Staff Reporters
Feb 18, 2010

Will social media be the death of DM? We've asked two experts.

Marketers are diverting budgets away from direct marketing and into social media, according to a global survey. We ask Mohammed Sirajuddeen, CEO Rapp Asia, and Ben Poole, head of interaction at MEC Asia-Pacific, if this is the case.

Will social media be the death of DM? We've asked two experts.

Will social media be the death of DM?

MS: Definitions are changing and direct marketing is no longer what it was many years back. ‘Contemporary direct marketing’ is not just about mail anymore. It encompasses all direct and digital channels, and social media is a part of this.




BP: No. The smarter marketers will use social media to retain, upsell and bond with existing customers, rather than acquire new ones. At the same time, insights from social media will help fuel DM programmes.



Are clients shifting budgets from direct marketing to social media?

MS: As clients seek greater accountability and direct consumer engagement, budgets are shifting from traditional channels and we are seeing a growth in contemporary direct marketing budgets which include social media - so yes, we are seeing clients invest more into this area.

BP: It is not a case of shifting from one to another. Social media happens to be a new area that direct marketers want to try out as part of their ongoing DM programme. Depending on performance, it may or may not stay on the DM schedule.

What’s the best social media drive you’ve seen recently?

MS: Most effective social media/DM campaigns are integrated with data, search and analytics. Frankly, we have not seen many of these. Social media is the new girl in town that everybody wants to date. Everybody wants to experiment with it. But where is the accountability?

BP: Nascar used social media to completely revamp its market research programme. Racing rules got re-written, brand attributes increased, and TV ratings went up.

What’s the worst direct mailer you’ve received?

MS: I get them everyday, but my bank takes the biscuit. They did a complete profile of me couple of months ago. In spite of that, I still get mailers that are not personalised and with irrelevant offers.

BP: An ad in my Gmail spam folder promoting a creamy Spam broccoli casserole recipe.

And the best?

MS: From amazon.com, they keep a track of all my purchases and send me relevant titles (authors I like), interesting offers.

BP: A recent mail shot announcing that Domino’s Pizza is opening its first new outlet in Singapore.

So, ultimately, which is going to be the real winner this year - social media or DM?

MS: Contemporary direct marketing using different channels, including data, social media and analytics will always be the real winner.

BP: Both will progress, but in very different ways.


This article was originally published in the 11 February 2010 issue of Media.
Source:
Campaign Asia

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