This document compares the effectiveness of different marketing channels - direct mail, email, and banner advertising - for a Belgian food brand's webshop campaign. Direct mail generated the highest turnover at €252,000 from 50,000 contacts, compared to €7,128 from email and €1,030 from banners. Direct mail also had the highest ROI at 770% and the lowest cost per acquisition. The key conclusion is that direct mail is the most efficient activation channel, and combining online and offline approaches generates better results than online-only.
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 €