Press release:

Marketers now face prison if they consistently ignore the wishes of consumers who do not wish to be contacted for marketing purposes.

The CPUT Regulations include 31 banned practices that will always be considered to be unfair. One of these is ‘making persistent and unwanted solicitations by telephone, fax, email or other remote media except in circumstances and to the extent justified to enforce a contractual obligation’. Breaching this banned practice is a criminal offence and carries with it a maximum fine of £5000 currently and or a term of imprisonment not exceeding two years.

The term ‘other remote media’ has yet to be defined, but there is the argument that this could include direct mail sent through the post. If this is so, the Mailing Preference Service will have legislative backing providing greater protection for its subscribers.

Janine Paterson, Legal and Public Affairs Advisor at the DMA, warns: “Companies ignoring the TPS and persistently calling numbers registered on the scheme have got away lightly. Now however they could face prison if they continually call numbers against the consumer’s wishes. The DMA welcomes this new legislation and is advising members on this and other elements of CPUT Regulations and the Business Protection from Misleading Marketing Regulations. ”

Companies ignoring TPS face prison warns DMA

USPS Press release:

Santa might not be ready to make a list and check it twice yet, but online retailers and marketers gearing up now for the holiday season need to consider two pieces of research from comScore that show important consumer shopping and shipping habits.

According to the “2007 Multi-Channel Direct Mail Study,” direct-mail recipients were nearly twice as likely to purchase from a retail website as those who received only an Internet communication. And when the mail piece was a catalog, the results were even better — influencing more than two-thirds of shoppers to visit the site. That traffic created a 163 percent increase in sales over those who did not receive a catalog.

Catalog recipients typically buy more items (4.1 compared to 3.2) and spend more money ($88 compared to $69), the study showed.

“Catalogs can be used to acquire new customers and educate a new audience about brands and products because they allow for longer messages and more detailed information,” said Anita Bizzotto, Postal Service chief marketing officer and executive vice president. “And if they grab attention or have great pass-along value, direct mail and catalogs can reach household decision makers.”

That same research showed that catalogs jumpstart holiday shopping. In November, catalog recipients were significantly more likely than non-catalog recipients to have shopped online for holiday gifts.

Consumers were equally clear in wanting a choice on how to receive their online orders. “Package Delivery Research” found that 63 percent of online shoppers want an option to select the delivery company for their packages. A retailer’s favorability improves with the option to choose. Six out of 10 shoppers said they have a better opinion of companies if they could always select their preferred delivery company.

About 28 percent of business owners and 12 percent of consumers who shop online do not buy from companies that don’t offer a choice. Almost half of consumers who selected a delivery company chose the U.S. Postal Service (46 percent), according to the research.

“Mail and the Internet do indeed work together,” said Bridget O’Toole, executive vice president at comScore. “Successful marketers are using catalogs to attract more shoppers and to convert them to buyers.”

The white paper on package research is available here, and the white paper on catalog research is here.

CINCINNATI, OH  To help U.S. commercial marketers understand the new postal rate structure and plan for new rates when they are anticipated to take effect next spring, Harte-Hanks, Inc. (NYSE: HHS), a worldwide direct and targeted marketing solution provider, will host a complimentary, scheduled one-hour Webinar on Thursday, December 7, at 2 p.m. EST.

To register, visit: http://harte-hanks.com/Webinar

“Marketing organizations have many questions about how they are going to cope with increases that — as proposed — are striking in some niche categories,” said Robert J. Colucci, corporate officer and vice president, Harte-Hanks. “This is a difficult rate case. Marketers need to understand that whether or not a mail piece is a letter, flat or parcel, and whether or not existing postal automation can accommodate that mail piece, create a huge difference in what mailers will pay once the new rates take effect as early as May next year. We know that marketers are making decisions now about their media mix, mail design, and how they plan to leverage the mail medium in mid-2007. This Webinar is intended to give clear, proactive direction on how marketers can optimize their direct mail resources.”

Experts scheduled to address the Webinar audience are Colucci, who also serves as a member of the Board of Directors for The Mailers Council, a coalition of more than 50 corporations, non-profit organizations and major mailing associations who represent for-profit and non-profit mailers and rely on the U.S. Postal Service to deliver correspondence, publications, parcels, greeting cards and payments; Charley Howard, vice president, postal affairs, Harte-Hanks, and Sharon Daniel, manager, mailing standards, U.S. Postal Service (USPS). Howard also serves as an industry representative on the Mailers’ Technical Advisory Committee, an advisory group on postal issues that includes USPS representatives.

PRESS RELEASE Harte-Hanks: Complimentary Webinar on December 7 to Help Marketers Plan for Proposed Postal Rate Structure

Press release:

CHICAGO, and MENASHA, Wis., Oct. 31 R.R. Donnelley & Sons Company (NYSE: RRD) and Banta Corporation (NYSE: BN) jointly announced today that they have signed a definitive agreement pursuant to which RR Donnelley will acquire Banta, a provider of printing, supply chain management and related services. The all-cash deal is valued at approximately $1.3 billion, or $36.50 per share after the special dividend of $16.00 per share already declared by Banta. The agreement has been unanimously approved by the Boards of Directors of both companies and is expected to close in the first quarter of 2007. The acquisition is expected to be accretive to RR Donnelley’s earnings in the first full year after the closing of the transaction and is subject to customary closing conditions, including regulatory approval and approval of Banta shareholders.

The combination will enable RR Donnelley to expand the range of products and services it offers customers, while at the same time enhancing its services to the magazine, catalog, book and direct marketing segments. Banta, with operations in the United States, Europe and Asia, will significantly enhance RR Donnelley’s geographic footprint and create opportunities for additional scale in locations where RR Donnelley is already present.

Banta, headquartered in Menasha, Wisconsin, has annual revenues of approximately $1.5 billion and provides comprehensive printing and digital imaging solutions to leading publishers and direct marketers, including advanced digital content management and e-business services. Banta also provides a wide range of procurement management and other outsourcing capabilities to the world’s largest technology companies.

“Banta is an exceptional fit with RR Donnelley,” said Mark A. Angelson, RR Donnelley’s Chief Executive Officer. “This combination will create immediate cross-selling opportunities with our blue-chip customers as well as offer substantial synergies in our procurement, manufacturing and services operations. We are delighted to have the opportunity to better serve our customers by expanding the flexibility of our combined global manufacturing and service platforms. The addition of Banta furthers our goal of increasing long-term shareholder value and we look forward to maximizing the benefits for our customers, employees and investors.”

“RR Donnelley’s innovative, customer-centered approach, broad product and service mix and emphasis on developing value-added solutions mirrors Banta’s,” said Stephanie A. Streeter, Banta’s Chairman and Chief Executive Officer. “Joining these two highly successful, complementary companies will result in a combined organization that creates new and exciting opportunities for our customers and employees moving forward. Together, the companies will offer enhanced capabilities and an increased array of options to our customers and I look forward to working closely with RR Donnelley’s management to ensure a smooth transition.”

John Paloian, RR Donnelley Group President, Publishing & Retail Services, added, “Our publishing, catalog and direct marketing customers, in particular, will benefit from combined resources that will allow us to craft even more innovative and responsive solutions. From digital prepress capabilities through sophisticated logistics, our enhanced flexibility will allow us to address our customers’ needs more quickly for cost-effective and compelling communications.”

Also, today RR Donnelley reaffirmed its previously announced 2006 full year non-GAAP net earnings per diluted share from continuing operations earnings guidance to be in the range of $2.45 to $2.50, but trending toward the high end of the range. GAAP net earnings per diluted share from continuing operations in 2006 may include restructuring, impairment and integration charges, the resolution of certain tax items and other items that are not currently determinable, but may be significant. For that reason, the company is unable to provide full-year GAAP net earnings estimates at this time.

Goldman, Sachs & Co. served as financial advisor to RR Donnelley and Sullivan & Cromwell LLP provided legal counsel. UBS Securities LLC served as financial advisor to Banta and Foley & Lardner LLP provided legal counsel.

A conference call and simultaneous webcast to discuss the transaction will be held on Wednesday, November 1, 2006 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). The live webcast will be accessible on both RR Donnelley’s web site: http://www.rrdonnelley.com and Banta’s web site: http://www.banta.com . Individuals wishing to participate can join the conference call by dialing (800) 632-2975 (toll-free domestic); passcode: 8068896. A webcast replay will be archived on both Companies’ web sites for 30 days after the call. In addition, a telephonic replay of the call will be available for seven days at (877) 519-4471 (toll-free domestic); passcode: 8068896.

RR Donnelley also will host a conference call and simultaneous webcast to discuss its third-quarter results on Tuesday, November 7, 2006, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The live webcast will be accessible on RR Donnelley’s web site: http://www.rrdonnelley.com . Individuals wishing to participate can join the conference call by dialing (800) 657-1263 (toll-free domestic); passcode: 8068924. A webcast replay will be archived on the Company’s web site for 30 days after the call. In addition, a telephonic replay of the call will be available for seven days at (877) 519-4471; passcode: 8068924. The previously scheduled investor meeting has been postponed.

About RR Donnelley
RR Donnelley (NYSE: RRD) is the world’s premier full-service provider of print and related services, including document-based business process outsourcing. Founded more than 140 years ago, the company provides solutions in commercial printing, direct mail, financial printing, print fulfillment, forms and labels, logistics, call centers, transactional print-and-mail, print management, online services, digital photography, color services, and content and database management to customers in the publishing, healthcare, advertising, retail, technology, financial services and many other industries. The largest companies in the world and others rely on RR Donnelley’s scale, scope and insight through a comprehensive range of online tools, variable printing services and market-specific solutions. For more information, visit the company’s web site at www.rrdonnelley.com.

About Banta Corporation
Banta Corporation is a technology and market leader in printing and supply-chain management services. Its integrated approach provides a comprehensive combination of printing, binding and digital imaging solutions to leading publishers and direct marketers. Banta excels at helping customers find unique solutions to the complex challenges of getting their products and communications to market. Banta focuses on five printing services segments: books, special-interest magazines, catalogs, direct marketing and literature management. Banta’s global supply-chain management business provides a wide range of outsourcing capabilities to some of the world’s largest companies. Services range from materials sourcing, product configuration and customized kitting, to order fulfillment and global distribution. For more information, visit the company’s web site at http://www.banta.com

Seen on Postcom.org:

Almost every catalog marketer at the [DMA06 San Francisco] show mentioned, with more than a little disdain, the *colossal* U.S. Postal Service booth. Instead of impressing them with their racing simulator, doubtful actors and postal service totes, marketers were annoyed at the extravagance in light of rate increases that suck more of their budget.

One marketer remarked that she would like to send the postal service a box of promotional pieces instead of payment for one of her mailings.

Wrap-up Notes From DMA06: Attendees’ Top 3 Pain Points
MarketingSherpa.com

Acxiom Digital President Kevin H. Johnson discusses the differences between traditional DM and online marketing:

The true divide between digital and direct marketing is driven by one simple economic fact: cost per incremental online contact is effectively zero. Once you have set up an e-mail program and a Web site, each incremental e-mail or page view can be delivered for tenths of a penny (or even less).

The Digital Divide: Differences Between Online and Offline Direct Marketing
DMNews.com

The DMNews blog reports from the New England Mail Order Association’s fall conference that DMers in the region aren’t necessarily expecting big returns from the fall mailing season, given the stagnant economy. From a postal standpoint, the message is mixed- one mailer said that while they could be “susceptible to the economy”, they would be sending out three times as many catalogs this year as last.

Economy’s Chill Felt in Upstate New York

The upcoming changes in rates present challenges for mailers, but also opportunities- one obvious response to shape-based rates will be changes to the way mailers package their product- see the press release below for one company’s strategy suggestions:

Proposed Postage-Rate Increase Pushes Mailing Efficiency

Creative packaging solutions offer significant savings
The U.S. Postal Service recently filed to raise postal rates in spring 2007. The proposed rates, driven by rising operational costs, follow a more complex pricing structure than the flat 5.4% increase implemented last January. For the first time, the rate structure will rely on shape, as well as weight. The proposed rates include price incentives to promote mailing efficiency.

Under the new system, flats and parcels face higher increases because of their higher handling costs. Now, for example, consumers can mail a three-ounce letter, flat or parcel for $0.87. The shape-based rates will lower mailing costs for the same three-ounce letter to $0.82. However, postage rates for the three-ounce flat will increase to $1.02, and the rate for the three-ounce parcel will jump 61% to $1.40.

“The proposed pricing structure encourages use of flat and letter mailings whenever possible to take advantage of automated processing,” says Marvin Makofsky, president of Conformer® Expansion Products, a Long Island-based company that maximizes mailing efficiency with its patented line of expanding envelopes. “Organizations that rely heavily on mass mailings can save thousands of dollars by converting flat mailings to letter mailings and parcel mailings to flat mailings.”

DVDs, for instance, typically ship in padded mailers as parcels. Innovative products like the Conformer Expansion Envelope enable the post office to process DVDs as flats. For companies that mail these items in quantity, the savings add up quickly: $10,000 on a mailing of 50,000.

In some cases, organizations can reap huge savings by literally thinking out of the box. For example, a national bank that mails personal checkbooks to 500,000 clients per month can cut annual postage costs by $2.3 million, simply by switching to expandable envelopes from traditional check boxes.

“Conformer Expansion Products (CEP) remains committed to helping our clients overcome the challenge of rising postage rates by providing creative, cost-effective mailing options,” says Bob Makofsky, General Manager of CEP.

Conformer Expansion Products offers creative marketing solutions—including envelopes, portfolios and presentation folders—that feature the company’s award-winning, patented designs. These multifunctional products use revolutionary expansion technology and are compatible with industry-standard mailing systems.

CONTACT:
Bob Makofsky
Conformer Expansion Products, Inc.
516-504-6300 - Ext. 307
bmakofsky@conformerinc.com 
 

Send press releases to pr@postalnews.com

A lot has been written the lasy year or so about ‘web 2.0′, ‘the long tail’, and the changes in the ways people interact with what they see online. What does that have to do with advertising mailers? Quite a bit, according to this series on Marigold Technologies’ Direct Marketing blog:

Direct mail meets Web 2.0

The value of hard copy, delivered by mail:

“It’s an interesting question.  And a strategic one.  If I’m publishing a fee-based newsletter, is it better to email or print and snail mail it to my audience?  According to Christopher Knight at Email Universe.com, it’s better to print it…if you want your reader to value it most.”

Jim Logan - Should You Print Or Email Your Fee-Based Newsletter?