Variable Video Multiplies Direct Mail Response Rates

Variable Video Multiplies Direct Mail Response Rates Nimblefish Technologies Rob Bonham, Matt Brocchini

April 21-22, 2010 ď‚Ť San Antonio, TX

introduction to Nimblefish •

Nimblefish is the world's leading software company for marketers who want to create relevant, relationship-building dialogues with their customers.

internet video is now mainstream • Some stats from November 2009: – 170 Million US Internet users watched video online – They watched over 31 billion videos – The average viewer watched 10 hours of internet video that month

• 84% of worldwide Internet users now regularly watch video online • When people go online today, they expect to find video

what is video today?

• User-generated video - YouTube, Video Blogs • Mainstream Entertainment - Hulu, Network sites, Netflix • Video Advertising – Banner ads – Corporate Web Sites – Landing Pages

types of video: user-generated

types of video: mainstream entertainment

types of video: mainstream entertainment

types of video: mainstream entertainment

types of video: banner ads

types of video: corporate websites

online marketer priorities Advanced Site Features & Functions that U.S. Online Retailers Planned to Add in 2009 Video or Streaming Media

43.3%

Personalized Product Recommendations

40.0%

Customer Reviews & Ratings

36.7%

Product configuration

35.0%

Alternative Payments

33.3%

Blogs or Forums

31.7%

Advanced Search

30.0%

Gift Registry or wish list Other

21.7% 18.3%

Source: Internet Retailer, “Website Design, Content and Rich Media� conducted by Knowledge Marketing, 2009

video is hot • Marketers know that consumers expect video, and they are delivering it.

• But almost all of it is one-size-fits all, non-variable video.

• What could you do with relevant video?

the one-to-one video experience -The role that relevance can take in online video -Integrate video into direct mail and email communications

relevance boosts DM response Average Response Rates: Traditional DM vs. Relevant DM

Average Response Rate

10x lift

2-10x lift 2x lift

Traditional Direct Marketing

Relevant Direct Marketing Source: 2009 Nimblefish 100 Best Practice Analysis

video lifts response online Video’s Impact on Response Rates 2x lift Average Response Rate

- Users are twice as likely to click the play button as a jpg or gif image ad - On average, users played the video ads nearly twothirds of the way through - Video ads experienced clicked rates of .4 to .74% vs. gif and jpg at .1% to .2%

Non-video marketing message

Marketing message with video Sources: www.doubleclick.com/insight/pdfs/dc_videobench0702.pdf, Nimblefish client data

what does relevant video to direct marketing rates?

Relevance Impact on Response Rates

Video’s Impact on Response Rates

2-10x lift 2x lift

Traditional Direct Marketing

Relevant Direct Marketing

Average Response Rate

Average Response Rate

10x lift

2x lift

Non-video marketing

Marketing with video

Sources: www.doubleclick.com/insight/pdfs/dc_videobench0702.pdf, Nimblefish client data

actual results

Response Rate

Relevant Video Response Rates Controlled tests suggest that relevant video can drive significant increases in response

11.5x

2.3x higher 5x

1x Traditional messaging

Relevant Messaging

Relevant Video

Source: 2010 Nimblefish 100 Best Practice Analysis

relevance increases ROI

A Look at Video in Direct Mail & Real Results

marketers using video in DM

two ways to use relevant video 1. Relevant Video in Direct Marketing Individualized Direct Mail

Personalized URL PURL速 Web Site with Relevant Video

Individualized Email

2. Relevant Video in an Online Advice Experience

?

Interactive Advice Experience

CTA

Relevant Video Response

Personalized Call to Action

case study: backroads

The World’s #1 Active Travel Company

backroads’ marketing goals • Increase the response and conversion rates for DM to past Backroads customers, encouraging them to take another trip • Increase sales in their highest growth segment: Family Trips

the Nimblefish solution • Make DM work harder with: – – – –

Relevant Print PURL® Sites with Relevant Video Integrated touch plan with Relevant Email Leverage Backroads’ extensive photo library to create recommendation videos – Utilize past customer trip information to inform future trip recommendations

• Convert more Family Trips online with: – An interactive Family Trip Advisor – Relevant Video

relevant video in CRM-driven DM Headline references family’s previous trip location

Invitation to personal website that contains relevant trip recommendations Image based on family’s previous trip

relevant video in CRM-driven DM

DM piece provides three relevant trip recommendations, with an invite to a personal web site to view the videos and take advantage of special savings

relevant video in CRM-driven e-mail Animated gif gives the email an illusion of video

PURL速 personal website

results: relevance works • Response Rate • Conversion Rate

(Compared to Backroads’ previous direct marketing campaigns to the same target group)

results – digital print drives ROI

Response Rate (PURL® Visits)

• Digital Print was a major response driver

2x higher

6%

12%

Email Only

Print & Email

Using Relevant Video to Create an Online Advice Experience

relevant video advice for web visitors

Most web visitors are anonymous.

The Family Trip Advisor asks interactive questions that are used in session to generate relevant video advice on-the-fly for each user.

results – relevant video advice

Conversion Rate

• Visitors to the site who went through the video advice experience had conversions rates of 2x higher

2x lift

Viewers who did not go through the video advice experience

Viewers who went through the video advice experience

Challenges Incorporating Video into Direct Marketing

relevant video production challenges • Not enough video content?

– Insufficient video content available to support each micro-segment

• Video is too expensive – Versioning videos for each micro-segment can be cost prohibitive

• Video takes too long – Staff time is a scarce resource

overcome production challenges • Feedback from marketers using video – Lose the formality – Use your own merchants or employees as talent – Leverage inexpensive cameras and stages in your own offices Example: Williams-Sonoma product videos

• Corresponding video appears on pan product page • Host of video is from WilliamsSonoma test kitchen • Video filmed in in-store kitchen

- Source: Adobe Scene7 Whitepaper Video: How It’s Changing Online Shopping

overcome production challenges • Consider alternatives to full-motion video

Production cost for 3 minute segment

– Use still images, combined with voice over and pan-zoom effects for relevant infill Full motion video production up to $25,000 Video production using still imagery & voiceovers $1,000

the magic of stills

a look at Nimblefish composer

relevant video integration challenges • How to deliver relevant video? There are two major challenges: Storage Storage&& Bandwidth Bandwidth

• Video consumes a lot of storage space and bandwidth. Do you have the infrastructure?

Can it scale?

How Howto to manage manageall all those those versions? versions?

• Relevant video means lots of variations.

How do you manage them?

relevant video integration challenges • The Nimblefish Vision™ Solution:

Storage & Bandwidth

• Take the video out of video. Create video experiences primarily from still images, voice over, music, and effects.

How to manage all those versions?

• Use Nimblefish Vision to dynamically assemble a custom video for each viewer.

video hosting services

Q&A

Variable Video Multiplies Direct Mail Response Rates Nimblefish Technologies Rob Bonham, Matt Brocchini

April 21-22, 2010 ď‚Ť San Antonio, TX