Time
change. But our ability to reach our targets is not keeping up-at-least
not
with "mass" media.
A changing media landscape
The
mass media of 20 years ago was remarkably simple in structure. Three
TV networks,
regional/local radio, the "Seven Sisters" of
women's magazines (plus Cosmopolitan for the racy crowd) and newspaper
comprised a good portion of the packaged goods media choices. Everybody
was happy and media blitzes in those vehicles generated big results.
However, the days of uncomplicated TV buys with cheap and effective
GRP's are gone. We now have two TV universes: cable (57%) and non-cable
(43%). Cable programming can claim 24% to 45% of viewing time. And
cable strength is growing.
Further, TV is
becoming extremely fragmented in audience structure. In fact, today's
TV programming reads like CACT's 47
different lifestyle
clusters: "Roseanne" for the low-mid income blue-collar
group; "Golden Girls" for the seniors; "Empty Nest" families
with older children and empty nesters, etc!
Beyond prime
and cable, independents and even the network affiliates are running
half-hour "advertorials" on
hair growth, weight loss, real estate and used cars. Enter the world
of junk TV.
For its part, radio continues to narrow its audiences with major
markets holding shares in formats that used to be splinters at best.
New age, jazz, talk (by segment - personal, financial, business),
news, big band, etc., all maintain an audience.
NPR (National
Public Radio) has contributed by stepping out of its traditional
classical mode with excellent jazz, country
and blues
programming. The American Radio Theater is continuing to build audiences
and "Car Talk" is one of the funniest and most popular
shows on radio anywhere.
Magazines have segmented and specialized to the point of shakeout.
The growth rate of consumer titles is 80% + since 1970 to over 2,160.
Building visibility with any group of consumers via magazines is
a true test of psychographic reach analysis and media buyer courage.
Advertising and the media planner
In
fact, Anthony O'Reilly, the president of H.J. Heinz recently called
the 90s "the
decade of the media planner."
The optimists will say that media dollars may now be spent more
effectively if they're targeted properly. Others look at the amount
of media clutter consumers are now exposed to - both in the form
of tremendous increase in media alternatives and in sheet tonnage
of communication - and they don't like what
they see.
Key media criteria for the 60s - efficiency, effectiveness of position
of placement and frequency are inadequate. You can meet those criteria
and still miss your target.
In fact, conceptually, the idea of mass media is giving way to the
notion of global point-to-point communications. This is reinforced
not only through home shopping on cable, but all around us in other
electronic forms; fax machines, teleconferencing, and electronic
bulletin boards.
Our ability to reach a mass audience with mass media is actually
declining; yet our ability to really target groups is not being effectively
achieved by the mass media in spite of the attempts in that direction.
Direct
mail comes of age
Most
of the packaged goods marketing professionals I know and worked
with over the past
17 years have always looked somewhat askance at direct mail. It
was never a substantive part of the packaged goods marketing menu.
Of course, there would be coupon delivery and promotion vehicles
like Donnelly's "Carol Wright" program.
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We
were probably justified in our thinking. Mailing lists were crude
and unreliable. Mailings were expensive and there was a "junk
mail" stigma attached to direct mail that self-respecting
agency creative (and the rest of us) didn't want wany part of.
(Although, now that I've seen George Hamliton selling cosmetics
on the half-hour TV "advertorials" referred to above,
junk mail seems pretty tame.)
But progress in technology (much of it occurring outside of the
direct mail field) over the past 10 years is changing many perceptions
of direct mail. Fourth generation computer and database technology,
census and other data collection techniques, sophistication of UPS
targeting capabilities, the rampant success of direct mail catalog
services like Land's End, L.L. Bean, etc., suggest direct mail is
now a legitimate tool for many business categories. Selling
automobiles is a current example. In a recent issue of Ad Age,
Michale D. Williams,
a data base manager at Porsche
talks about
the Porsche "300,000," a group of carefully screened high-potential
prospects who will receive direct mail solicitations on Porsche.
The most striking of his comments is this: " We have access
to a lot more information, a lot more specifics, than we can legally
use in an unsolicited communication. We have to tread a fine line."
The impact of
this statement (in my mind) is so profound as to jolt all of us
into a much closer look at the capabilities
of direct mail.
The "rifle" vs. "shotgun" analogy isn't even
adequate. A better perspective is offered by David Wager, VP of marketing
at Porsche: "This year we're using advertising. Next year we're
going to hire private detectives."
Outside of immediate sales stimulus, Case International is building
long-term brand loyalty with direct mail efforts against the country's
largest farmers. The program has already exceeded expectations and
brought in an incredible 42-44% response rate.
One of the problems
with using direct mail and its related technology is the pace of
technology change. One can fall behind quickly. The Census Bureau,
for example, has just announced a new device called "TIGER" (Topologically
Integrated Geographic Encoding and Referencing) coming in 1991.
What does it do?
Well, for starters, TIGER has the ability to ...
... chart every block in every country in the U.S.
... "see" customer
locations for target clustering efforts.
... define geographic boundaries of customers.
... pinpoint an address on every city block in the U.S.
Direct mail will receive a tremendous boost when programs like TIGER
are revealed as part of the new census. The Census Bureau will be
providing more information, more accurately, in more sophisticated
formats on the 1990 data than ever before.
Get out your stamps
Should you toss out your Nielsens and forget the struggle over next
year's Super Bowl rating? Perhaps. But the point here is that the
gigantic strides made in the technology surrounding direct mail have
elevated this medium to a position as a legitimate contender for
serious marketing attention.
The marketing
community now has a tool which can live up to the concept of true "targeting" in
a way that 10 years ago could only be imagined.
Times change. And direct mail is doing a better job of changing
than many of us realize.
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