Reaching Consumers with Signup Advertising Insights from Lilly Pulitzer, PalmBeach Jewelry, Ouidad, and Paper Hat Press www.pontiflex.com Executive Summary Lilly Pulitzer, PalmBeach Jewelry, Ouidad, and Paper Hat Press are leaders and innovators in their respective retail industry segments. This white paper will take a detailed look at how each marketer uses signup advertising to connect with consumers across mobile and online digital platforms, pay only for new-to-file signups, and generate immediate ROI. Email is Still Important and Relevant to Marketers Email is still crucially important to marketers today, even in the world of multi-platform digital communications. Datran Media's 2010 Annual Marketing & Media Survey found that more industry executives said that email was the strongest performing vehicle for their brand when compared to other major digital advertising channels, including search, affiliate marketing, display, and direct mail, among others. Three trends work to keep email important and relevant: First, email marketing delivers results. According to the Digital Marketing Association (DMA), email ROI is roughly $43.52 per dollar spent. Second, email usage is actually being driven by social networks. A recent Nielsen study published that the most active users of social networking sites also send and receive more email messages than anyone else. Social media is also giving email a facelift. Not only do people receive social media messages via email, but recently Facebook introduced the Social Inbox. This allows you to engage with consumers on Facebook via the Social Inbox—a perfect bridge between email and social media—and get them to recommend products and services to their friends. This will help you spread the word about your brand virally through Facebook. www.pontiflex.com Finally, the rapid adoption of smart phones bodes well for email. The explosive growth in consumer adoption of smartphones means that you can replace costly SMS campaigns with email, not to mention augment existing email programs with the ability to communicate with customers as they engage with mobile devices. According to the Radicati Group, email on handheld mobile devices will grow at an annual rate of 68% over the next four years, totaling over 1 billion mailboxes by the end of 2013. Connecting with Consumers through Signup Advertising Traditionally, retailers have turned to CPM and CPC advertising models to acquire email addresses from interested consumers. In CPM (Cost-per-Thousand) campaigns, you pay for impressions. You can run banner advertisements that drive to a landing page with a form, or rent email lists through the CPM pricing model. In CPC (Cost-per-Click) campaigns, you pay for clicks. In both of these models there is waste, as you pay for page views, generic lists, and site traffic - instead of actual results. With signup advertising, you pay only for valid sign ups, not for impressions or clicks that might never convert. In recent years, transparent signup advertising has been adopted by retailers such as Lilly Pulitzer, PalmBeach Jewelry, Ouidad, and Paper Hat Press, among others. What this means for you: connect with shoppers who are explicitly interested in hearing from your brand and see immediate, measureable ROI. About Signup Advertising Signup ads are a new form of brand performance marketing used by Fortune 500 brands and national non-profit organizations, including Nautica, Tommy Hilfiger, Target, and Lane Bryant. With signup ads, consumers can opt-in to connect with advertisers they like, all without leaving a publisher's web site or mobile app. www.pontiflex.com Usually in online advertising, a user clicks on an online banner or search advertisement. The user is then taken to a landing page where he or she fills in his or her contact information. In a signup ad, you collect the user information of the consumer (such as first name, last name, email address, etc.) within the ad itself. You can also collect user information on a publisher’s site or in a mobile app in a 100% opt-in and transparent way. Thus, with signup ads, you pay only for new-to-file signups. There’s no money spent on wasted clicks or impressions. “The signups that we’ve gotten from Pontiflex are performing exceptionally well,” said Abby Whitmer, Marketing Manager, E-commerce, Ouidad. “They’re top quality, and we’ve seen very little drop off from our database, indicating a high lifetime customer value. And with Pontiflex, Ouidad pays only for new email subscribers, which I love.” Factors Driving Success of Signup Advertising There are two important criteria to keep in mind when running signup ads. I. Ensure Transparency Retailers like Lilly Pulitzer, PalmBeach Jewelry, Ouidad, and Paper Hat Press partner with Pontiflex to run signup ads. A primary factor driving this decision was transparency. With Pontiflex, they are able to see where their ads were running. This helps them in a number of ways: • Protecting Brand Integrity: You are able to ensure that ads don’t appear on less than optimal • Acquiring Interested Consumers: You will know that people are not signing up for your ads because they have received an incentive, but rather, because they are genuinely interested in your brand and products. • Optimizing Ad Campaigns: You are able to allocate more of your advertising budget to sites that have a higher composition of visitors that have proven to convert. www.pontiflex.com “With Pontiflex, we know just where people were when they signed up for our ads and just what they were doing,” said Daniel DeYoung, Marketing of Director, PalmBeach Jewelry. “This helps us to follow up with people in the most relevant way.” II. Access to Online and Mobile Media As early as 2010,marketers could get by using online media. Mobile is quickly becoming a “must buy” for advertisers. eMarketer projects mobile ad spending in the U.S. will surpass $1 billion in 2011. Similarly, research firm Borrell Associates predicts that the mobile app advertising market will rocket to more than $8 billion by 2015. US Mobile Ad Spending $ Millions $3,000 $2,500 $2,000 $1,500 $1,000 $500 $2009 Source: Morgan Stanley 2010 2011 2012 2013 2014 Source: eMarketer.com Unfortunately, mobile advertising solutions prevalent today are patterned after click-based online ad models that don’t work in a mobile world. According to a recent Harris Interactive survey, almost half of U.S. smartphone users agree with the following statement, “While using mobile apps, I click/tap on ads by mistake more often than I do on purpose.” Since most mobile ads are sold on click-based models, this means that nearly half of mobile ad dollars are wasted due to people accidentally clicking on mobile ads. Click-based ad units also don’t create user-friendly experiences on mobile devices, especially since mobile users spend the majority of their time on apps as opposed to web browsers. Therefore, click-based display ads that force users out of apps are disruptive to a user’s mobile experience. www.pontiflex.com Steve Jobs recognized this problem when launching Apple’s mobile platform, iAds. "Today when you click on a banner ad, it yanks you out of your app and throws you onto the advertiser’s web page. So people don't click on the ads,” he said. That said, there are a number of mobile app advertising options that offer marketers a way around this problem. For example, both Apple iAds and Pontiflex AppLeads offer in-app advertising, which makes it possible for marketers to reach consumers without disrupting their user experience. Pontiflex AppLeads is the first platform to offer in-app mobile signup ads. Using in-app mobile signup ads, marketers can run ads on top apps on the iPhone and Android platforms and still only pay for new-to-file, qualified signups. Pontiflex mobile signup ads are a great way to reach the highly coveted mom demographic as they interact with mobile devices. According to Millennial Media, smartphone usage among moms increased 60% in 2010 and will continue to rise. www.pontiflex.com “Paper Hat Press believes in building a relationship with consumers based on trust,” said Manish Naik, CEO, Paper Hat Press. “The first step is using a 100% transparent and opt-in solution, and that’s precisely why Paper Hat Press partners with Pontiflex to run mobile signup ads.” Pontiflex mobile signup ads provide you with an opt-in mobile ad solution. Pontiflex mobile signup ads also allow you to begin a dialogue with customers and prospects that you can continue through email and online marketing, including social media initiatives. Case Studies In the following pages, we will look at how retail marketers use signup advertising to connect with consumers across mobile and online digital platforms, pay only for new-to-file signups, and generate immediate ROI. How Lilly Pulitzer Builds Online and Social Communities Using Email Marketing Lilly Pulitzer’s marketing team has three goals – connect with potential customers, double the size of its in-house email database, and build a community on Lillypulitzer.com and social media sites, such as Facebook and Twitter, using email marketing. Recently, Lilly Pulitzer added signup ads to its marketing mix to help meet its marketing goals. By using signup ads, Lilly Pulitzer was able to double the size of its in-house email marketing database in just three months and reach new customers. “Including signup ads in our marketing mix has allowed us to reach new customers interested in our products who aren’t actively searching for them on the web,” said Rachael Crews, Senior Manager, E-commerce, Lilly Pulitzer. “And the best part about it is that we pay only for new-to-file, qualified signups.” Lilly Pulitzer aims to both double its fan base on social media sites, including Facebook and Twitter, and build an online community of women on its web site. According to eMarketer, 51% of women use online communities to learn about new products and make purchase decisions. With this in mind, the ultimate value of building online and social communities of women is to help educate and engage them with the Lilly Pulitzer brand and product suite. To better engage consumers and prospects, Lilly Pulitzer extends the conversation with people acquired through signup ads on social networking sites. This includes sites such as Facebook and Twitter, which are becoming an increasingly important part of the company’s marketing mix. “We really see the value of online and social media communities,” said Mrs. Crews. “Lilly Pulitzer is a brand that is passed down from generation to generation of women. What better way to reach like-minded and connected women than on Facebook and Lillypulitzer.com.” Lilly Pulitzer plans to add more social features to its web site this year to enhance the community feel, such as review and recommendation features and other social elements. www.pontiflex.com In 2011, Lilly Pulitzer also plans to add mobile advertising to its digital marketing mix to continue to grow and build online and social communities. The company will be able to increase the reach of its digital ad campaigns by adding mobile signup ads, which run on the Android and Apple platforms. “In today’s digital world, a marketer’s biggest challenge is to practice accountable social marketing,” Mrs. Crews said. “Pontiflex has proven to be an effective solution that helps solve this problem.” www.pontiflex.com How PalmBeach Jewelry Used Pontiflex to Drive Sales During the Holiday Season PalmBeach Jewelry is among the largest jewelry catalog companies in the world. For fifty-two years, PalmBeach Jewelry has been offering an extensive offering of rings, earrings, bracelets, watches, anklets, charms, and thousands of other items for both women and men. PalmBeach Jewelry’s marketing efforts are diverse and multifaceted. However, they all have one goal in common – to grow the size of the in-house email database. To acquire new consumers, PalmBeach Jewelry runs a variety of marketing programs. The company decided to run signup ads to acquire new consumers. More specifically, they decided to run signup ads on premium publishers like Lifescript.com through the Pontiflex technology platform. www.pontiflex.com Pontiflex signup ads have proven to be very successful for PalmBeach Jewelry. In just three months, they have driven well over a hundred sales. People acquired through Pontiflex visit 12.95 pages per visit – which is 29% higher than the baseline. In addition, Pontiflex signups spend an average of 9 minutes and 4 seconds on the site, which is 25% higher than the baseline. The bounce rate is a third less than the average. “People acquired through Pontiflex’s signup ads are more likely to be deeply involved with our brand and make repeat purchases,” says Daniel DeYoung, Marketing of Director, PalmBeach Jewelry. “This is the kind of customer we want in our in-house file.” PalmBeach Jewelry has a sophisticated follow-up program with prospects and customers. They speak to consumers in a number of ways. The ultimate value is to build a relationship with the consumer based on trust and relevance. This not only helps drive sales throughout the year, but also during the all-important holiday season. “You have to be thinking ahead at all times,” says Mr. DeYoung. “To drive sales during the holiday season, it’s important that you connect with the right people and start building a relationship well before December.” In addition to email, PalmBeach Jewelry extends the conversation with people acquired through signup ads on social networks. “What people say about your brand is important,” says Mr. DeYoung. “In today’s socially networked world, individuals are your most important spokespeople. That’s why it’s especially important that we use media strategies like Pontiflex’s signup ads to connect with the right kind of people.” In 2011, PalmBeach Jewelry has moved money away from other marketing channels to invest more in Pontiflex signup ads, which are 100% opt in and transparent. PalmBeach Jewelry is committed to privacy and finds it essential to building a lifetime relationship with their customers. How Ouidad Uses Email as a Marketing Centerpiece Ouidad, the "Queen of Curl", is an internationally recognized stylist, salon owner, mother, author, and global educator. In 1984, as the pioneer of the curly hair industry, she opened the first salon in the country to cater exclusively to curly hair. Since then her trademarked cutting and styling techniques and specialized line of award winning products, have instilled confidence in curly and wavy haired people everywhere. Sought out by editors and peers for her extensive knowledge, Ouidad's progressive teaching style, informative website, and dedication to curl education all further her goal to empower every stylist with the knowledge of how to work with curls. Ouidad products are sold online, in salons, and in Sephora. www.pontiflex.com In order to connect with curly-haired consumers and increase sales across digital channels, Ouidad’s marketing team runs a variety of digital marketing programs. The company uses the Pontiflex signup advertising technology platform to create, manage, and optimize signup advertising campaigns. Ouidad utilizes email marketing to help educate and engage curly-haired consumers with the Ouidad brand and products. The result is that the company drives sales on Ouidad.com and in stores. By working with Pontiflex, Ouidad achieved 140% immediate ROI via email and social media marketing. For Ouidad, email marketing has become the central point of its digital marketing efforts. The company uses email to drive traffic to social media sites such Facebook, Twitter, and YouTube. “Pontiflex has changed the way Ouidad thinks about email marketing,” said Abby Whitmer, Marketing Manager, E-commerce, Ouidad. “Pontiflex signup ads not only allow us to reach new curly-haired prospects, but they also increase the efficiency of all our marketing efforts. Ouidad has been able to expand our email database and increase our social media presence.” www.pontiflex.com How Paper Hat Press Used Pontiflex Mobile Signups Ads to Reach Mothers Paper Hat Press is a personalized children’s book company run by an award-winning team of authors, editors, illustrators, designers, producers, techies, and entrepreneurs. Accolades won by Paper Hat Press employees include a Publisher Weekly Prize and an Academy Award. The company creates high-quality and meaningful, custom-made books featuring super characters, engaging stories, and original artwork. www.pontiflex.com Paper Hat Press’ marketing team has one main marketing goal – to connect with women, specifically moms, on mobile devices—such as iPhones and Androids—in order to sell more of the company’s custom children’s books. Paper Hat Press added Pontiflex AppLeads mobile signup ads to its digital marketing strategy. The company uses Pontiflex mobile signup ads to grow its email database. Via email, Paper Hat Press drives sales as well as traffic to social networking sites, such as Facebook and Twitter. To better engage moms, the company extends the conversation with people acquired through mobile signup ads on social networking sites. By using mobile signup ads, Paper Hat Press was able to reach new prospects and customers across digital platforms and devices. “Adding mobile signup ads to our marketing mix has allowed us to reach women, especially moms, interested in our custom children’s books on top mobile devices,” said Manish Naik, CEO, Paper Hat Press. “Mobile signup ads are the best way we’ve been able to generate new-to-file signups and reach the right audience for Paper Hat Press’ children’s books.” With Pontiflex, Paper Hat Press is able to create, manage, and optimize signup ads across all digital channels through a single point of connection. "The Pontiflex platform was built with user experience in mind," said Mr. Naik. "We find that people we've connected with via signup ads are highly engaged with Paper Hat Press," said Mr. Naik. "We saw sales and referrals within a few days using Pontiflex AppLeads." In 2011, Paper Hat Press will continue to use mobile signup ads in its digital marketing mix to reach mothers on mobile devices. The company also plans to expand its product offerings and distribution on digital platforms, such as eBooks and iPads. In addition, Paper Hat Press will increase its email and social media marketing efforts. Conclusion Lilly Pulitzer, PalmBeach Jewelry, Ouidad, and Paper Hat Press are several innovative marketers using signups ads. These retailers partner with Pontiflex to connect with consumers across mobile and online digital platforms, pay only for new-to-file signups, and generate immediate ROI. With signup ads, there’s no money spent on wasted clicks or impressions. In addition, you can run mobile and online ad campaigns and extend the conversation to social media. www.pontiflex.com About Pontiflex Pontiflex is the industry’s leading mobile, email, and social acquisition platform. Pontiflex’s patent-pending technology enables online and mobile publishers to monetize their sites and apps, and serve ads to visitors where they are most engaged. With Pontiflex, people can submit their information to advertisers within the ad unit itself without having to click away from the site or app. Advertisers who use Pontiflex include Fortune 500 brands and leading non-profits like Kimberly-Clark, Disney, Tommy Hilfiger, and the ASPCA. Publishers who use Pontiflex to connect with these advertisers and increase revenue include Monster.com, Evite.com, Cafepress.com, Brisk Mobile, Demand Media, and thousands of mobile, content, and e-commerce sites. To find out more about Pontiflex, please visit www.pontiflex.com. You can also reach Tiffany Sumner, Director of Marketing, tiffanys@pontiflex.com or by calling 718.971.5003. www.pontiflex.com
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