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Welcome. Clarity Briefing Rob Edwards CEO – Australian Direct Marketing Association Chairman – International Federation of Direct Marketing Associations September 2004. Clarity Briefing. 1) Why we are here today 2) What are the key issues facing the industry

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Welcome

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  1. Welcome Clarity Briefing Rob Edwards CEO – Australian Direct Marketing Association Chairman – International Federation of Direct Marketing Associations September 2004

  2. ClarityBriefing 1) Why we are here today 2) What are the key issues facing the industry 3) What is ADMA doing about it? 4) What can YOUdo?

  3. Ouroperatingenvironment • Technological change • Consumer attitudes • Government intervention • Global considerations

  4. The Perfect Storm

  5. Technological changes • 19th Century  major changes in the transportation of goods • 20th Century  major changes in the transportation of people • 21st Century  major changes in the movement of information and ideas. • “Our new information and communication capabilities will have a profound impact upon the economy, the way we work, society and government.” • Francis Cairncross: The Death of Distance

  6. The pace of technology change means that……. • Small businesses can now do large scale data processing and market segmentation =better customer information • More investment in customer facing technologies =more communications at customers • Lower costs of communications* =more messages directed at customers • Consumers are better informed and empowered • * email, internet, VOiP

  7. Consumer Attitudes • Consumer’s desire for control: • Over 55% believe they have more power than marketers • In 1995 it took 3 TVC’s to reach 80% of 18-49 yr old women, whilst in 2001 it took 97 TVC’s to reach the same market • 59% felt marketing was not relevant* • 64% were concerned about practices and motives* • 61% felt they were not respected* • *Yankelovich & Partners April 2004

  8. Consumer Attitudes • “Do Not Call Register” US Federal Trade Commission • 60 million Americans signed up in 12 months • The negative option in continuity marketing is now being challenged. • Intrusive DM communications are less likely to be tolerated & almost indefensible.

  9. Hierarchy of Intrusion Level of Intrusion Mobile E-Mail Telemarketing Fax Direct Mail

  10. Government intervention • Recognise it as a populist vote winner (without necessarily understanding the broader picture) • Have moved in to protect their revenue streams – taxes, duties etc. • Inconsistencies between states creating marketing difficulties.

  11. Global considerations • Opens up the market for Australian companies and $$ • Global market-place but regulators also have a global view • Increasingly using international precedents to set the rules • ADMA links with international bodies

  12. The Perfect Storm Technology change  more messages Consumer push back Government intervention Intrusive DM practices

  13. What’s the result? • A compliance nightmare • Compliance costs escalating • Reduces Pool of data • “Sophisticated new Consumers”

  14. Regulation by stealth? • State Based telemarketing legislation • Public Data Restrictions • - Electoral Role • - IPND (Telephone data) • FSRA • New Anti-Spam Laws

  15. Outlook • Privacy Act Review- Oct/Nov • Telemarketing regulation- • - National Do Not Call Register? • Likelihood of federal & state Labor Government: • - more interventionalist • Overseas developments: • - Anti Junk mail laws in UK & Europe

  16. Mobile opt-in E-Mail Telemarketing Fax Level of Intrusion D.Mail opt-out What is ADMA doing about this? Hierarchy of Regulation

  17. What is ADMA doing about it? • Commission major research project into Consumer Privacy Perceptions & Consumer attitudes to Direct Marketing • Maintain strong regulatory presence, at both state & federal level. • Introducing Best Practice Guidelines: • - List Warranty Register • - Guidelines for the use of Automated Dialling Equipment • - E-Marketing Code of Practice • - Guide to Viral Marketing

  18. What is ADMA doing about it? Cont’d.. • Instilling Consumer confidence in transacting at a Distance via: • Membership Education • Promoting ADMA brand

  19. What can you do to assist? • Support ADMA’s leadership research project • Make sure you comply with the spirit as well as the letter of the law or Code of practice. (be mindful of your impact upon consumers/customer). • Support ADMA’s lobbying efforts • Support Consumer trust initiative- use of logo

  20. Close • Vibrant, growing industry (DM is ubiquitous- not just an acquisition tool). • Known challenges identified and scoped.. BUT… there will be more ahead. • The regulatory future is in your hands! • Thank You

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