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print media

Over the past five years, while people have debated the future of print media, retailers have developed an approach to direct marketing that balances multiple distribution channels, including web marketing, e-mail marketing and, of course, print media in the form of catalogs.

The decision-making is fact based: How much does it cost to acquire a customer through each channel and how much does that customer buy from me? The top-level conclusions are easy to see. Retailers still invest heavily in printed catalogs, along with creating e-commerce hubs on the web and using web marketing to drive traffic.

In an interview with eMarketer, Coy Clement of clementdirect, a direct marketing consulting firm, shares some of the insights he’s gleaned developing multi-channel strategies for retail clients.

Interestingly, behavior on the website is different on the part of people who used the catalog versus those who haven’t.

People who receive the catalog tend to use the Website differently from people who haven’t received a catalog. I’ve seen cases where people who’ve received the catalog buy the featured items. They know what they’re looking for, and they use the catalog as a guide to what the company is selling. People who show up through organic search or a corporate high-traffic site have much more difficulty navigating the Website because they really don’t know what the key items are.
points out that a multi-channel marketing strategy needs to be tailored to the behavior of the target consumers and adjusted for what you learn.

Interestingly, brand retention is higher on the part of people who have been exposed to the print catalog.

What is harder to measure, but still important, is the mindshare people have. This is particularly important for companies in fairly competitive fields. Let’s say you’re in a technology business and you look at people who don’t receive a catalog and people who do, and you do blind research, not telling them who the company is. You say, “Why don’t you tell me what you think of Dell or HP?” Researchers have found over the years that customers who receive catalogs tend to have a higher brand awareness and mindshare than people who don’t.

It’s as if the physical experience of the brand leaves an imprint.

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Real estate advertising is set to rebound in 2010, after a devastating decline in 2009, and traditional media such as newspapers and print catalogs will be a surprising beneficiary, according to a forecast released this month by Borrell Associates, a long-time observer of the local advertising market.

Borrell has been in the business of analyzing local advertising trends since the 1980′s. I actually competed with Gordon at Communications Trends, Inc. in the late 1980′s, when both our companies began to look at the emerging competitive trends in the yellow pages industry. Gordon’s work is solid, and his firm has been on target more often than not with their forecasts. He accurately forecast the scale of the shift to online in the real estate business, for instance.

As a result, I was particularly interested in seeing his firm’s forecast of real estate advertising for the next year. There are three big take-aways from the analysis and surrounding discussion: An over-correction in ad spending disproportionately hit traditional print media; the share shift between print and online is essentially over, with a slight correction back to print in the year ahead; and a new secular shift is underway moving real estate marketing dollars out of media and into other promotional spend.

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Overall, advertising by real estate agents and brokers is set to increase 2.7% in 2010 to $8 billion, following a 19% decline to $7.8 billion in 2009, according to Borrell. Newspapers and other print (including home catalogs) are set to have strong rebounds in 2010, following dramatic declines in 2009. In fact, in 2010 traditional print media will recover a small percentage of the share that it lost to online media over the past several years.

In a webinar discussing the forecast, the Borrell team addressed the factors driving the recovery of print. Agents and brokers recognize that the Internet has become a free source of distribution, but that investing in internet media provides only a minimal lift in business activity. Print advertising remains the most effective way to stand out in a local market and drive leads, Borrell’s research with agents and brokers shows, and in the next a number of realtors will return to using print in order to help drive their market presence.

Since we publish The Real Estate Book, the forecast obviously was music to our ears. But more importantly, it was confirming to what we’ve been hearing from a lot of our customers and consistent with what our internal research was showing. While print advertising doesn’t deliver the total market, like the Internet does, it does deliver a responsive market, giving our customers market recognition, brand awareness and a valuable source of leads.

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To reinforce their observation that the market shift between print and online is essentially complete, Borrell presented a projection through 2014 of the relative share for both media across all real-estated related ad spending, including realtors, financial services, multi-family and commercial.

A third market shift is occurring, Borrell cautioned.

Within online real estate advertising, money iis moving into marketing activity that do not rely on a media company to bring buyers and sellers together. Thanks to the proliferation of inexpensive database marketing tools and techniques, real estate advertisers are developing direct, one-on-one relationships with their prospects and customers through e-mail marketing, social networking and various promotions and public relations efforts.

You can order the full report, with detailed forecasts of each category, a demographic analysis of the home shopping consumer and local observations and projections, here.

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What I learned from Rex Hammock’s Wikipedia post

October 1, 2009

Yesterday, I sent out a two tweets pumping a post by Rex Hammock on his blog entitled Why I use Wikipedia to follow major news events like the Samoa earthquake and tsunami.
So what’s the big deal?
The future of journalism and the print media business is a big, open question. Go to any conference and [...]

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