Blog

Marketfish aims to put List Brokers and List Managers out of business

Wednesday, August 26th, 2009

Xconomy Seattle today reported on Marketfish, a new startup that plans to put list brokers and list managers out of business. According to the article,

Previous companies like NextMark and min (Marketing Information Network) tried various approaches in the pre-Google days, [Marketfish CEO Dave] Scott says, but they largely failed to solve the list marketing problem. "They wanted to play nice with all the middlemen. We’re going to cut them out," he says. "It’s a bold strategy."

Interestingly, Marketfish hopes to sell its services to advertising agencies… aren't agencies middlemen, too? Won't the agencies will be wise enough to predict the future of this relationship?

Marketfish reports to have recently closed a seed round with Alliance of Angels. I have to wonder if Marketfish disclosed two other companies with the same disintermediation strategy, Adventa and Alistia, who burned through tens of millions of investor dollars before going bankrupt without any success. Or the fact that using a list broker is by choice?

Hmmm…

For the record, NextMark has done quite well with a "play nice" strategy and has amassed the most comprehensive and up-to-date index of mailing lists available today with more than 100,000 data cards sourced in cooperation with 1,400 mailing list suppliers. We recognize our position as a marketplace technology provider and respect the roles that list brokers, list managers, agencies, service bureaus, and other suppliers play in the ecosystem. These relationships are one of NextMark's biggest assets. Our suite of products and services enable suppliers to work together more cohesively to achieve the mutual goal of helping marketers to reach their market.

As Marketfish observes, there are certainly huge inefficiencies in the marketplace. But it's important to recognize the experience and expertise that would be lost by "cutting out the middlemen." NextMark is streamlining the marketplace while preserving – and enhancing - the value of these critical roles.

How Banks, Marketers Aid Scams… and how they prevent it

Wednesday, July 1st, 2009

Today's Wall Street Journal includes a story "How Banks, Marketers Aid Scams" that tells how common business practices may help scammers. Although the story mentions some of the controls in the mailing list business, it fails to mention most of them.

The common public perception of mailing lists is that personal information is being freely traded without any controls. Nothing could be further from the truth. In fact, you'd be suprised how many controls are in place to prevent inappropriate use of mailing lists. Here are a few:

  1. Mailing lists have well-established opt-out or opt-in policies to give individuals control of their inclusion on a list
  2. Lists are typically "rented" or "exchanged" for 1-time use (versus purchased for unlimited use) – this prevents overuse
  3. List rentals require list owner approval as part of a formal clearance process – this prevents mis-use
  4. Getting approval requires samples of your mail piece or telemarketing script – this prevents inappropriate use of the list
  5. Professional List Brokers and List Managers typically act as intermediaries on transactions and will stop fraud in its tracks to protect their clients and their livelihood. Many maintain black lists of unethical mailers to aid in this process.
  6. List rentals require a formal list rental agreement (LRA) that restricts use of the mailing list to the purpose set forth. This contract prevents misunderstandings and adds formal accountability to the process.
  7. List rentals are "anonymous" – the buyer never takes possession of the list. Instead, a trusted 3rd party service bureau handles the data - this prevents stealing of mailing lists
  8. Lists are seeded to ensure that the use of the mailing list complies with the agreement. Mailboxes are set up to receive the mailings/emails/calls and these are tracked – this prevents mis-use.
  9. Members of the Direct Marketing Association abide by a Privacy Promise and Code of Ethics.

NextMark's technology enables these controls and more that give consumers better protection. At the same time, NextMark enables organizations to reach their market directly with highly relevant communications (by weeding out people who consider their communication "junk mail" or "spam").

Of course, list owners aren't required to use NextMark, join the Direct Marketing Association, or go through the list broker/list manager channel to sell their list. But the ethical list owners, such as The Wall Street Journal itself, and their list managers will follow this protocol to prevent mis-use of their data and to protect consumers.

More attention needs to be paid to unscrupulous list owners and marketers who don't follow the rules.

The billionth iPhone app downloaded

Tuesday, June 9th, 2009

The trend towards mobile computing is staggering, led by Apple. Their AppStore recorded its billionth application download two months ago (April 2009).  Those applications were downloaded to the 40 million Apple iPhone devices currently on the market.

Even more amazing is the fact there are 50,000 applications available through the AppStore… in nine short months! Software developers are clearly on board with this. Sure, there's a bunch of useless apps, like fart apps. But serious developers are creating meaningful applications, too, like this health monitor:

Iphone-health-app

The Palm Pre was also just launched and has received early positive reviews. Another excellent application platform. Then there's Google Android and a whole bunch of other challengers.

Who will "win?" That's anyone's guess.

If you are not already looking at mobile computing, now is the time to start. Otherwise, it's clear who will lose.

Sir, we’re not the taco stand

Monday, June 8th, 2009




This “The Vendor Client relationship – in real world situations” video gave me a good laugh: It shows the “no budget” “pay you later” abuse some vendors endure. Of course, none of our customers use these tactics. Right?


(Thanks to Jim Gilbert for posting this on his blog)

Is Direct Mail Doomed?

Tuesday, May 26th, 2009

Direct Mail Falls, E-mail Soars (May '09) MediaPost just published a story entitled "Direct Mail Doomed, Long Live Email" which covers research by Borrell Associates entitled "Direct Mail Falls, E-mail Soars (May '09)". As you might guess from the title, the story spells the demise of direct mail:

After making quick work of print newspapers, and the Yellow Pages industry, "The kudzu-like creep of the Internet is about to claim its third analog victim," warns a new report from research firm Borrell Associates. The victim? "The largest and least-read of all print media: Direct mail."

"Direct mail has begun spiraling into what we believe is a precipitous decline from which it will never fully recover," Borrell predicts. More specifically, it is projecting a 39% decline for direct mail over the next five years, from $49.7 billion in annual ad spending in 2008 to $29.8 billion by the end of 2013.

If Borrell is correct, direct mail will fall from the premiere placeholder for ad revenue to the fourth — behind the Web, broadcast TV, and newspapers.

Is direct mail really doomed?

The financial situation of the USPS is certainly a recipe for disaster: they seem to be in a "death spiral" where their cost burdens drive up postage which drives down direct mail ROI which reduces revenue and profit which drives postage higher (repeat…). Electronic bill presentment and bill paying is taking a big chunk out of the USPS pocketbook. Credit card mailers have pulled back significantly because of their own problems. The USPS' list of financial problems is long and getting longer every day.

Cross-selling, up-selling, and retention programs (i.e. marketing to current customers) can be very effective through email if done right. This reduces demand for direct mail.

However, prospecting for new customers through email often fails miserably (particularly when the wrong mailing lists are chosen). This is where direct mail still shines despite the all the economic challenges of getting direct mail to the mail box. Response rates, average order, and ROI are higher with direct mail prospecting programs. With good mailing lists, results are even better.

What do you think? Can prospecting save direct mail? Or will spiraling postage and other cost increases eventually make direct mail inviable?

Your response is required by law

Tuesday, May 19th, 2009

Need a surefire way to boost your direct marketing response rates through the roof? Take a page out of the U.S. Census Bureau's playbook and make it a crime to disregard your mailing.

Here you see their envelope creative clearly stating "YOUR RESPONSE IS REQUIRED BY LAW":

Your response is required by law

Inside the envelope you find an 8-page survey with 82 questions such as, "what was the total amount of capital used to start or acquire this business?"

What happens if you don't respond? According to Title 13 of the United States Code, Chapter 7, Sub-chapter II, Section 224:

"Whoever, being the owner, official, agent, person in charge, or assistant to the person in charge, of any company, business, institution, establishment, religious body, or organization of any nature whatsoever, neglects or refuses, when requested by the Secretary or other authorized officer or employee of the Department of Commerce or bureau or agency thereof, to answer completely and correctly to the best of his knowledge all questions relating to his company, business, institution, establishment, religious body, or other organization, or to records or statistics in his official custody, contained on any census or other schedule or questionnaire prepared and submitted to him under the authority of this title, shall be fined not more than $500; and if he willfully gives a false answer to any such question, he shall be fined not more than $10,000."

So, if I understand this correctly, it will cost you $500 if you don't respond and $10,000 if you lie.

That's certainly a compelling "value proposition." I wish I could use that for our marketing programs ;-)!

Cisco Systems Comments on Data Cards

Monday, May 11th, 2009

BtoB Magazine published a story today titled "It’s in the cards: Tip-top list data cards are more than just a formality". The story reflected on comments from a leading direct marketers from firms like Cisco Systems, Merkle, and two others. Here's what they had to say about the value of data cards and the importance of data card quality:

"The idea of a data card is really important in that it gives marketers a map of what their data source looks like and, as a result, what they can expect by using that data source,” said Theresa Kushner, director of customer intelligence at Cisco Systems. “That’s essential to a direct marketer.”.

"If a list isn’t represented well on the data card, or it’s not what we thought it is, we’re wasting our time; and I don’t have time to waste,” said Lisa Donnelly, senior director-content strategy with direct marketing agency Merkle Inc. “I need that card to be accurate, concise and make sense when I look at it the first time,” she said.

NextMark publishes the top list managers for data card quality report at the beginning of each quarter. This is just one measure of a list manager's commitment to providing exceptional service. Among many other things to consider are industry experience, secondary market knowledge, multi-channel marketing expertise, list rental forecasting capabilities, list price negotiations, and responsiveness to count requests.

Social Media Cheat Sheet

Monday, May 4th, 2009

This cheat sheet has been revised. Please click Social Media Cheat Sheet for the updated version.

Are you spending too much time trying to figure out how to leverage social media for your business? Maybe you are just waiting to see some quantitative results before diving in. You know there's value in doing it, but the perceived ROI doesn't look very good when senior management's time is at stake.

This marketing blog will help you get organized before you dive in. Just save this page to your favorite places for quick and easy access to the top services. This is not intended to be a comprehensive list since there are hundreds of social networking sites that may not be as effective for business. It is also important to note that the services listed below are most recognized in U.S. and may not be the top choices internationally. I hope you find this resource helpful.     

________________________________________________________________________

Aggregation Tools: FriendFeed, Lifestream.fm, Lijit, Ping.fm, Socializr, Socialthing!

Blogs: Blogger, Typepad, WordPress

Bookmarks:  Delicious, Digg, Livejournal, Mixx, Newsvine, Propeller, Reddit, StumbleUpon, Technorati, Yahoo! Buzz

Free Business Listings:  BizHWY, Cardboard, Crunchbase, Jigsaw, MerchantCircle, NextMark, Tradvibes, and many more out there!

Post Documents:  Google Docs, Scribd

Post PowerPoint Presentations:  AuthorSTREAM, Google Docs, Myplick, Slideshare

Post Videos:  Vimeo, YouTube

Social Networks:  Crowdvine, Facebook, LinkedIn, Plaxo

Twitter Tools:  MyTweeple, TweetDeck, TweetLater, Twibes, Twitter

URL Shorteners:  bit.ly, budURL, Snurl, TinyURL, tr.im, Twurl

Wikis:  Pbwiki, Wetpaint, Wikipedia

Be careful which URL shortener you use as it may affect your future search rankings.

Your feedback is welcome, and encouraged, as to what works best for business. As NextMark's Director of Business Development, I've found LinkedIn and YouTube to produce the best marketing results.
 

Are Twitters Quitters? The Social Media Wave

Wednesday, April 29th, 2009

According to David Martin, Neilsen Online's Primary Research VP, "Twitter has enjoyed a nice ride over the last few months, but it will not be able to sustain its meteoric rise without establishing a higher level of user loyalty."

Martin reveals "currently, more than 60 percent of Twitter users fail to return the following month, or in other words, Twitter’s audience retention rate, or the percentage of a given month’s users who come back the following month, is currently about 40 percent. To be clear, a high retention rate doesn’t guarantee a massive audience, but it is a prerequisite. There simply aren’t enough new users to make up for defecting ones after a certain point."

I found this information posted yesterday on the Nielsen blog if you are interested in learning more.

The proliferation of social media combined with the increasing number of integrated solutions for posting and 'tweeting' content, will eventually lead to a weeding out of social network services based on value. Remember the days when list rental income grew 25 percent each year? It's time to pull out the dusty textbooks on macroeconomics and get back to basics. Mailing lists will be back in swing once the dust settles. In the meantime, there is nothing wrong with surfing the social media wave with the intention of educating marketers about the benefits of direct mail.

The future of direct mail is bright for those who embrace innovation. Even 'unsociable' marketers have an opportunity to succeed.Happy_mailing_list Take a look at how the digital world has changed the way list brokers and managers interact and exchange information. Owner service bureaus and list managers are working together with NextMark to improve efficiency. Brokers have more tools that are integrated. More time is spent understanding what drives response rates and lifetime value (LTV) and less time is spent on learning how to look up and process information on legacy systems.

As for the recent 'meteoric rise' of Twitter activity, remember what Grandmother used to say, "this too will pass". In the meantime, you can still follow NextMark on Twitter, and send us a tweet.

The mailing list industry ain’t dead yet… or is it?

Tuesday, April 21st, 2009

Is the mailing list industry headed for death? Two industry veterans take opposing viewpoints through their articles recently published in Direct Magazine. One says "we'll actually be more profitable in 2009" while the other says "the entire direct mail industry is stinko."

David Kanter of Acculist USA takes the optimist's viewpoint in "The List Industry Ain't Dead Yet" including:

"For prospecting, e-mail is not a substitute for a well conceived direct mail program. E-mail open rates are declining. If truth be told, direct mail may actually cost less than e-mail, and generate a superior return on investment (ROI). E-mail is great for maintaining relationships with customers. If you rely on e-mail for prospecting, you will probably be out of business, whether in a good or bad economy."

David's article was in response to a previous article "Direct Marketing Industry is in Major Jeopardy" by Robert Dunhill of Dunhill International List Co., where he takes the pessimist's viewpoint:

"To start, the money that's spent on direct mail in 2009 will fall about 10% under 2008 levels. That's a real wow, isn't it? And, it's not restricted to the financial giants. But they sure are the biggest losers. The mortgage lenders and finance companies were off almost 40%. The credit card companies dropped their volume by 22%. The tech guys, automotive, hospitality and travel, plus the investment companies combined for an additional 56% volume decrease."

The list industry will certainly not stay the same as it was 10 years ago. So which is it? Is the list industry headed for death or a transformation?