April 21-22, 2010 San Antonio, TX

Variable Video Multiplies Direct Mail Response RatesNimblefish TechnologiesRob Bonham, Matt Brocchini

introduction to Nimblefish

• Nimblefish is the world's leading software company for marketers who want to create relevant, relationship-building dialogues with their customers.

internet video is now mainstream

• Some stats from November 2009:– 170 Million US Internet users watched video online– They watched over 31 billion videos– The average viewer watched 10 hours of internet video

that month

• 84% of worldwide Internet users now regularly watch video online

• When people go online today, they expect to find video

what is video today?• User-generated video

- YouTube, Video Blogs• Mainstream Entertainment

- Hulu, Network sites, Netflix• Video Advertising

– Banner ads– Corporate Web Sites– Landing Pages

types of video: user-generated

types of video: mainstream entertainment

types of video: mainstream entertainment

types of video: mainstream entertainment

types of video: banner ads

types of video: corporate websites

online marketer priorities

Advanced Site Features & Functions that U.S. Online Retailers Planned to Add in 2009

Video or Streaming Media 43.3%

Personalized Product Recommendations 40.0%

Customer Reviews & Ratings 36.7%

Product configuration 35.0%

Alternative Payments 33.3%

Blogs or Forums 31.7%

Advanced Search 30.0%

Gift Registry or wish list 21.7%

Other 18.3%

Source: Internet Retailer, “Website Design, Content and Rich Media” conducted by Knowledge Marketing, 2009

video is hot• Marketers know that

consumers expect video, and they are delivering it.

• But almost all of it isone-size-fits all,non-variable video.

• What could you do with relevant video?

-The role that relevance can take in online video

-Integrate video into direct mail and email communications

the one-to-one video experience

Average Response Rates: Traditional DM vs. Relevant DM

TraditionalDirect Marketing

Relevant Direct Marketing

10x lift

Ave

rage

Res

pons

e R

ate

Source: 2009 Nimblefish 100 Best Practice Analysis

2x lift

2-10x lift

relevance boosts DM response

video lifts response online

Video’s Impact on Response Rates

Non-video marketing message

Marketing message with

video

2x lift

Ave

rage

Res

pons

e R

ate

- Users are twice as likely to click the play button as a jpg or gif image ad

- On average, users played the video ads nearly two-thirds of the way through

- Video ads experienced clicked rates of .4 to .74% vs. gif and jpg at .1% to .2%

Sources: www.doubleclick.com/insight/pdfs/dc_videobench0702.pdf, Nimblefish client data

Video’s Impact on Response Rates

2x lift

Ave

rage

Res

pons

e R

ate

Non-video marketing

Marketing with video

10x lift

Ave

rage

Res

pons

e R

ate

2x lift

2-10xlift

Relevance Impact on Response Rates

TraditionalDirect

Marketing

Relevant Direct

Marketing

Sources: www.doubleclick.com/insight/pdfs/dc_videobench0702.pdf, Nimblefish client data

what does relevant video to direct marketing rates?

Relevant Video Response Rates

RelevantVideo

Controlled tests suggest that relevant video can drive significant increases in response

Relevant Messaging

Traditional messaging

5x

1x

Res

pons

e R

ate

11.5x

2.3x higher

Source: 2010 Nimblefish 100 Best Practice Analysis

actual results

relevance increases ROI

A Look at Video in Direct Mail

& Real Results

marketers using video in DM

two ways to use relevant video

2. Relevant Video in an Online Advice Experience

1. Relevant Video in Direct Marketing

IndividualizedDirect Mail

Individualized Email

Personalized URL PURL® Web Site

with Relevant Video

? CTA

Interactive Advice

Experience

Relevant Video

Response

Personalized Call to Action

The World’s #1 Active Travel

Company

case study: backroads

• Increase the response and conversion rates for DM to past Backroads customers, encouraging them to take another trip

• Increase sales in their highest growth segment: Family Trips

backroads’ marketing goals

• Make DM work harder with:– Relevant Print– PURL® Sites with Relevant Video– Integrated touch plan with Relevant Email– Leverage Backroads’ extensive photo

library to create recommendation videos– Utilize past customer trip information to

inform future trip recommendations• Convert more Family Trips online with:

– An interactive Family Trip Advisor– Relevant Video

the Nimblefish solution

Headline references family’s previous trip location

Invitation to personal website that contains relevant trip recommendations

Image based on family’s previous trip

relevant video in CRM-driven DM

DM piece provides three relevant trip recommendations,with an invite to a personal web site to view the videos and take advantage of special savings

relevant video in CRM-driven DM

Animated gif gives the email an illusion of video

relevant video in CRM-driven e-mail

PURL® personal website

• Response Rate • Conversion Rate

results: relevance works

(Compared to Backroads’ previous direct marketing campaigns to the same target group)

• Digital Print was a major response driver

results – digital print drives ROI

Print & EmailEmail Only

Res

pons

e R

ate

(PU

RL®

Vis

its)

2x higher

6% 12%

Using Relevant Video to Create an Online Advice

Experience

Most web visitors are anonymous.The Family Trip Advisor asks interactive questions that are used in session to generate relevant video advice on-the-fly for each user.

relevant video advice for web visitors

• Visitors to the site who went through the video advice experience had conversions rates of 2x higher

2x lift

Con

vers

ion

Rat

e

Viewers who did not go

through the video advice experience

Viewers who went through

the video advice

experience

results – relevant video advice

Challenges Incorporating Video into Direct

Marketing

• Not enough video content?– Insufficient video content available to support each

micro-segment• Video is too expensive

– Versioning videos for each micro-segment can be cost prohibitive

• Video takes too long– Staff time is a scarce resource

relevant video production challenges

• Feedback from marketers using video– Lose the formality– Use your own merchants or employees as talent– Leverage inexpensive cameras and stages in your own

offices

- Source: Adobe Scene7 Whitepaper Video: How It’s Changing Online Shopping

overcome production challenges

Example: Williams-Sonoma product videos

• Corresponding video appears on pan product page• Host of video is from Williams-Sonoma test kitchen• Video filmed in in-store kitchen

• Consider alternatives to full-motion video– Use still images, combined with voice over and

pan-zoom effects for relevant infill

Video production using still imagery & voiceovers

$1,000

Full motion video production

up to $25,000

Pro

duct

ion

cost

for 3

min

ute

segm

ent

overcome production challenges

the magic of stills

a look at Nimblefish composer

• How to deliver relevant video? There are two major challenges:

• Video consumes a lot of storage space and bandwidth. Do you have the infrastructure? Can it scale?

• Relevant video means lots of variations. How do you manage them?

relevant video integration challenges

Storage & Bandwidth

How to manage all

those versions?

• The Nimblefish Vision™ Solution:

• Take the video out of video. Create video experiences primarily from still images, voice over, music, and effects.

• Use Nimblefish Vision to dynamically assemble a custom video for each viewer.

relevant video integration challenges

Storage & Bandwidth

How to manage all

those versions?

video hosting services

Q&A

April 21-22, 2010 San Antonio, TX

Variable Video Multiplies Direct Mail Response RatesNimblefish TechnologiesRob Bonham, Matt Brocchini