Film Marketing Gets Low Ratings in Study

Movie studios got poor ratings for their target marketing efficiency in a recent study by marketing professors at the University of Utah, University of Chicago and University of North Carolina. Looking at the performance of films from 2004 in 208 U.S. markets, the study looked at pre- and post-release blog impacts and advertising spends by studios. Despite spending for nationwide blanket marketing, the movie studios only released movies in 53% of the markets most responsive to advertising and 44% of the markets most responsive to blogs and social media. And the type of marketing was also inefficiently matched to likely market response. The larger markets as well as younger consumers, Asians and Hispanics responded more to blogs and social media than advertising efforts, for example. Paid advertising worked better with older Caucasians. The study did not look at more recent films to see if movie marketing or response had shifted, however. For more details on the study, go to http://www.mediapost.com/publications/article/200002/film-marketing-fairly-inefficient.html#axzz2TsDrRchr

Ads With Cute Animals Win More Facebook 'Likes'

If you're looking for a way to get more "likes" for your Facebook ad campaign, using a photo of a cute kitten or puppy can do the trick. But if you want long-term engagement with your brand, deliver ads with relevant product images. That's according to a study of 3,000 images used in "Like Ads" from 125 brands on Facebook. Those with "beguiling images of animals" had the highest response, reported a recent MediaPost article. The research was conducted by SocialCode, one of a dozen strategic partners in Facebook's Preferred Marketing Developer program. SocialCode focused on Like Ads appearing in the news feed or in a page's right-hand column. However, while the image of a puppy or teddy bear tended to get higher initial response, ads that featured relevant product images scored best for long-term engagement after the first "like" click. Like Ads that featured only a brand logo had the lowest engagement or interaction after the initial "like," and text-only ads had the lowest response rate in terms of "like" clicks. For more on gender and generational differences, see the research report at http://www.mediapost.com/publications/article/199307/aww-facebook-ads-with-animal-images-get-most-lik.html#axzz2TsDrRchr

Updated Child Online Privacy Rule Starts in July

Despite pleas for delay from the Direct Marketing Association (DMA) and 18 other trade associations, the Federal Trade Commission (FTC) has rejected any extension on implementation of the updated Children's Online Privacy Protection Act (COPPA). The updated rule goes into effect this July 1. The trade associations are concerned about compliance with changes, such as an expanded definition of "personal information," which they hold will require more time to overhaul products and services. The DMA also expressed concern over an amendment holding companies legally responsible for third-party data services providers' compliance failures. The FTC responded that the trade groups have been on notice since the beginning of the rule-making process more than three years ago and have had six months to implement changes since the final December 2012 COPPA amendments. Changes affect parental notice, obtaining parental consent, confidentiality of personal information, safe harbors, and expanded definitions of "personal information," "website or online service directed to children," and "operator" of children-directed sites or services. For more on the updated COPPA, go to http://www.mondaq.com/unitedstates/x/239632/Data+Protection+Privacy/FTCs+Revised+COPPA+Rules+Go+Into+Effect+July+1+2013

Survey: Most Small Businesses Use Mobile Marketing

Seven in 10 small businesses are using mobile in their marketing mix, according to a recent poll by Constant Contact, a provider of e-mail, event and social media marketing tools for small businesses. How were the small firms incorporating mobile in their admittedly tight marketing budgets? Over 70% reported using mobile with their social media marketing and e-mail marketing. Close to 45% included mobile in advertising via social platforms, and 34% had mobile-optimized websites. Much smaller shares, 18% each, said they used mobile- or tablet-based POS payments or mobile-app management of operators. Of those with mobile-optimized websites, 70% included social media enabling and a large portion included menu information (44%) and product listings (40%) for mobile users. If you are a small business and haven't taken advantage of reaching out to mobile customers, you are behind the curve. If your excuse is like that of the majority of non-mobile small businesses polled, who were ignoring mobile because they didn't think customers were interested, consider these facts: Mobile phones are projected to equal the world population by 2014, and 57% of U.S. consumers own a smartphone now. Mobile is becoming a preferred communication channel for too many consumers to risk ignoring its marketing potential. For more on the survey results, see the eMarketer report at http://www.emarketer.com/Article/Small-Businesses-Work-Blend-Mobile-Social/1009887

FTC Keeps Data Brokers in Regulatory Crosshairs

Federal officials are keeping the data brokerage industry in their regulatory crosshairs, and another warning shot has been fired. The Federal Trade Commission (FTC) just issued formal letters to 10 companies, alerting them that they may be violating federal restrictions on the collection and sale of consumers' personal information, reported The Washington Post. The targeted data brokers ranged from firms that compile consumer lists for credit offers to a website helping parents screen potential nannies. The list also includes well-known names in the direct marketing business. The FTC letters follow a broader inquiry into 45 data brokers appearing to market information whose use is restricted by the Fair Credit Reporting Act, which regulates how private companies can use personal information. Individuals are supposed to know when data reports affect their eligibility for insurance, credit or employment, and they are supposed to have the opportunity to correct errors. The FTC last year urged Congress to pass a law forcing the data brokerage industry to disclose its practices. The Post could not confirm whether any of the data brokers receiving letters face a full FTC investigation. Letter recipients were 4Nannies, Brokers Data, Case Breakers, ConsumerBase, Crimcheck.com, People Search Now, U.S. Information Search, US Data Corporation and USA People Search. The story did not name the tenth pending confirmation. For more, see the news story at http://www.washingtonpost.com/business/technology/ftc-warns-data-brokers-on-privacy-rules/2013/05/07/2e152c16-b748-11e2-92f3-f291801936b8_story.html

Study: Small Businesses Still Don't Embrace Digital

Big corporations may be rushing into digital marketing, but small businesses are dragging their feet and sticking with the tried-and-true, including direct mail, according to recent research by The Boston Consulting Group (BCG). As reported in Adweek, the consultancy surveyed 550 U.S. businesses with less than 100 employees and found only 3% of their total advertising dollars went to online channels. Compare that with big companies' commitment of up to 16% of the marketing pie to online efforts. The small businesses—including restaurants, hair salons and furniture stores—relied mainly on newspaper circulars and direct mail to lure customers, according to the study. Of course, most of the mom-and-pops had websites, but BCG did not count that as active digital marketing, seeing it as closer to a white-pages phone directory listing in today's digital era. So why the small-business aversion to digital? It isn't because small firms don't get lots of unsolicited digital advertising pitches—20 or 40 a month, remarked John Rose, a senior partner at BCG. But small firms are rightly cautious about shifting dollars to untried promotional avenues, and they generally don't have a professional marketing staff to evaluate online opportunities, pointed out Rose. Instead they rely on peer advice, and too many small business peers apparently have been burned by digital forays. If digital marketers want smaller clients to come aboard, they are going to have to come up with a strategy to get "the right offers" to clients "in a way that allows them to figure out what’s right for them" is Rose's quoted conclusion. For the full article, go to http://www.adweek.com/news/advertising-branding/small-businesses-are-slow-digital-party-148029

How Nonprofit Direct Mail Can Win in Election Years

How does nonprofit direct mail successfully compete for attention in an election year against high-roller political fundraisers? Not by gambling on new lists, new creative or new media, advises expert Randy Brewer, president and CEO of Brewer Direct Inc., a direct marketing agency for nonprofits. Election years require nonprofits to resist risks and to "play your best hand -- the one you know that works," says Brewer in a recent article for Fundraising Success magazine. The proof of that strategy is in Brewer's results. Last year, his agency stuck to a conservative strategy on behalf of their 20 rescue mission clients across the country, focusing on a proven direct-mail control package. As a result, they garnered $3.75 million in net revenue in the aggregated September-December fundraising cycle, almost a 9% increase over the prior year, despite mailing 65,000 fewer pieces, he reports. Their 2012 December package led results, earning nearly a 23% lift in response over prior year campaign totals. Average mail-based donor gifts were also up in every month but October, notes Brewer. The agency did make one change in its direct marketing to adjust for the political cycle: Mailing schedules were shifted to avoid periods when research predicted that candidate appeals would be peaking. For more, see http://www.fundraisingsuccessmag.com/article/direct-mail-during-political-election-cycle-knowing-when-hold-em/1