Join us in New York City January 13-16, 2008 and be a part
something big - Retail's BIG Show. NRF is dreaming BIG for next year's
show, dreaming
about --- exciting speakers and educational content; energetic
networking events; and an even bigger EXPO floor. Don't miss the
excitement. Visit www.nrf.com
for more information.
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Professionals
answer
your
questions. |
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This issue of DIRECT Newsline is sponsored by
Merit Direct
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Advanstar Healthcare... Healthy, Wealthy & Wise!
Rejuvenate your next marketing campaign with Advanstar's three
healthcare lists: RN
Magazine - Enhanced Masterfile (359,000+ contacts), LocumLife
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Danielle Zaborski
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Kamberis 847.492.1350 x21.
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Top Stories
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Liquidators Win Bid to Buy Bombay Co.
A joint venture of Gordon Brothers Retail Partners and Hilco
Merchant Resources has submitted the winning bid in the auction to
acquire the operations of Bombay Co. Inc., the direct marketer and
retailer and that filed Chapter 11 bankruptcy late last month.
The group plans to liquidate the Fort Worth, TX-based, firm's U.S.
stores.
This agreement is subject to the approval of U.S. Bankruptcy Court for
the Northern District of Texas, which is expected to hold a hearing
later this week.
In addition, Hilco Consumer Capital, the joint venture partners, and
Bowring and Benix and Co. plan to continue Bombay's Canadian operations
after inventory disposition sales.
The Canadian transaction is subject to completion of the auction and
court approvals in the U.S. and Canada.
On Sept. 20, Bombay and five affiliated companies filed for
reorganization under Chapter 11 of the U.S. Bankruptcy Code (Direct
Newsline, Sept. 21).
Bombay owes more than $8.3 million in unsecured debt. According to court
documents, those creditors include AT&T ($75,000), Advertising.com Inc.
($100,621), Federal Express ($189,336), DHL ($141,991) and several real
estate-related companies.
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Live From DMA07: Greco Calls on
DMers to Post Opt-Out Notices on Each Mailing
By Ken Magill
As part of an effort to head off increasing calls for do-not-mail
legislation, DMA president John Greco yesterday called on all direct
marketers to begin putting opt-out notices in all their mailings.
"The choice of consumers to modify the amount of mail they receive or to
say that they don't want to receive any mail from a marketer has long
been recognized in our guidelines," said Greco in his opening keynote to
a cavernous room packed with direct marketers from around the world
"The key change we are making is that we will now make this
long-standing option readily available to the consumer and easy to
activate," Greco added, calling the initiative the DMA's "Commitment to
Consumer Choice."
As is usually the case in any DMA president's fall conference keynote,
the theme throughout Greco's talk was: Self regulate or the government
will step in and do it for you.
Greco called on marketers to use the DMA's mail preference service
name-removal file, which will now be updated monthly instead of
quarterly. "When consumers respond, their choices should be honored
promptly," he said.
The announcements came at the end of a wide-ranging speech in which
Greco outlined the benefits of direct marketing to businesses and the
economy along with "a perfect storm" of threats the industry faces.
Sales driven by direct marketing make up more than 10% of the U.S. gross
domestic product, he said. Also, more than 50% of all ad dollars go to
direct marketing, he added.
Moreover, direct marketing returns $11.69 for every dollar spent
compared to $5.24 for every dollar spent on general advertising, he
said.
"These numbers are impressive, but what I really want you to recognize
is that our direct marketing community has real clout," said Greco.
He then outlined the threats marketers face, pointing out, for example,
that this year 152 data security measures were introduced in 38 states.
He added that there were 82 bills introduced dealing with social
networking in 27 states, and 28 spyware bills introduced in 13
states.
He added that 18 different do-not-mail bills were introduced in 15
states this year, compared to just three in 2005.
"The reason why no bills passed this year is because we were more
prepared than our opponents," he said.
"Don't think for a moment that what we are up against from outside
forces will be business as usual," he said. "Today we face an almost
perfect storm of environmentalists, privacy advocates and other activist
groups challenging our system of self-regulation."
The speech was peppered with video and personal appearances by
politicians, including a welcome from Chicago Mayor Richard Daley, and
remarks from federal officials, including IL Rep. Danny Davis, Sens.
John Ensign, (R. NV) and Mark Pryor (D-AR), and Federal Trade Commission
chairwoman Deborah Platt-Majoras.
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This issue of DIRECT Newsline is sponsored by
Profile America: a mailing list
and database company committed to performance, integrity and service.
We offer a wide range of consumer lists targeted to lifestyle and
affinity to match your offer. We can enhance performance with advanced
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Live From DMA07: Kenneth Cole Thinks Outside the
Shoe Box
By Beth Negus Viveiros
When Kenneth Cole first began his business, he learned an important
lesson. The best course of action may be the least expensive -- and most
simple -- one.
On his way to law school, he decided to enter the family shoe business
El Greco (no relation, he pointed out, to DMA president John Greco).
That business morphed into the wildly successful Candies brand. But in
1982, he decided that he wanted to do something more personal.
He founded his business, and developed his initial product line, which
he then had to show to buyers in New York. Cole had two options: He
could take a room at the Hilton, side by side with thousands of other
sellers. Or, he could set up a fancy showroom.
The former wouldn't make him stand out, and he didn't have time to do
the latter.
What he did have was a friend who ran a trucking company. He asked him
if he could borrow a 40-foot tractor-trailer to use as a display area.
Sure, said the friend, but you'll never be able to park it in the heart
of New York.
Undeterred, he called the city and asked for a parking permit. They told
him it wasn't possible -- such permits were only issued to vehicles
performing city services...or working as part of a production company
for a full-length motion picture.
Cole ran to a stationery store, and for $14 changed his letterhead to
"Kenneth Cole Productions." He then called the city again, and applied
for a permit to park his truck, which would be used in the production of
"The Birth of a Shoe Company."
He set up the truck, complete with a cameraman (who sometimes had film
in his camera and sometimes didn't), and over the course of two and a
half days sold 40,000 pairs of shoes.
During his keynote address at DMA 07 in Chicago on Monday, Cole noted to
the audience that while fashion isn't important to everyone, it is often
the only statement one gets to make to people during the day, who might
not speak to them or only pass them on the street. Something to think
about, he said, is that even if you look like you don't care about
fashion that in and of itself is a strong statement.
Cole's shoe and accessory business has often been topical in ads,
addressing issues like HIV, gun control and the right to choose. Was it
controversial? Yes, he said. But it was in character with the brand and
its culture.
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Live From DMA07: E-mail
Pulls Top Response for Lead Gen
By Patricia Odell
(PromoXTRA) Marketers who want to generate leads should turn to
e-mail.
E-mail produced the highest response rates (4.09%) for those companies
whose primary objective was to generate leads, according to the Direct
Marketing Association's 2007 Response Rate Trends Report.
The report also found that direct order and fundraising pieces produced
the highest response rate in the direct mail category. Catalog marketers
with a primary goal of soliciting direct-order sales achieved a 2.24%
response and those seeking a contribution pulled 2.15%
Direct mail was also found to be the top medium for traffic building
generating a 5.35% response.
The report includes data for more than 1,600 campaigns received sine
2004. Six media channels were reviewed: direct mail (flat), catalog,
e-mail, inserts, outbound telephone and newspaper/magazine. The study
also provides information for 19 major professional categories. It can
be ordered through the DMA's bookstore at www.the-dma.org/bookstore.
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Live From DMA07: New
B-to-B Co-op Offers The Joy of Lex
By Richard H. Levey
The newest player in the business-to-business cooperative database
space is the List Exchange Database, or LexBase, a 75-million name file
from Edith Roman Associates Inc.
The file draws on more than 1,800 business-to-business mailing lists,
including 24-month mail order buyers, publishers, seminar attendees,
association membership lists, and e-mail databases, as well as compiled
information from parent company infoUSA.
LexBase also features CAS, an electronic campaign approval system. When
a LexBase name is selected, CAS sends an e-mail, which includes a link
to the proposed marketing piece, to every source of that name. At least
one list owner must approve the marketing piece before that prospect is
viable. Only list owners who approve mailing pieces share in the revenue
from the rental.
Roughly 15 million of the names on the file have e-mail addresses,
according to LexBase administrator Stevan Roberts.
Roberts acknowledges that if a name is on four or five different lists,
chances are good that at least one will give permission for the name to
be used. But this system does allow a marketer who has a unique name --
or a seed name -- to protect that contact.
Like many other e-mail sources, marketers do not receive the names.
InfoUSA, which owns Edith Roman, uses its ePostDirect e-mail bureau to
broadcast messages.
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Live From DMA07: Affinion
Debuts DM Division
By Richard H. Levey
Affinity marketing firm Affinion has launched a new direct marketing
services unit, Affinion Direct Response Group (ADRG). ADRG formally
coalesces the marketing strategy, creative design, database modeling,
direct mail, telemarketing and analysis functions the company offered
into a single organization.
While the agency provides its services to outside clients, ADRG's
initial charge is to market Affinion's membership products and services,
such as its travel and automobile offerings, and package products
offerings, which are made up of ancillary goods and services for
checking account holders.
Affinion has an interesting pedigree as a marketing firm: It was created
in 2005, when failing marketing giant Cendant sold several of its
membership units to investment firm Apollo Management. Apollo
subsequently took the company public.
ADRG employs more than 180 of Affinion's 3,000 workers, and is headed by
Nancy DiSprito, its senior vice president. Both the unit and the parent
company are based in Norwalk, CT.
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Live From DMA07: KnowledgeBase
Breaks Out the Boomers
Contrary to what many pundits think, the baby boomers are not all
the same. And KnowledgeBase Marketing has set up to leverage that fact
with a new clustering system called Generations.
It's not just Boomers, of course. Generations identifies five age-based
groups, starting with seniors (those born in 1945 and earlier) and
ending with Millennials (those who first appeared between 1975 and
1990).
But the Boomers are featured in two out of the five groupings.
First, there are the Leading Boomers, the ones born between 1946 and
1955. Their include everyone from Classic Rockers (now living in the
burbs and raising teens) to Gold 'n" Gray (those who live in posh
suburbs and have hefty retirement nest eggs).
Then there are Trailing Boomers, born in the eight-year period from 1956
to 1964. The subsets include Wired Wanderers (very active online), Urban
Sophisticates (think coffee houses and gentrified neighborhoods) and
Empty Nest Caregivers (the kids are gone).
Generations was built using data in the firm's AmeriLink National
Consumer Database. That file lists 230 million consumers, and is based
on public, self-reported and other types of data.
The system is unusual in that it is based on individual data, said Maria
Herlihy, senior vice president of analytics for the Richardson, TX-based
firm. Marketers can target individuals in different age categories in
the same household, including those that do not fit the stereotype for
the group (think of 61 year-old Sly Stallone with his younger wife).
The product is available for profiling, list rental, enhancement or
licensed installation.
Another category is Gen Xers (born between 1965 and 1974. Their
sub-groups range form Struggling in Suburbia to Big Bucks in the Big
Cities.
Generations doesn't shy away from tough calls. Featured among the
Millennials is a group called "Living Off Mom & Dad." As KnowledgeBase
describes it, "This inquisitive, creative group is not in a rush to get
out on their own. Although they are approaching 30, they are still
content living with Mom and Dad."
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24/7 Real Media Integrates Marketing With
Chinese Search Engine
24/7 Real Media Inc. has integrated its search-marketing platform
with Baidu.com, China's largest Internet search engine. The integration
will allow 24/7 to manage online marketing campaigns on every major
search engine worldwide.
"This will be very beneficial for advertisers with global search
campaigns, especially those with a desire to reach China's rapidly
growing online population," said in a statement Ian Leuchars, senior
vice president of search marketing services for 24/7 Real Media.
The agency has been managing paid search campaigns in China for more
than two years. China's online advertising market is projected to be
worth $1.5 billion by the end of 2010.
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Online Shopping Holds Greater Appeal for Social
Network Site Visitors
Visitors to social networking Web sites are more receptive to online
advertising than the general Internet audience, according to study
findings released by the marketing research firm comScore Inc.
Frequent visitors to social networking Web sites are more likely than
average to visit Web sites in such categories as music, jewelry, luxury
goods, accessories, consumer electronics and apparel.
More than 95% of heavy users of social networking Web sites visited
retailers' sites in such categories, compared to 80% of the general
Internet audience, study findings revealed.
Retail Web sites offering apparel, books and computer hardware were
among the most popular with heavy users of social networking Web
sites.
"Apparel (marketers), especially those geared towards younger consumers
can benefit by considering the use of social networking sites as a
marketing channel," said in a statement Gian Fulgoni, chairman of
comScore.
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People in the News
Wilde Direct has announced four staff appointments. Jennifer Ramsey
has been named account executive and Maura Connell has joined the agency
as an account coordinator. Nichole Dickinson has been appointed art
director. Brian Cosker has been hired as a production designer.
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This issue of DIRECT Newsline is sponsored by Carney Direct
Carney Direct Marketing is your #1 source for Business
Files!
Visit us at the DMA'07 booth #549. Check out what's new at Carney Direct
Marketing! We have several new business files to choose from: First
Connect New Connect, Business Domain Owners, and Small Business
Operators! These files are highly responsive and have large monthly
hotlines. Call us at 800-240-3349!
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List and Database News
ZoomInfo
Zoom Information Inc. has chosen Worldata to manage its postal, e-mail
and telemarketing lists. The ZoomInfo master file identifies more than
19.3 million business contacts across thousands of industries in the
U.S. and Canada. Data is sourced via ZoomInfo, an Internet search
engine.
Selections: Phone numbers, number of employees, recency, SIC code, job
title/function, one per company
Price: $150/M (postal file); $275/M (e-mail file)
Contact: Worldata, 561-393-8200
Advantage Club Members
Walter Karl Inc. has been tapped to manage the Advantage Club Members
master file. Some 1.5 million active members are listed. Postal and
telemarketing segments are offered. Members pay an $11 average monthly
fee to receive discounts on offers for products and services. Direct
mail is the source.
Selections: Hotlines, age, gender, state/SCF/ZIP
Price: $100/M (postal file); $250/M (telemarketing file)
Contact: Walter Karl Inc., 845-732-7056
Utility Products
PennWell Corp. has appointed Statlistics to manage a list of 45,871
subscribers to Utility Products Magazine. A separate file offers 9,637
e-mail addresses. Utility Products targets the power, telephone and
cable television industries.
Selections: Primary business, job function, number of employees, value,
products, phone numbers, state/SCF/ZIP
Price: $150/M (postal file); $425/M (e-mail file)
Contact: Statlistics, 203-778-8700
The Beaver
Canada's Natural History Society has chosen Cornerstone Group of
Companies to manage the circulation list for The Beaver, a Canadian
history magazine. Some 20,244 subscribers are named. Direct mail is the
source.
Selections: Age, income, gender, omit schools, FSA, province
Price: $170/M (Canadian)
Contact: Cornerstone Group of Companies, 416-932-9555
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About this Newsletter
Editorial Director: Ray Schultz
Managing Editor: Charles Vietri
Executive Editor: Beth Negus Viveiros
Senior Editor: Larry Riggs
Senior Writer: Richard H. Levey
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