Note: This was reposted from WhatTheyThink.com  July 1, 2010We found this article very timely and interesting. We hope you enjoy it as much as we did. Many thanks to author Barb Pellow.

Changing Media Dynamics

As consumer media consumption patterns continue to change, marketers are shifting their budgets from traditional to new media at a rapid pace. This trend shows no signs of slowing down. In early 2010, Exact Target conducted a survey of 265 marketers that asked how they intended to allocate their budgets for the year. The results clearly illustrate the continuing shift away from traditional media.

Figure 1: Do you expect your company’s marketing tactics for the following media types to increase, decrease, or remain the same in 2010?

These changing media dynamics are redefining “marketing services.” Aspiring marketing services providers must examine new media solutions and determine what role they want to play. It isn’t enough to be able to conduct a direct mail campaign with a personalized URL. Service providers need to become an even more integral part of the overall marketing process.

The definition and elements of a cross-media campaign have changed. Today’s cross-media campaigns involve using multiple channels to provide a unified marketing message. There must be a strong call to action on all of the channels employed to drive respondents to a single collection point to start a two-way conversation. These channels include variable data print, personalized URLs (pURLs), video Web communications (podcasts and Webinars), e-mail blasts, SMS text support, and social media.

As this budget shift continues to digital media channels, marketers will be seeking partners that can provide expertise in execution. With limited resources, outsourcing is the only choice for many. This opens a huge window for marketing service providers that are ready to capitalize on the opportunity.

Just the Facts

While the statistics change daily, the driver for a changing “marketing services” portfolio is clearly linked to the way that consumers are using media. These are the facts:

• As of February 5, 2010, Facebook had 400 million users.
• According to Techcrunch, LinkedIn had 60 million users as of February 11, 2010. This network is experiencing a significant amount of growth, especially internationally. As of last December, LinkedIn had 55 million members, which means that it grew by 5 million in less than two months.
• Folks were tweeting 5,000 times a day in 2007. This number increased to 300,000 in 2008, then to 2.5 million in 2009. As of February 22, 2010, the number of tweets had reached 50 million per day – an average of 600 tweets per second.
• Each day, people are watching hundreds of millions of videos on YouTube and uploading hundreds of thousands of videos. In fact, YouTube estimates that 20 hours of video is uploaded to its site every minute.
• In the U.S. alone, over 450 billion SMS text messages were sent in 2009.

In today’s environment, cross-media communications must be structured to move the audience across different media types by utilizing strong calls to action. Each touchpoint needs to build and direct the individual to different media channel that moves him/her to an alternative platform. Media types must work together naturally create a “whole is greater than the sum of the parts” effect. These media types must also play a clear and distinct role in the overall communication that leverages the particular strength of that medium.

Stepping Up to the Plate

Over the past several months, companies that were early adopters of “marketing services” began to transform and transition their portfolios. These companies are “repositioning” their businesses to participate in and derive new revenue streams as media dynamics change. A few examples of organizations that are stepping up to the plate to keep pace with changing consumer behaviors are outlined below.

DME

Under the leadership of CEO Mike Panaggio, DME (www.dmecorporate.com) has been viewed as a leader in the world of digital color and 1:1 marketing. As market dynamics change, the DME services portfolio is changing. A look at DME’s Web site provides a good indication of what’s happening in the market. It highlights “integrated message campaigns” that incorporate variable print, telephony, broadcast e-mail, personal Web sites, and interactive video.

Figure 2: Screen Shot of DME’s Web Site

DME also emphasizes the need to become a “trackaholic.” By measuring response rates for each media element of each campaign, DME can determine which media channels, messages and offers were most successful and why. The gathered data (including surveys, Web visitation, e-mail replies, and customer satisfaction calls) is compiled into easy-to-read reports that are accessible through password-protected Web sites.

R and R Images

Under Rod Key’s leadership, R and R Images (www.randrimages.com) was an early adopter of digital color. R and R Images has evolved its marketing services portfolio into a branded offering called iDirect. The company is providing clients with strategies, creative support, account management, multi-channel services (including direct mail, e-mail, mobile, and social campaign support), and comprehensive tracking to determine and manage ROI for their client base. The site also focuses on the utilization of emerging technologies like Quick Response (QR) Codes.

Figure 3: R and R Images’ iDirect Offering

Specialty Print Communications

Chicago-based Specialty Printing has retooled its portfolio and emerged as Specialty Print Communications (www.specialtyprintcom.com). The company is owned by the Lefebvre family, and the Lefebvres have created a new suite of services including Lettershop, book printing, a new loyalty marketing group, and portal-based data driven marketing communications program called Monogram. Key offerings include:

• Loyalty program on-boarding and membership fulfillment
• Reactivation of marketing campaigns
• New customer acquisition campaigns
• Life event and activity trigger campaigns
• Cross-sell and up-sell campaigns
• Ongoing rewards marketing communications
• Portal-based CRM solutions
• Sales and marketing collateral
• Book printing, featuring a wide array of binding solutions
• Product warehousing, pick-and-pack fulfillment, and distribution
• A wide array of Web, sheetfed, and digital printing options and inline solutions
• Data processing/mail logistics management

It’s Time for the Next Step

Marketers understand that cross-media campaigns are a cost-effective and powerful tool for building and expanding the client database, increasing brand awareness, staying in front of customers, and getting the right message to the right customer at the right time via the right media channel. While some view marketing services as variable data and Web-to-print, those components aren’t enough anymore. It’s time to re-evaluate and reassess how you fit into the world of cross-media communications!

A digital printing and publishing pioneer and marketing expert, Barbara Pellow helps companies develop multi-media strategies that ride the information wave. Barb brings the knowledge and skills to help companies expand and grow business opportunity.

Please offer your feedback to Barb. She can be reached at barb@whattheythink.com.