The document discusses research into the effectiveness of physical mail and email for advertising purposes. It finds that while email has a large reach of 67% of people, physical mail is still strongly preferred for receiving advertising messages. Physical mail also has higher readership rates than email. However, email and physical mail can be most effective when used together, as email can help drive people to websites when combined with physical mail campaigns. The document analyzes audience segments and how physical mail and email each appeal best to different groups.

1. “ P loves E” Or how Physical mail and Email work together to seduce the consumer

2. The story starts with you How should I best make my on and offline channels work together ? How different or similar are physical mail and email for advertising purpose? Could I substitute my physical mail by email? What are the key media facts about the one-to-one channels ? I should start One to One. Physical, email or both ?

6. So how far do P and E love each other to create impact ? REACH APPEAL ACT REACT

7. So how far do P and E love each other to create impact ? REACH APPEAL ACT REACT

8. With 67% potential reach, email is becoming mainstream Base: * All (n=1155);**Access to e-mail (n=777) E-mail is becoming mainstream* % REACH APPEAL ACT REACT Amongst email access population:**

9. About 40% email users have more than one private email address Mean = 1.4 Mean = 0.58 Private Professional 1 2 3 4 5 6 1 2 3 4 5 6 # email addresses % 0 0 REACH APPEAL ACT REACT Base: Access to e-mail (n=777 ) 7,7 mio addresses 3,2 mio addresses 10,9 mio addresses

10. But frequency of consulting email is less intensive than physical mail 57% E-Mailbox Potential Reach No Yes Total Daily __________________________ Source: TNS 2007 Weekly Less often Frequency REACH APPEAL ACT REACT __________________________ Source: MAS 2005 97% No Yes Total Daily Weekly Frequency Letterbox Reach

11. Email is the most intensively used channel for one to one advertising TELE- MARKETING (n=563) EMAIL (n=614) PHYSICAL MAIL (n=984) SMS (n=265) Base: All (n=1155) but receiving advertising messages * Split not available Frequency of Reach Daily Several times a week Once a week Several times a month Once a month Less than once a month Reception No reception No access REACH APPEAL ACT REACT 34% 83% 12% 15% 17%*

12. A consumer receives about 10 times more advertising emails than physical mail Physical mail (n=984) Emails (n=614) SMS (n=265) Telemarketing (n=563) Base: Receive advertising Average number of advertising items per month # REACH APPEAL ACT REACT

13. So how far do P and E love each other to create impact ? REACH APPEAL ACT REACT Preference Attitude

15. Physical mail remains by far the preferred communication channel PREFERENCE *average figures across all sectors Which channel* do you prefer for an advertising message ? % REACH APPEAL ACT REACT

16. Physical mail remains by far the preferred communication channel PREFERENCE *each respondent has an interest in the sector Which channel* do you prefer for an advertising message ? REACH APPEAL ACT REACT

17. Even when asked to choose different media, physical mail remains top of the list Which communication channels should a company use in order to provide you with commercial information? PREFERENCE % *each respondent has an interest in the sector Mail order Beauty Telecom Press Hifi, video Food Food Food Telecom Telecom REACH APPEAL ACT REACT

18. In the digital era, physical catalogues remain key asset , even as support for Web site Which way do you prefer to access information related to product characteristics PREFERENCE Base: Access to e-mail (n=777) REACH APPEAL ACT REACT

19. So how far do P and E love each other to create impact ? REACH APPEAL ACT REACT Preference Attitude

21. E-mail & Physical mail: combination of strengths Physical Mail index vs. Email ATTITUDE REACH APPEAL ACT REACT Environment Irritates me Short messages Easy to react Easy and practical for info Original Emotion Urges to react Detailled info Useful info Analyse an offer Better image Credible info Captures attention To try new products Feel appreciated

22. Low rejection of 1-2-1 advertising Base: Users of each medium and give an answer With regards to advertising in the following media, would you say there is …? ATTITUDE REACH APPEAL ACT REACT

23. Among email users, 6 groups differentiate themselves in their relation to one to one media Base: Have access to e-mail (n=777) ATTITUDE REACH APPEAL ACT REACT The 1-2-1 lovers ‘Positive towards all BTL media’ 10% The DM lovers ‘ Physical Mail only’ 28% The DM & Email Addicts ‘ Feel complementarily of Physical mail and e-mail’ 27% The Email lovers ‘ E-Mails only’ 8% Telemarketing & SMS Addicts 8% The Rejectors ‘ No 1-2-1 media’ Only 19%

25. These groups can reinforce media audiences … TV Free press Dailies Magazine Radio Internet Cinema H H H H H H H H H H ATTITUDE DM lovers (28%) E lovers (8%) DM + E addicts (27%) REACH APPEAL ACT REACT

26. … or they can be complementary: you reach audiences other media reach less TV Free press Dailies Magazine Radio Internet Cinema H H M H S ML M M ML H H H H H H H ATTITUDE DM lovers (28%) E lovers (8%) DM + E addicts (27%) REACH APPEAL ACT REACT

27. So how far do P and E love each other to create impact ? REACH APPEAL ACT REACT

28. Measures on opening rates 63%-93% Avg. 78% EMail 18%-43% 9%-28% 2005 panel survey MAS - Post (analysis on 3.352 DM) 2007 Q2 Emailingsolution.com Mailmailer.com Physical Mail REACH APPEAL ACT REACT

29. higher recall rate (eg +75%) better content recall higher purchase intention (eg +79%) Key results Physical Mail vs. email

30. Readership level is higher for Physical mail followed by SMS Base: Receive advertising SMS (n=265) 67% PHYSICAL MAIL (n=984) 83% REACH APPEAL ACT REACT EMAIL (n=614) 62% TELE- MARKETING (n=563) 58%

31. E-mail is slightly less appropriate to reach prospects Client Not Client No company name Email Physical Mail % throw it out immediately in function of sender information REACH APPEAL ACT REACT

32. Attention level of both channels varies across sectors, with Physical mail staying ahead Note: each respondent was interviewd about 2 sectors in which he is interested Email % attentive readership for advertising from a company you are client from Press Physical Mail Bank&Insurance Car Food Home equipment Beauty Hifi Mail order Clothing Leisure Telecom REACH APPEAL ACT REACT

33. So how far do P and E love each other to create impact ? REACH APPEAL ACT REACT

34. E-mail has a much stronger impact when combined with a physical mail E-Mail funnel Media received DM + E-mail E-mail only 100 30 13 9 30 42 Clicked Opened Received 70 100 34 21 23 34 60 93 + 255% 113% 161% __________________________ Source: DMix survey Mail order (2007) Adding DM to email reduces by 25% the cost / response Adding DM to email multiplies by 2,5 the number of final orders Media recall Box ordered REACH APPEAL ACT REACT

35. Paper catalogue is confirmed to be also a good gateway towards web What did you do after receiving a paper catalogue? Base: received catalogue Clothing & shoes Home equipment Hifi, video Tourism & leisure Beauty products Game, toys Purchase Information REACH APPEAL ACT REACT

36. Site visit increases where mail is introduced to the mix “ How often have you visited the web site in the past 12 months?” +12% +5% +4% Source: Quadrangle: DM & Email 2007. DM & Online 2007 Between Once A Month And Once Every 6 Months Less Than Once Every 6 Months Greater Than Once a Month REACH APPEAL ACT REACT

37. So how far do P and E love each other to create impact ?

39. Physical Mail is the 1-2-1 ‘base media’ to integrate in ‘KISS’ combinations React Physical Mail Email confirmation React? Email reminder Web Interest? Brochure Y N

40. Electrabel – BBDO Direct John Caples Silver Award