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1. V o l u m e X X I I N u m b e r 4
D i g e s t O f D i r e c t M a r k e t in g
R O U T E T O :
Publisher’s Corner
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Table of Contents
Publisher’s Corner . . . . . . . . . . . . . . . . . 1
Secret to Nissan's mail success. . . . . . 1
What works: Using analytics to stop
attrition . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Pfizer’s direct levels playing field . . . 4
Remailing strategy: No game for
amateurs. . . . . . . . . . . . . . . . . . . . . . . . . . . 5
New CD technology ups personalized
response . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Is the infomercial dead? . . . . . . . . . . . . 6
Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Marketing Memos.. . . . . . . . . . . . . . . . . .8
Continued on page 3
Continued on page 2
Mobile marketing:
7 direct marketing
rules for success
by Craig Huey
Now that there are 255 million
U.S. wireless mobile device
subscribers—roughly 84% of the
population—this medium gives
direct marketers a distinct advantage
in today’s marketplace.
Never has the ability to make a
sale been as fast and easy.
Unlike the web, and just like
direct mail, mobile marketing (or
M-commerce), delivers targeted
content to the prospect, not the other
way around.
The ability
to trigger an
immediate call
to action and
The secret to
Nissan and
Infiniti’s direct
mail success
Nissan and Infiniti
dealerships have enjoyed
consistent 4% or better
response rates from mailings
to customers over the past
4 years. The reason direct
response is working so well in
this marketplace? Database
personalization.
The dealers are promoting
their service with drop rates
of 6 to 8 times a year. But the
mailer copy is more fine-tuned
than just urging readers to
visit local dealers to have the
car inspected, get a tune-up or
receive general maintenance.
Specific wording is crafted
based on a consumer’s behavior
and stage in the dealer’s
program life cycle. Formats
include letters and coupons
for oil and filter changes,
transmission flushes and other
simultaneous response is the
M-commerce secret weapon that
skyrockets profits.
Anytime/anyplace mobile
subscribers are attuned to text
messages, emails and digitally
delivered coupons as well as web
offers. What’s more, the mobile
channel spans ages, ethnicities and
economic strata.
The Internet that was accessed
only from a desk is a thing of the
past.
Here are 7 rules for you to
master the mobile marketing
revolution and get the most return
on your M-commerce investment.
No intrusive messages.1.
The first step in creating mobile
marketing is to think about
why your prospects use a mobile
device in the first place. Pushed
messages must offer immediate,
value-added information. Coupons,
instantaneous contest participation,
voting and buy-now text are proving
effective.
More than 3 in 10 mobile

2. D i r e c t R e s p o n s e
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users—some 78 million U.S.
consumers—recall seeing or
hearing advertising on their mobile
phones.
Go local with2.
keywords. Prospects using mobile
as a search device are seeking local
services and immediate answers.
When choosing keywords to serve
up your offer, think localization like
“Pizza Los Angeles” or “Accounting
Las Vegas.”
Text messaging remains the
most common advertising format
recalled in the U.S., U.K. and India.
Optimize for3.
download. Ensure your content is
quick and easy to view and navigate.
Create web landing pages inherent to
mobile users. Write in short text or
provide codes that get users directly
to your product. The easier it is for
prospects to access your landing page
from an iPhone, the more they’re
likely to use your service.
Mobile text codes will become
as common as URLs as consumers’
#1 memorable way to connect with
products or services.
Practice good direct4.
response. Mobile could be
considered the “Holy Grail” of direct
response marketing because of its
interactive capabilities. Prospects can
make immediate purchases via phone
and/or by credit card over the web.
Include touchback text like, “Would
you like us to contact you when this
product comes in/goes on sale?”
Mobile marketing today is
what the web was 10 years ago.
6.5 million U.S. mobile consumers
had used text messaging to make a
purchase in Q1 2008.
Benefit from testing.5.
Controlled segmentation never had
it so good. Marketers can define test
parameters: Which content to show
to whom and when. Geotargeting
is a good example. Try an offer for
city dwellers and another for people
in rural areas. Adjustments can be
made in real time based on test
feedback.
Make the most of6.
speed. With a company website,
if you want to run a test campaign
or behavioral targeting campaign,
it could take weeks before your
website developer makes the changes
you need. With mobile, you can
have a test up and running—and
collecting data—within 30 minutes.
Stop focusing on the technology to
change your website. Focus on the
mechanics of getting your best idea
into the mobile space.
It’s more important than ever
to understand how consumers
are using digital media. One-half
of all mobile data users expect to
purchase goods or services using
their handset.
Cross-integrate.7. Like
any great marketing campaign,
the more you tell the more you
sell. Mobile makes the most sense
when integrated into a larger, multi-
platform campaign. Be sure to
print, post and serve your company
telephone number. Remember, first
and foremost, mobile devices are
phones.
Don’tforgettoapplythepower
of direct response rules in your
copy, art and offer.
Mobile web is ringing off the
hook. All day, every day, teenagers,
soccer moms, businesspeople, plant
managers, health professionals and
other contractors are on the go and
on mobile.
According to a DMA consumer
research study, 24% of the
respondents indicated that they
have responded to a mobile offer.
Master mobile marketing to
target your offers on an intimate,
one-on-one medium with prospects
who are engaged and highly valued.
Every marketer should execute
a highly targeted mobile marketing
campaign.Call me at 310-212-5727
or write craig@cdmginc.com if you
need help on how to implement mobile
into your direct marketing mix.
Publisher’sCorner…continuedfrompage1
The ability to trigger an immediate call to action and si-
multaneous response is the M-commerce secret weapon
that skyrockets profits.
Statistics show mobile marketing mes-
sages can generate stunning response
rates as high as 15%, like this campaign
Creative Direct Marketing Group created
for online portfolio service Stockstream

3. D i r e c t R e s p o n s e
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3
Seeing what works: How one confectioner used
analytics to stop attrition
SecrettoNissanandInfiniti’sdirectmailsuccess…continuedfrompage1
basic services that are the driving force behind the
winning response rates.
Coordinated by the brand, car owners are
receiving the information direct from
their own dealers.
The front of one Nissan mailer
depicts an oceanside highway with
the words “Escape” and “Motion
Without Concern.” The flipside
headline reads “Trust genuine Nissan
service and parts to get you where you
want to go.”
Since its inception, more than 1,000 Nissan
dealers (roughly 70% of its total U.S. and Canadian
retailers) and 95% of Infiniti dealers have joined
the personalized mail program.
Nissan has mailed to more than 20 million
customers. The manufacturer says it’s happy with the
way the mailings are working and that it plans to
continue its direct mail program, regardless of testing
ideas to extend into email distribution.
—Direct Magazine, June 2008
249 W. 17th Street
New York, NY 10011
www.directmag.com
More than ever now, we’re
seeing it’s how you personalize
your message that’s driving
revenue. If you need help analyzing
your customers or mailing list to create a relevant and
well-timed message, call me at 310-212-5727 or write
craig@cdmginc.com.
Chocolatier Harbor Sweets®
was puzzled. While the confectioner
had always generated the bulk of its
business by mail, the company had
noticed customers were slipping away.
The cataloger found its answers by
reassessing its four-catalog drop to a
list of 130,000 during the fall/holiday
season. Were customers receiving the
catalog too much? Too little?
Testing was the only way
to know for sure
A test cell was chosen to receive
a special promo offer: Free shipping
on any orders during the 2.5 calendar
months that included both Mother’s
and Father’s Day celebrations.
The timing worked with a 9%
response.
How could Harbor Sweets make
sure the catalogs they were printing
and mailing would be reached by
the people who wanted them most?
Careful analytics proved more
wasn’t necessarily better.
Then the confectioner took
its segmentation—and analytical
thinking—a profitable step further.
By divvying up its four-time fall drop
between four various groups, with one
group receiving all four catalogs and
the other three each receiving one less
than in previous years, the company
noticed buy patterns remained the
same.
Harbor Sweets realized that
catalog timing was influencing buy
behavior and that by monitoring
the mail and return carefully, fewer
catalogs could be dropped without
losing sales.
This company learned
a valuable lesson
The use of analytics is not
to reduce costs, but to see
how to improve strategy.
In this case, Harbor Sweets was
able to reallocate mailings for the
same ROI and less out-of-pocket
expense.
How about your business? What’s
worked well during the holiday season
in years past? Email craig@cdmginc
.com to share your success story.
—Direct Magazine, June 2008
249 W. 17th Street
New York, NY 10011
www.directmag.com

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Move over Pfizer:
Direct marketing levels the
pharmaceuticals playing field
Marketplace changes and the use of direct response
in the pharmaceutical industry are paving the way for
small research and development companies to actively
compete with large retailers.
In 2008 alone, pharmaceutical companies are
projected to generate $10.6 billion in sales through direct
marketing. But that number is
going to see a huge increase—
as much as $15.2 billion by
2012—according to a study
from the Direct Marketing
Association (DMA).
One reason driving
the spike
There are a number of
drug patents expiring. Over
the next few years, “Big
Pharma” leaders can expect an
explosion of generic competitors—of any size.
Both the consumer and B2B (doctors, hospitals,
labs) marketplace will be flooded with these generic
drugs. Smart marketers should grab the opportunity to
find ways of creating value for these
new medications.
One company that
jumped on the direct
response bandwagon
with great success is Cialis,
creators of an erectile-
dysfunction medication.
Direct response
success
What’s important to
know is that the company
decided to go a different route
than most of its competitors
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by allocating 50% (versus 10% to 30%) of its
marketing budget to direct response.
Over a period of 3 years, Cialis ran both B2C and
B2B. Highly targeted consumer ads had males ages 18
to 75 asking their doctors about the drug by name. A
myriad of direct response formats was used to reach
healthcare professionals—sales
calls, TV, long-form in medical
journals and direct interaction
with prospects at medical
conferences.
Here’s how two other
companies are seeing
success with direct
response
Novo Nordisk created
an eMarketing division to
focus solely on brand, Web
portal, customer relationship/database marketing
and integrated multichannel metricing and ROI…
including viral marketing.
Supplying information while getting people
to talk was the strategy behind building customer
educational-social portals like novomedlink.com and
changingdiabetes.us.com. This foray into online social
media was followed by a Voices of Diabetes blog.
These strategies have proven a wonder-drug
for the team at eDrugSearch.com. The user buzz
about the company’s Healthcare 100 initiative (a
blog ranking system within its website) has gotten its
write-ups in a number of newspapers and mentions in
medical blogs. Viral marketing and social networking
keep the website on the tips of many tongues.
—Response Magazine, June 2008
201 Sandpointe Ave., Ste. 500
Santa Ana, CA 92707
www.responsemagazine.com
Pharmaceutical
companies are projected
to generate $10.6 billion in
sales through direct
marketing in 2008.

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5
Remailing strategy:
No game for amateurs
It’s a direct response truth that most profit comes from
reselling current customers. So in a down-turn economy,
the practice of remailing holiday catalogs can up your ROI
all the more.
Remailing is the art of tracking customers who have
purchased before and dropping them a second or third
catalog during the fourth quarter.
Even with so many consumer choices, Q4 is still the
most wonderful time of the year for increasing contact
with customers and prospects.
Here are 4 types of remailers to
beat out big-box retailers and your
direct competitors
1. Conventional Mail the same piece verbatim.
2. Fresh-wrap Change the front and back covers and
cover flaps. Innards remain the same.
3. Repaginate Like moving the pieces of a jigsaw
puzzle, products remain the same but are placed differently.
Creative may change and out-of-stock items are replaced by
overstock.
4. Insert Chukar Cherries has had success
with including a package insert with each order…when
customers are both eating and reading about the product.
Be careful with insert choices. You may want to stick with
the tried and true. Sierra Trading Post tested a niche insert
that didn’t work; the outdoor gear cataloger has gone back
to using its core title as a product insert.
Now it’s time to design your remail strategy by
deciding what type, when to send and how many to
drop for profitable success.
Use this checklist
to make remailing work for you
Print but don’t bind. A way to save on printing costs is
simply to print now, bind later. This give you the distinct
advantage of trying different covers, testing various cover
tease copy, and even placing items that are selling better
than others on the cover.
Binding now locks you in to featuring certain
products that may or may not move as fast as others.
Watch your numbers. Your first tendency may be to
mail to everyone. Don’t. Remailers should go to fewer
customers than your last catalog. The fewer the catalog
changes, the fewer customers should receive it. Try
dropping 30% to 50% of your first edition list. Unless it’s
a repagination; in which case, a 90% drop might perform
well. Drop, track and analyze.
Target only the best. The Pareto principle rings true
even at holiday time: Most profit comes from your
buyers. In the highest-buying season of the year, start
with 50% of your buyers—including recent first-time
purchasers.
Mail before Christmas. But not too much before. Aim
to hit your guaranteed delivery date. Despite higher
shipping costs, last-minute consumer Christmas shopping
is on the rise—a boon for remailers. If you can hit a
mailbox within the first 3 days of December and still ship
product on time, you—and your customer—will have a
happy holiday.
—MultiChannel Merchant, July 2008
11 River Bend Drive South
Stamford, CT 06907-0242
www.multichannelmerchant.com
One reason technology provider Sony DADC is getting
terrific ROI from a new direct response product is because
it’s not your usual piece of mail. International recipients of
eBRIDGE, a CD-ROM embedded with a source code that
loads personalized marketing information per customer,
can make buy decisions accordingly. Data like previous
purchases directs users to specific click-through web pages.
30% boost
Industry suggests any personalized pitch creates about a
30% boost in ROI; carmakers are jumping on eBRIDGE´s
ability to show product demonstrations.
—Deliver Magazine, June 2008
30400 Van Dyke
Warren, MI 48093
www.delivermagazine.com
New CD technology ratchets up
personalized direct mail response

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Is the infomercial dead? (Not by a long shot)
I
n a digital age where viral video,
Podcasting and mobile texting are
the rage, what’s become of TV
commercials and infomercials? Is the
infomercial dead?
Hardly. In fact, with today’s
technology and increased cable, the
opportunity to sell by long-form video
has never been better. Viewers are
tuning in to their favorite shopping
channels from almost any location.
Commercial replays on YouTube only
increase sales ability.
Almost any unknown product
can become a household name with
the use of a well-produced, direct
response pulling infomercial.
The goal is to make the sale of
your product via long-form video help
pay for the production cost—and then
some.
5 secret ingredients to
a successful infomercial
Pick the right product
Products that are easily understood
do extremely well in this genre
because they’re easy to demonstrate.
Infomercials made George Foreman®
Grill and Bonzai Knives household
names. Items that readily solve a
problem, like the TopsyTail® (for
creating instant hair-dos) are desirable.
Household items sell well, and
products that can deliver weight
loss or other aspirational results
have been enjoying high ROI for a
number of years. We’ve seen phone
calls spurred on products that are new,
completely different and haven’t been
seen anywhere else. If your product
is useful and unusual, it’s a good
infomercial candidate.
Choose the right length
Knowing when to choose short-
form (30 or 60 seconds) over a
30-minute infomercial is crucial.
How to tell? Short form works best
for lower- priced items that are easily
grasped. For informational products,
try using testimonials in a short-form
version as a lead-gen tool.
Here’s the rule of thumb: The
more credibility needed, the more
time it takes to tell about the product.
Testimonials in long-form are your best
form of establishing credibility for direct
sales on items like real estate offers, skin
treatments, nutritional supplements,
makeup, hair replacement systems and
large or new types of appliances.
General Motors is using a long-form
with testimonials to sell its Chevrolet
Silverado pickup truck.
Have realistic expectations
Like any other marketing medium,
TV can be a bonanza or a bust—or
somewhere in between. Practice good
direct response: Expect to test. It’s
not unusual to be very successful just
by breaking even on TV because the
medium creates a hefty aftermarket
demand for products.
Be prepared to deliver
The “As Seen on TV” phenomenon
has proven a true profit story. TV has
shown to drive retail volume 7 to 10
times more than with no television
advertising. Infomercials and TV
advertising commercials have produced
billions of dollars in sales.
Plan carefully
The #1 reason infomercials fail is
from poor business planning or a sales
model that doesn’t work. Choosing the
right media partners, telemarketing
scripts and fulfillment operations will
determine your success or failure.
Packaging at the shelf, if not properly
thought out, can result in product
returns. Infomercials can generate big
business; be scrupulous when planning
each line item.
Editor’s note: CDMG, Inc. has
created a number of successful infomercials
for a variety of products. Call Craig Huey
at 310-212-5727 and he’ll be happy
discuss TV with you.
Top 5 Long-form Infomercials for 2007
Rank and Name Product Description
1 Free Clear Real estate moneymaking system
2 bareMinerals®
Makeup
3 Tempur-Pedic®
Foam mattress
4 Winning in Cash Flow Moneymaking with notes
5 6 Week Body Makeover™ Weight-loss system
Top 5 Short-form Infomercials for 2007
Rank and Name Product Description
1 NutriSystem®
Weight-loss meals
2 Proactiv®
Solution Acne treatment
3 Total Gym®
Home gym exerciser
4 Jenny Craig®
Weight-loss centers
5 Bowflex®
Home gym exercisers
Source: ElectronicRETAILER The Gold Book 2008/2009

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7
Publisher’s Note:
As revenue from mobile advertising
continues to grow by leaps and bounds,
now is the time to get in the mobile ad
game.
The key to conversion is to create
a Google search campaign for mobile
use that leads your prospects’ clicks
to do one of two things:
The visitor either lands on your
Google-supplied Business page or, the
hand-held device automatically places a
call into your business.
Sound good?
And the best part is there’s an easy
way to getting “clicks that lead to calls”
without any technical web development!
Follow this formula
to get your first Google
Adwords mobile search
campaign up and running
@ Create a new search-only
campaign in your AdWords account.
Call it Mobile.
@ Click the Mobile Ad link.
@ Accept Text Ad (the default).
Create your ad by writing an 18-
character compelling headline and 18-
character call-to-action.
@ Choose the options for prospects
to call you. Fill in your business name
and direct-to-your-desk phone number.
@ Cherry-pick keywords prospects
would type into a Google Mobile search
box. Forget “long tail” terms; think
one or two words, short syllables. Like:
“Chinese food close” or “flowers near
here.”
@ Almost done…just enter your
maximum CPC bid and daily budget
amounts. As with any keyword-targeted
campaign, be sure to turn off Content
Network below Campaign Settings.
Otherwise, your ads list will be buried
in article and long-form content pages.
@ Remember, for retailers, B2B
businesses and service providers
(insurance, legal, financial, investment)
that crave phone leads, what works
best when designing a mobile search
campaign is the philosophy of local use.
—Search Engine Watch, June 2008
270 Lafayette Street, Ste. 700
New York, NY 10012
www.SearchEngineWatch.com
Our prayers go out to those in the South who
have been impacted by the hurricanes.
We have written an article titled “Your Direct
Mail Disaster Prep Guide.” In this article, we tell
you how to protect your company and give you
wise ways to guard your marketing during floods,
hurricanes, fires and other natural disasters,
including another terrorist attack.
I’d be glad to send that article to you. Simply
email me at craig@cdmginc.com. If you are
interested in having me help you with your
marketing, I’d be glad to talk with you or give you
a free critique of your direct marketing website
or marketing materials. As a subscriber to Direct
Response, you get my personal attention to your
marketing campaigns. I am more than happy to
identify those things that could be depressing your
response and recommend ways to increase it.
Also, feel free to call me at the office and speak to
my assistant Deb at 310-212-5727.
Sincerely,
Craig A. Huey
Mobile search: Turn Google Adwords
into a lead-gen giant
Credits
Direct Response is published 12 times per year
by Creative Direct Marketing Group, Inc. Address
subscription orders, correspondence and change of
address to:
Direct Response, 21171 S. Western Ave.,
Suite 260, Torrance, CA 90501
Phone: 310-212-5727
Fax: 310-212-5773
Email: craig@cdmginc.com
The information contained in Direct Response
has been carefully compiled from sources believed to be
reliable, but accuracy of the information is not guaranteed.
Subscriptions:
1 year (12 issues), $79; 2 years (24 issues), $149. Foreign:
1 year, $88; 2 years, $164.
Extra copies of any issue: subscribers, $5 each;
nonsubscribers, $10 each.
❏ Check enclosed (please make payable to
Direct Response)
PUBLISHER
Craig A. Huey
ART DIRECTOR
Bill Heim
Name_________________________________
Company or Organization________________
Address_______________________________
City__________________________________
State_____________ Zip________________
Phone_________ (_____________________ )
Fax # (_ _______ )______________________
Email Address__________________________
Direct Response’s format and entire contents © 2008 by
Creative Direct Marketing Group, Inc. and may not be copied,
reproduced or otherwise used in any form without the express
written permission of CDMG.
WRITER
Tia Dobi
ISSN 1085-1321

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Marketing Memos
Quote of the Month:
Direct marketing is evolving every day; in some cases, it seems that we have
come full circle. A few years ago, there was the rush to telemarketing, and then
came the rush to the Internet. Now marketers are starting to understand that
all of these—telephone, mail, internet, email, so-called ‘new media’—are simply
alternative channels that enable direct contact with a customer—Audrey Price-Dix,
Assegai Awards Chairman
*** Personalized, customer-product
recommendations are in full-swing online
at both Sears.com and Kmart.com
DMNews notes Sears analyzes 15 line
items, including customers’ previous
buys, key search terms and brand choices
to serve up data allowing for a niche
experience from homepage to checkout.
Recommendations help shoppers find
products faster, plus offer items they may
not have thought about.
*** Search Engine Marketing Guide
2008 shows how listening to its online
audience made a profitable difference for
Los Angeles’ boutique Lisa Kline. The
prestigious clothier swapped its chosen
search phrases “Los Angeles boutique
clothing” and “Hollywood fashion” for
the seeker-preferred “celebrity boutique
clothing” and “celebrity fashion.” After
optimizing its website with the new
keywords, Lisa Kline saw a 59% surge in
revenue from search engine traffic.
*** A recent report by Forrester
Research shows ROI has been dismal for
2008 corporate bloggers, with 38% of
189 companies rating blogs as “marginal”
to their marketing strategies; 15% found
them “irrelevant.”
*** Armstrong found a new way
to interest and engage customers with
their email blasts. BtoB reports that
by segmenting its lists, the flooring
manufacturer’s opens and clicks shot
through the roof. The list was split into
four parts based on job function and
products used.
*** Direct marketers will find
bottom positions six or seven on search
results web pages are the most profitable.
According to a report by AdGooroo,
bidding for highest-paid search engine
marketing (SEM) positions makes sense
for high-budget advertisers looking
to build brand awareness. But smaller
companies will find the lower positions
are also highly effective…but with a lower
cost per click.
*** Mobile Web presence is to
2008 what Web presence was to 1998,
an absolute must-have to the marketing
mix, according to DMNews. Mobile
browsing is up 89% year over year; page
views have increased 127%. Since Google
ranks mobile-optimized sites higher than
nonoptimized sites (when searching from
a mobile device), having a mobile Web
presence could be a profitable competitive
advantage. Context and local relevancy
are key to mobile success.
*** Worldwide spending on Internet
advertising will total $65.2 billion in
2008, according to a report by IDC.
Spending is projected to grow 15% to
20% annually, reaching $106.6 billion
by 2011. Keyword ads will continue to
dominate the Internet, followed by an
increase of display advertising on the
World Wide Web.
*** While only 35% of Americans
over age 65 are online, about 75% of those
are white, college-educated men. Seniors
outpace other age groups in tracing
family’s genealogy online while emailing
photos, gathering health information,
visiting support groups and reading l
ocal community news, according to the
Pew Internet Project.
*** TravelZoo.com is asking for
deals on demand, according to eM+C
Magazine. Each Wednesday, the discount
travel site emails its top 20 travel deals
to more than 12 million subscribers. No
need to be a website advertiser to make
the editorial cherry-picking. Despite
the quick-deal sell-outs, users are saving
the emails; referring back to them for
inspiration on what brands to fly on a
later date.
***The #1 way to maximize an
SEM budget is to segment by keyword
and laser-target your audience. DIRECT
magazine reports a recent test by
Optimost for a popular retail florist.
Visitors who searched “late delivery”
converted very differently than those
typing “free shipping.” Higher conversion
rates resulted in sending each person to a
page emphasizing their priorities.
***A new report by MailerMailer
shows that 74% of consumers who open
an email message do so within the first
24 hours, and in 48 hours that number
rises to 83%. Email Marketing Metrics
Report measured more than 300 million
email messages sent by 3,200 of its email
clients across 21 different industries over a
6-month period.
*** Nearly 70 million Americans
will be subscribers of a radio service by
2012, predicts Parks Associates. The
forecast includes 39 million satellite radio
subscriptions and 30 million HD radio
scripts.
*** According to a Direct Marketing
Association report, the use of direct
marketing by American financial
institutions is substantially increasing.
Stats include the use of noncatalog direct
mail (41.8%) as the primary DM channel;
Internet advertising spending growth at
17.8% each year to 2012—with broadcast
advertising climbing 4.8% for the same.
Banks and credit card companies had
the best ROI in 2007 at $13.37 per
dollar spent. DM sales for this sector are
forecasted at $286.2 billion in 2012.
ROUTE TO:

9. V o l u m e X X I I N u m b e r 3
D i g e s t O f D i r e c t M a r k e t in g
R O U T E T O :
Publisher’s Corner
21171 S. W e s t e r n Av e . • Su i t e 26 0 • To r r a n c e • Ca l i f o r n i a • 9 05 01
Table of Contents
Publisher’s Corner . . . . . . . . . . . . . . . . . . . . . . . . 1
Paper woes mean new strategies for direct mail . . . . 1
What‘s working in B2B: The Good…and the Bad . . 4
USPS: 4 changes that affect your business . . . . . . . 5
Strengthen your site‘s sales ability. . . . . . . . . . . . . 6
#1 way to supercharge your Internet marketing . . . . 7
Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Publisher’s Note . . . . . . . . . . . . . . . . . . . . . . . . . 7
Marketing Memos . . . . . . . . . . . . . . . . . . . . . . . . 8
Quote of the Month . . . . . . . . . . . . . . . . . . . . . . . 8
Continued on page 3
Continued on page 2
9 special strategies
for direct marketing
to the mature
market by Craig Huey
L
ast month we started our
discussion of the best, most-
profitable opportunities for
marketing to mature Americans.
This month we’ll continue
our discussion, including which
formats work best, ways to
overcome skepticism and which
products and services are the
hottest performers.
Strategy #4
Get into the psychology of
a mature prospect.
Resistance to change and
dedication to tradition are
important characteristics of
the mature market. Avoid
the suggestion of change and
newness as much as possible.
For example, market your
products as simple to use,
nondisruptive to one’s lifestyle
and something that makes life
more comfortable.
The idea of exclusivity
also works well with older
Grist at
the mill:
Paper woes
mean new
strategies for
direct mailers
Most marketers know to
plan for Christmas in July or
August. But with this year’s
tumultuous paper market,
the time for implementing
new production tactics is
now.
What many industry
analysts forecasted
heading into 2008 has
come true: Reduced
demand and several mill
closures, coupled with rising
energy and manufacturing
costs, have rendered paper
exceptionally tight and
prices rising.
The mid ‘90s saw a
similar tightening of supply
consumers. Members of the
mature market are especially
keen on products and services
that aren’t necessarily available
to everyone.
Some older Americans feel
that their age gives them status,
while others feel crushed by the
aging process. Be aware of these
dichotomous perceptions as you
create your advertising. No one
wants to be marketed to as an
“old person” particularly baby
boomers.
Strategy #5
Consider which formats
will work best for your target
audience.
With today’s mature market,
one size definitely does not fit
all. Currently, statistics show
92% of mature Americans
aged 55 to 65 are online users
compared to 67% of mature
Americans aged 65 to 75. And
studies also show these age
groups open almost all direct
Part 2 of a special 2-part series

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2
mail they receive.
With those statistics in
mind, take a look at your target
audience to determine what the
best format mix is.
For example, if you’re
targeting younger pre-retirees
and retirees, you could find
great success with an integrated
print/online campaign.
But if you’re targeting older
seniors (75 and up), consider
skewing your efforts more
toward print, direct mail, radio
and TV since they’re more
comfortable with that media.
Strategy #6
The mature market is
skeptical. Know the keys to
disarming their skepticism.
Members of the mature
market are extremely cautious
about the buying process
since they’ve had years and
years to acquire a high level of
skepticism.
Specifically, mature buyers
over 70 tend to be more
distrustful than other segments
of the market. Some don’t even
like to give out their credit card
number (AARP told them not
to!), many refuse to order via
Toll-Free numbers and they are
on the lookout for anything that
seems like a rip-off.
So how do you disarm
the skepticism of the
mature market?
• Make sure to prove
your claims with plenty
of endorsements and
testimonials. Show other
people like the product
and it improved their lives.
• In particular, retirees and
seniors are impressed
with celebrities or other
recognizable individuals
who use the product or
service.
• Use positive but realistic
images rather than stock
photos and posed images
of a smiling older couple.
• Use examples of product/
service use. Don’t just tell
them its great product.
Walk them through it,
so they know how your
product or service works
(particularly if it’s a
cutting-edge product).
• As I mentioned in Strategy
#2, be sure to use statistics
and facts. The mature
market understands
information better if
it’s laid out in concrete
definitives. Don’t just
say “the natural cure
cholesterol pill that has
helped thousands” say
“91% of users have lowered
their cholesterol by 53%!”
Strategy #7
The mature marketplace
prizes value.
Remember even retirees
with a comfortable nest egg
are still on fixed incomes. The
mature market seeks to get the
most for a dollar and make their
money last. For this reason,
mature consumers prize value
and look for it in every buying
situation.
• Tout value by including
premiums in your
advertising like special
offers, coupons, free gifts,
samples, and of course,
discounts.
• As in any direct marketing
campaign, the premium
should be related to the
primary product being
sold—and have a high
perceived value.
• Consider building a
relationship with older
Americans by offering a
special discount created
just for mature buyers.
Strategy #8
Experiment with a
multiformat approach
Mature Americans respond
positively to direct response
television and radio. Direct
response radio in particular—
primarily in the talk and news
genres—produces fantastic
results. This is proven by
the success being enjoyed by
alternative health companies
and financial services aimed at
retirees.
Also, the use of videos,
interactive CD-ROMs and
DVDs, in recent times, has
been a real boon in marketing
to older Americans. Older
Americans will watch videos
and DVDs and respond very
positively to them.
One reason is that the format
is more leisurely and more step-
by-step. Seniors want to feel that
they are making the decision
to buy gradually and without
coercion.
DVDs and CD-ROMs
are also excellent to use as
premiums. Studies have shown
mature buyers, particularly
in older-skewing prospects,
have a great desire for media
premiums. Consider creating
a narrated version of one of
your printed premiums for easy
viewing.
Publisher’s Corner…continued from page 1

11. D i r e c t R e s p o n s e
Te l 310-212-5727 • Fa x 310-212-5773 • Em a i l craig@cdmginc.com
3
Strategy #9
Consider your optimal
products and services.
Generally speaking, the top
two priorities of the mature
market are health and financial
security.
In particular, if you’re selling
financial goods and services,
remember the #1 concern of the
mature market is not making
wealth, but rather protecting it.
Address volatility, safety and
long-term capital protection in
your campaigns.
Health products and services
are another big area. Mature
Grist at the paper mill…continued from page 1
and increasing prices.
Here’s what catalogers are saying
today to stay in the black:
• Stay need-specific. Specificity is key, says
John Baumann, president of Swiss Colony.
The multititle mailer circumvents stock
problems by staying in constant contact
with its printers and paper suppliers.
By alerting them to exact production
schedules—and Swiss Colony’s tenacious
promise of meeting them—buying paper
remains stress free.
• Up your web mentions. For French Toast,
opting for fewer pages is prompting the
schools uniform cataloger to consider more
print mentions of its web presence. About
80% of sales come in through the Internet
already.
What’s more, the company is currently
locking in its paper costs for this year’s
catalog.
• Use dual vendors. Using two paper
vendors, as in the case of jewelry and
décor merchant Ross-Simons, is one
way to stay ahead of the paper-supply
curve. This provides necessary
leverage to ensure delivery.
Understand today’s marketplace
to take advantage of it
Although coated groundwood remains
“extremely oversold” with no end in sight,
freesheet (both coated and uncoated) is not under
duress. While this could change, what design,
stock and postage choices can you make today to
best utilize what’s mostly available?
For example, instead of printing entire
catalogs on expensive or hard-to-get paper, gift
and housewares mailer Miles Kimble is testing
high-bulk stock for its text pages.
And what’s most important for catalogers,
says Strategic Paper Group’s Dave Goldschmidt,
is allocation, allocation, allocation. Goldschmidt
stresses ordering in advance, for the right amount
of tons, as well as accurately forecasting with
your mill in the right month, on the right grade
and basis weight.
You’ll want to heed this advice to stay right
on the money when history is made in Q3, the
time mills are overloaded with holiday catalog
paper production. Securing paper then will
depend on protecting your allocated assets now.
—MultiChannel Merchant, April 2008
11 River Bend Drive South
Stamford, CT 06907-0242
www.multichannelmerchant.com
consumers constitute 74% of all
prescription drug purchases
in the United States and most
mature Americans have at least
one disabling health condition.
However, mature buyers don’t
want to dwell on the debilitating
effects of old age. Stress how
your product or service will
keep them fit, active and
healthy.
Other hot markets for the
next 10 to 15 years are travel,
fitness, family fun, convenience
and information services.
Grandparenting represents
another enormous marketing
area.
The mature marketplace
is enormous and growing
dramatically in size and
affluence each year. If your
product or service appeals
to this far-reaching and
affluent group, consider
creating a specific campaign
that targets this group.
If you have a product or
service that caters to the mature
market and you’re having
trouble putting together an
effective campaign, call me at
1-310-212-5727. My agency has
extensive experience marketing to
the mature market and we can
help you, too. Or email me at
craig@cdmginc.com.

12. D i r e c t R e s p o n s e
4
What’s working in B2B direct marketing:
The good…and the bad
Let’s take a look at what we
know is working in today’s B2B
marketing universe and what’s
not.
The good…
These online applications are
already delivering real value for
B2B marketers.
• New sources to mine
prospects
Emerging social directories
make it easy to add more
names to your lists. Inc.
Magazine calls Jigsaw.com
“the world’s leading rolodex”
with over 8 million business
contacts. Leading players
Jigsaw®
and Spoke claim
7 million and 35 million
contacts, respectively, while
newcomer Salesconx, is still
in its alpha stage.
User-maintained Jigsaw
started as a business-card
swapping service, where
sales and marketing people
could trade or buy contacts.
Spoke on-demand B2B
contact information married
with networking tools that
allow people to hook up
within the site.
Newcomer ZoomInfo’s
approach seems irresistible.
It mines businesspeoples’
names, addresses and
titles from corporate
websites then makes
the data available to
marketers.
One caveat, of course, is
that these databases are
compiled—not response—
files. And still worth a
look to search by industry,
company or individual name.
• Interactive digital
media
The demise of rich media
in banner advertising early
on was the lack of direct
marketing know-how by its
original creators. Some ads
had the flashy look of TV
spots; but offers and a call to
action were sorely missing.
But time [and education] has
healed all wounds. Direct
marketing tactics have made
their way into rich media and
WebTV ads are making their
way into the “sometimes
stiff” B2B world.
Gone are the days of “boring
corporate video.” Cruise a
B2B portal today and you’ll
see dynamic video, stylized
peeling pages and well-
scripted web television. Last
year Cisco Systems tested
a live video presentation
embedded within a
banner ad. In 2008, Cisco
also pioneered the use of
video to deliver customer
testimonials and case
studies, posting hundreds
every month.
• Virtual trade shows
Attending a conference from
the comfort of your desk can
be beneficial when factoring
time, convenience and cost.
Ecommerce trade show
eComXpo is an example.
Pure profit factor: User-
group or client conference,
where attendees have a
relatively strong desire to
attend in the first place.
The bad…
While failure can be a good
teacher, here’s where you don’t
want to engage your time, energy
and attention.
• Cold-call emails
Postal rental lists are
proving more profitable for
prospecting than renting
email files.
• Unsociable
netwotking
Think sites like LinkedIn,
Facebook, Plaxo, Tribe and
XING. Great for finding
people to do business
with; lousy as a direct
marketing tool. ■
—Direct Magazine,
March 2008
249 W. 17th Street.
New York, NY 10011
www.directmag.com
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13. D i r e c t R e s p o n s e
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5
USPS:
4 changes that affect your business
Acting on the latest
changes at the United
States Postal Service keeps
more money in your
pocket. Here’s what you
need to do.
➊ Stop mailing to
“vacant” addresses.
Mailing to vacant
addresses is like money down the drain.
Manage your mailing list as efficiently as
possible by using the new “vacant table file”
now available to the USPS Coding Accuracy
Support System (CASS) address matching
software. The tool allows mailers to pre-
identify mail that can become undeliverable-
as-addressed. “Vacant” addresses are any
dwellings that have not been occupied in at
least 90 days.
And using CASS software may qualify your
business for automation or postage discounts.
➋ Rethink (recalibrate) your
bar-code strategy. Commercial and
nonprofit mail entered into the mailstream
either from your point of origin or at a
destination bulk mail center will experience
a cut in the standard mail bar-code discount.
Currently at a 1.4-cent discount for using a bar
code on mixed automation area distribution
(AADC) letters, USPS is slashing the savings by
1.1 cents to $.003.
Under the
new rates, then,
a 1-million unit
AADC drop using
bar codes will save
you just $3,000
rather than $14,000.
➌ Shop
vendors
before sending
competitive
products. On May
12, the USPS raised
prices on its Priority
Mail (+4%), Express
Mail (+3.1%), parcel
select (+5.7%) and parcel return service (+2%)
and +21.3% for international surface airlift.
So it could pay to get estimates from UPS,
Federal Express and DHL.
Additionally, the USPS has announced new
requirements needed to qualify for commercial
base and commercial volume pricing on certain
international products.
➍ Prepare for new flat-sized mail
address standards. March 29, 2009 marks
the day mailers will need to adopt new address
placement and formatting requirements for
periodicals, standard mail, bound printed
matter, media mail and library mail flat-sized
pieces sent at automation, presorted or carrier
route pieces.
In its effort to “promote consistent
addressing” the USPS’ implementation of its
Flats Sequencing System (FSS) will sort flat-
sized mail into delivery sequence, reducing
carriers’ time spent manually sorting mail.
Revisions for automation and presorted
First-Class Mail flats are also included. ■
—DMNews, April 2008
114 W. 26th St., 4th Fl.
New York, NY 10001
www.dmnews.com
In 2004, more than 9.7 billion
mail pieces were undeliverable;
600 million of those were
“vacant” addresses

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6
Strengthen your site’s sales ability:
The basics of writing a page title tag
Perhaps the most overlooked
sales real estate on your website is
the title tag.
A title tag is defined as the
white text message that appears
in the top left-hand “chrome” area
of any browser window. It’s your
opening statement to the world
about each and every page on
your site.
Whenever a user bookmarks a
page of your website, the tag copy
typically becomes the bookmark
name.
What’s more, search engines
love title tags; they almost always
appear as the snippet title in a
user’s search results. Typically,
your title appears in a larger font
size and as a blue hyperlink above
the search-result description.
Behind the scenes, search
engines use the copy of your
page title tag to determine what a
particular page is about.
Title tag as influencer:
Your page title tag is the first
thing a [live] user reads and
what a [search] spider sees
when scanning organic search
results.
Follow these steps to get the
human responses and search
engine rankings your pages
deserve:
➊Distill it down
Title tags need to be unique to
each page and written according
to a page’s content.
What helps sell you best is to
call out the biggest benefit on the
page. It pays to get crystal clear
on what you want your prospect
to know about your product or
service first and foremost.
Using the same title tag for
multiple pages confuses search
engines. With that approach,
search engines could see the two
pages as indistinguishable. On a
playing field where volume and
differentiation count you don’t
want this to happen to you.
➋Put keywords first
Now here, more isn’t always
better, contrary to what you may
have heard. What’s important is
that you know which keywords
are the most meaningful to
searchers who are looking for
what you have to offer. Then place
those towards the beginning of
your title tag.
Remember, only about 65
characters actually appear in the
titling of most search results.
Search engines know this too;
words beyond that add negative
weight.
As with all direct marketing
copy, cut the clutter. Make sure
each word carries sales messaging
(feature or benefit) and keyword
worth.
Like this:
A simple way to think
about a 10-word title tag is
that each word shares 1/10 of
the overall value.
➌Don't kill the copy
Excess fat can potentially
negate your good thinking.
Repeating keywords or the
inclusion of too many keywords
in a title tag is unnatural to the
human ear; search engine spiders
are likely to reject it for the same
reason as well. This is known as
“loading,” and some sites have
been dropped from search results
altogether for this practice.
As with all good copy, read it
aloud a few times. If it rolls right
off the tongue, sounds true to
the page’s content and includes
at least your most prominent
keyword, then you’ve upped your
chances for high web ranking.
➍Stay on brand
Too often companies have
web techs or other employees
who are not marketing-educated
write their title tags. This is a huge
mistake. Ideally, title tags should
be written by an expert direct
response copywriter.
Larger company sites
may want to establish a title
tag pattern, especially if your
organization has multiple
platforms within a single
company.
You can expect only two
outcomes if no one person
optimizes your title tags.
1. Duplicate title tags
2. Poorly optimized title tags
that confuse readers and
negate rank
Remember, it’s a lot easier to
get your title tags right before
pages go live than it is to change
them later.
—Marketing Profs, LLC 2008
419 N. Larchmont, #42
Los Angeles, CA 90004
www.marketingprofs.com

15. D i r e c t R e s p o n s e
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7
Publisher’s Note:
Internet marketing has seen
tectonic changes in just the last 3
years. Some of these will accelerate
while others will fizzle and die,
never to be heard from again.
One new trend is only going
to pick up speed. It’s the pay-per-
click (PPC) video ad appearing in
sponsored search results as a link
that showcases the sought-after
product.
Today, a search for “laptop”
or “Smartphone” on Yahoo! or
Google might land you search
results with a sponsored or partner
link to a video that showcases the
product.
For instance, take a
geotargeted PPC ad in the
northeastern U.S. Search for “shop
Honda” and more often than not
in the results you’ll get a graphical
“Partnership” listing that says
“Play Now.”
One quick click plays a
360-degree shot of a Honda with
arrows pointing out various
attributes. But it’s mainly a
branding message, not a call to
action—copywriters take note.
A Yahoo! search for “Special
K” returns a nifty 23-second
The #1 way to supercharge your Internet marketing
made-for-the-web spot inviting
you to visit SpecialK.com, where
you can sign up for their Get Swim
Suit Ready email or text message
service. The product promise is
undeniable: “Lose 6 pounds in 2
weeks.”
Implications of PPC video are
tremendous. Expect a surge in the
ante on highly competitive search
terms.
What’s not to like about
clicking a video image
over a plain text ad that’s
just a blue link?
Think of PPC video ads as
low-cost television. The power
of your product is catapulted
to an almost-complete sensory
experience. Depending on what
you say and show, you can pre-
qualify your prospects in much
deeper, more concrete ways. ■
—Web Digest for Marketers,
April 2008
79 Pine Street, #102
New York, NY 10005
www.sdfm.com
Editor’s note: Like a great TV spot, PPC video
ads are not easy or simple, and they’re not for
every situation—but they can pack enormous
sales power, mainly in the details of how the
advertiser gets billed and in the avenues opened
If you’d like to get together in June and July, I will
be in San Francisco, Las Vegas and Washington DC.
Those in the mail now are reporting to me that
responses are holding up well for both B2B and
consumer marketing. In certain industries, responses
are down 10% to 15%. In this type of marketing climate,
make sure your creative is as powerful as it can be and
follows the direct marketing rules.
As a special benefit for subscribers to Direct
Response we can give you a complimentary critique
on your print ad, banner ad, website, TV or radio
commercial. Just give me about 2 weeks to respond.
Finally, for those who are going into the mail,
be sure your drop date is the last week of August for
maximum seasonality life.
For other media, it’s the first, second and third
week of September where you’ll get your seasonality
increase and response.
Order paper now if you haven’t already done so for
the Fall and Winter. And don’t forget you should not
be marketing after the first week of October. Wait until
after the election because of the political competition
and distractions.
Craig A. Huey
Credits
Direct Response is published 12 times per year
by Creative Direct Marketing Group, Inc. Address
subscription orders, correspondence and change of
address to:
Direct Response, 21171 S. Western Ave.,
Suite 260, Torrance, CA 90501
Phone: 310-212-5727
Fax: 310-212-5773
Email: craig@cdmginc.com
The information contained in Direct Response
has been carefully compiled from sources believed to be
reliable, but accuracy of the information is not guaranteed.
Subscriptions:
1 year (12 issues), $79; 2 years (24 issues), $149. Foreign:
1 year, $88; 2 years, $164.
Extra copies of any issue: subscribers, $5 each;
nonsubscribers, $10 each.
❏ Check enclosed (please make payable to
Direct Response)
PUBLISHER
Craig A. Huey
ART DIRECTOR
Bill Heim
Name__________________________________
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Address_________________________________
City___________________________________
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Phone (_ _______ )______________________
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Direct Response’s format and entire contents © 2008 by
Creative Direct Marketing Group, Inc. and may not be copied,
reproduced or otherwise used in any form without the express
written permission of CDMG.
WRITER
Tia Dobi
ISSN 1085-1321
in terms of sell ability, creativity and customer
prequalification. Call me at 310-212-5727 so I
can show you how—from producing infomercials
to web video—my staff and I have the expertise
in ROI-centric direct marketing that today’s
technology-based search firms cannot offer in
the Internet marketplace.

16. D i r e c t R e s p o n s e
21171 S. W e s t e r n Av e . • Su i t e 26 0 • To r r a n c e • Ca l i f o r n i a • 9 05 01
8
Marketing Memos
Quote of the Month:
❝Advertising is the ability to sense, interpret...to put the very
heart throbs of a business into type, paper and ink.
❞ —Leo Burnett
❱❱❱ DMNews notes tracking
email open rate is a flawed
metric, and of no value to
marketers. Preview panes,
blocked images and reading
emails on mobile devices
seriously alter the definition
of “opened.” Better to track
conversions and revenue per
email.
❱❱❱ Constructing B2B
marketing is becoming
infinitely more complex. Target
Marketing reports gone are the
days of straightforward, one-
dimensional campaigns using
trade ads or PR. What’s needed
now are the capabilities of new
media: enewsletters, webinars,
podcasts and vertical search
engines, along with strategic vs.
tactical planning.
❱❱❱ FinancialTimes.com has
opted-out of subscription-only
readership; now viewers can
access up to 30 free monthly
articles, reports DMNews. In
the past year, unique users
have grown by more than 70%;
page views by 50% and online
ad revenues have risen 40%.
Improvements include ex-
panded video journalism and
upgrades to the site’s design
and performance. (Competitor
wsj.com charges $79 for a web
subscription.)
❱❱❱ Search Marketing
Standard shares a study by the
Online Publishers Association
pinpointing the methods used
to locate videos online. Random
discovery: 44%; forwarded in
emails from friends/family:
43%; unique web address: 43%;
via search engines: 39%; links
clicked in subscription emails:
27%; by RSS feeds: 4%.
❱❱❱ Americans would rather
wait than decipher. According to
Opinion Research Corporation,
people are more annoyed when
talking to a customer service
representative with a thick
accent (20%) than they are with
long hold times (17%).
❱❱❱ A story in Deliver
Magazine talks about the
radically changing face of
loyalty programs. After a
quarter of a century, companies
are evolving theirs to be more
relevant to the consumer
experience (fitness centers
offering services from childcare
to personal trainers; health
insurers offering lowering
premiums to customers who
stay fit). GE Capital Solutions
attributes $2 billion in business
to just one of their loyalty
programs.
❱❱❱ In-stream ads in online
video content are not popular,
according to a recent survey of
2,600 web users age 18 or older
by Burst Media. The study
found that 50.7% of respondents
stop watching online video
when they see an ad; 15.3%
leave the site altogether. Some
69.1% pay the same or less
attention to in-stream video ads
than to standard creatives on
the same page.
❱❱❱ A new study from the
Direct Marketing Association’s
Email Experience Council
shows that most retailers (85%)
make people click twice to
unsubscribe. Six percent require
three clicks to opt-out. Only 9%
of retailers are utilizing the best
marketing practice­—one click
(unless the mailer is offering
alternatives to unsubscribing,
of course). Unfortunately, 44%
of retailers don’t offer any
alternatives with their opt-out
language.
❱❱❱ According to a Direct
Marketing Association report,
the use of direct marketing by
American financial institutions
is substantially increasing.
Stats include the use of non-
catalog direct mail (41.8%) as
the primary direct marketing
channel; Internet advertising
spending growth at 17.8% each
year to 2012—with broadcast
advertising climbing 4.8% for
the same. Banks and credit card
companies had the best ROI in
2007 at $13.37 per dollar spent.
direct marketing sales for this
sector are forecasted at $286.2
billion in 2012.
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