According to the Federal Trade Commission (FTC) press release (5 Oct 2009):

“The post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service. Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization. And a paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims.”

Given the core of social media is transparency and honest discussion, most bloggers and word of mouth marketers agree with this policy.   We have a published disclosure policy on this blog and have encouraged other bloggers and social media marketers to do the same in the past.  However, for social media marketing, the method for disclosure is not as straight forward.   We occasionally send tweets about our  (Seven Aspens’) clients and/or their products. How do you disclose in a 140 character Twitter message?

With potential hefty fines looming for violators, this is a good time to review your policies, ensure compliance and learn the best practices.  To assist in the education process, the Word of Mouth Marketers Association (WOMMA) is hosting a free webinar Thursday, October 8, to help explain what the new FTC regulations mean for marketers, advertisers and bloggers. Additionally, the Social Media Business Council provides a great Disclosure Best Practices Toolkit.

“Reports of my death have been highly exaggerated.”

Samuel Langhorne Clemens (Mark Twain)

We last discussed Awareness Activities, the first in the three categories of marketing opportunities.   While I have been advised by some in recent times that offline marketing and advertising is dead-finished- no more, I think there are a few gasps of breath left in the offline marketing and advertising channel.

Direct Mail Direct Response (DMDR)

According to The DMA 2003 Direct Mail Response Rate Study, the average response rate for the 1,122 industry-specific campaigns The DMA studied was 2.61 percent.

The study found the industries that utilize direct and interactive marketing to achieve above average response rates were:

• Nonprofit Fundraisers (5.35 percent)
• Retail Stores (3.36 percent)
• Establishments Rendering Services to Businesses (3.34 percent)
• Manufacturing (3.17 percent)
• Personal and Repair Services (3.07 percent)
• Travel (2.98 percent)
• Computer & Electronic Products (2.86 percent)
• Packaged Goods (2.79 percent)

So, is direct mail still a profitable marketing tool? That depends, but direct mail is one of the easier ROI calculations to estimate. Simply take the cost of the piece you will be mailing, the cost of the list and labor, if applicable, to reach a total cost.  Next, determine estimated response rate (above), the estimated conversion/close rate and the average value of the sale (profit).

For example, if you mail 1000 pieces and estimate that 2.61% will respond (the average from above) and assume 20% of those will close, then the 1000 pieces should yield about 5 sales (1000 X 2.61% = 26 responders, 26 X 20% = 5 sales).  Now, just determine if the value of the 5 sales is more or less than the total cost of the mailing.  Then, remember these are only estimates and other variables such as the quality of the piece(s) mailed, the quality of the list and the frequency you will be mailing (one time vs a series) can vastly vary the results.

Publication Advertising

Advertisements in publications, especially industry trade publications, can be a great source for building brand awareness and generating sales leads.   Subscribe to all trade publications for the markets you serve, read them, study the ads and then determine which is the best fit for your offering and your budget.   If at all possible, plan a series of ads with a theme and consistent branding to build recognition with readers.

Trade Shows and Conferences

Trade shows and conferences can be used to build awareness, generate leads, find new customers, and maintain or improve current customers’ perceptions.   Trade shows are more effective in some industries than others, so just determine if the reward (other than visiting Vegas, etc.) justifies the expense.

These events present the following promotional opportunities:

♦ Network – meet prospects within the targeted industries to help build overall awareness of your product, set up meetings with other participants, invite clients or prospective customers to visit the booth

♦ Exhibit – Secure exhibit space, logo placement and name in event guide and other promotional assets

♦ Event Sponsorships – Overall show/conference sponsor or smaller, daily event sponsorships through show/conference

♦ Off-Site Event Sponsorships – Sponsor and off-site event that is not offered through the show/conference.  Examples would include dinner at a local restaurant, cocktails at local museum or exhibit, etc.

♦ Speaker – Speak at event or in topic driven forums to share insights and build exposure with industry decision-makers.

Next-> Opportunities: Online Marketing