INNOVATING TODAY FOR TOMORROW S MAIL Gary Reblin Vice President, Product Innovation United States Postal Service
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1 1 INNOVATING TODAY FOR TOMORROW S MAIL Gary Reblin Vice President, Product Innovation United States Postal Service
2 2 THE WORLD IS CHANGING Our increasingly digital and mobile-first world is driving huge growth in the digital advertising market. $ $ $ $ $ $80.00 $60.00 $40.00 $ % US Digital Ad Spending, Billions ($) $ % $ % $ % $ % $ % 75.00% 65.00% 55.00% 45.00% 35.00% $20.00 $ % Digital Ad Spending % of Total Media Ad Spending
3 3 COMPETITIVE DIGITAL LANDSCAPE Mobile occupying 66% of users digital media time 2 is driving the expansion of digital ads and is generating competition. Digital ad platforms:
4 4 THE DIGITAL MARKET HAS A CHINK IN ITS ARMOR DIGITAL DOWNFALLS Non-Human Traffic Up to 37% of ad clicks are from bots, resulting in a waste of $7.2B 4 Digital Clutter Digital Clutter Americans see an estimated 4,000-10,000 ads per day 5 Ad Blocking / Ad Blocking Avoidance / Avoidance 26 28% of online ads are blocked in the U.S. 6
5 5 USPS STRATEGY PART 1: HARDCOPY MAIL Paper Digital Engagement Image
6 6 DIRECT MAIL IS GETTING MORE ATTENTION Response rates have surged from 3.4% in 2012 DMA 2017 Response Rate by Selected Mediums 9 Better targeting Personalized Mailpieces Printing Techniques Linking to Digital Content
7 7 MAIL CONTINUES TO EVOLVE New technologies are enabling better engagement. CREATING ENGAGING MAILPIECES AUGMENTED INKS SCENT TEXTURE FORMATS NFC REALITY VIDEO DRIVING A RESPONSE TYPED URLs SMS TEXT QR CODES VOICE
8 8 BARCODE USAGE CONTINUES TO RISE Adult Smartphone Barcode Scanners US, QR CODES % 39.00% 38.00% 37.00% % 32.7% 33.7% 34.2% 34.8% 36.00% 35.00% 34.00% 33.00% 32.00% 31.00% % Millions % of Smartphone Users Source: emarketer, April Note: ages 18+, smartphone users who scan a barcode or QR code at least once during calendar year. Includes in-store, print publication, or features like Snapchat s Snapcode, Instagram s Nametags, and Amazon SmileCodes.
9 9 INCREASING RESPONSE THROUGH MULTIPLE CHANNELS USPS is exploring the impact of multiple calls to actions and multiple channels on response rates. 70% Lift 58% Lift Voice 53% Lift QR Codes Baseline SMS Text Typed URLs
10 10 FIRST-CLASS MAIL First-Class Mail also delivers results
11 11 FIRST-CLASS MAIL HITS HARDER THAN DIGITAL How consumers engage with digital versus hardcopy billing statements: Methodology Topics Eye Movement First-Class Mail Recall Testing Impact of Color
12 12 THE BENTLEY STUDY Did digital or hardcopy billing statements increase recall and brand sentiment?
13 13 HEAT MAP RESULTS Hardcopy Digital
14 WHAT DID WE DISCOVER? *Print had a 10% Lift Brand sentiment and purchase probability Brand recall: Immediately after the eye tracking Survey given a week later *45 sampled respondents 14
15 15 USPS STRATEGY PART 2: INFORMED DELIVERY With Informed Delivery, the image of a mailpiece further enhances digital engagement. Paper Digital Engagement Image
16 MAIL AS PART OF THE DAILY DIGITAL ROUTINE Informed Delivery maintains the relevance of mail in an increasingly digital society. Consumer and Mailer Data 11.6M Users User Density 700+ Participating Brands 3,183 Campaigns Created Approximate user number as of July 30, Number of participating brands and campaigns created as of July 30, 2018 User Density Map as of July 30,
17 CASE STUDY: US CENSUS BUREAU As a result, the U.S. Census Bureau achieved a high click-to-open rate and an increase in their number of completed questionnaires. s Sent 7,445 s Opened 5,273 Click-throughs 317 Open Rate 71% Click-to-Open Rate 6% The U.S. Census Bureau partnered with USPS to provide Providence County, R.I., with an easy, safe way to respond to the 2018 Census Test anytime, anywhere. 17
18 18 INFORMED DELIVERY USER SURVEY RESULTS Consumer: 95% 90% are satisfied or very satisfied with Informed Delivery. 10 would recommend Informed Delivery to friends, family, or colleagues. 10 It lets me know when to expect something and gives me peace of mind that important mail will be delivered. 10 Informed Delivery is essential you need to know what's arriving when you are traveling. 10
19 19 IMPRESSIONS IN THE DIGITAL AGE Mailer: Mailers conducting Informed Delivery interactive campaigns have experienced: Average Open Rate Average Click-through Rate Potential 72.5% % 11 43% of users typically are not the ones who pick up the mail 10
20 Getting Started with Informed Delivery Campaigns 20
21 21 INFORMED DELIVERY DEFINITIONS A campaign is the combination of mailpiece image (or Representative Image) and Supplemental Content No Interactive Campaign Interactive Campaign Applied Well-designed Physical Mailpiece Representative Image Supplemental Content The Informed Delivery for Business Mailers website is the one-stop-shop for information on interactive campaigns. Resources on the website such as the Interactive Campaign Guide can help mailers get started.
22 22 WHAT MAILPIECE TYPES ARE ELIGIBLE? LETTERS / POSTCARDS FLATS Large Envelopes / Catalogs / Periodicals Automation compatible letters and postcards are eligible for Informed Delivery as they are scanned through USPS equipment. Images not captured on USPS automation equipment. Interactive Campaign, featuring Representative Image, is required.
23 23 7 STEPS FOR CREATING A SUCCESSFUL CAMPAIGN 1. Target the right customer: Determine Campaign Breakdown 2. Determine Submission Method 3. Determine MID and IMb 4. Determine Supplemental Content Get Noticed Have a Compelling Offer Have a Call to Action Have a Simple Execution of Call to Action 5. Determine Campaign Timeline 6. Enter/Submit the Campaign 7. Monitor Progress and Analyze Results
24 24 UPCOMING FEATURES Personalized Campaigns Notification of Mail Delivery Mobile Wallet Coupon Saturation and Newspaper Mailers Pilot Package Campaigns
25 25 THANK YOU THE FUTURE IS BRIGHT!!
26 A P P E N D I X 26
27 27 CITATIONS 1. US Ad Spending: emarketer Forecast for emarketer, March "The 2017 U.S. Mobile App Report." ComScore, Inc The State of the U.S. Mobile Market. ComScore How Much of your Audience is Fake? Bloomberg Business In the name of free speech, Adblock serves up ads, just for a day. Arstechnica Marketing Reports, How much do people really get?, US Social Trends for emarketer. January Scott, Mark. "Use of Ad-Blocking Software Rises by 30% Worldwide." The New York Times. February 01, "Direct Media Response Rate, CPA & ROI Benchmarks in 2017." Marketing Charts. December 27, Accessed April 16, User Survey, July USPS-generated reports ; 6-month average of aggregate open rate as of December 2017.
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