DRTV – DRTV will continue to thrive. Spending will increase. More catalogers and other traditional advertisers will explore DRTV as a less expensive acquisition channel that will build their customer bases and fuel future sales. DRTV gives advertisers both immediate responses and compounds its effect by driving sales across other channels including Internet, retail, catalog and telemarketing. Additionally, DRTV marketers will integrate their marketing with other consumer touchpoints to increase interaction with potential customers. They will create mobile friendly websites, offer more information through telescoping, and expand their online interactive marketing efforts.
Cross channel marketing – Cross channel marketing will become the norm. Today’s consumer is omni-channel. In the most recent Insights report from Nielsen, data show that over 70% of TV viewers check email while watching TV or commercials, about 65% are also surfing the web and 55% visit a social networking site. Over 40% looked up information related to the show and just under a third looked up info on a product that was advertised, while 25% were looking for coupons or deals related to an ad. 30%-40% of retail shoppers are on their mobile phone at the store, comparing prices, getting recommendations/reviews from friends or online. Consumers research products online before they buy them in stores and research products in stores before they buy them online. A merchant must be consistent in messaging, offers, presentation and customer service across all channels. But marketers must be prepared to engage customers through multiple channels concurrently – QR codes, SMS messages, PURLs, product/offer specific landing pages and telescoping.
Telescoping – Advertisers will use telescoping more frequently to provide more targeted, personalized information and gather information about potential customers. As cable companies become more able to marry household data to their subscriber at the household level, advertisers will be able to deliver more personalized messaging via television.
Interactive marketing – The concept of interactive marketing will expand to include cable television, print/catalog (through greater use of PURLs and QR codes) as well as increased mobile advertising, online video advertising, email, search and social media. Forrester predicts that by 2016, advertisers will spend as much on interactive marketing as they do on television advertising today. We believe that by 2016 all advertising will be interactive.
Retail – Retail will pose challenges for those who do not differentiate, those that do not communicate through multiple online channels, and those that do not use direct mail. We recommend that you use your direct-to-consumer program to subsidize your drive to retail and allow it to cast a halo effect on products in the store. We love retail and we believe our case studies are superior in this area, generating double digit growth in many categories.
Catalog/Direct Mail – Saturday mail delivery will become a fond memory. Catalogers will look to more interactive and cost effective platforms such as Coffee Table mobile platform and DRTV to reach new customers. Cutting acquisition spend is only a short term fix for the bottom line. Only about one fourth to one third of a file is active in the current 12 month period. Even with reactivations, it is necessary to continue to build the file.
Email – Marketers will increase the number of emails sent but they will become more segmented and personalized. In 2011, retailers sent an average of 177 promotional messages per subscriber, a 16% increase over 2010 and a 50% increase over 2008 numbers. And the latest figures from the Email Institute indicate that not only were the number of emails sent up, but in the first 9 months of 2011 the open and click through rates also increased. Through improved analytics, marketers not only have access to even more information about their customers but they have the technological analytical power to segment and target more effectively than ever before.
Mobile – By the end of 2012 more than half of all mobile phones in the US will be smartphones. In addition, 30% or more of households will have at least one tablet computer. While we do not predict that mobile shopping will account for more than 20-25% of online sales, we do expect that mobile users will be very active checking email, viewing video, surfing the web, communicating through social media, and researching on their mobile devices from both home and remote locations. We also expect that tablet users will be even more likely than smartphone users to make online purchases. Tablet users have a higher income and higher average orders online vs. smartphone users. Research has also shown that over 60% of tablet owners have already made at least one purchase online.
It is incumbent upon all marketers with an online presence to have a mobile friendly interface in order to present the most appealing presentation to all mobile visitors.
Consumer Behavior – Consumer behavior evident in Holiday 2012 will be a more permanent trend. With Black Friday and Cyber Monday showing huge lifts year over year, but sales falling off from Tuesday forward, the customer is exhibiting affinity for deep discounting. Since 2008, customers have been enticed with discounts, free shipping, free offers, etc. The outcome now, three years down the line, is that these customers appear to have been trained to look for (and react mainly to) savings. Look for this behavior to continue well into 2012.
Social – Although social networks do not drive big dollars, they do allow Brand advocates to be informed. Make sure your social updates are informed , inspired and important to the consumers you reach. You do not know the extent of their social circle of influence. Treat social media with respect.
Marketsmith is active in all of these arenas. If you would like more information or want to know how to take advantage of these opportunities or address these issues, call Susan Pizzano or Carina Pologruto, and we will help you make 2012 your best year ever.
Tags: Catalog/Direct Mail, Consumer Behavior, Cross-Channel Marketing, DRTV, email, Interactive Marketing, mobile, retail, Telescoping Category: Newsletter Articles. You can leave a response, or trackback from your own site.