Electronic Retailer - September 2012 - 29

FROM THE EXECUTIVE’S DESK

BY DICK WECHSLER

w

Scaling the New Digital World?
certainly not for me. I’m not going to speak for the rest of us. Quality of message delivery in the digital world is further impaired by what it means for a display unit to have been served. Studies reveal that as many as 40 percent of display ads are officially served for the required two seconds, but never seen. Why? Because the viewable area of a user’s screen is often different than that allowed for by the digital publisher. A quality message simply cannot be delivered in a scalable way if it’s not likely to be seen as often as 40 percent of the time. Search is totally different. Search is the starting point of as much as 50 percent of all digital activity. When it comes to quality message delivery, the beauty of search is that the user is the copywriter. Users create their own headlines or queries in order to get to their desired destinations. Wow, quality message every time. No wonder Google is so successful. The shortcoming of search has to do with scalability. Yahoo reported that it had 160 million unique users in the United States in June of this year. On a given day, around 30 million people land on the site. Those are big numbers, but scant when compared to television, where more than 100 million households – more than 200 million people – tune in daily. Mining the digital world to build a scaled direct marketing campaign that focuses on a specific product or service clearly has its limits. That is, unless you advertize the product or service on television. Then 30 percent to 80 percent of your response will go to the internet or mobile. Fifty percent of that response is likely to use search as a navigation tool. But don’t be fooled. The digital world is a powerful, cost-effective way to capture lead and order information. However, don’t be tricked by the volume. It’s being generated by television. We haven’t yet figured out how to scale the new digital media world on its own. Dick Wechsler is president and CEO of Lockard and Wechsler Direct.

We are all mesmerized with digital media. It’s the new media world. Hundreds of millions of people flock there by computer, tablet and mobile phone. And the growth in internet and mobile users and content is startling. Think about it. There are 800 million Facebook users. And, every time a new mobile app is created – Angry Birds, for example – it’s new media to be consumed and commoditized. Why then, is it so difficult to efficiently scale successful direct response campaigns in the media spawning grounds of the digital world? After all, direct response has always thrived on new, undervalued media. The answer may lie in how media is valued. The first is by the number of people it reaches. Television, radio, magazines, newspaper, the internet and mobile are all sold on a CPM (cost per thousand) basis. The second factor in media valuation may be less tangible, but more important. That’s a media’s ability to transmit a meaningful advertising message to its viewers, listeners, readers or users. It’s in this area of quality of message delivery that new digital media falls short of providing a scalable solution for direct marketing campaigns. The challenge lies in how the message is transmitted, how it is created and how many people actually receive it. Just look at DRTV. A two-minute commercial is seven times more responsive than a one-minute commercial. While a two-minute spot costs about twice as much as a one-minute spot, it is exponentially more effective at delivering a complete and responsive message. Compare a DRTV commercial to internet or mobile display advertising. A commercial is a complete entity that attracts viewer interest and carries them through to a call to action. Digital display advertising is a lot like out-of-home advertising. Brief messages flash on your computer, tablet or smartphone display vying for your attention while you speed along to your intended destination. The broadcast commercial owns the viewing experience for 30 to 120 seconds. In contrast, a display unit is considered served when it is transmitted for only two seconds. That may be enough time for the most skilled speed-reader, but

Mining the digital world to build a scaled direct marketing campaign that focuses on a specific product or service clearly has its limits. That is, unless you advertize the product or service on television.

September 2012 | electronicRETAILER

29



Electronic Retailer - September 2012

Table of Contents for the Digital Edition of Electronic Retailer - September 2012

Calendar of Events
Your Association, Your Bottom Line
Industry Reports
FTC Forum
eMarketer Research
IMS Retail Rankings
Jordan Whitney’s Top Categories
Letter from the Chairman
From the Executive’s Desk
All Aboard the D2C Train
Delivering Happiness
What Retailers Really Want
The Customer is Always Right
nuvoH2O Brings Home a Healthier, Cleaner Water Solution via DR
Guest Viewpoint
DRTV
Payment Processing
Legal
Advertiser Spotlight
Bulletin Board
Advertiser Index
Classifieds
Rick Petry
Electronic Retailer - September 2012 - cover1
Electronic Retailer - September 2012 - cover2
Electronic Retailer - September 2012 - 3
Electronic Retailer - September 2012 - 4
Electronic Retailer - September 2012 - 5
Electronic Retailer - September 2012 - 6
Electronic Retailer - September 2012 - Calendar of Events
Electronic Retailer - September 2012 - Your Association, Your Bottom Line
Electronic Retailer - September 2012 - 9
Electronic Retailer - September 2012 - Industry Reports
Electronic Retailer - September 2012 - 11
Electronic Retailer - September 2012 - 12
Electronic Retailer - September 2012 - 13
Electronic Retailer - September 2012 - 14
Electronic Retailer - September 2012 - 15
Electronic Retailer - September 2012 - 16
Electronic Retailer - September 2012 - 17
Electronic Retailer - September 2012 - 18
Electronic Retailer - September 2012 - FTC Forum
Electronic Retailer - September 2012 - eMarketer Research
Electronic Retailer - September 2012 - 21
Electronic Retailer - September 2012 - IMS Retail Rankings
Electronic Retailer - September 2012 - 23
Electronic Retailer - September 2012 - Jordan Whitney’s Top Categories
Electronic Retailer - September 2012 - 25
Electronic Retailer - September 2012 - Letter from the Chairman
Electronic Retailer - September 2012 - 27
Electronic Retailer - September 2012 - 28
Electronic Retailer - September 2012 - From the Executive’s Desk
Electronic Retailer - September 2012 - All Aboard the D2C Train
Electronic Retailer - September 2012 - 31
Electronic Retailer - September 2012 - 32
Electronic Retailer - September 2012 - 33
Electronic Retailer - September 2012 - 34
Electronic Retailer - September 2012 - 35
Electronic Retailer - September 2012 - Delivering Happiness
Electronic Retailer - September 2012 - 37
Electronic Retailer - September 2012 - 38
Electronic Retailer - September 2012 - 39
Electronic Retailer - September 2012 - 40
Electronic Retailer - September 2012 - 41
Electronic Retailer - September 2012 - What Retailers Really Want
Electronic Retailer - September 2012 - 43
Electronic Retailer - September 2012 - 44
Electronic Retailer - September 2012 - 45
Electronic Retailer - September 2012 - 46
Electronic Retailer - September 2012 - 47
Electronic Retailer - September 2012 - The Customer is Always Right
Electronic Retailer - September 2012 - 49
Electronic Retailer - September 2012 - 50
Electronic Retailer - September 2012 - 51
Electronic Retailer - September 2012 - 52
Electronic Retailer - September 2012 - nuvoH2O Brings Home a Healthier, Cleaner Water Solution via DR
Electronic Retailer - September 2012 - 54
Electronic Retailer - September 2012 - 55
Electronic Retailer - September 2012 - 56
Electronic Retailer - September 2012 - Guest Viewpoint
Electronic Retailer - September 2012 - 58
Electronic Retailer - September 2012 - 59
Electronic Retailer - September 2012 - 60
Electronic Retailer - September 2012 - DRTV
Electronic Retailer - September 2012 - Payment Processing
Electronic Retailer - September 2012 - 63
Electronic Retailer - September 2012 - Legal
Electronic Retailer - September 2012 - 65
Electronic Retailer - September 2012 - Advertiser Spotlight
Electronic Retailer - September 2012 - Advertiser Index
Electronic Retailer - September 2012 - Classifieds
Electronic Retailer - September 2012 - 69
Electronic Retailer - September 2012 - Rick Petry
Electronic Retailer - September 2012 - cover3
Electronic Retailer - September 2012 - cover4
https://www.nxtbookmedia.com