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TABLE OF CONTENTS
  • DiGuido Returns; Named CEO of Zustek
  • Health Benefits Direct Acquires Insurance Administration Software Firm
  • Yahoo! Upgrades Search Function
  • Troska Takes President, CEO Roles At Exstream From Marksbury
  • Catalina Acquisition Closes
  • Merkle Hires Paul Bowman As Managing Director of Customer Strategies
  • Mail Stream: A Report on Incoming Direct Mail
  • List and Database News
  • ListFinder: Search over 60,000 lists
  • Webinars
  • Find a vendor


  • This issue of DIRECT Newsline is sponsored by KnowledgeBase Marketing
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    Top Stories
    DiGuido Returns; Named CEO of Zustek
    By Ken Magill
    Al DiGuido, the outspoken former CEO of Epsilon Interactive, has re-entered the e-mail marketing industry -- this time as chief executive of e-mail service provider Zustek Corp.

    The announcement follows the acquisition of Zustek (pronounced zeus-tek) by private equity firm Investcorp Technology Partners.

    DiGuido added this is just one of a series of acquisition announcements Zustek and Investcorp will be making over the coming weeks.

    "We're going to be truly a global organization when we get done in terms of making acquisitions and building out the strategy," said DiGuido. "The whole idea of a siloed e-mail provider as a business moving forward is limiting. I think there is a tremendous opportunity to combine e-mail marketing with other interactive services."

    He added the intention is to build Zustek out as a one-stop shop for interactive marketers.

    "When you talk to big companies today, they're saying 'it's great that there's all this super technology out there, but frankly I don't have the time to talk to 10 different people; I want to talk to one organization that has best-of-breed solutions across the spectrum,'" DiGuido said. "The organization we're building will have heavy emphasis in the e-mail space, but it's going to be part of an integrated solution."

    Founded in 2001, Zustek is currently relatively small but has some blue-chip clients, including Time Inc., Universal Studios, Sony Pictures, Thrifty Car Rental, Cars Direct and the Venetian Las Vegas.

    DiGuido declined to comment on Zustek's size beyond describing it as a small- to medium-sized business.

    It is just over a year since DiGuido was ousted as CEO of Epsilon Interactive. The firing came on the heels of a rough period where Epsilon acquired the company DiGuido headed, Bigfoot Interactive, and then online advertising concern DoubleClick's e-mail unit. The acquisitions reportedly resulted in culture clash between DoubleClick and Bigfoot executives, and an exodus of DoubleClick staffers.

    When asked what he'd learned about combining company cultures, DiGuido said: "I'm a year older. Whenever you take a year away from what you were doing, you analyze things. I'm still passionate; I'm still aggressive; I still want to listen to a lot of different opinions when it comes to getting things done. I think the culture [at Zustek] is going to be very much customer centric. From a people standpoint, if you've got the right team and they believe passionately in terms of the vision and the mission, then everything goes really well."

    When asked if he plans on approaching any Epsilon employees, he said: "There's no one over there I have my eye on."

    He added: "We're just going to put our heads down; we're going to work really hard; we're going to get out in front of customers; we're going to try and earn their business; we're not going to presume anything. What happened in the past is the past. This is not the same company that I left."

    Health Benefits Direct Acquires Insurance Administration Software Firm
    Health Benefits Direct Corp. has paid $3 million in cash and stock for Atiam Technologies, an online insurance administration software provider. Atiam will operate as a wholly owned subsidiary of Health Benefits Direct.

    Through Atiam, Health Benefits Direct plans to smooth connections between its online operations, agents and carriers.

    The acquisition adds Aetna, Prudential and Nationwide Provident to Health Benefits Direct's client roster. Though an online marketplace, Health Benefits Direct enables consumers to shop for health insurance, life insurance and related products.


    This issue of DIRECT Newsline is sponsored by Specialists Marketing Services

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    CLICK HERE to download our Multicultural List & Insert Media Guide

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    Yahoo! Upgrades Search Function
    Yahoo! has added Search Assist to its search capabilities, and integrated audio, video clips and photos into its search results.

    Search Assist provides query suggestions in response to search box entries, as well as related topics and concepts. According to Yahoo, searchers who aren't overly familiar with their topic will find this feature especially useful.

    By integrating multimedia listings into its search results, searchers will be able to access a variety of answers without leaving the page.

    The new Yahoo! Search also features Search Shortcuts, which feature what it bills as the most useful information found on the Web and contributed by other online users, such as ratings and reviews, photos and official Web sites.

    Troska Takes President, CEO Roles At Exstream From Marksbury
    Richard Troksa has taken the president and CEO roles at Exstream Software LLC from Davis Marksbury, effective Oct. 1. Marksbury will remain on the company's board of directors as chairman.

    "I believe the time is right for me to turn over the reins to a CEO who can take the company to even greater heights over the next decade," said Marksbury, the firm's co-founder and chairman of Exstream Software, in a statement.

    Catalina Acquisition Closes
    Vsurance Inc., a San Francisco-based pet health insurance provider, has completed its previously announced acquistion of Catalina Marketing Corp. Vsurance paid $32.50 per share in cash for the company. The deal was valued at between $1.5 billion and $1.7 billion, according to published reports.

    The deal will enable Vsurance to market its pet insurance products through the grocery stores to which Catalina currently provides shopping cart analysis services.

    Catalina currently employs around 1200 workers. The company generated $417 million in revenue during 2006.

    Vsurance is affiliated with Hellman & Friedman LLC, a private equity firm.

    Merkle Hires Paul Bowman As Managing Director of Customer Strategies
    Database marketing agency Merkle has hired Paul Bowman to serve as managing director of customer strategies. In this newly created position, Bowman will help Merkle's clients develop loyalty and retention marketing programs.

    Prior to joining Lanham, MD-based Merkle, Bowman was managing director of direct and loyalty marketing at Hawkeye Communications in Dallas. Bowman has also held senior management positions at Rapp Collins Worldwide, as well as loyalty firm Brierley & Partners and McCann Relationship Marketing.

    Mail Stream: A Report on Incoming Direct Mail
    By ParadyszMatera and Direct Newsline
    Hello Direct Tries Digest Size Catalog
    Business-to-business direct marketer Hello Direct used a digest-sized catalog for a recent mailing promoting its line of telecommunications products. The August 073K book is 32 pages and measures 8-1/2² x 5-1/2² in contrast to the company¹s usual 48-page, 10² x 8² efforts. Otherwise, the catalog features familiar layouts and merchandise such as headsets, phones, and conferencing systems. The cover calls on recipients to ³Go Wireless and get more done!² showing a professional woman wearing a headset and carrying a wireless conferencing device. A text box directs shoppers inside for details on Hello Direct¹s standard $25 off and free shipping incentives for orders of $299 or more. Items in the catalog include a Polycom SoundStation VTX 1000 conferencer ($1,199.99), an RCA Corded Phone and Cordless Handset ($499), and Jabra T5330 Wireless Headset ($129.99). Orders may be placed by phone and online. A Wireless Weather Station premium for online orders promoted on the back cover is another commonly offered incentive from the mailer.

    Women¹s Health Advisor Offers Free Issues
    Women¹s Health Advisor recently mailed a colorful promotion offering three free issues of the monthly newsletter published by Weill Medical College of Cornell University. Creative on the front of the 6² x 9² package reads ³Research Reveals: Amazing Health Breakthroughs for Women.² Beneath the text are five examples of the type of information available in Women¹s Health Advisor, ranging from the latest medical tests to healthy foods and vitamins. A ³Yours Free!² involvement sticker shows through a circular window next to the address panel. Inside, a six page letter highlights the relevance of advice found in the newsletter with checklists of healthful tips and information boxes pertaining to arthritis relief and the benefits of regular exercise. The letter notes that the publication accepts no advertising, allowing it to give readers ³the truth about prescriptions, OTCs, natural remedies and more.² A ³Free Bonus Report² insert lists seven symptoms that could potentially be serious to a woman¹s health, including cracked lips, swollen ankles, and thinning hair. The report makes mention that these signs could possibly mean nothing, but also emphasizes the importance of not ignoring them. Also enclosed is a lift note from the newsletter¹s Editor-In-Chief who compares the three trial issues to a free 30 minute consultation with a doctor. The reply card details the offer and provides a space for the involvement sticker. Subscription is sold via soft offer of $20 for 15 issues (three free). The reverse side provides further information about the five health tips featured on the front of the package, along with six ways to reduce the risk of Alzheimer¹s.

    Cody Mercantile Sends Selfmailer
    The family-owned Cody Mercantile and Modern Farm recently sent a selfmailer highlighting a few standout items from its country lifestyle collection. The company has been providing tools and supplies for use on farms and in the home for more than 30 years. Copy on the cover refers to the retailer as a ³General Store With Shop @ Home Convenience.² The 8-1/2² x 5-1/2² selfmailer opens to four times its size, presenting a mixture of products from lawn care and pest control to cookware and apparel. Items vary from a Quiet Gear Drive Sprinkler ($32.50) or Wireless Driveway Alert ($169.99), which notifies users if anyone is approaching to Burt¹s Bees Milk & Honey Lotion ($8.99) and Logger Jeans ($24.15 - $27.65). Pest control products include a package of 16 Revenge Rodent Smoke Bombs ($22.95) and the more animal-friendly assortment of Safe-Catch Humane Animal Traps ($39.99 - $62.99). Ordering, shipping, and guarantee information is provided inside along with an invitation to ³See the entire country lifestyle collection² online. Though there is no order form in the piece, orders can be placed by mail as well as phone, fax, or online.

    The direct mail promotions appearing in Mail Stream are tracked and analyzed by ParadyszMatera, a media brokerage services company, through its MarketRelevance(tm) Promotion Library. Click here to visit their site: ParadyszMatera.com.



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    List and Database News
    Cricket and Cobblestone Magazine List Groups
    Carus Publishing Co. has appointed Direct Media Inc. to manage lists of subscribers to children's magazines. The 258,241-name Cricket Magazine Group file combines subscribers to Ask, Babybug, Cicada, Click, Cricket, Ladybug, Muse and Spider, in addition to the Cricket Catalog buyers list. A total of 31,862 subscribers on named on the Cobblestone Publication Group list, which is comprised of subscribers to Appleseed's, Calliope, Cobblestone, Dig, Faces and Odyssey.
    Selections: Hotlines, child's gender, multibuyers, paid, source, publication, state/SCF/ZIP
    Price: $95/M (subscribers); $100/M (catalog buyers)
    Contact: Direct Media Inc., 203-532-2449

    Hale Indian River Groves
    Millard Group Inc. has been named to oversee Hale Indian River Groves' list of 254,883 customers, including 125,608 from the last 12 months. Products sold include fruit, candy, nuts, cakes and other specialty items. The average direct mail-generated sale was $100. RMI Direct Marketing Inc. was the prior list manager.
    Selections: Six-month buyers, gender, state/SCF/ZIP
    Price: $100/M
    Contact: Millard Group Inc., 603-924-9262

    Wii and DS Newsletter Subscribers from GameSpot.com
    CNET Networks Inc. offers this list of computer game players who subscribed to newsletters from GameSpot.com. A total of 326,477 postal addresses and 363,015 e-mail addresses are available. Three-quarters of the individuals named are men with a $64,100 average income.
    Selections: Age, gender, home/business address, income, recency, interest, state/SCF/ZIP
    Price: $100/M (postal file); $110/M (e-mail file)
    Contact: Worldata, 561-393-8200

    Bonnier Parenting Group Master File
    Bonnier Corp. has introduced a combined list of subscribers to Baby Talk and Parenting magazines. This 7.4-million name master file has been enhanced with Acxiom's Infobase consumer demographic data.
    Selections: Hotlines, adult's/child's age/gender, presence/number of children, income, Lifetrait, mail order buyers, donors, religion, ethnicity, state/SCF/ZIP
    Price: $100/M
    Contact: Lake Group Media Inc., 914-925-2460



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