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