTAL 0.05% -25.00%

Source: Blackbaud, “Luminate Online Benchmark Report 2014.”



TYPES OF NONPROFITS / CHARITIES DONATED TO IN THE PAST YEAR BY DONORS

Rank ordered by total donors, percent who self-report donating to each

Total Donors

Whites/ Caucasians

African Americans

Hispanics Asians

Place of worship (e.g., church, synagogue, mosque, etc.)

50% 51% 50% 45% 34%

Local social service organizations (e.g., shelters and food banks)

45% 48% 40% 30% 35%

Children’s charities 37% 37% 37% 40% 35%

Health charities 35% 36% 37% 31% 36%

Animal rescue, animal shelters, or other animal protection organizations

25% 27% 12% 21% 16%

Emergency relief efforts in the case of a natural disaster, etc.

23% 23% 19% 17% 29%

Organizations that support military troops and/or veterans

23% 25% 23% 20% 16%

Formal education (e.g., K-12 schools, colleges, scholarship funds)

16% 15% 17% 15% 24%

Fire, police, and emergency rescue organizations 16% 18% 13% 12% 7%

Youth development (e.g., sports, extracurricular activities, out-of-school time enrichment)

14% 13% 21% 13% 18%

Environmental or nature conservation organizations 12% 13% 8% 11% 16%

Organizations that help the elderly 11% 11% 17% 11% 9%

Human rights and international development organizations, either at home or abroad

9% 8% 9% 11% 12%

Arts or art-related organizations or institutions, including museums and galleries

8% 9% 7% 5% 11%

Election campaigns (federal, state or local) 8% 9% 9% 5% 5%

Advocacy organizations (groups trying to change or legislation)

7% 8% 6% 5% 7%

Victims of crime or abuse organizations 7% 6% 13% 9% 6%

Organizations that fight hate, prejudice, and inequality

7% 5% 12% 9% 8%

Organizations that support immigrants and/or refugee rights

4% 3% 3% 9% 2%

Organizations that fight for gender/marriage equality

3% 3% 3% 4% 3%

Other 8% 8% 7% 8% 12%

Source: Blackbaud, “Diversity in Giving: The Giving Landscape of American Philanthropy,” 2015.



GIVING CHANNELS USED IN PAST TWO YEARS BY DONORS

Rank ordered by total donors, percent who self-report donating to each

Total Donors

Whites/ Caucasians

African Americans

Hispanics Asians

Added a donation at check out (i.e., $1 for a specific organization at the grocery store)

43% 43% 49% 43% 38%

Responded to a letter that came in the mail with a donation by check or credit card

32% 34% 28% 27% 30%

Made a donation online through an organization’s website

31% 33% 19% 23% 39%

Made a purchase where a portion of the proceeds helped the organization (i.e., purchasing something from the charity’s gift shop)

31% 32% 30% 28% 33%

Wrote a check or made a pledge at a fundraising event

30% 30% 28% 27% 31%

Made a donation in honor of, in memory of, or as a tribute to someone

24% 26% 18% 13% 19%

Donated through a monthly giving program that directly debited from your banking account/credit card

19% 20% 11% 17% 19%

Made a donation to someone who came up to you on the street or to your door

18% 16% 28% 22% 14%

Shopped a third-party vendor (e.g., Amazon or Target) where a portion of our sales goes to help a designated organization

18% 19% 11% 23% 18%

Responded to a phone call from a charity by making a donation or pledge

12% 13% 14% 11% 9%

Responded to an email appeal from a charity by making a donation or pledge

10% 11% 9% 5% 11%

Made a donation online through Facebook, Twitter, or another social networking site

5% 5% 5% 3% 5%

Responded to a television program or advertisement by making a donation

5% 5% 8% 8% 3%

Responded to a radio program or advertisement by making a donation

4% 4% 5% 6% 3%

Through a charitable giving annuity, bequest in your will, or planned donation

4% 4% 5% 3% 4%

Made a donation via a text message/SMS 3% 3% 4% 4% 4%

Other 13% 14% 7% 9% 7%

Source: Blackbaud, “Diversity in Giving: The Giving Landscape of American Philanthropy,” 2015.



EFFECTIVENESS RATINGS OF SOCIAL MEDIA PLATFORMS

Source: Content Marketing Institute, “Nonprofit Content Marketing Benchmarks, Budgets, and Trends – North America,” 2015.

22%

29%

34%

36%

37%

38%

47%

54%

63%

78%

71%

66%

64%

63%

62%

53%

46%

37%

0% 20% 40% 60% 80% 100%

Google+

Pinterest

LinkedIn

Instagram

Vimeo

SlideShare

YouTube

Twitter

Facebook

Believe It's Effective Believe It's Less Effective



CONTENT MARKETING CHALLENGES THAT NONPROFIT PROFESSIONALS FACE


28%

34%

35%

37%

38%

40%

43%

49%

52%

56%

0% 10% 20% 30% 40% 50% 60%

Finding trained content marketing professionals

Lack of buy-in/vision from higher-ups

Technology-related challenges

Producing a variety of content

Gaps in knowledge and skills of internal team

Lack of integration across marketing

Producing content consistently

Producing engaging content

Measuring content effectiveness

Lack of budget



NONPROFIT CONTENT MARKETING USAGE


40%

41%

41%

44%

53%

53%

58%

82%

86%

86%

88%

89%

93%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Research reports

Microsites

Case studies

Print magazines

Print newsletters

Infographics

Blogs

Videos

Illustrations/photos

Articles on your websites

eNewsletters

In-person events

Social media - other than blogs



US CHARITABLE GIVING BY YEAR

IN BILLIONS

Source: Atlas of Giving, 2015.

12-MONTH GIVING TREND

IN BILLIONS


$334.67 $335.83 $316.47 $321.96

$345.90 $368.78

$416.59

$456.73

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2007 2008 2009 2010 2011 2012 2013 2014

$32.99 $33.30 $33.87 $34.15 $34.59 $34.56 $35.32 $34.71 $35.19 $35.74 $36.40 $36.98

$35.92 $36.65 $36.80 $37.10 $37.51 $38.05 $38.42 $38.67 $38.71 $39.25 $39.84 $39.81

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2013 2014



SECTOR FORECAST 2015

IN BILLIONS


IMPORTANCE OF COMMUNICATIONS CHANNELS TO NONPROFITS

Channel Ranked as #1 Very Important (Ranked in Top

4)

Somewhat Important (Ranked in Positions 5-

8)

Least Important (Ranked in

Positions 9-13, or NA)

Website 32% 81% 16% 3%

Email marketing 15% 64% 29% 7%

Traditional social media 11% 62% 33% 5%

In-person events 19% 54% 33% 12%

Print marketing 9% 39% 40% 21%

Media relations/PR 8% 34% 45% 21%

Blogging 1% 14% 32% 54%

Phone calls/Phone banks 1% 14% 26% 60%

Video 1% 13% 50% 37%

Visual social media 1% 13% 37% 50%

Paid advertising 1% 7% 25% 68%

Mobile apps or texting <1% 4% 15% 81%

Podcasting <1% 1% 7% 92%

Source: Nonprofit Marketing Guide, “Nonprofit Communications Trends,” 2015.

Unallocated, $42.62

International, $22.50

Nature/environment, $10.39

Society benefit, $35.48

Arts, $20.30

Human/disaster services, $56.09

Education, $76.30

Health, $38.02

Religion, $152.60



HOW OFTEN NONPROFITS EXPECT TO EMAIL APPEALS IN 2015


HOW OFTEN NONPROFITS EXPECT TO DIRECT MAIL APPEALS IN 2015


Will not send any email 5%

Several times a week 2%

Weekly 7%

Every other week 8%

Monthly 28%

Quarterly 26%

Twice a year 13%

Once a year 4%

Don't know 7%

Will not send direct mail

12%

Weekly 1%

Every other week 1%

Monthly 7%

Quarterly 27%

Twice a year 31%

Once a year 14%

Don't know 7%



HOW OFTEN NONPROFITS EXPECT TO SEND ENEWSLETTERS IN 2015


IF AMERICANS HAD $10 TO GIVE OR DONATE ONLINE, WHO WOULD THEY GIVE TO?

Source: Cone Communication, “2014 Cone Communications Digital Activism Study,” 2014.

Will not send 5%

Several times a week 1%

Weekly 9%

Every other week 11%

Monthly 41%

Quarterly 23%

Twice a year 4%

Once a year 1%

Don't know 5%

47%

18%

12%

0%

10%

20%

30%

40%

50%

A nonprofit organization An appeal to directly benefit anindividual in need

A company campaign raising funds toaddress a social or environmental

issue



HOW AMERICANS SUPPORT SOCIAL OR ENVIRONMENTAL ISSUES ONLINE


55%

56%

57%

60%

62%

65%

65%

66%

70%

70%

71%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Documenting and sharing an action, effort or stunt onbehalf of a social or environmental issue (e.g., the ALS

Ice Bucket Challenge)

Sharing social or environmental content with their socialnetworks (e.g., videos, infographics, fundraising

appeals)

Researching companies' social or environmental businesspractices (e.g., environmental policies, human rights,

sourcing)

"Liking" or following a nonprofit or company's social orenvironmental program

Purchasing a product from a socially or environmentallyconscious online retailer

Making a donation

Watching a video with a social or environmentalmessage

Giving feedback to companies directly about theirbusiness practices

Learning about changes they can make in theireveryday lives to make an impact on social or

environmental issues

Signing a petition

Voting to designate funds to a cause they care about



WHAT MOTIVATES AMERICANS TO PARTICIPATE IN A SOCIAL OR ENVIRONMENTAL EFFORT ONLINE


AVERAGE FUNDS RAISED ON INDIVIDUAL CROWDFUNDED PAGES

Source: craigconnects, https://craigconnects.org/crowdfundinginfographic, 2014.

AVERAGE FUNDS RAISED ON CAMPAIGN CROWDFUNDED PAGES

Source: craigconnects, https://craigconnects.org/crowdfundinginfographic, 2014.

48%

53%

57%

68%

74%

77%

79%

79%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

They see all their friends are participating

They are rewarded for participating (e.g., coupon ordiscount, additional donation)

They want their social network to know what issues areimportant to them

The issue triggers an emotional response

The issue or beneficiary is personally relevant

It is easy to participate

It is clear how their support would make a real impact onthe issue

There is an urgent need for immediate support

$534.39 Average funds raised for charity on individual crowdfunding pages

(fundraising by people who set up their own pages).

$9,237.55 Average funds raised on campaign crowdfunding pages (fundraising by teams

of people all working to raise money for the same issue).

Overview


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Chapter 11: Historical Postal Rates

Following a strong 2014—where the economy expanded steadily as we are well into the “Digital Age”, I have been asked many times, “Why is DMA still interested in the US Mail, let alone postage rates?” In a recent DMA sponsored study, “The Value of Data: Consequences for Insight, Innovation, and Efficiency in the U.S. Economy”, Professors from Harvard and Columbia found that of all the channels of data-driven marketing the US Mail had the greatest economic impact on the American economy. That simply shows that DMA should not ignore any channel in its efforts to represent the interests of its marketing and nonprofit members. On a very personal note, my sister-in-law runs a kitchen table business which is entirely conducted, including marketing, on the Internet until she has to deliver the product to her customers. She uses the US Mail for all her fulfillment and is very concerned about rising postage rates. Continuing DMA’s efforts to keep the mail channel as a viable option for data driven marketers, the 2015 Statistical Fact Book remains a major resource. Postage rates are set to change on April 26, 2015, and DMA and its coalition partner associations have used the Book in discussions with the Postal Service and the Postal Regulatory Commission (PRC).

DMA has used the Book in lobbying Congress as well. The Postal

Service is asking Congress to amend the law and eliminate the CPI cap on most postage rates. In 2014, DMA and its allies were successful, but the fight will continue in 2015. I am


Research Chapter 11: Historical Postal Rates

pleased that the coalition will have the facts in the Book to advance support for the CPI cap. As you can see in the Book, the Postal Service raised postage far above inflation (4.3 percentage points above inflation) in 2014 to “make up” for the losses it suffered during the Great Recession in 2008. The PRC ordered the Postal Service to reduce postage by 4.3% when it had recovered its losses from the Great Recession. Sadly, the Postal Service disagreed (it wants the 4.3% surcharge to become permanent) and filed suit against the PRC. Mailers, including DMA, support the PRC in this matter and have filed briefs and participated in oral argument before the United States Court of Appeals for the District of Columbia Circuit. The facts in the Book are the basis for many of the arguments made. I hope that the 2015 Statistical Fact Book will be as helpful to you as it has been (and will be) for DMA as it represents data-driven marketers. Authored by:

Jerry Cerasale Past Senior Vice President of Government Affairs DMA

Chapter Highlights

Effective January 26, 2014, single-piece first-class mail rates increased to 49.0¢ up from 46.0¢ in 2013.


Research Research Chapter 11: Historical Postal Rates

POSTAL RATE CHANGES: STANDARD MAIL (A) — (FORMERLY THIRD CLASS)

Third-Class Min Per Piece (by Presort Category Beginning 1996)

Standard Mail (A) Rate Comparison Chart

Minimum Volume Is 200 Pieces—Effective 7/1/1996



Letter Size Before After Letter Size Before After

Regular Regular Basic 22.6¢ 25.6¢ Basic 25.6¢ 23.5¢ 3/5 Digit 18.8 20.9 3/5 Digit 20.9 20.7 Automated Basic (barcoded) 20.4 18.3 Automated Basic (barcoded) 18.3 18.3 Automated 3-Digit (barcoded) 17.5 17.5 Automated 3-Digit (barcoded) 17.5 17.6 Automated 5-Digit (barcoded) 16.6 15.5 Automated 5-Digit (barcoded) 15.5 16.0 Automated 5-Digit at SCF entry

(barcoded letter) 14.6 13.7

Automated 5-Digit at SCF entry


Enhanced Carrier Route (new) Enhanced Carrier Route (new) Basic 15.0 15.0 Basic 15.0 16.2 Automated Basic Carrier Route (barcoded letter)

-- 14.6 Automated Basic Carrier Route


High Density -- 14.2 High Density 14.2 13.9 Saturation 14.2 13.3 Saturation 13.3 13.0 Saturation at Delivery Unit Entry 11.7 13.3 Saturation at Delivery Unit Entry 11.0 10.4 Flats Size Before After Flats Size Before After

Regular Regular Basic 22.6¢ 30.6¢ Basic 30.6¢ 30.4¢ 3/5 Digit 21.4 22.5 3/5 Digit 22.5 24.0 Automated Basic (barcoded) 23.7 27.7 Automated Basic (barcoded) 27.7 29.5 Automated 3/5 Digit (barcoded) 19.5 18.9 Automated 3/5 Digit (barcoded) 18.9 20.3 Automated 3/5 Digit at SCF entry (barcoded)

17.5 17.1 Automated 3/5 Digit at SCF entry

(barcoded) 17.1 18.2

Enhanced Carrier Route (new) Enhanced Carrier Route (new) Basic 16.2 15.5 Basic 15.5 16.2 High Density 15.7 14.7 High Density 14.7 15.1 Saturation 14.5 13.7 Saturation 13.7 14.0 Saturation at Delivery Unit Entry 12.0 11.4 Saturation at Delivery Unit Entry 11.4 11.4



Letter Size Before After Flats Size Before After

Regular Regular Basic 23.5¢ 25.0¢ Basic 30.4¢ 31.9¢ 3/5 Digit 20.7 23.0 3/5 Digit 24.0 26.3 Automated Basic (barcoded) 18.3 19.7 Automated Basic (barcoded) 29.5 27.5 Automated 3-Digit (barcoded) 17.6 18.7 Automated 3/5 Digit (barcoded) 20.3 23.6

Automated 5-Digit (barcoded) 16.0 17.4 Automated 3/5 Digit at SCF entry 18.2 21.2

Automated 5-Digit at SCF entry 13.9 15.0

(barcoded) (barcoded letter) Enhanced Carrier Route (new) Enhanced Carrier Route (new) Basic 16.2 17.6 Basic 16.2 17.6 High Density 15.1 15.4 Automated Basic Carrier Route

15.6 15.5 Saturation 14.0 14.7

(barcoded letter) Saturation at Delivery Unit Entry 11.4 N/A High Density 13.9 15.1 Saturation 13.0 14.3 Saturation at Delivery Unit Entry 10.4 N/A



POSTAL RATE CHANGES: STANDARD MAIL (A) — (FORMERLY THIRD-CLASS MAIL)







Regular Regular Basic 25.0¢ 25.3¢ Basic 25.3¢ 26.8¢ 3/5 Digit 23.0 23.3 3/5 Digit 23.3 24.8 Automated Basic (barcoded) 19.7 20.0 Automated Basic (barcoded) 20.0 21.2 Automated 3-Digit (barcoded) 18.7 19.0 Automated 3-Digit (barcoded) 19.0 20.3 Automated 5-Digit (barcoded) 17.4 17.7 Automated 5-Digit (barcoded) 17.7 19.0 Automated 5-Digit at SCF entry (barcoded letter)

15.0 15.3 Automated 5-Digit at SCF entry


Enhanced Carrier Route (new) Enhanced Carrier Route (new) Basic 17.6 17.8 Basic 17.8 19.4 Automated Basic Carrier Route (barcoded letter)

15.5 15.7 Automated Basic Carrier Route


High Density 15.1 15.3 High Density 15.3 16.4 Saturation 14.3 14.5 Saturation 14.5 15.2 Saturation at Delivery Unit Entry N/A N/A Flats Size Before After Flats Size Before After

Regular Regular Basic 31.9¢ 32.2¢ Basic 32.2¢ 34.4¢ 3/5 Digit 26.3 26.6 3/5 Digit 26.6 28.8 Automated Basic (barcoded) 27.5 27.8 Automated Basic (barcoded) 27.8 30.0 Automated 3/5 Digit (barcoded) 23.6 23.9 Automated 3/5 Digit (barcoded) 23.9 26.1 Automated 3/5 Digit at SCF entry (barcoded)

21.2 21.5 Automated 3/5 Digit at SCF entry

(barcoded) 21.5 23.5

Enhanced Carrier Route (new) Enhanced Carrier Route (new) Basic 17.6 17.8 Basic 17.8 19.4 High Density 15.4 15.6 High Density 15.6 16.9 Saturation 14.7 14.9 Saturation 14.9 16.0 Saturation at Delivery Unit Entry N/A N/A










Regular Regular Basic 26.8¢ 28.2¢ Automated 5-Digit (barcoded) 20.0¢ 12.7¢ 3/5 Digit 24.8 26.1 Automated 3-Digit (barcoded) N/A 14.2 Automated Basic (barcoded) 21.2 22.3 Automation AADC N/A 14.7 Automated 3-Digit (barcoded) 20.3 21.4 Automation Mixed AADC N/A 16.1 Automated 5-Digit (barcoded) 19.0 20.0 Enhanced Carrier Route Automated 5-Digit at SCF entry

16.4 N/A Basic 20.4 15.7

(barcoded letter) High Density 17.3 11.7 Enhanced Carrier Route (new) Saturation 16.0 10.8 Basic 19.4 20.4 Automated Basic Carrier Route 17.1 18.0 Flats Size Before After (barcoded letter) Regular High Density 16.4 17.3 Nonautomation 5-Digit 36.3¢ 36.3¢ Saturation 15.2 16.0 Nonautomation 3-Digit N/A 42.7 Nonautomation ADC N/A 46.1

Flats Size Before After Nonautomation Mixed ADC N/A 51.5

Regular Automation 5-Digit (barcoded) 31.6 33.5 Basic 34.4¢ 36.3¢ Automation 3-Digit (barcoded) N/A 39.2 3/5 Digit 28.8 30.4 Automation ADC N/A 42.4 Automated Basic (barcoded) 30.0 31.6 Automation Mixed ADC N/A 47.7 Automated 3/5 Digit (barcoded) 26.1 27.5 Enhanced Carrier Route Enhanced Carrier Route (new) Basic 20.4 24.9 Basic 19.4 20.4 High Density 17.8 20.5 High Density 16.9 17.8 Saturation 16.9 18.7 Saturation 16.0 16.9




Regular Regular Automated 5-Digit (barcoded) 12.7¢ 12.7¢ Nonautomation 5-Digit 36.3¢ 36.6¢ Automated 3-Digit (barcoded) 14.2 14.3 Nonautomation 3-Digit 42.7 45.1 Automation AADC 14.7 14.6 Nonautomation ADC 46.1 48.3 Automation Mixed AADC 16.1 15.9 Nonautomation Mixed ADC 51.5 55.3 Enhanced Carrier Route Automated 5-Digit (barcoded) 33.5 33.9 Basic 15.7 15.9 Automated 3-Digit (barcoded) 39.2 40.0 High Density 11.7 11.9 Automation ADC 42.4 43.6 Saturation 10.8 10.8 Automation Mixed ADC 47.7 48.9 Enhanced Carrier Route

Basic 24.9 25.5

High Density 20.5 21.0 Saturation 18.7 19.1









Basic 25.5 26.2





Regular Regular Automated 5-Digit (barcoded) 23.7¢ 24.2 Nonautomation 5-Digit 38.2¢ 38.8 Automated 3-Digit (barcoded) 25.5 26.0 Nonautomation 3-Digit 46.4 47.0 Automation AADC 25.7 26.2 Nonautomation ADC 51.6 52.8 Automation Mixed AADC 27.3 27.8 Nonautomation Mixed ADC 54.9 56.1 Enhanced Carrier Route Automated 5-Digit (barcoded) 34.7 35.3 Basic 26.5 27.1 Automated 3-Digit (barcoded) 42.6 43.8 High Density 19.5 19.9 Automation ADC 48.2 49.4 Saturation 18.2 18.5 Automation Mixed ADC 49.2 50.4 Enhanced Carrier Route

Basic 26.5 27.1






Basic 26.2 26.5






First-Class Mail Rate Comparison Chart

Minimum Volume for Presort and Automation Rates

Is 500 Pieces—Effective 1/10/1999




Letters & Sealed Parcels (1st oz.) Before After Letters & Sealed Parcels (1st oz.) Before After

Single-Piece 32.0¢ 33.0¢ Single-Piece 33.0¢ 34.0¢ Presort 29.5 30.5 Presort 30.5 32.0 Automation Automation Basic 26.1 27.0 Basic 27.0 27.8 3-Digit Barcoded 25.4 26.1 3-Digit Barcoded 26.1 26.7 5-Digit Barcoded 23.8 24.3 5-Digit Barcoded 24.3 25.3 Carrier Route 23.0 23.8 Carrier Route 23.8 24.3

Flats (1st oz.) Before After Flats (1st oz.) Before After Single-Piece 32.0¢ 33.0¢ Single-Piece 33.0¢ 34.0¢ Presort 29.5 30.5 Presort 30.5 32.0 Automation Automation Basic 29.0 30.0 Basic 30.0 31.0 3/5 27.0 27.0 3-Digit Barcoded 27.0 29.5 5-Digit Barcoded 27.0 27.5

Postcards & Postal Cards Before After Single-Piece 20.0¢ 20.0¢ Postcards & Postal Cards Before After Presort 18.0 18.0 Single-Piece 20.0¢ 20.0¢ Automation Presort 18.0 18.0 Basic 16.6 16.6 Automation 3-Digit Barcoded 15.9 15.9 Basic 16.6 16.4 5-Digit Barcoded 14.3 14.6 3-Digit Barcoded 15.9 15.8 Carrier Route 14.0 14.1 5-Digit Barcoded 14.6 15.1 Carrier Route 14.1 14.0











Letters & Sealed Parcels (1st oz.) Before After Letters & Sealed Parcels (1st oz.) Before After

Single-Piece 37.0¢ 39.0¢ Single-Piece 39.0¢ 41.0¢ Presort 35.2 37.1 Presort 37.1 37.3 Automation Automation Basic 30.1 3-Digit Barcoded 30.8 33.4 3-Digit Barcoded 29.2 30.8 5-Digit Barcoded 29.3 31.2 5-Digit Barcoded 27.8 29.3 Carrier Route 27.5

29.0

Flats (1st oz.) Before After Single-Piece 35.1¢ 80.0¢

Flats (1st oz.) Before After Presort 37.1 69.9 Single-Piece 33.0¢ 35.1¢ Automation Presort 32.2 37.1 3-Digit Barcoded 33.9 48.4 Automation 5-Digit Barcoded 31.8 38.3 Basic 33.3 35.9 3-Digit Barcoded 32.2 33.9 Postcards & Postal Cards Before After 5-Digit Barcoded 30.2 31.8 Single-Piece 24.0¢ 26.0¢ Presort 22.3 24.1

Postcards & Postal Cards Before After Automation Single-Piece 23.0¢ 24.0¢ 3-Digit Barcoded 19.3 20.4 Presort 21.2 22.3 5-Digit Barcoded 18.6 19.1 Automation

Basic 18.7 19.7

3-Digit Barcoded 18.3 19.3


Carrier Route 17.0 17.9


Minimum Volume for Presort and Automation Rates Is 500 Pieces—Effective 5/12/2008

Letters & Sealed Parcels (1st oz.) Before After Postcards and Postal Cards Before After

Single-Piece 41.0¢ 42.0¢ Single-Piece 26.0¢ 27.0¢

Presort 37.3 39.4 Presort 24.1 24.2

Automation Automation

3-Digit Barcoded 33.4 34.6 3-Digit Barcoded 20.4 21.0

5-Digit Barcoded 31.2 32.4 5-Digit Barcoded 19.1 19.9

Flats (1st oz.) Before After

Single-Piece 80.0¢ 83.0¢

Presort 69.9 72.7

Automation










Single-Piece 42.0¢ 44.0¢ Single-Piece 27.0¢ 27.0¢ Presort 39.4 Presort 24.2 24.5 Automation Automation 3-Digit Barcoded 34.6 35.7 3-Digit Barcoded 21.0 21.8 5-Digit Barcoded 32.4 33.5 5-Digit Barcoded 19.9 20.5

Flats (1st oz.) Before After Single-Piece 83.0¢ 88.0¢ Presort 72.7 75.7 Automation 3-Digit Barcoded 47.9 54.2 5-Digit Barcoded 36.4 38.0




Single-Piece 44.0¢ 44.0¢ Single-Piece 27.0¢ 27.0¢ Presort Presort 24.5 26.0 Automation Automation 3-Digit Barcoded 35.7 36.5 3-Digit Barcoded 21.0 22.2 5-Digit Barcoded 33.5 34.0 5-Digit Barcoded 20.5 20.8





Single-Piece 44.0¢ 45.0¢ Single-Piece 27.0¢ 32.0 Presort Presort 26.0 28.0 Automation Automation 3-Digit Barcoded 36.5 37.4 3-Digit Barcoded 22.2 24.3 5-Digit Barcoded 34.0 35.0 5-Digit Barcoded 20.8 22.9









Single-Piece 45.0¢ 46.0¢ Single-Piece 32.0¢ 33.0 Presort 43.3 Presort 28.0 28.1 Automation Automation 3-Digit Barcoded 37.4 38.4 3-Digit Barcoded 24.3 24.6 5-Digit Barcoded 35.0 36.0 5-Digit Barcoded 22.9 23.4





Single-Piece 46.0¢ 49.0¢ Single-Piece 33.0¢ 34.0¢ Presort 43.3 46.0 Presort 28.1 29.3 Automation Automation 3-Digit Barcoded 38.4 40.6 3-Digit Barcoded 24.6 26.5 5-Digit Barcoded 36.0 38.1 5-Digit Barcoded 23.4 25.1



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Appendix: Consumer Demographics

TOTAL POPULATION BY SEX AND RACE: 2010

In Thousands

TOTAL 310,233

Male 152,753

Female 157,479

White 246,630

Black 39,909

Asian 14,415

Other 3,780

*Note: Other includes Native American, Alaska Native, Native Hawaiian, and Other Pacific Islander. Source: US Bureau of Labor Statistics, “Statistical Abstract of the US,” 202.


Research Appendix: Consumer Demographics

MEDIAN INCOME BY RACE: 2009

In Dollars

*Persons of Hispanic origin may be of any race. **Includes other races not shown separately. Source: US Bureau of Labor Statistics, “Statistical Abstract of the US,” 2012.

AVERAGE ANNUAL EXPENDITURES BY AGE: 2009

Total Pop.

<25 years

25-34 years

35-44 years

45-54 years

55-64 years

>65 years

65-74 years

>75 years

AVERAGE ANNUAL EXPENDITURES

$49,067 $28,119 $46,494 $57,301 $58,708 $52,463 $37,562 $42,957 $31,676

Food $6,372 $4,179 $6,169 $7,760 $7,445 $6,303 $4,901 $5,561 $4,189

Housing $16,895 $9,735 $17,258 $20,705 $19,004 $16,991 $13,196 $14,462 $11,811

Shelter $10,075 $6,306 $10,856 $12,753 $11,356 $9,749 $7,173 $7,828 $6,454

Utilities, fuels, and public services

$3,645 $1,821 $3,249 $4,093 $4,275 $3,896 $3,282 $3,568 $2,967

Apparel and services

$1,725 $1,396 $1,871 $2,346 $1,885 $1,591 $1,068 $1,322 $793

Transportation $7,658 $5,334 $7,6719 $8,364 $9,409 $8,323 $5,409 $7,033 $3,631

Vehicle purchases (net outlay)

$2,657 $2,319 $2,820 $2,761 $3,233 $2,752 $1,862 $2,597 $1,055

Gasoline and motor oil

$1,986 $1,483 $2,071 $2,359 $2,398 $2,074 $1,241 $1,573 $877

Other vehicle expenses

$2,536 $1,298 $2,293 $2,694 $3,199 $2,962 $1,968 $2,488 $1,402

Health care $3,126 $676 $1,805 $2,520 $3,173 $3,895 $4,846 $4,906 $4,779

Entertainment $2,693 $1,233 $2,504 $3,317 $3,176 $2,906 $2,062 $2,498 $1,587

Personal insurance and pensions

$5,471 $1,988 $5,303 $7,122 $7,654 $6,793 $1,856 $2,669 $964

PERSONAL TAXES $2,104 $173 $1,707 $2,105 $3,515 $3,023 $807 $1,140 $443

Source: US Bureau of Labor Statistics, “Statistical Abstract of the US,” 2012.

$51,861

$32,584 $38,039

$65,469

$49,777 $43,916

$29,667 $33,168

$55,575

$41,990

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

White Black Hispanic* Asian/Pacific Islanders All Races*

Med

ian

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2009 1990


Research Research Appendix: Consumer Demographics

PERSONAL INCOME PER CAPITA BY LARGE METROPOLITAN AREA: 2007 – 2009

Ranked by 2009 Population

Metropolitan Area 2007 2008 2009

United States 39,461 40,674 39,635

New York-Northern New Jersey-Long Island, NY-NJ-PA MSA 53,569 54,439 52,037

Los Angeles-Long Beach-Santa Ana, CA MSA 43,633 44,462 42,784

Chicago-Joliet-Naperville, IL-IN-WI MSA 44,914 46,124 44,379

Dallas-Fort Worth-Arlington, TX MSA 41,469 43,684 41,764

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA 45,255 46,700 46,075

Houston-Sugar Land-Baytown, TX MSA 44,623 48,937 46,570

Miami-Fort Lauderdale-Pompano Beach, FL MSA 43,600 44,515 42,764

Washington-Arlington-Alexandria, DC-VA-MD-WV MSA 55,986 57,784 56,984

Atlanta-Sandy Springs-Marietta, GA MSA 38,731 38,915 37,101

Boston-Cambridge-Quincy, MA-NH MSA 54,092 55,400 53,553

Detroit-Warren-Livonia, MI MSA 38,512 39,562 37,927

Phoenix-Mesa-Glendale, AZ MSA 36,658 36,169 34,452

San Francisco-Oakland-Fremont, CA MSA 61,737 62,427 59,993

Riverside-San Bernardino-Ontario, CA MSA 30,390 30,547 29,680

Seattle-Tacoma-Bellevue, WA MSA 49,945 51,636 50,378

Minneapolis-St. Paul-Bloomington, MN-WI MSA 46,797 47,696 45,811

San Diego-Carlsbad-San Marcos, CA MSA 45,769 47,021 45,706

St. Louis, MO-IL MSA 40,266 42,262 40,728

Tampa-St. Petersburg-Clearwater, FL MSA 37,775 38,445 37,632

Baltimore-Towson, MD MSA 46,779 48,296 48,201

Denver-Aurora-Broomfield, CO MSA 47,333 48,595 46,611

Pittsburgh, PA MSA 40,936 42,573 42,298

Portland-South Portland-Biddeford, ME MSA 39,428 40,376 39,206

Cincinnati-Middletown, OH-KY-IN MSA 38,134 38,950 37,967

Sacramento-Arden-Arcade-Roseville, CA MSA 40,518 41,347 40,306

Cleveland-Elyria-Mentor, OH MSA 39,394 40,378 39,451

Orlando-Kissimmee-Sanford, FL MSA 36,078 36,620 35,279

San Antonio-New Braunfels, TX MSA 34,718 36,548 36,285

Kansas City, MO-KS MSA 40,125 41,340 40,438

Las Vegas-Paradise, NV MSA 39,725 39,249 36,711

San Jose-Sunnyvale-Santa Clara, CA MSA 59,306 58,351 55,169

Columbus, OH MSA 38,059 38,642 37,999

Charlotte-Gastonia-Rock Hill, NC-SC MSA 40,114 40,223 38,034

Indianapolis-Carmel, IN MSA 38,788 39,829 38,532

Austin-Round Rock-San Marcos, TX MSA 37,581 38,941 37,544

Virginia Beach-Norfolk-Newport News, VA-NC MSA 38,387 39,790 39,518

Providence-New Bedford-Fall River, RI-MA MSA 39,866 41,228 40,829

Nashville-Davidson-Murfreesboro-Franklin, TN MSA 39,522 40,246 38,656

Milwaukee-Waukesha-West Allis, WI MSA 41,839 43,001 42,303

Jacksonville, FL MSA 40,286 40,547 39,376

Memphis, TN-MS-AR MSA 37,961 38,676 37,623





(Continued)


Louisville-Jefferson County, KY-IN MSA 37,476 38,242 37,688

Richmond, VA MSA 41,661 42,377 41,161

Oklahoma City, OK MSA 37,388 39,971 38,742

Hartford-West Hartford-East Hartford, CT MSA 50,492 51,744 50,675

New Orleans-Metairie-Kenner, LA MSA 44,656 44,439 42,705

Birmingham-Hoover, AL MSA 39,151 39,949 38,592

Salt Lake City, UT MSA 37,984 38,552 37,500

Raleigh-Cary, NC MSA 40,039 39,728 38,007

Buffalo-Niagara Falls, NY MSA 35,977 37,345 37,469

Rochester, NY MSA 38,022 39,387 39,036

Tucson, AZ MSA 33,183 34,578 33,833

Tulsa, OK MSA 39,499 42,122 40,402

Fresno, CA MSA 30,536 31,111 30,646

Honolulu, HI MSA 43,874 45,625 45,496

Bridgeport-Stamford-Norwalk, CT MSA 80,899 79,642 74,767

Albuquerque, NM MSA 34,528 35,608 35,329

Albany-Schenectady-Troy, NY MSA 40,363 42,147 42,206

Omaha-Council Bluffs, NE-IA MSA 42,505 43,999 42,982

New Haven-Milford, CT MSA 46,518 48,169 47,387

Dayton, OH MSA 34,864 35,445 35,251

Allentown-Bethlehem-Easton, PA-NJ MSA 37,820 38,967 38,505

Bakersfield-Delano, CA MSA 29,412 30,081 29,630

Worcester, MA MSA 41,572 42,777 42,021

Oxnard-Thousand Oaks-Ventura, CA MSA 47,246 47,130 45,908

Baton Rouge, LA MSA 34,981 37,872 38,107

Grand Rapids-Wyoming, MI MSA 32,981 33,488 32,445

El Paso, TX MSA 27,004 28,865 29,381

Columbia, SC MSA 34,951 36,063 35,473

McAllen-Edinburg-Mission, TX MSA 19,183 20,336 20,509

Greensboro-High Point, NC MSA 35,261 35,659 34,948

Akron, OH MSA 37,321 37,874 37,066

Knoxville, TN MSA 34,172 34,862 33,912

Springfield, MA MSA 36,508 37,955 37,888

North Port-Bradenton-Sarasota, FL MSA 49,419 49,962 48,521

Little Rock-North Little Rock-Conway, AR MSA 38,900 39,511 39,431

Poughkeepsie-Newburgh-Middletown, NY MSA 38,899 39,936 39,070

Stockton, CA MSA 31,144 31,584 31,071

Toledo, OH MSA 32,944 33,523 33,178

Charleston-North Charleston-Summerville, SC MSA 35,254 36,082 35,342

Syracuse, NY MSA 35,469 36,707 36,833

Greenville-Mauldin-Easley, SC MSA 33,738 34,481 33,410

Colorado Springs, CO MSA 37,550 38,507 38,401

Wichita Falls, TX MSA 38,342 40,273 38,935

Boise City-Nampa, ID MSA 35,996 35,389 33,950

Cape Coral-Fort Myers, FL MSA 42,298 42,459 40,750





(Continued)


Lakeland-Winter Haven, FL MSA 32,532 33,245 32,336

Madison, WI MSA 43,258 44,128 43,107

Youngstown-Warren-Boardman, OH-PA MSA 31,468 32,028 31,709

Des Moines-West Des Moines, IA MSA 42,019 42,991 42,012

Provo-Orem, UT MSA 23,900 24,376 23,448

Scranton-Wilkes-Barre, PA MSA 34,550 35,891 36,154

Ogden-Clearfield, UT MSA 32,884 33,391 32,714

Jackson, MS MSA 34,900 36,544 35,994

Augusta-Richmond County, GA-SC MSA 32,112 33,594 33,613

Harrisburg-Carlisle, PA MSA 38,485 39,701 39,693

Palm Bay-Melbourne-Titusville, FL MSA 36,953 37,620 37,454

Chattanooga, TN-GA MSA 34,287 34,706 33,760

Port St. Lucie, FL MSA 40,492 41,961 41,412

Modesto, CA MSA 31,057 31,673 31,248

Lancaster, PA MSA 36,102 37,066 36,336

Durham-Chapel Hill, NC MSA 40,776 41,519 41,008

Deltona-Daytona Beach-Ormond Beach, FL MSA 32,332 32,789 32,255

Winston-Salem, NC MSA 35,791 36,392 34,996

Santa Rosa-Petaluma, CA MSA 47,813 47,334 44,784

Lexington-Fayette, KY MSA 36,369 36,644 35,715

Spokane, WA MSA 33,604 34,805 34,599

Fayetteville-Springdale-Rogers, AR-MO MSA 31,955 32,536 31,776

Pensacola-Ferry Pass-Brent, FL MSA 32,985 33,767 33,921

Lansing-East Lansing, MI MSA 32,825 34,479 34,192

Springfield, MO MSA 31,282 32,157 31,754

Visalia-Porterville, CA MSA 28,333 28,456 27,721

York-Hanover, PA MSA 35,154 36,312 35,966

Flint, MI MSA 28,878 29,435 29,526

Reno-Sparks, NV MSA 45,446 44,939 42,390

Corpus Christi, TX MSA 34,253 37,339 36,558

Fort Wayne, IN MSA 34,049 34,601 33,669

Asheville, NC MSA 34,150 35,097 34,381

Mobile, AL MSA 29,575 31,018 30,878

Salinas, CA MSA 42,311 42,506 41,735

Canton-Massillon, OH MSA 31,981 32,834 32,356

Vallejo-Fairfield, CA MSA 38,503 39,181 38,961

Reading, PA MSA 35,744 36,686 36,336

Santa Barbara-Santa Maria-Goleta, CA MSA 47,114 47,974 46,565

Huntsville, AL MSA 37,043 38,745 38,364

Portland-Vancouver-Hillsboro, OR-WA MSA 40,340 40,990 39,568

Manchester-Nashua, NH MSA 44,868 45,668 44,217

Brownsville-Harlingen, TX MSA 20,553 22,090 22,388

Salem, OR MSA 31,430 32,561 32,320

Shreveport-Bossier City, LA MSA 34,495 38,701 38,358

Killeen-Temple-Fort Hood, TX MSA 35,540 38,345 39,344





(Continued)


Davenport-Moline-Rock Island, IA-IL MSA 37,067 39,209 38,670

Beaumont-Port Arthur, TX MSA 33,803 36,493 36,597

Peoria, IL MSA 38,956 40,958 39,818

Anchorage, AK MSA 44,646 47,901 46,217

Montgomery, AL MSA 34,823 36,251 35,882

Trenton-Ewing, NJ MSA 52,530 53,961 51,947

Hickory-Lenoir-Morganton, NC MSA 30,164 30,557 29,840

Fayetteville, NC MSA 36,686 39,419 40,045

Tallahassee, FL MSA 33,514 34,204 33,833

Wilmington, NC MSA 33,786 34,653 33,964

Rockford, IL MSA 32,166 32,825 31,970

Evansville, IN-KY MSA 34,865 37,008 36,475

Eugene-Springfield, OR MSA 33,079 34,101 33,562

Ann Arbor, MI MSA 38,870 39,928 37,859

Savannah, GA MSA 37,955 39,515 38,348

Ocala, FL MSA 31,438 31,604 31,097

Kalamazoo-Portage, MI MSA 32,576 33,844 33,075

Naples-Marco Island, FL MSA 63,620 63,703 60,049

South Bend-Mishawaka, IN-MI MSA 34,431 35,717 34,196

Kingsport-Bristol-Bristol, TN-VA MSA 30,603 32,052 31,770

Green Bay, WI MSA 36,234 37,154 36,742

Charleston, WV MSA 35,248 37,306 37,687

Boulder, CO MSA 49,999 50,714 48,056

Roanoke, VA MSA 37,644 38,789 38,322

Fort Collins-Loveland, CO MSA 38,819 39,314 37,844

Lincoln, NE MSA 36,838 37,990 37,361

Utica-Rome, NY MSA 31,450 32,879 33,269

Fort Smith, AR-OK MSA 30,122 31,602 30,896

Columbus, GA-AL MSA 34,805 37,054 36,577

Spartanburg, SC MSA 30,085 31,061 30,242

Huntington-Ashland, WV-KY-OH MSA 29,127 30,918 31,597

Erie, PA MSA 31,203 32,586 32,615

Lubbock, TX MSA 31,597 34,184 34,079

Duluth, MN-WI MSA 33,739 35,205 34,855

Atlantic City-Hammonton, NJ MSA 38,686 39,923 39,156

Clarksville, TN-KY MSA 33,083 35,864 35,318

San Luis Obispo-Paso Robles, CA MSA 40,704 41,094 40,103

Norwich-New London, CT MSA 46,215 47,385 46,841

Hagerstown-Martinsburg, MD-WV MSA 32,015 32,777 33,137

Myrtle Beach-North Myrtle Beach-Conway, SC MSA 30,074 29,963 29,101

Lafayette, LA MSA 39,219 42,755 41,670

Holland-Grand Haven, MI MSA 32,370 32,843 32,334

Gainesville, FL MSA 34,153 35,352 35,149

Cedar Rapids, IA MSA 37,649 39,528 39,022

Santa Cruz-Watsonville, CA MSA 51,336 51,249 49,145





(Continued)


Greeley, CO MSA 28,175 28,744 27,186

Olympia, WA MSA 39,845 41,112 40,801

Lynchburg, VA MSA 32,628 33,772 33,308

Amarillo, TX MSA 32,935 35,753 35,489

Kennewick-Pasco-Richland, WA MSA 32,625 34,031 34,539

Merced, CA MSA 28,209 28,003 27,517

Binghamton, NY MSA 32,559 34,097 34,360

Laredo, TX MSA 21,994 23,598 23,294

Bremerton-Silverdale, WA MSA 42,163 43,851 43,404

Yakima, WA MSA 29,594 31,624 31,265

Gulfport-Biloxi, MS MSA 37,630 36,135 35,879

Sioux Falls, SD MSA 39,106 40,399 39,753

Waco, TX MSA 30,116 31,923 32,265

Macon, GA MSA 33,075 34,619 34,407

Topeka, KS MSA 34,880 36,576 36,770

Champaign-Urbana, IL MSA 32,707 35,020 34,624

Appleton, WI MSA 37,348 38,121 36,800

Barnstable Town, MA MSA 49,821 51,283 50,128

Chico, CA MSA 31,571 32,558 32,593

Prescott, AZ MSA 29,870 30,094 29,134

College Station-Bryan, TX MSA 27,579 29,796 29,847

Tuscaloosa, AL MSA 32,814 34,018 33,515

Springfield, IL MSA 37,942 40,307 40,467

Burlington-South Burlington, VT MSA 40,441 41,914 41,641

Longview, TX MSA 34,752 38,720 37,616

Las Cruces, NM MSA 26,725 27,848 28,165

Tyler, TX MSA 35,730 39,211 38,319

Houma-Bayou Cane-Thibodaux, LA MSA 36,999 41,083 40,506

Medford, OR MSA 34,583 34,688 34,314

Florence, SC MSA 31,689 32,813 32,747

Racine, WI MSA 35,965 37,104 36,708

Elkhart-Goshen, IN MSA 33,394 32,681 30,064

Bellingham, WA MSA 35,453 36,271 35,478

Fargo, ND-MN MSA 37,848 40,984 39,883

Saginaw-Saginaw Township North, MI MSA 29,301 30,124 30,137

Johnson City, TN MSA 29,927 31,200 30,778

Yuma, AZ MSA 24,734 25,185 25,356

Charlottesville, VA MSA 42,898 43,811 42,921

Lafayette, IN MSA 29,850 31,373 30,620

Lake Havasu City-Kingman, AZ MSA 25,877 26,527 26,185

Lake Charles, LA MSA 34,558 37,420 36,210

Athens-Clarke County, GA MSA 29,557 30,613 29,770

St. Cloud, MN MSA 32,719 34,420 33,571

Gainesville, GA MSA 30,325 30,501 29,038

Rochester, MN MSA 41,758 42,658 42,216





(Continued)


Bloomington, IN MSA 29,300 30,698 30,950

Anderson, SC MSA 29,831 30,760 30,280

Kingston, NY MSA 35,302 36,521 36,519

Redding, CA MSA 34,432 34,387 34,068

Greenville, NC MSA 31,430 32,683 32,334

Crestview-Fort Walton Beach-Destin, FL MSA 41,109 42,288 42,007

Joplin, MO MSA 28,815 29,979 29,836

Monroe, LA MSA 31,618 33,830 34,229

Muskegon-Norton Shores, MI MSA 27,349 28,116 27,792

Jacksonville, NC MSA 36,902 40,274 42,463

Terre Haute, IN MSA 28,571 30,004 30,067

Bloomington-Normal, IL MSA 37,132 38,985 38,695

El Centro, CA MSA 26,742 28,641 28,681

Columbia, MO MSA 35,396 36,424 36,568

Yuba City, CA MSA 29,673 30,885 31,279

Albany, GA MSA 27,823 29,248 29,220

Waterloo-Cedar Falls, IA MSA 34,511 36,566 36,376

Panama City-Lynn Haven-Panama City Beach, FL MSA 35,475 36,420 36,316

Oshkosh-Neenah, WI MSA 35,904 37,383 37,088

Parkersburg-Marietta-Vienna, WV-OH MSA 30,009 31,530 31,869

Niles-Benton Harbor, MI MSA 32,737 34,039 33,507

Janesville, WI MSA 31,646 32,099 31,294

Abilene, TX MSA 32,331 35,565 35,188

Eau Claire, WI MSA 32,715 33,758 33,659

Jackson, MI MSA 28,549 29,750 29,488

Blacksburg-Christiansburg-Radford, VA MSA 27,901 28,482 28,384

Bend, OR MSA 36,655 37,029 35,966

Vineland-Millville-Bridgeton, NJ MSA 30,345 31,715 31,877

Dover, DE MSA 30,743 31,279 31,127

Pueblo, CO MSA 29,529 31,023 31,613

Punta Gorda, FL MSA 35,787 36,431 35,858

Pascagoula, MS MSA 33,557 33,869 33,916

Billings, MT MSA 38,176 39,961 39,212

Alexandria, LA MSA 33,062 35,812 35,885

Monroe, MI MSA 33,505 33,461 31,961

Iowa City, IA MSA 37,206 38,917 38,299

Decatur, AL MSA 31,171 32,171 31,974

Burlington, NC MSA 31,419 31,867 30,671

Bangor, ME MSA 31,944 33,262 33,767

Hanford-Corcoran, CA MSA 26,763 27,293 26,426

Madera-Chowchilla, CA MSA 26,606 26,880 26,790

Santa Fe, NM MSA 43,292 44,423 42,645

Jefferson City, MO MSA 33,155 34,756 34,691

Wichita, KS MSA 34,497 38,852 38,202

Rocky Mount, NC MSA 30,594 31,701 31,936





(Continued)


State College, PA MSA 32,613 33,855 34,006

Grand Junction, CO MSA 34,935 37,342 34,791

Wheeling, WV-OH MSA 30,390 32,293 32,318

Sioux City, IA-NE-SD MSA 33,043 35,600 34,719

Florence-Muscle Shoals, AL MSA 29,590 30,826 30,792

Johnstown, PA MSA 30,088 31,602 31,961

Hattiesburg, MS MSA 28,518 29,469 29,274

Dothan, AL MSA 32,492 33,449 33,028

Springfield, OH MSA 31,517 32,510 32,627

Coeur d'Alene, ID MSA 31,889 32,485 31,770

Morristown, TN MSA 26,781 27,735 27,559

Texarkana, TX-Texarkana, AR MSA 31,401 33,263 33,118

St. George, UT MSA 26,892 26,964 26,147

Auburn-Opelika, AL MSA 27,356 28,225 27,643

Valdosta, GA MSA 28,157 29,621 29,184

Warner Robins, GA MSA 32,166 33,215 33,114

Battle Creek, MI MSA 30,474 31,906 32,227

Sebastian-Vero Beach, FL MSA 56,852 59,631 56,303

Napa, CA MSA 51,045 51,758 49,805

Odessa, TX MSA 32,571 36,067 33,544

Dalton, GA MSA 29,149 28,909 28,027

La Crosse, WI-MN MSA 34,195 35,690 35,908

Midland, TX MSA 52,258 59,670 54,164

Wausau, WI MSA 36,228 36,730 36,058

Anderson, IN MSA 29,964 31,776 30,627

Lebanon, PA MSA 35,176 36,678 36,850

Flagstaff, AZ MSA 33,248 34,784 34,510

Pittsfield, MA MSA 41,826 43,284 42,826

Glens Falls, NY MSA 31,408 32,909 33,106

Logan, UT-ID MSA 25,093 26,111 25,176

St. Joseph, MO-KS MSA 30,213 31,779 32,168

Idaho Falls, ID MSA 33,149 33,773 32,606

Altoona, PA MSA 31,003 32,026 32,663

Rapid City, SD MSA 36,848 38,081 37,330

Mansfield, OH MSA 28,903 30,148 29,635

Farmington, NM MSA 29,183 31,893 30,702

Winchester, VA-WV MSA 33,867 34,581 34,094

Manhattan, KS MSA 36,537 39,425 39,918

Steubenville-Weirton, OH-WV MSA 29,387 31,429 31,661

Bowling Green, KY MSA 30,521 31,644 30,912

Morgantown, WV MSA 32,927 33,995 34,813

Harrisonburg, VA MSA 30,654 31,355 30,673

Salisbury, MD MSA 31,744 32,922 33,153

Jonesboro, AR MSA 28,982 30,611 30,192

Sherman-Denison, TX MSA 30,041 32,024 32,066





(Continued)


Mount Vernon-Anacortes, WA MSA 37,665 38,837 38,225

Williamsport, PA MSA 30,148 31,473 31,900

Lawrence, KS MSA 31,026 32,160 32,070

Victoria, TX MSA 34,692 37,723 36,408

Muncie, IN MSA 28,681 29,655 29,418

Sheboygan, WI MSA 37,885 38,541 37,783

Anniston-Oxford, AL MSA 31,087 32,494 32,045

Goldsboro, NC MSA 30,501 31,699 31,673

Owensboro, KY MSA 30,980 32,792 32,817

Jackson, TN MSA 31,600 32,768 32,078

Elizabethtown, KY MSA 33,011 34,646 35,126

Cleveland, TN MSA 29,558 30,451 29,939

Lawton, OK MSA 33,045 35,848 36,564

Kankakee-Bradley, IL MSA 30,269 31,738 31,780

Michigan City-La Porte, IN MSA 29,815 31,240 30,199

San Angelo, TX MSA 32,410 35,987 35,892

Wenatchee-East Wenatchee, WA MSA 31,790 33,526 33,299

Missoula, MT MSA 34,451 35,294 35,156

Decatur, IL MSA 37,680 39,598 39,174

Bay City, MI MSA 30,139 31,256 31,165

Lewiston-Auburn, ME MSA 33,713 35,045 35,455

Bismarck, ND MSA 36,928 38,727 39,337

Danville, VA MSA 29,089 29,932 30,092

Sumter, SC MSA 28,398 29,545 29,458

Lima, OH MSA 30,049 31,018 30,596

Brunswick, GA MSA 35,375 36,290 35,149

Gadsden, AL MSA 29,138 30,170 29,984

Longview, WA MSA 29,704 30,646 30,859

Ithaca, NY MSA 31,858 33,902 33,684

Pine Bluff, AR MSA 27,550 29,019 29,541

Fond du Lac, WI MSA 35,396 36,289 35,389

Cumberland, MD-WV MSA 28,527 30,283 31,432

Kokomo, IN MSA 33,190 33,123 31,677

Fairbanks, AK MSA 36,359 39,517 38,895

Hot Springs, AR MSA 32,804 33,863 33,715

Grand Forks, ND-MN MSA 34,067 36,572 36,126

Rome, GA MSA 31,109 32,260 31,840

Ocean City, NJ MSA 44,812 46,067 46,329

Cape Girardeau-Jackson, MO-IL MSA 31,403 32,338 32,795

Mankato-North Mankato, MN MSA 34,020 36,180 35,258

Dubuque, IA MSA 34,667 36,097 35,635

Palm Coast, FL MSA 31,800 32,815 32,671

Pocatello, ID MSA 28,195 28,920 28,513

Cheyenne, WY MSA 43,317 46,210 45,950

Elmira, NY MSA 31,267 33,276 32,881

Ames, IA MSA 34,396 35,821 35,616

Corvallis, OR MSA 36,931 38,647 37,922





(Continued)


Great Falls, MT MSA 35,204 37,150 37,437

Danville, IL MSA 28,165 30,576 30,713

Sandusky, OH MSA 35,685 36,773 36,236

Columbus, IN MSA 36,792 39,673 37,589

Casper, WY MSA 50,040 57,311 53,361

Hinesville-Fort Stewart, GA MSA 25,525 28,312 26,372

Lewiston, ID-WA MSA 33,069 34,504 34,166

Carson City, NV MSA 42,603 41,922 40,218

Source: US Census Bureau, “Statistical Abstract of the US,” 2012.

PERSONAL INCOME PER CAPITA BY STATE: 2000 VS. 2010

State 2000 2010 State 2000 2010

United States $30,318 $40,584 Missouri $27,891 $36,979

Alabama $24,069 $33,945 Montana $23,470 $35,317

Alaska $30,531 $44,174 Nebraska $28,598 $39,557

Arizona $26,262 $34,999 Nevada $30,986 $36,997

Arkansas $22,577 $33,150 New Hampshire $34,087 $44,084

California $33,398 $43,104 New Jersey $38,666 $50,781

Colorado $33,977 $42,802 New Mexico $22,751 $33,837

Connecticut $41,920 $56,001 New York $34,630 $48,821

Delaware $31,007 $39,962 North Carolina $27,914 $35,638

District of Columbia $40,484 $71,044 North Dakota $25,624 $40,596

Florida $29,080 $39,272 Ohio $28,694 $36,395

Georgia $28,531 $35,490 Oklahoma $24,605 $36,421

Hawaii $29,071 $41,021 Oregon $28,718 $37,095

Idaho $24,683 $32,257 Pennsylvania $30,110 $41,152

Illinois $32,636 $43,159 Rhode Island $29,484 $42,579

Indiana $27,460 $34,943 South Carolina $25,081 $33,163

Iowa $27,293 $38,281 South Dakota $26,427 $38,865

Kansas $28,477 $39,737 Tennessee $26,691 $35,307

Kentucky $24,786 $33,348 Texas $28,504 $39,493

Louisiana $23,570 $38,446 Utah $24,517 $32,595

Maine $26,696 $37,300 Vermont $28,183 $40,283

Maryland $34,681 $49,025 Virginia $31,640 $44,762

Massachusetts $38,210 $51,552 Washington $32,407 $43,564

Michigan $29,392 $35,597 West Virginia $22,174 $32,641

Minnesota $32,597 $42,843 Wisconsin $29,139 $38,432

Mississippi $21,555 $31,186 Wyoming $29,281 $47,851

Source: US Census Bureau, “Statistical Abstract of the US,” 2012.


Research

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Source Index

Adobe Systems Incorporated 345 Park Avenue San Jose, CA 95110-2704 (408) 536-6000 www.adobe.com

Adworthy 1113 General Washington Memorial Boulevard Washington Crossing, PA 18977 (215) 321-3862 www.adworthy.com

Ascend2 www.ascend2.com

Atlas of Giving 6301 Gaston Ave. Suite 715 Dallas, Texas 75214 (877) 414-0078 www.atlasofgiving.com

Beasley Direct Marketing 15227 Perry Lane Morgan Hill, CA. 95037 (408) 782-0046 www.beasleydirect.com

Bernhart Associates Executive Search, Inc. 2068 Greenwood Drive Owatonna, MN 55060 (507) 451-4270 www.bernhart.com

Biztegra www.biztegra.com

Blackbaud 2000 Daniel Island Drive Charleston, SC, 29492-7541 (800) 443-9441 www.blackbaud.com

BlueHornet (619) 295-1856 www.bluehornet.com

Bronto Software, Inc. Washington Building 324 Blackwell Street, Suite 410 Durham, North Carolina 27701 (888) 276-6861 www.bronto.com

ChiefMarketer.com www.chiefmarketer.com

Cisco Systems, Inc. 170 West Tasman Dr. San Jose, CA 95134 www.cisco.com

Craigconnects www.craigconnects.org

CMO Survey www.cmosurvey.org

COLLOQUY 4445 Lake Forest Drive, Suite 200, Cincinnati, Ohio 45242 (513) 248-5918 www.colloquy.com

http://www.bernhart.com/

http://www.colloquy.com/


Research Source Index

comScore Inc. 11950 Democracy Drive Suite 600 Reston, VA 20190 (703) 438-2000 www.comscore.com

Cone Communications 855 Boylston Street Boston, MA 02116 (617) 227-2111 www.conecomm.com

Content Marketing Institute 3317 W 155th St Cleveland, OH 44111 (888)-554-2014 www.contentmarketinginstitute.com

Crandall Associates, Inc. 6 Litchfield Road Suite 316 Port Washington, NY 11050 (516) 767-6800 www.crandallassociates.com

Curata, Inc. 245 First St. 12th Floor Cambridge, MA 02142 (617) 229-5544 www.curata.com

DDMI Research Direct Marketing Association www.ddminstitute.thedma.org

Demand Metric 562 Wellington Street London, Ontario Canada N6A 3R5 (866) 947-7744 www.demandmetric.com

Deighton, John Harold M. Brierly Professor of Business Administration Harvard Business School

Digital Advertising Alliance 1120 Avenue of the Americas New York, NY 10036 www.digitaladvertisingalliance.org

eConsultancy 4th Floor 29-35 Farringdon Road London, London, EC1M3JF United Kingdom 44 (0)20 7269 1467 www.econsultancy.com

Edison Research 6 W. Cliff St. Somerville, NJ 08876 (908) 707-4707 www.edisonresearch.com

eleventy marketing group 453 S. High Street Akron, OH 44311 (330) 294-1120 www.eleventygroup.com

eMarketer, Inc. 75 Broad Street 32nd Floor New York, NY 10004 (212) 763-6010 www.emarketer.com

Epsilon 4401 Regent Boulevard Irving, TX 75063 (800) 309-0505 www.epsilon.com

Experian Marketing Services 955 American Lane Schaumburg, IL 60173 (224) 698-5600 www.experian.com

Facebook 1601 S. California Ave. Palo Alto, CA 94304 www.facebook.com

Fluent 33 Whitehall Street 15th Floor New York, NY 10004 (646) 669-7272 www.fluentco.com

Google 1600 Amphitheatre Parkway Mountain View, CA 94043 www.google.com

HubSpot, Inc. 25 First Street, 2nd Floor

Cambridge, MA 02141 (888) 482-7768 www.hubspot.com

IgnitionOne 32 Avenue of the Americas

25th Floor New York, NY 10013 (888) 744-6483 www.ignitionone.com

Infogroup 1020 E 1st Street

Papillion, NE 68046 (402) 836-5290 www.infogroup.com

Inmar 2650 Pilgrim Court Winston-Salem, NC 27106 (800) 765-1277 www.inmar.com

J. Schmid & Assoc, Inc. 5800 Foxridge Drive, Suite 200 Mission, KS 66202 (913) 236-8988 www.jschmid.com

Johnson, Peter A. Adjunct Professor Columbia University

http://www.crandallassociates.com/

http://www.emarketer.com/

http://www.epsilon.com/

http://www.experian.com/


Research

Listrak 529 East Main Street Lititz, PA 17543 (877) 362-4556 www.listrak.com

LiveIntent 100 Church Street New York, NY 10007 (212) 792-5348 www.liveintent.com

LogMeIn 320 Summer Street Boston, MA 02210 (781) 638-9050 www.logmein.com

MailerMailer 1395 Piccard Dr., Suite 360 Rockville, MD 20850 (301) 825-5658 www.mailermailer.com

Mailjet 37 Bis Rue du Sentier 75002 Paris France www.mailjet.com

MarketingSherpa LLC 1300 Marsh Landing Pkwy Jacksonville Beach, FL 32250 (877) 895-1717 www.marketingsherpa.com

mCordis (408) 242-5733

www.mcordis.com

Merkle 7001 Columbia Gateway Drive

Columbia, MD 21046 (443)542-4000 www.merkleinc.com

Mintel 351 West Hubbard Street

Suite 801 Chicago, IL 60610 (312) 932-0400 www.mintel.com

Moddern Marketing, LLC 134 Spring Street New York, NY 10012 (212) 334-9800 www.moddern.com

Mondo 102 Madison Ave, 7th floor New York, NY 10016 212-257-5111 www.mondo.com

Multichannel Merchant 10 Norden Pl., second floor Norwalk, CT 06855 www.multichannelmerchant.com

Nonprofit Marketing Guide EcoScribe Communications 319 Becks Church Road Lexington, NC 27292 (336) 300-8394 www.nonprofitmarketingguide.com

Oxbridge Communications, Inc. (MediaFinder.com) 39 W. 29th Street, Suite 301 New York, NY 10001 (212) 741-0231 www.mediafinder.com

Pew Internet & American Life Project 1615 L Street, NW, Suite 700 Washington, DC 20036 (202) 419-4500 www.pewinternet.org

PwC www.pwc.com

Real Results Marketing, Inc. 1195 Linden Avenue Boulder, CO 80304 (303) 898-8636 www.realresultsmarketing.com

Retail Online Integration (NAPCO) 1500 Spring Garden St, 12th Floor Philadelphia, PA 19130 (215) 238-5300 www.retailonlineintegration.com

RetailMeNot 301 Congress Avenue, Suite 700 Austin, TX 78701 www.retailmenot.com

Return Path 304 Park Avenue South, 7th floor New York, NY 10010 (212) 905-5500 www.returnpath.com

SEMPO 401 Edgewater Place, Suite 600 Wakefield, MA 01880 USA (781) 876-8886 www.sempo.org

Shasho Jones Direct, Inc.

Glenda Shasho Jones 145 West 67 Street New York, NY 10023 www.sjdirect.com

Social Media Examiner

13025 Danielson Street Poway, CA 92064 www.socialmediaexaminer.com

sovrn

1750 29th St. #2036 Boulder, CO 80301 (303) 493-5490 http://www.sovrn.com/

Teradata 10000 Innovation Drive Dayton, OH 45342 (866) 548-8348 www.teradata.com

University of MA Dartmouth Center for Marketing Research 200 Mill Road, Suite 150A Fairhaven, MA 02719 (508) 999-8756 www.umassd.edu/cmr

UPS 55 Glenlake Parkway NE Atlanta , GA 30328 United States (800) 742-5811 www.ups.com

http://www.mailermailer.com/

http://www.mintel.com/


Research Source Index

USC Annenberg School Center for the Digital Future 11444 West Olympic Blvd, # 120 Los Angeles, CA 90064 (310) 235-4444 www.digitalcenter.org

United States Postal Service 475 L’Enfant Plaza, SW Washington, DC 20260 (202) 268-2000 www.usps.gov

U.S. Census Bureau 4600 Silver Hill Road Washington, DC 20233 (800) 923-8282 www.census.gov

Valassis 19975 Victor Parkway Livonia, MI 48152 (734) 591-3000 www.valassis.com

Vision Critical 200 Granville Street Mezzanine Floor Vancouver, BC V6C 1S4 Canada (604) 647-1980 www.visioncritical.com

Visual Website Optimizer (VWO) www.vwo.com

Winterberry Group 60 Broad Street, 38th floor New York, NY 10010 (212)842-6000 www.winterberrygroup.com

Worldata, Inc. 3000 North Military Trail Boca Raton, FL 33431 (800) 331-8102 www.worldata.com

Zogby www.zogby.com

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