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Direct Response Marketing

News Corner September 26, 2012

26 Sep, 2012 By: Doug McPherson

Response This Week will be on hiatus next week. The E-newsletter will return on Wednesday, October 10.

The Los Angeles Business Journal nominates Revenue Frontier and Media Design Group CFO Patrick Romagnano as one of 2012’s top CFOs. The publication honors CFOs in both small and large private companies, small and large corporations, and nonprofit organizations. Romagnano was recognized for his leadership as one of the founders of Media Design Group and for his financial success with Revenue Frontier.

DMW Direct, a DR ad agency specializing in marketing to those over age 50, announces four new hires: Karl See, vice president of fundraising; Joann Hoffsis, account director; Sue Maloney, account executive in fundraising; Caryn Crump, machine operator, fulfillment center.

Online affiliate network Ads4Dough will pay $1 million to settle charges that marketers in its network used “fake news” sites to dupe people into purchasing acai berry as a weight-loss supplement. Ads4Dough also agreed to tightly police the affiliates within its network, in order to settle the case. The deal resolves a Federal Trade Commission complaint alleging that Ads4Dough (also known as Codeadium) acted as an intermediary among affiliate marketers who created fake news sites and online retailers who sold acai berry as a weight-loss supplement.

Consumers will buy $157.8 billion worth of merchandise on Alibaba, the online retail platform, Jack Ma – Alibaba Group founder and chairman – predicted last week. Those sales will take place on Taobao, China’s equivalent of eBay, and on Tmall, a platform Alibaba launched in 2008 for larger Chinese and Western brands targeting the rapidly growing Chinese middle class.

Federal Trade Commissioner (FTC) Julie Brill said in a speech delivered at the State of the Net West conference last week that ad networks should spell out why they say they must collect market research data from consumers who don’t want to be tracked. “On numerous occasions, the FTC and other stakeholders have asked the advertising networks for specific market research and product improvement uses that require retention of linkable consumer data,” she said. “The advertising networks are the only ones who can make the case for such use; without input from them it will be hard to see how such uses can be justified when a consumer has opted out of tracking.”

Nielsen says its online campaign ratings service designed to enable online ad networks to improve their ability to set up audience guarantees is growing. The company reports it has 15 advertising platforms/networks as clients for its new service.

Facebook announces plans to launch a real-time bidded (RTB) ad marketplace allowing advertisers to reach users on the social network based on their browsing history. Through the Facebook Exchange (FBX), users visiting third-party sites can be shown ads related to their travels around the Web when they go back to Facebook.

A new forecast from ShopperTrak predicts a good holiday shopping season. The Chicago-based company, which analyzes foot traffic as well as sales at leading malls, says it expects that U.S. retail foot traffic will climb 3.3 percent in November and December, with actual sales getting a 2.8 percent bump. It expects apparel – a perennially popular category for gifts – to be especially strong, with sales rising 4 percent and foot traffic advancing 3.5 percent.

Local advertising by retailers will grow while direct response and newspaper budgets will continue to decline, so says BIA/Kelsey. It also reports that retailers will spend $4.2 billion this year in online marketing – including mobile – a 13-percent share of an estimated $26.8 billion in all local TV advertising spent by retailers. This will climb to a 16-percent share in three years. Direct response marketing – far and away the largest local marketing category for retailers – will dip. Its share is projected to sink slightly, to 41.5 percent from 42.5 percent this year.

IBM has combined a number of its online marketing software programs into a unified service, called the IBM Marketing Center. The company has designed the service, an IBM Smarter Commerce offering, for organizations to outsource their online marketing efforts, removing the need to develop marketing software in house and hire an IT team to manage it.

A new study from comScore estimates some 85.9 million Americans bought products via mobile commerce in July. The study looked at adults 18 and older using smartphones, and four out of five smartphone owners shopped with their fingers. Amazon dwarfed all other brands, with 49.6 million unique visitors, followed by 32.6 million visiting eBay; 17.7 million going to Apple sites; 16.3 million shopping at Wal-Mart; and 10 million at Target.

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