Category: In the News

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In the News UK

Rogue call action plan revealed

The Government has outlined its plans to crackdown on nuisance calls, nearly three months after agreeing to bring forward legislation to tackle what hasBig Ben been branded a “public menace”.
Under a Ministry of Justice consultation, launching this week, claims management firms could face fines of up to 20% of their annual turnover. This means some could potentially be fined millions of pounds, up from the current £500,000 maximum that the Information Commissioner’s Office can impose.
This will bring it in line with fines for mis-selling, although even these are not worked out from annual turnover. Scottish & Southern Electric (SSE) has the dubious honour of holding the record for the largest fine for mis-selling; it was slapped with a £10.5m monetary penalty in April last year.
Next week regulations will be laid out in Parliament to simplify how Ofcom can share information with the ICO and the Insolvency Service, while later this year the Government will also launch a consultation on lowering the threshold for ICO action.
Justice Secretary Chris Grayling, said: “The scale of these fines shows just how serious we are about stopping them. The Claims Management Regulator already takes touch action against companies which break the rules, suspending and closing down rogue firms, but now these fines will give us an extra weapon to drive bad behaviour out of the industry.”
Commenting on the Government’s action plan, the DMA’s chief of operations Mike Lordan said: “The Government’s action plan is a welcome warning to the rogue companies responsible for the nuisance calls that cause misery for millions of people and severely damage the legitimate telemarketing industry.
“As the industry’s representative, the DMA will play a leading role in implementing the action plan. This will not only benefit people at home, but also the tens of thousands businesses that lawfully use telemarketing to win new customers and drive sales.”
This was first published on Decision Marketing. For more breaking news and opinion pieces on direct, data and digital marketing in the UK visit us at www.decisionmarketing.co.uk

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In the News UK

Donors find most DM ‘very annoying’

Charities are being urged to rethink their marketing strategies after a damning report claimed most people find many DM techniques – including email,Donors-find-most-DM-‘very-annoying’ text message, and telemarketing activity – “very annoying”.
The research, published by consultancy nfpSynergy, will make worrying reading for many in sector as direct marketing is such a key discipline within most organisations. They spend over £300m a year – and rising – on direct mail alone, making it the third highest spending sector in the UK.
The study revealed that people are much more likely to donate to charities after viewing an ad campaign – either on TV or online – than through most DM techniques.
Doorstep fundraising is seen as the biggest villain, with 54% of people finding it very annoying, while 51% feel the same about being asked to donate on the telephone. A third (36%) get very annoyed when they are approached by a fundraiser on the street.
More modern methods are also unpopular, with 33% irritated by text messages and 20% unhappy with receiving emails.
The new data, based on a survey of 1,000 British adults, did show that some fundraising methods sit well with the public. Over a third were happy to be asked to donate via collection tins and online ads, while around a quarter find face-to-face, radio and TV approaches acceptable.
Despite the high levels of annoyance, people said they did understand that some methods are effective ways to raise money. These included newspaper/magazine ads (42%), radio (40%), collection tins (35%) and direct mail appeals (31%).
When asked for their preferred way to be asked for money, just 2% would choose being asked on their doorstep and 1% on the telephone.
nfpSynergy chief Joe Saxton said: “The Holy Grail in fundraising must be to maximise the money raised and minimise the aggravation it causes. This data gives a good indication that we are not winning this battle.
“We as a fundraising sector have to start working out ways of reducing the annoyance from some of our most effective and successful methods. Charities must ensure people can opt out of telephone calls and being badgered on their doorstep and they have to look at their direct marketing. It’s no good thinking that people are happy with certain methods and leaving it at that if those are not the ones that can raise the big bucks.”
This was first published on Decision Marketing. For more breaking news and opinion pieces on direct, data and digital marketing in the UK visit us at www.decisionmarketing.co.uk

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Denmark Europe France Germany In the News Netherlands UK

Teradata drops eCircle branding

Teradata has scrapped the eCircle name, one of the most well-known brands in European marketing automation, following the purchase of the business inTeradata-drops-eCircle-branding June 2012, and folded it into the main business.
The company insists Teradata eCircle had only ever been a “transitional name” and will now revert simply to Teradata.
At a product level, eCircle’s eC-messenger will be rebranded Teradata Digital Messaging Center, the label currently used in the rest of the world.
In addition to the organisational and product name changes, Teradata eCircle media services will become Teradata Interactive. Teradata Interactive is a full-service online marketing unit and is part of Teradata’s broad offering of business services.
Volker Wiewer (pictured), who co-founded eCircle in 1999 and is now Teradata international vice president of marketing applications, said: “As one brand and one unified global organisation, Teradata can better deliver its market-leading solutions to help companies increase the value of their data and customer relationships.
“By any name, Teradata’s solutions are enabling marketers to more effectively manage operations, multi-channel campaigns and analytics, resulting in greater effectiveness and efficiency and increased ROI.”
Teradata will maintain its European HQ in Munich, with offices throughout the EMEA region including Denmark, France, Italy, The Netherlands, Poland, Spain and the UK. The company also has offices across the Americas, Asia and Japan, with more than 10,000 employees in over 40 countries.
This was first published on Decision Marketing. For more breaking news and opinion pieces on direct, data and digital marketing in the UK visit us at www.decisionmarketing.co.uk

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In the News

First UK shopping centre uses revolutionary technology to deliver targeted promotions

New solution to help retailers narrow gap between ‘clicks and bricks’ 

A shopping centre on the UK’s south coast has become first in the country to use the revolutionary Beacon technology that enables retailers to Swan Centreacknowledge customers’ presence and deliver targeted ads.

The roll out of the technology – popularised by Apples’ iBeacon version in the US – in The Swan Centre in Eastleigh, allows shoppers inside the centre to receive discount offers from retailers straight to their phones – without having to open an app or browse a website.

The service has been developed by Brighton-based tech start-up TagPoints. Using Beacon technology, the company has incorporated its unique ‘TagBeacons’ platform into The Swan Centre’s popular white-labelled ‘SmartRewards’ app.

What are Beacons?

Beacons are low energy blue tooth devices that ‘ping’ a location message to smart phones, allowing consumers who have downloaded a retailer’s app to receive location-based content and advertising.

Along with a welcome message, customers entering the centre receive 10 points to their loyalty account (which can be used in conjunction with merchant discount offers). As more TagBeacons are installed throughout the centre, they will receive retailer-specific promotions. The frequency and targeting of these messages with be carefully controlled to ensure no single customer is bombarded with messages. The focus is on delivering a relevant message to the consumer while boosting merchant sales. The TagBeacon solution also helps shopping centres and their clients accurately measure footfall figures in real-time.

How TagBeacons works:

  1. Users download and install the white-labelled ‘SmartRewards’ app and turn on their phone’s Bluetooth connection
  2. On entering the shopping centre, low energy transmitters detect the customer’s presence. The Beacons have a maximum range of 50m and allow advertisers to locate a user within a few feet.
  3. Customers receive loyalty points and targeted sales and promotions alerts as they travel through the centre, based on their physical location within building
  4. TagBeacons can also be used for non-promotional activity like way-finding and customer service.
  5. Beacon technology was first introduced in Apple’s recent iOS7 update – both Android phones are compatible with the system.

Mark Robinson, investment director at Ellandi, owner of the Swan Centre, said: “There’s a real buzz within the retail industry about the potential of location-based technology to help engage with and market services to the public.

“It offers them the ability to connect with motivated customers and deliver filtered offers and discounts – based location and proximity – directly to their mobile phones. Our merchants are now able to communicate directly with customers and positively influence their spending patterns without having to lift a finger.”

The company that delivers the white-label solution – known as TagBeacons – says the installation ushers in a new era of mobile advertising.

Jess Stephens, co-founder of TagPoints, said: “While this is the first time this system has been used in a UK shopping centre, the technology is being used overseas in places including New York’s iconic department store Macys.

“Retailers are comfortable with integrating consumers’ mobile habits into their stores and an increasing number realise that to counter the impact the internet shopping is having on sales, they have to do more than offer their own apps and Wi-Fi within their stores. Location-based technology allows them to use digital marketing strategies to improve the shopping experience.”

TagPoints’ co-founder, Dave Mitchell, added: “We’ve already seen that when shoppers receive targeted offers – based on where they are within the shopping centre – they’re more motivated and hence likely to use them and connect with the brand behind the offer.

“As well as building customer loyalty, the system enables retailers to gain data about their end users that previously has been beyond them – and help close the loop between the digital and bricks and mortar worlds.“

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In the News

Online retail will outstrip in-store sales, says study into size of European and American e-commerce sector

online-retail1Despite a difficult economic environment, the e-commerce sector in Europe and the US is continuing to grow rapidly, according to major international research commissioned by digital coupon marketplace RetailMeNot, the owner of Vouchercodes.co.uk

The study, conducted by the Centre for Retail Research, forecasts that online sales in the US will grow by 15% in 2014 to £189.3 billion, while in Europe sales are expected to rise by 18% to £131.2 billion.

The UK, France, and Germany are projected to be responsible for the bulk of this growth in Europe, accounting for 81% of the online sales in the eight European markets expected in 2014.

The UK is the largest market in Europe, with sales of £38.8 billion 2013, and is expected to account for more than a third (34%) of all online retail sales in the eight European markets surveyed in 2014. The report forecasts that £45 billion will be spent online in the UK in 2014 – an increase of 16% on online consumer spend compared to the previous year.

Commenting on the results, Giulio Montemagno, SVP of International at RetailMeNot, said: “While the e-commerce sector is continuing to grow rapidly, we are starting to see the German, the UK and the US markets mature as shopping online becomes a commonplace activity. Today, growth is being mainly driven by an increase in the frequency of consumers shopping online and spending more money through online channels while, in previous years, e-commerce growth came primarily from an ever-growing number of first time online shoppers.

“In 2014, we are expecting to see online sales across Europe grow at a rate that is 11.9 times faster than in-store sales. In the UK, online retail is expected to increase by 15.8% this year, while the offline segment will grow by only 2.4%. With such a competitive retail environment it’s more important than ever that retailers look to mobile devices and the web to incentivise shoppers to make purchases online and in-store.

“Successful retailers will consider the Internet not as a threat but as a powerful complement which can help them increase their sales.”

Growth in online shopping spend and frequency  

The report shows that 46% of Europeans and 55% of Americans now shop online. Online shopping is particularly popular in Sweden and the UK where more than two-thirds of the population make purchases on the web: 71% of Swedes and 67% of Brits use the internet to shop. While growing, online shopping is less popular in southern Europe: one in five people shop online in Italy (20%), while one in three (32%) use the Internet to shop in Spain. Around half of people in France (52%), Poland (51%), Netherlands (49%) and Germany (45%) shop online.

The study, which includes phone interviews of 100 major retailers and 9,000 consumers, reveals that most consumers expect to shop online at least once a month in 2014. On average, European shoppers will make 15.2 online purchases this year with a typical basket size of £49, while American shoppers will make 15.6 online purchases, with an average spend of £71. In the UK, shoppers are expected to make 18.0 purchases online this year, spending an average of £59 each time.

Throughout 2014, European shoppers are expected to spend £749 online, an increase of 18% compared to 2013, while American shoppers are expected to spend £1,106 online, on average – 14.4% more than in 2013. In the UK, shoppers are expected to spend £1,071 on the web this year – 15.8% more than last year.

Online retailers accounted for 6.3% of all retail sales in Europe in 2013 and 10.6% in the US, and in 2014, this share is set to grow to 7.2% and 11.6%, respectively. In the UK, the research found that the internet accounted for 12.1% of all retail sales last year and this is expected to grow to 13.5% in 2014.


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In the News

Boardroom beckons for marketers, thanks to big data

Are today’s marketers tomorrow’s data-empowered CEOs? New research from dnx and Circle Research highlights that more marketers being tunnel greenerconsidered for the top job.

With a unique skill set among boardroom contenders (customer insight custodian, cross-function project leader, calculated risk-taker), CMOs are increasingly credible CEOs-in-waiting.

dnx and Circle Research partnered to produce comprehensive research exploring exactly what is behind this dramatic change in fortunes for the CMO – which they say is a remarkable turnaround, given that marketing is a function long sidelined in boardroom terms for its inability to link customer insight and marketing activity to business results.

The researchers looked into whether the turnaround is due to the advent of big data – which 83% of enterprise organisations they quizzed now view as a mission-critical business intelligence tool.

They surveyed more than 50 enterprise marketers from both B2B and B2C organisations across the UK and Europe, to get latest insight on the extent of their usage of big data, the dos and don’ts of successful collaboration around big data, what other opportunities and challenges they face in the shifting digital landscape, and what they think the future holds for the marketing role.

Drew Nicholson, CEO at dnx, said: “We think CMOs now have the biggest opportunity they’ve had in 50 years. Big data will give them insights and opportunities they’ve never had before, but if they don’t negotiate the data minefield with the right skills and know-how, they will lose credibility.”

The findings were published this week in a report titled, ‘When will Marketing be promoted to the Boardroom? The reality of big data’s promise’. Download the free report, here. 

 

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France In the News UK

GMA survey: French twice as likely as British to buy goods from other countries

David Cole (pictured), MD of online research company fast.MAP, analyses French and English data from a new GMA survey.

Maybe it’s because we’re an island race that the British have parochial online buying habits. The French, for example, are twice as likely to buy sans frontiers.

But new research reveals it’s the British aversion to foreign languages which is a more likely cause.David Cole - May 2010 (WEB)

In mid-February, the GMA commissioned fast.MAP to ask panels of 550 French and 1,120 UK adults (each panel demographically representative of the country) about their online buying habits.

While both nations have enthusiastically embraced online purchase, the French are far more likely to buy from other countries – probably because they are also twice as likely to speak the language. Click here to view/download the chart.

While almost half of the French online buyers (47%) made cross-border purchases in the last year, in the UK only a quarter (22%) did so. Of these, 31% of the French, but only 17% of the British spoke the language of the country they bought from.

Two in 5 French buyers (38%) and 7 in 10 of the British (70%) bought these imported goods from a website translated into their own language, showing the importance of investment in multi-language website options to companies wishing to tap into foreign markets (especially those wishing to sell into the UK). Click here for the chart.

The French were also twice as likely to use – and have no problem using – online translation software (13% v 6%). And although twice as many of the French encountered problems using this software (5% v 2%), this is as expected since twice as many were using them.

The French were also twice as likely to enlist the aid of a bilingual friend (4% v 2%), but only one in 100 of either nationality was helped linguistically by the company they were buying from.

The French are to be congratulated on their persistence, since 8% of those who experienced language problems managed to complete the transactions compared with only 3% of the British.

French cross-border buyers are also far more open to a wide variety of sourcing routes than the British. Fewer than 1 in 10 British buyers use a wide mix of multi-national sourcing methods, while the French are more than twice as likely to use several.

In fact, the British seldom stray outside of four main sourcing channels – auction site; search engine; company website; and email. This implies that for those selling into the UK, concentration on these media would be cost-effective, while those selling into France would be wise to consider a wider mix of promotional media. (Chart )

Two in 5 UK buyers heard about foreign goods and services via auction sites (UK 39%; F17%). The second largest UK influence search engines, was by far the most important source route in France (UK 36%; 49% F).

Second most prevalent in France was company websites (F 27%: UK 23%) followed by email (F 26%; UK 16%), while 22% of French and 7% of British buyers of foreign goods used comparison websites.

Between one and two in ten French buyers also used: comparison websites (22%); online ads (13%); social network sites (13%); TV and radio ads (12%); print ads (10%); and exhibitions (9%).

To download a variety of fast.MAP/ DMA/ IPM/ IoF annual marketing/ fundraising tracking studies, click here. 

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Australia Europe In the News UK USA

Demand for key digital roles 'fuelling salary inflation'

Account directors earning $125k (£75k)-plus up 45%, creative directors command 41% more in North America versus Europe, technical architectsSalary-increase-200x150 wanted worldwide, says report.

Competition for talent at digital agencies and production companies is leading to sharp salary rises and remuneration gaps of up to 45% between some regions.

Globally, there’s never been a better time to be in the three most sought-after digital roles: account director, creative director, and technical architect. Senior-level strategists and user-experience leads also command strong salaries, although these vary according to where they live.

These are key findings the annual Salary Report by SoDA, the invitation-only organisation that represents top digital agencies and elite production companies worldwide.

The number of account directors earning more than $125k (£75k) increased by 45% between 2012 and 2013; while creative directors commanded up to 41% higher salaries in North America compared with their European peers.

Last year, the average salary for technical architects in North America was between $101-$110k (£60-65k) compared with $91-$100k (£54-59k) in Europe and Australia. The result suggests uniform global demand for this area of expertise, particularly in light of the sometimes significant salary gaps between these regions for other roles.

The SoDA Salary Report underscores a significant – and in some cases widening – salary divide between regions such as Europe and North America. In Europe, average salaries for project managers, creative directors, producers, graphic designers and copywriters stagnated last year as the cost of living rose.

While salaries for some of these positions in North America were also stagnant, they were, on average, 42% higher than salaries in Europe. This fact could lead to some top talent exploring expat opportunities.

The SoDA Salary Report also reveals:

  • Account directors earned 11% more on average last year compared with 2012.
  • Creative directors’ salaries rose by eight per cent, the most common salary range in 2013 was between $126-$150k (£75-90k).
  • Unlike some corporate sectors where CEO pay has risen significantly, compensation for CEOs and managing partners in the study actually dipped 16% in 2013, from $200-250k (£120-150k) on average in 2012, to $176-200k (£105-120k)in 2013. This decline can partly be explained by a shift towards incentive-based pay (not captured in the study’s baseline salary figures).
  • SoDA’s findings also suggest that top executives are shouldering some of the burden associated with tough economic times, in order to maintain or increase the salaries of key talent.

North/South America highlights

Overall, the highest salaries are paid in North America, with some roles such as account managers ($91-$100k or £54-59k) and social media directors ($101-110k or £60-65k) standing out. This contrasts with Europe and Australia where account managers earned between $61-$70k (£36-41k) and $51-$60k (£30-35k) in Latin America.

Salaries for top digital talent in Brazil remain above the rest of Latin America for many positions such as executive creative director, senior graphic designer, copywriter and front-end developer. But the gap is beginning to narrow given the economic strength of other markets in the region, such as Colombia.

Last year a senior Latin American producer could command between $41-$50k (£24-29k) compared with $71-$80k (£42-48k)in the UK and $101-$110k (£60-65k) in New York.

Europe highlights

Creative directors earned $126-$150k (£75-90k) in North America compared with $91-$100k (£54-59k) in Europe, $61-$70k (£36-41k) in Latin America and $111-$125k (£66-74k) in Australia.
While salaries for most key positions in Europe stagnated in 2013, the role of technical architect bucked that trend, rising more than 100% last year. APAC highlights

The Australian bull run of salaries in 2012 abated in 2013, with pay for producers, creative directors, graphic designers and copywriters declining last year.
Median pay for Australian executive creative directors fell from between $176-$200k (£105-120k) to $126-$150k (£75-90k)– the same as Europe. This reflects tightening margins on the continent, increased competition, with clients cautious over the direction of the economy keeping control of budgets.

Chris Buettner, SoDA’s executive director, said: “On a global level, most salaries analysed by SoDA were either stable or slightly up on 2013, despite the slow economic recovery in many regions. One of the reasons is that the world’s leading digital agencies and production companies are fighting hard to keep top talent from jumping ship to start-ups that offer high salaries and promise a golden lottery ticket.

“SoDA’s international growth over the past year has allowed us to segment the response data in more ways than ever before. In this year’s Salary Survey we are seeing pockets of salary inflation due to global demand for top talent in areas such as design, user experience, strategy and technical architecture.”

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Data Driven Channels In the News UK

Surge in sales through Smartphone and Tablet devices in 2014

After generating more than £50million in revenue for its online retailer clients for the period of 2013, European affiliate marketing company, Optimus Performance Marketing (OPM), is closely monitoring the percentage of sales being generated for its top clients through different devices like computers, tablets and smartphones.

OPM specialises in generating greater sales for its collection of clients, with expertise in the area of dedicated affiliate programme management, affiliate marketing training and consultancy. The company works with a range of online retailer clients which fall under a vast array of different sectors including fashion, pharmaceuticals, jewellery, furniture, daily deal sites and visitor attraction sites.

Patterns spotted with regards to the fashion sector highlights that so far in 2014 there has been a significant increase in OPM’s clients making an increased number of sales through smartphone purchases. One of OPM’s biggest fashion retailer clients saw just 1.6% of its sales come through smartphones in 2013, yet since January smartphone purchases have accounted for 6.5%, indicating a 397% year on year increase in smartphone sales. A similar trend has emerged for a voucher site client of OPM, which has seen its sales generated through smartphone increase in percentage from 3% in 2013 to 22% this year, an increase of 735%.

After studying the results of two of the furniture brands on OPM’s roster, the company noted that one company’s sales generated by tablet device purchased had enhanced from 11.4% in 2013 to 17.6% so far in 2014 (a year on year increase of 153%). The second company had also seen a year on year increase of 134% for purchases made through tablets.

Looking at clients from a wider angle, with regards to the total revenue made in 2013, 81% of sales were generated through computer sales, whilst 16% came through tablet devices and 2% came through mobile. For the first two months of 2014, computers have produced 69% of client sales, with tablets accounting for almost a quarter of sales (24%) and almost 6% coming through smartphones.

Mark Russell, CEO of OPM, said: “We are constantly striving to improve our services to clients. One of the ways to do this is to monitor exactly how different sectors are making the most sales, and for which platforms they need to see improvement.

“From simply looking at the first two months of sales activity regarding some of our top clients, it is clear that 2014 is going to be a turning point with regards to more and more customers using their smartphones and mobile devices to make purchases.”

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Census shows door drop recovery continues

A major census has revealed that the door drop channel is continuing to see recovery across Europe and the UK and it remains a highly effective tool for marketerselma-logo-frei

The European Letterbox Marketing Association (ELMA) has published its third pan-European census of door drop media covering 22 markets and 180m households. The research found that the door drop market in Europe continued to recover from the recession with an increase of 2.2 per cent to 115 billion items in 2012. However, pressure on costs resulted in media spend falling marginally to €3.9bn; a decrease of 0.7 per cent compared to 2011.

Croatia was the only country to see an increase in the average number of door drops from 7 to 8 per week. The large economies of France, Germany and UK (244m items) all increased use of door drop, balancing the stabilisation and slight decline of volumes in the CEE and Scandinavian markets. UK households receive 5 door drops per week.

The largest volumes by country in 2012 continued to be Germany (23,300,000,000 million), France (21,177,000,000 million), Italy (12,000,000,000 million) and The Netherlands (11,020,000,000 million). The UK is ranked fifth with 7,214,000,000.

In a new development for the ELMA census, it looked at spend on door drop as a percentage of total advertising spend. The Nordic region, on the whole, allocates more spending to door drops with Denmark at 15%, followed by Finland (11%), France (9.6%) and Norway (8.1%). The lowest advertising spend on door drops is in the UK (1.5%), followed by Poland (1.8%) and Germany (2.0%).

Households in The Netherlands continue a three year trend of receiving the highest number of door drop items in Europe, although this fell by one to 35. Considerable distance remains between the highest and lowest users of door drop with Irish and Romanian households continuing to receive two, despite media spend on the medium rising in Ireland in the past year. The average number of items received by households across Europe remains 12.

Commenting on the research findings, Mark Davies, ELMA president and managing director of TNT Post DoorDrop Media UK, said: “The ELMA census confirms that the door drop sector in Europe has recovered from the recession but is experiencing pressure on price despite a welcome increase in volume.

“Our new data highlighting spend on door drops as a percentage of total advertising spend is illuminating and shows that the sector has to work hard to make its argument for a fair share of the advertising budget.

“Recent research from Experian, where 52% of household decision makers said door drops were the most important source of research about their purchases, followed by the internet at 24%, shows that door drop remains an, if not the most, effective tool for marketeers. It is our job to re-educate marketeers across Europe of the effectiveness and cost benefit of using door drops.”

ELMA represents the leading Pan-European distributors of print media, such as leaflets, flyers, catalogues, brochures, free newspapers and product samples. More than 130,000 people work for the companies within ELMA of which the vast majority are distributors. The aim of the association is to guarantee quality standards of member operations and promote the door drop channel.