Twitter e-commerce mixed bag for brands

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					       JULY 12, 2010

                                                                                                                                                                         Feature, p13

                                                                                 PLUS Chase tweaks loyalty program P4 | Maximizing direct mail P16 | Embracing social media P25

      Rate increases outrage mailers HSN,push
       By Kate Muth
                                                                                                                              certainly in Netflix’s best interests,
       : Marketers and catalogers that                                                                                        rather than a weakened Postal              By Shahnaz Mahmud
       rely on the mail to reach consum-                                                                                      Service that is facing such huge           : The Home Shopping Network
       ers decried the US Postal Service’s                                                                                    deficits,” said Steve Swasey, VP of        has partnered with Sony Pictures
       proposed “exigent price increases,”                                                                                    corporate communications for Net-          to launch an integrated campaign
       saying the rate hikes would have                                                                                       flix, via e-mail. “Nobody likes rate       for the upcoming film Eat Pray
       drastic negative financial repercus-                                                                                   increases or reduced delivery, but         Love, based on the bestselling
       sions for their 2011 operational                                                                                       as part of a total restructuring plan,     book. The campaign includes a
       and marketing plans.                                                                                                   we believe it is necessary to save         significant direct mail push, as
          Some organizations said they                                                                                        the Post Office. We think everyone         well as e-mail, online advertising,
       will cut back on the number of                                                                                         should step up, Netflix included, to       mobile media, print advertising,
       mailings or pieces they send, while                                                                                    share some of the sacrifice.”              TV ads, PR and events.
       others promised to switch some                                                                                            The Postal Service filed its               HSN and Sony developed all
       programs to other forms of adver-                                                                                      request with the Postal Regula-            campaign creative in-house. The
       tising, including e-mail, telemarket-                                                                                  tory Commission to increase                company will distribute the direct
       ing and print periodicals.                                                                                             rates by an average of 5.6% on             mail pieces in mid-July to build
          Some mailers said they will                                                                                         July 6. About 5% of that increase          momentum for the three-day shop-
       move more aggressively to the                                                                                          is an “exigent” price increase, or         ping event next month, which is
       Internet.                                                                                                              a hike that exceeds a statutorily          comprised of 72 hours of original
          “If this proposed increase goes                                                                                     imposed price cap established              programming on August 6, 7 and 8
       through, it would have a very                                                                                          under the Postal Accountability            that will feature products tied to the
       negative impact on an already              online programs.”                    vice’s total recommended changes,      and Enhancement Act. The Postal            film, which debuts August 13.
       struggling channel,” said John               Although the majority of mar-      or restructuring. We are in sup-       Service argues that the recession             “There are different phases to
       Princiotta, SVP of marketing for           keters and catalogers oppose the     port of that because we believe in a   and its impact on the USPS’ finan-         build awareness and inspire custom-
       Publishers Clearing House. “This           rate increase, Netflix expressed     stronger Postal Service with afford-   cial health constitute an extraor-         ers to tune in and ultimately make a
       would certainly cause us to fur-           support for the rate changes.        able rates and predictable service     dinary situation. It expects to lose       purchase,” said Bill Brand, EVP of
       ther accelerate our shift toward             “We support the US Postal Ser-     is in the country’s best interests,           ‘ Increase’ continued on page 26    programming, marketing and busi-
                                                                                                                                                                         ness development for HSN.
                                                                                                                                                                            The company will distribute
                                                                                                                                                                         350,000 August Jewelry Guide
           MORE INSIDE
                                                                                       Twitter e-commerce
                                                                                                                                                                         direct mail pieces beginning July
                                                                                                                                                                         25. One mail piece is a catalog
                Levi’s uses blue-                                                                                                                                        designed to look like a travelogue.
         5                               19

                                                                                       mixed bag for brands
                collar images
                                                                                                                                                                         It will have 16 pages featuring loca-
                                                                                                                                                                         tions in the film with products cor-
                                                                                                                                                                         responding to that region.
                                         ESPN promotes US
                                         Open coverage                                 By Ryan Chatelain                      time- and supply-sensitive deals              The shop-from-home network
                                                                                       : Marketers are keeping an open        on products and events, such as            will begin an e-mail marketing
                                                                                       mind about using Twitter’s just        concert tickets. Twitter users who         push near the on-air specials. ●
                                                                                       launched Early Bird Exclusive          subscribe to @earlybird will see

                                                                                       Offers e-commerce service, but         the offers in their feeds, where
                                                                                       none made a concrete committed         links will lead them to the point                      Entries for the
Description: "In fact, I'm not even sure I'd call it e-commerce at this point," he said. "It seems to be much more positioned as a bit of an advertising play, to be honest. It's a different strategy for them because they haven't been content producers."
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