The good news is that U.S. ad executives project their second-half ad spending will be up an average of 7% vs. what they originally planned, according to a survey released this morning by the Interactive Advertising Bureau (IAB).
The bad news is that the same sample of ad execs reported their full-year ad spending will be down 31% from what was projected in a similar survey conducted by the bureau in the fall of 2021.
more at: https://www.mediapost.com/publications/article/376095/iab-finds-second-half-ad-spending-better-than-plan.html
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More often than not, we engage with seasoned ecommerce professionals tasked with running print programs while simultaneously holding some measure of responsibility for Profit & Loss statements. And as such, they tend to look at performance metrics with a ROAS (Return on Ad Spend) lens instead of a more critical metric – Contribution Per Order (CPO). Why is that important, and why does ROAS lack adequate insight as a key metric? Let me explain. While ROAS is an efficient measuring metric, it cannot assign health to a channel, making it a relatively useless tool. The reality is it could be hurting your business as a primary form of indicator. ROAS can't tell you how much money you are making for every order received. As an example, a ROAS of 6x is more efficient than a ROAS of 5x, but that doesn't mean you made more money (or any money). A ROAS of 6x on $10 did not make you more money than a ROAS of 5x on $10,000,000. The volume grew top-line demand, but it did not increase profits. In contrast to ROAS, Contribution Per Order (CPO) brings in the magnitude of the campaign segment targeted (marketing cost and cost of goods). This metric will help with your payroll and to keep the lights on – in other words -- adding top-line demand and bottom-line profits.
With mail volume down overall, marketers are reporting less competition and higher response rates with their direct mail and catalog campaigns. As more people stay (and shop) at home, each direct mail piece is being seen by more people in the household, and consumer catalog businesses are welcoming a significant increase in response, with many struggling to meet demand, writes Stephen Lett in Total Retail. Lett believes this favored status for catalogs and direct mail is likely to continue long after our current pandemic lifestyle is lifted. “Consumers are likely not to rush back to bars, restaurants, retail stores, etc., even when there’s a medically accepted vaccine. Many will remain cautious, adopting a wait-and-see attitude,” he writes. “Others will be set in new ways of functioning. They have adapted to a new and safer or more cautious way of living their everyday lives. The transition back to pre-COVID ways of doing things won’t be like flipping a light switch.”
Not enough paper for your catalog? Direct mail to the rescue! If catalogs are a main part of your marketing mix, then you know how valuable they are for driving sales and maintaining customer loyalty. But, with today’s supply chain challenges, you may be having trouble finding paper and press time for your full mail plan. The challenge with a catalog is that only a few printers do it well and it uses a fair amount of paper. With current capacity issues at printers and limited paper supply, it’s hard to get a catalog (or all of your catalogs) in the mail. So, what to do? Don’t stop mailing! According to the ANA 2021 Response Rate Report, direct mail drives the highest ROI for all media. Physical mail drives engagement so consider other forms of direct mail in place of the catalog. Learn more at: https://www.jschmid.com/blog/print-even-when-paper-supplies-are-low/