1

2

Jerry Cerasale, Senior Vice President, Government Affairs

•

Represents the multichannel marketing community’s policymaking interests on

Capitol Hill and before key federal agencies, including the US Postal Service

(USPS) and the Federal Trade Commission (FTC).

•

Began his legal and government relations career in the USPS’s

legal

department. Served for 12 years at the Postal Regulatory Commission (PRC)

in a number of advisory roles, including seven years as legal advisor to PRC

Chairman Janet Steiger. He then became attorney/advisor to FTC Chairman

Janet Steiger. In 1995, Cerasale was deputy general counsel for the US

House of Representatives Committee on Post Office and Civil Service.

•

Cerasale is secretary/treasurer of The Mailers Council’s Board of Directors. He

has also been a member of FTC’s Advisory Committee on Online Access, and

vice chairman of the Postal Matters Subsection of the Administrative Law and

Regulatory Practice Section of the American Bar Association.

3

Neil O’Keefe, Vice President, Multichannel Segments

•

Liaison between all DMA functions and capabilities, and its multichannel

merchant segment.

•

O’Keefe, was the vice president of marketing for Spiegel Brands, Inc., where

he redesigned that company’s planning processes by incorporating customer

channel preference and increased Internet marketing investment, allowing for

a significant reduction in selling expenses. Additionally, O’Keefe directed the

integration of Internet analytics for Spiegel Brands’

marketing database.

•

O’Keefe served for six years as the divisional vice president at Newport News,

and in that role, developed and implemented a branded-partnership,

marketing membership program for both Newport News and Spiegel.

•

O’Keefe began his career as a manager at Hanover Direct, and in ensuing

years, took on senior leadership positions at such companies as Spiegel

Group in New York and Regal Greetings and Gifts in Toronto, Ontario.

4

Meeting Questions

•

Are there any industry practice standards or commonly recognized

rules of practice for direct mail marketing?

–

If yes, who made the rules? What’s the reasoning and what are the

procedures of the rule-making?

–

If not, was it because such practice rules cannot be agreed upon, or the

industry decided to not have such rules?

•

How do direct mail marketing firms assess the effectiveness of their

marketing service?

–

What types of evaluation tools they use?

•

Is direct mail or email-marketing more effective and efficient?

–

What’s the trend of integration of direct mail marketing and email

marketing?

5

DMA Membership

The importance of being a DMA Member•

DMA market intelligence and education assists companies in developing and positioning its brand and marketing messages

•

DMA’s worldwide reach assist companies in leveraging global marketing capabilities for greater cost efficiencies, improved targeted marketing and new growth

•

DMA together with members companies lead the area of self regulation thereby avoid unnecessary legislation and ensure regulatory compliance

•

Membership in DMA provides a platform for new and continuing communications and stronger relationships with both customers and suppliers

6

90 years of Responsibility, Relevance and Results

•

Founded in 1917, the DMA represents more than 3,000 companies globally

•

We are the leading global trade association for the use of multi-channel direct marketing–

Email, Social Media, Mobile, Print, Direct Mail, and Interactive Media

•

We advocate keeping all marketing channels open and economically viable

•

Our worldwide reach can assist your growth

•

We strive to provide our members with resources you need to improve your business and get an edge over your competition

7

•

Leading global trade association of business and nonprofits using and supporting multichannel direct marketing tools and techniques

•

3,000+ corporate members from U.S. and 50 other countries –

over 70,000 individual participants

•

371-member DMA Nonprofit

Federation (DMANF) serves nonprofit organizations using direct marketing channels to communicate

with donors, members and public

DMA Membership Profile

8

Agencies

Channel

Services

List & Data

Mktg. Technology

B-to-BMarketers

B-to-CMarketers

Nonprofits

DMA Membership Snapshot

50% SERVICE COMPANIES

•

Agencies 25%

•

List & Data 8%

•

Channel Services 13%(Email, Envelope/Paper, Internet, Mailing/ Fulfillment, Media, Mobile, Printing, Search, Teleservices)

•

Marketing Technology 4%

50% USER COMPANIES

•Business-to-Consumer 26%(Book & Music Clubs, Catalog/Mail Order, Consumer Products & Svcs, Financial Svcs, Insurance, Magazines, Publishers, Retailers)

•Not-for-Profit 12%

•Business-to-Business 12%

9

A.

Multichannel Retail Merchants

B.

Magazine Publishers

C.

Non-Profits

D

.

Insurance & Financial Services

E.

Pharmaceuticals & Healthcare

F

.

Travel & Hospitality

G.

Automotive

H

.

Consumer Packaged Goods

I.

Cable & Telecom

1. MARKETERS(Vertical

Segments)

1. MARKETERS(Vertical

Segments) 4. MARKETS(Customers,

Donors, Prospects)

4. MARKETS(Customers,

Donors, Prospects)

A.

Consumer

B.

Business-to-Business

C

.

International

D.

Hispanic consumers

E.

55 Plus

F

.

Tweens

A.

Mail stream including Insert Media

B.

Teleservices & Contact Center

C

.

Interactive DR-Broadcast

D

.

Mobile

E.

Email

F.

Search

G.

Social Networks

H.

Web Display Advertising

3. INTERACTIVECHANNELS

3. INTERACTIVECHANNELS

3. INTERACTIVECHANNELS

3. INTERACTIVECHANNELS

A.

List & Data

B.

Analytics

C

.

Communications Design & Fulfillment Services

2 . D M S U P P L Y C H A I N( H o r i z o n t a l S e g m e n t s )

2 . D M S U P P L Y C H A I N( H o r i z o n t a l S e g m e n t s )

2 . D M S U P P L Y C H A I N( H o r i z o n t a l S e g m e n t s )

2 . D M S U P P L Y C H A I N( H o r i z o n t a l S e g m e n t s )

D

.

Marketing Technology

E.

CRM

F

.

Agencies

Dig

ital/I

nter

activ

e

The Marketing & Advertising Landscape (w/o Broadcast TV, Newspaper, Radio, Outdoor and POS)

10

Global Reach

•

DMA has established partnerships & affiliates which provide a gateway to international markets.

•

As this network continues to grow members benefit from global market knowledge, best practices and skill development via access to other members and associations across 42 countries and counting.

11

Join other leaders and be connected

12

DMA Nonprofit Federation

•

Serving the nonprofit marketing and charitable fundraising community since 1982

•

The leading source for nonprofit marketing and fundraising professional education and industry advancement.

•

An aggressive and effective advocate for charitable organizations in postal, regulatory, legislative, and accountability issues at the federal, state and local levels.

•

One of the largest member segments of the DMA with nearly 400 nonprofit members and over 70 Corporate Partners.

13

DMEF

•

The Direct Marketing Educational Foundation is dedicated to those in the industry through its mission:–

To attract, educate, and place top college students in the business of direct/interactive marketing.

•

Established in 1966 by members of the DMA who wanted to give something back to the community, the DMEF is the only national foundation of its kind solely committed to introducing –

and in fact, engaging professors and students

in the thriving business of direct/interactive marketing.

14

Echo Awards

•

Founded in 1928 The DMA International ECHO Awards Competition honors the world's best direct marketing campaigns–

Outstanding creative–

Superb marketing strategy–

Excellent results.•

Today ECHO welcomes all types of media and judges over 1,000 marketers and agencies across the entire direct marketing spectrum

15

Council Membership -

Benefits

•

Choose from one of 22 Councils

•

Inside access to the latest tools in Marketing

•

Councils include:

–

Insurance & Financial Services

–

Mobile Marketing

–

Search Engine Marketing

–

Social Media

–

Many more…

16

DMA Senior Leadership

•

John A. Greco, Jr., President & CEO

•

Linda A. Woolley, Executive Vice President, Government Affairs

•

Terri L. Bartlett, President, Direct Marketing Educational Foundation

•

Sue R.E. Geramian, Senior Vice President, Chief Communications Officer

•

John Horan, Senior Vice President, Finance & Chief Financial Officer

•

Tom Shimko, Senior Vice President, Chief Marketing Officer

•

Senny Boone, Senior Vice President, Corporate & Social Responsibility

•

Jerry Cerasale, Senior Vice President, Government Affairs

•

Kenneth P. Ebeling, Senior Vice President, Member and Segment Services

•

Julie A. Hogan, Senior Vice President, Conferences & Education Services

•

Jodie Sangster, Senior V. P., Global Development & Education Services

17

Citizenship

Increase your exposure and your bottom line

Gain access to potential partners

Reach new customers

Access a wealth of propriety information to make better decisions

Be in a better position to grow and improve

Professional Development

Connect with a growing group of thought and industry leaders

Get the most from your team by helping them develop

Forge high-quality business relationships

Progress your career

Learn from world-renowned resources

Build credibility by showing that you take responsibility

Inform your customers you regulate your practice

Be informed

Make your voice heard

Business Growth

We will work with you on ways to utilize our array of benefits so you realize the largest ROI

18

DMA provides a major source of value to our members

DMA’s Center of Excellence & The Power of Membership

19

Meeting Questions

•

Are there any industry practice standards or commonly recognized

rules of practice for direct mail marketing?

–

If yes, who made the rules? What’s the reasoning and what are the

procedures of the rule-making?

–

If not, was it because such practice rules cannot be agreed upon, or the

industry decided to not have such rules?

•

How do direct mail marketing firms assess the effectiveness of their

marketing service?

–

What types of evaluation tools they use?

•

Is direct mail or email-marketing more effective and efficient?

–

What’s the trend of integration of direct mail marketing and email

marketing?

20

Market Making / Networking

•

Learn from the Best in the World–

Participation in Conferences, Committees and Councils allows your company to stay abreast of the latest trends and to develop best practices and international business relationships

–

Over 375 educational sessions across all DMA conferences

•

Specialty Conferences Include:–

Retail Marketing Conference

–

Digital Marketing Days New York Conference & Expo

–

Email Evolution Conference (EEC) –

US and Europe

–

National Center for Database Marketing Conference & Exhibition (NCDM)

–

National Conference on Operations & Fulfillment (NCOF)

–

Nonprofit Conference

•

DMA Annual Conference–

The world’s largest marketing exhibition hall

–

10,000 attendees. 60% of whom are Director level or higher, representing decision makers from Fortune 500 companies

–

Market making opportunities allow your company to stay connected

to customers and suppliers

–

130 educational sessions led by 350+ experts

21

Meeting Questions

•

Are there any industry practice standards or

commonly recognized rules of practice for direct

mail marketing?

–

If yes, who made the rules? What’s the reasoning and

what are the procedures of the rule-making?

–

If not, was it because such practice rules cannot be

agreed upon, or the industry decided to not have such

rules?

22

•

Key Issues Include:

–

Anti-Spam

–

Telemarketing

–

Privacy

–

Do-Not-Mail

–

Data Security

–

Postal

–

Internet Taxation

Advocacy

•

Advocacy to keep all marketing channels open and economically viable to ensure the best self regulatory outcome

•

Access to issue briefs, state legislative reports, legislative action center & government affairs message board

23

Reputation / Self Regulation

•

DMA works closely with regulatory commissions and marketers to develop guidelines and self-

regulatory solutions thereby, eliminating unnecessary legislation

•

DMA’s self regulatory initiatives include:•

Guidelines for Ethical Business Practice

•

DMAchoice.org

•

Commitment to Consumer Choice (CCC)

•

Green 15

24

Meeting Questions

•

How do direct mail marketing firms assess the

effectiveness of their marketing service?

–

What types of evaluation tools they use?

•

Is direct mail or email-marketing more effective

and efficient?

–

What’s the trend of integration of direct mail marketing

and email marketing?

25

Education / Competitive Advantage

DMA provides a competitive advantage for your company to compete across channels in the global marketplace.

Education Programs•

DMA Certification Program

•

Seminars

Via the Following Channels•

In-Company (ICE)

•

In-person seminars across the country

•

Online (webinars)

26

Market Intelligence / Research

•

Benchmark your Business with DMA Market Intelligence

–

From DMA proprietary research to carefully selected partner publications your company will gain a competitive advantage by benchmarking your results against global competition.

•

The Power of Direct

•

Statistical Fact Book

•

Quarterly Business Review

27

Global Direct Marketing -

2009

Global DM Advertising investment exceeds $400 billion

Video, $1.6

Telephone, $64.0Direct Mail, $174.7

Internet, $50.0

Mobile, $4.5

TV, $44.7

Radio, $7.1Magazines, $23.0

Out-of-Home, $5.4

Newspapers, $27.8

28

The POWER of Direct Marketing -

2010

Direct Advertising drives over $1.7 Trillion in U.S. Sales!

OT HER, $26.2

RADIO-DR, $27.7MAGAZINE-DR

T ELEVISION-DR

NEWSPAPER-DR

MOBILE, $2.1

COMMERCIAL EMAIL, $26.0

D IRECT MAIL(CAT ALOG)

DIRECT MAIL(NON-CAT ALOG)

T ELEPHONE MARKET ING

INT ERNET MARKET ING (NON-

EMAIL)

$334.3

$110.5

$445.8

$458.2

$110.4

$128.7$68.4

29

$1,709$1,952

$1,738 $1,798

$2,233$11.20

$11.60 $11.60$11.70

$12.00

$0

$500

$1,000

$1,500

$2,000

$2,500

`04 `08 `09 `10 `14$10.00

$10.50

$11.00

$11.50

$12.00

$12.50

US DM Sales US DM ROMI

Overall DM Sales and ROMI -

2010

30

2010

Expenditures

2010

ROMI

Direct Marketing (DM) $153.3 $11.73

Non-DM $116.7 $5.23

Total Advertising $270.0 $8.75

DM Expenditures and ROMI

ROMI = Return on Marketing Investment

DM Advertising ROMI is 2x Non-DM!

31

2010

Expenditures

2010

ROMI

Catalog $15.6 $7.3

Direct Mail (non-catalog) $29.9 $15.3

Internet $25.4 $19.9

Telephone $39.5 $8.4

Email $0.7 $40.1

DM Expenditures and ROMI by Medium

ROMI = Return on Marketing Investment

32

Top 5 Growth Areas –

Expenditures 2010

45.6%

15.2%11.2% 10.4%

8.9%

MOBILE INT ERNETOT HER

COMMERCIALEMAIL

SOCIALNET WORKING

INT ERNETSEARCH

33

Internet Expenditure Growth –

Percent of Direct

6.0% 14.0% 15.0% 17.0% 21.0%

2004 2008 2009 2010 2014

Internet Market ing (non-email) Total Direct Market ingSource: DMA Power of Direct 2009-2010

34

“Digital”

Expenditure Growth

$4.9

$10.8 $11.2

$12.2

$18.5

$0.0

$1.2 $1.2 $1.3

$2.3

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

2004 2008 2009 2010 2014

Inte rne t Se a rch Inte rne t D isp la y Inte rne t Othe r So c ia l Ne two rk ing Ema il Mo b ileSource: DMA Power of Direct 2009-2010

35

Evolution of Direct Marketing

What’s Next?

36

Meeting Questions

•

Are there any industry practice standards or commonly recognized

rules of practice for direct mail marketing?

–

If yes, who made the rules? What’s the reasoning and what are the

procedures of the rule-making?

–

If not, was it because such practice rules cannot be agreed upon, or the

industry decided to not have such rules?

•

How do direct mail marketing firms assess the effectiveness of their

marketing service?

–

What types of evaluation tools they use?

•

Is direct mail or email-marketing more effective and efficient?

–

What’s the trend of integration of direct mail marketing and email

marketing?

37