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Belgian
webshop case 2012
1 Source : 2012 BtC webshop! 50.000 contacts for each medium
Each
invested euro,
returns into..?
Webshop case background
• Sector:
Food brand webshop active in Belgium
• Campaign objectives:
Increase online sales on prospects with interest
for the specific offered product ranges
• Campaign setting:
2
Bannering: 4 weeks
Direct Mail (50k contacts)
Email (50k contacts)
Google Adwords: 4 weeks
Measure
Comparing the approaches
3
Email Bannering Direct Mail
Comparison of the approaches is based on
• metrics provided by the brand
• the results for a comparable reach of 50.000 contacts
in each medium
Standard metrics, used for the 4 channels
• Average ticket value by purchase: 12€
• Purchase frequency / year: 12
• DM cost,
production
included:
32.5Keur
• DM response rate:
3,5%
• Campaign cost:
3,4K eur
• CTR/impressions:
0,65%
• Conversion / CTR:
2,2%
• Campaign cost:
6K eur
• Unique open
rate:30%
• CTR/openrate:
15%
• Conversion/CTR:
2,2%
Adwords
• Campaign cost:
5K eur
• CTR/impressions:
7,94%
• Conversion / CTR:
2,2%
4
Share of total sales
for 50.000 contacts for each medium
Wrong !
Online business
= only online media
SMART!
Combination
on & offline!
Source : 2012 BtC - 50.000 contacts for each medium
The results: DM is the biggest
turnover generator
5%
0%
3%
92%
Total yearly turnover (K€)
50.000 contacts for each medium
Wrong !
Online business
= only online media
SMART!
Combination
on & offline!
13
1
7
252
Google
adwords
Banneri
ng
(CPM)
Email
DM
5
The results: DM is the biggest
turnover generator
(X 1.000€)
Wrong !
Online business
= only online media
SMART!
Combination
on & offline!
13
1
7
252
5
3,4
6
32,5
Google
adwords
Bannering
(CPM)
Email
DM
Campaign cost Total Yearly Turnover
675%
18%
-71%
125%
Campaign
ROI
Each invested euro returns into
50.000 contacts for each medium
6
“Each invested
euro
returns into”
2,4 €
0,3 €
1,2 €
7,7 €
Google
adwords
Bannering
(CPM)
Email
DM
Source : 2012 BtC - 50.000 contacts for each medium
The results: DM ROI is higher
than other channels
x 7
x 25
x 3
Cost per acquisition
50.000 contacts for each medium
7
61 €
473 €
121 €
19 €
Google
adwords
Bannering
(CPM)
Email
DM
Source : 2012 BtC - 50.000 contacts for each medium
x 6
x 25
x 3
The results: Cost / acquisition is
lower with DM
Contacts needed to acquire 1 customer
8
572
6.993
1.010
29
Google
adwords
Bannering
(CPM)
Email
DM
Source : 2012 BtC - 50.000 contacts for each medium
The results: budget to acquire 1 new
customer is lower with DM
x 35
x 245
x 20
Budget needed to acquire 1.000 customers
9
60.990 €
472.531 €
121.212 €
18.600 €
Google
Adwords
Bannering
(CPM)
Email
DM
Source : 2012 BtC - 50.000 contacts for each medium
x 7
x 25
x 3
The results: budget to acquire 1 new
customer is lower with DM
Key conclusion
• Don’ t look only at the cost / contact, consider
the full campaign sales ROI
• DM is proven to activate consumers on a more
efficient way: better campaign ROI, response rate
• Combine online & offline approach to reinforce
their mutual impact. A bannering campaign
supported by a DM action will generate better
results
10
Direct Mail – 50.000 contacten E-mail – 50.000 contacten
11
Costs Costs
Cost per rented adress - € Cost per rented email-address - €
Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 €
Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 €
LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 €
Fulfilment cost per order - € Fulfilment cost per order - €
Total campaigncost 32.550 € Total campaigncost 6.000 €
x 5,4
Revenues Revenues
Adresses 50.000 Adresses 50.000
Response rate
Average: Response DM on external data is: 5,78%) 3,50%
Unique openrate (IAB-benchmark: 20,58%)
30,00%
ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00%
Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Campaign result: total orders Campaign result: total orders
Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50
Average Ticketvalue 12 € Average Ticketvalue 12 €
Frequency per year 12 Frequency per year 12
Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1
Revenu 252.000 € Yearly Revenu 7.128 €
Campaigncost 32.550 € Campaigncost 6.000 €
Brut ROI 219.450 € Brut ROI 1.128 €
Source : 2012 BtC - 50.000 contacts for each medium
Belgian BtC case!
Direct Mail versus E-mail
Costs Costs Costs
Cost per rented adress - € Cost per rented email-address - € Cost
Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 €
Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € Land
LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € Bann
Fulfilment cost per order - € Fulfilment cost per order - € Fulfi
Total campaigncost 32.550 € Total campaigncost 6.000 € Tot
x 9,6
Revenues Revenues Reven
Adresses 50.000 Adresses 50.000 Imp
Response rate
Average: Response DM on external data is: 5,78%) 3,50%
Unique openrate (IAB-benchmark: 20,58%)
30,00%
Click
(IAB
ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Con
Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Campaign result: total orders Campaign result: total orders Cam
Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Im
Average Ticketvalue 12 € Average Ticketvalue 12 € Ave
Frequency per year 12 Frequency per year 12 Freq
Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Mar
Revenu 252.000 € Yearly Revenu 7.128 € Yea
Campaigncost 32.550 € Campaigncost 6.000 € Cam
Brut ROI 219.450 € Brut ROI 1.128 € Bru
Costs Costs
€ Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 €
0 € 0,027
0 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 €
0 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 €
€ Fulfilment cost per order - € Fulfilment cost per order 4,00 €
€ Total campaigncost 6.000 € Total campaigncost 3.379 €
9,6
Revenues Revenues
000 Adresses 50.000 Impressies 50.000
50%
Unique openrate (IAB-benchmark: 20,58%)
30,00%
ClickTroughRate / impressions
(IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%)
0,65%
ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Campaign result: total orders Campaign result: total orders
,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,15
2 € Average Ticketvalue 12 € Average Ticketvalue 12 €
12 Frequency per year 12 Frequency per year 12
0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1
0 € Yearly Revenu 7.128 € Yearly Revenu 1.030 €
0 € Campaigncost 6.000 € Campaigncost 3.379 €
0 € Brut ROI 1.128 € Brut ROI -2.349 €
Direct Mail – 50.000 contacts Bannering – 50.000 contacts
Source : 2012 BtC - 50.000 contacts for each medium12
Belgian BtC case!
Direct Mail versus Bannering
Costs Costs Costs
Cost per rented adress - € Cost per rented email-address - € Cost
Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 €
Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € Land
LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € Bann
Fulfilment cost per order - € Fulfilment cost per order - € Fulfi
Total campaigncost 32.550 € Total campaigncost 6.000 € Tot
x 9,6
Revenues Revenues Reven
Adresses 50.000 Adresses 50.000 Imp
Response rate
Average: Response DM on external data is: 5,78%) 3,50%
Unique openrate (IAB-benchmark: 20,58%)
30,00%
Click
(IAB
ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Con
Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Campaign result: total orders Campaign result: total orders Cam
Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Im
Average Ticketvalue 12 € Average Ticketvalue 12 € Ave
Frequency per year 12 Frequency per year 12 Freq
Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Mar
Revenu 252.000 € Yearly Revenu 7.128 € Yea
Campaigncost 32.550 € Campaigncost 6.000 € Cam
Brut ROI 219.450 € Brut ROI 1.128 € Bru
Costs Costs
€ Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 €
0 € 0,027
0 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 €
0 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 €
€ Fulfilment cost per order - € Fulfilment cost per order 4,00 €
€ Total campaigncost 6.000 € Total campaigncost 3.379 €
9,6
Revenues Revenues
000 Adresses 50.000 Impressies 50.000
50%
Unique openrate (IAB-benchmark: 20,58%)
30,00%
ClickTroughRate / impressions
(IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%)
0,65%
ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%
Campaign result: total orders Campaign result: total orders
,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,15
2 € Average Ticketvalue 12 € Average Ticketvalue 12 €
12 Frequency per year 12 Frequency per year 12
0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1
0 € Yearly Revenu 7.128 € Yearly Revenu 1.030 €
0 € Campaigncost 6.000 € Campaigncost 3.379 €
0 € Brut ROI 1.128 € Brut ROI -2.349 €

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Webshop case roi

  • 1. Belgian webshop case 2012 1 Source : 2012 BtC webshop! 50.000 contacts for each medium Each invested euro, returns into..?
  • 2. Webshop case background • Sector: Food brand webshop active in Belgium • Campaign objectives: Increase online sales on prospects with interest for the specific offered product ranges • Campaign setting: 2 Bannering: 4 weeks Direct Mail (50k contacts) Email (50k contacts) Google Adwords: 4 weeks Measure
  • 3. Comparing the approaches 3 Email Bannering Direct Mail Comparison of the approaches is based on • metrics provided by the brand • the results for a comparable reach of 50.000 contacts in each medium Standard metrics, used for the 4 channels • Average ticket value by purchase: 12€ • Purchase frequency / year: 12 • DM cost, production included: 32.5Keur • DM response rate: 3,5% • Campaign cost: 3,4K eur • CTR/impressions: 0,65% • Conversion / CTR: 2,2% • Campaign cost: 6K eur • Unique open rate:30% • CTR/openrate: 15% • Conversion/CTR: 2,2% Adwords • Campaign cost: 5K eur • CTR/impressions: 7,94% • Conversion / CTR: 2,2%
  • 4. 4 Share of total sales for 50.000 contacts for each medium Wrong ! Online business = only online media SMART! Combination on & offline! Source : 2012 BtC - 50.000 contacts for each medium The results: DM is the biggest turnover generator 5% 0% 3% 92% Total yearly turnover (K€) 50.000 contacts for each medium Wrong ! Online business = only online media SMART! Combination on & offline! 13 1 7 252 Google adwords Banneri ng (CPM) Email DM
  • 5. 5 The results: DM is the biggest turnover generator (X 1.000€) Wrong ! Online business = only online media SMART! Combination on & offline! 13 1 7 252 5 3,4 6 32,5 Google adwords Bannering (CPM) Email DM Campaign cost Total Yearly Turnover 675% 18% -71% 125% Campaign ROI
  • 6. Each invested euro returns into 50.000 contacts for each medium 6 “Each invested euro returns into” 2,4 € 0,3 € 1,2 € 7,7 € Google adwords Bannering (CPM) Email DM Source : 2012 BtC - 50.000 contacts for each medium The results: DM ROI is higher than other channels x 7 x 25 x 3
  • 7. Cost per acquisition 50.000 contacts for each medium 7 61 € 473 € 121 € 19 € Google adwords Bannering (CPM) Email DM Source : 2012 BtC - 50.000 contacts for each medium x 6 x 25 x 3 The results: Cost / acquisition is lower with DM
  • 8. Contacts needed to acquire 1 customer 8 572 6.993 1.010 29 Google adwords Bannering (CPM) Email DM Source : 2012 BtC - 50.000 contacts for each medium The results: budget to acquire 1 new customer is lower with DM x 35 x 245 x 20
  • 9. Budget needed to acquire 1.000 customers 9 60.990 € 472.531 € 121.212 € 18.600 € Google Adwords Bannering (CPM) Email DM Source : 2012 BtC - 50.000 contacts for each medium x 7 x 25 x 3 The results: budget to acquire 1 new customer is lower with DM
  • 10. Key conclusion • Don’ t look only at the cost / contact, consider the full campaign sales ROI • DM is proven to activate consumers on a more efficient way: better campaign ROI, response rate • Combine online & offline approach to reinforce their mutual impact. A bannering campaign supported by a DM action will generate better results 10
  • 11. Direct Mail – 50.000 contacten E-mail – 50.000 contacten 11 Costs Costs Cost per rented adress - € Cost per rented email-address - € Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 € Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € Fulfilment cost per order - € Fulfilment cost per order - € Total campaigncost 32.550 € Total campaigncost 6.000 € x 5,4 Revenues Revenues Adresses 50.000 Adresses 50.000 Response rate Average: Response DM on external data is: 5,78%) 3,50% Unique openrate (IAB-benchmark: 20,58%) 30,00% ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Campaign result: total orders Campaign result: total orders Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 Average Ticketvalue 12 € Average Ticketvalue 12 € Frequency per year 12 Frequency per year 12 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Revenu 252.000 € Yearly Revenu 7.128 € Campaigncost 32.550 € Campaigncost 6.000 € Brut ROI 219.450 € Brut ROI 1.128 € Source : 2012 BtC - 50.000 contacts for each medium Belgian BtC case! Direct Mail versus E-mail
  • 12. Costs Costs Costs Cost per rented adress - € Cost per rented email-address - € Cost Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 € Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € Land LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € Bann Fulfilment cost per order - € Fulfilment cost per order - € Fulfi Total campaigncost 32.550 € Total campaigncost 6.000 € Tot x 9,6 Revenues Revenues Reven Adresses 50.000 Adresses 50.000 Imp Response rate Average: Response DM on external data is: 5,78%) 3,50% Unique openrate (IAB-benchmark: 20,58%) 30,00% Click (IAB ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Con Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Campaign result: total orders Campaign result: total orders Cam Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Im Average Ticketvalue 12 € Average Ticketvalue 12 € Ave Frequency per year 12 Frequency per year 12 Freq Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Mar Revenu 252.000 € Yearly Revenu 7.128 € Yea Campaigncost 32.550 € Campaigncost 6.000 € Cam Brut ROI 219.450 € Brut ROI 1.128 € Bru Costs Costs € Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 € 0 € 0,027 0 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 € 0 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 € € Fulfilment cost per order - € Fulfilment cost per order 4,00 € € Total campaigncost 6.000 € Total campaigncost 3.379 € 9,6 Revenues Revenues 000 Adresses 50.000 Impressies 50.000 50% Unique openrate (IAB-benchmark: 20,58%) 30,00% ClickTroughRate / impressions (IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%) 0,65% ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Campaign result: total orders Campaign result: total orders ,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,15 2 € Average Ticketvalue 12 € Average Ticketvalue 12 € 12 Frequency per year 12 Frequency per year 12 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 0 € Yearly Revenu 7.128 € Yearly Revenu 1.030 € 0 € Campaigncost 6.000 € Campaigncost 3.379 € 0 € Brut ROI 1.128 € Brut ROI -2.349 € Direct Mail – 50.000 contacts Bannering – 50.000 contacts Source : 2012 BtC - 50.000 contacts for each medium12 Belgian BtC case! Direct Mail versus Bannering Costs Costs Costs Cost per rented adress - € Cost per rented email-address - € Cost Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 € Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € Land LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € Bann Fulfilment cost per order - € Fulfilment cost per order - € Fulfi Total campaigncost 32.550 € Total campaigncost 6.000 € Tot x 9,6 Revenues Revenues Reven Adresses 50.000 Adresses 50.000 Imp Response rate Average: Response DM on external data is: 5,78%) 3,50% Unique openrate (IAB-benchmark: 20,58%) 30,00% Click (IAB ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Con Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Campaign result: total orders Campaign result: total orders Cam Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Im Average Ticketvalue 12 € Average Ticketvalue 12 € Ave Frequency per year 12 Frequency per year 12 Freq Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Mar Revenu 252.000 € Yearly Revenu 7.128 € Yea Campaigncost 32.550 € Campaigncost 6.000 € Cam Brut ROI 219.450 € Brut ROI 1.128 € Bru Costs Costs € Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 € 0 € 0,027 0 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 € 0 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 € € Fulfilment cost per order - € Fulfilment cost per order 4,00 € € Total campaigncost 6.000 € Total campaigncost 3.379 € 9,6 Revenues Revenues 000 Adresses 50.000 Impressies 50.000 50% Unique openrate (IAB-benchmark: 20,58%) 30,00% ClickTroughRate / impressions (IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%) 0,65% ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Campaign result: total orders Campaign result: total orders ,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,15 2 € Average Ticketvalue 12 € Average Ticketvalue 12 € 12 Frequency per year 12 Frequency per year 12 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 0 € Yearly Revenu 7.128 € Yearly Revenu 1.030 € 0 € Campaigncost 6.000 € Campaigncost 3.379 € 0 € Brut ROI 1.128 € Brut ROI -2.349 €