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The Risks of Cardholder Data

Friday, July 30th, 2010

Ken MusanteOne of the reasons hackers breach direct marketing merchant sites is that’s where the card numbers are stored. Cardholder data is kept for a variety of reasons including: 1) providing customer service, 2) processing re-occurring transactions and 3) responding to chargebacks (representments). Fortunately, Visa recently clarified its Rules and advised merchants that they no longer need the entire 16-digit card number to cure a chargeback. Instead, merchants may use other clarifying information in addition to a truncated card number, in responding.

Visa has also mandated that issuers accept these truncated numbers. This is welcomed news for merchants and unless card numbers are absolutely needed, they simply should not be stored—helping to lessen the burden of PCI compliance. PCI compliance requires card numbers to be encrypted (if they are stored).

This does not eliminate an e-tailer’s responsibility to comply with PCI, as they are still processing card data; it merely makes the job easier. Further, direct marketers how are processing re-occurring transactions should consider utilizing a gateway that stores the data for them in an encrypted fashion.

Many gateways have re-occurring payment modules, which allow you to input the card data and to bill that same card on a regular basis, yet encrypts and stores that data in a PCI-compliant format. Since most e-tailers utilize a payment gateway, it behooves you to inquire if your gateway can perform this service for you. Doing so further allows you to concentrate on selling and eliminates enormous enterprise risk. Risk that could lead to substantial fines, the loss of your merchant account and a listing of your data on the MATCH file; further curtailing your ability to process transactions.

Think about the reasons you are storing card data. Do you really need to?

Ken Musante is president of Direct Response Payments in Eureka, Calif. Contact Musante at (877) 476-0570 or at kenm@eurekapayments.com.

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Posted in Advertising, Direct Response, Electronic Retailer, Payment Processing, Support Services, direct marketer, fulfillment | 3 Comments »

Infomercial Reflections

Friday, July 16th, 2010

martyfahnckeWhen I was a young lad, nobody in their right mind said, “When I grow up, I want to be in the infomercial business.” But nearly 25 years after starting in this industry, that’s just where I find myself. And boy, am I glad!

As Electronic Retailer magazine and ERA celebrate the 25th anniversary of the infomercial, we wanted to give all of our readers the opportunity to share their stories and memories.

Here are mine…

It was a snowy day in December of 1986 when I reported for duty on my first day as an inbound call agent for National Instant Consumer Exchange, then known as NICE Corporation. Today, it goes by the name Convergys, and it’s one of the largest contact centers in the world. At that time, I was a skinny teenager making minimum wage. NICE Corporation was a little company whose entire inbound call center fit in one room in Ogden, Utah. And the infomercial business was in its infancy…but just getting ready to explode to a scale few could have imagined.

In those days, the phones were ringing non-stop for blues records, stop smoking products, diet pills and a wide range of other products. The 30-minute “infomercial” format had just hit the airwaves one-year prior. New upstart cable networks had hours and hours of time to fill, and the long format gave them something to broadcast while adding to the bottom line. And the American consumer was enraptured with the whole idea of watching a 30-minute advertisement, then calling to order a product, which would be delivered right to their home. They were doing it by the millions.

Yes, the industry has grown by leaps and bounds since that time. So has my career. And my waistline…but that’s a different story.

In the 24 years I’ve been in the business, I’ve worked for call centers large and small. I’ve done creative production for short form and infomercials, product marketing, international distribution, product sourcing, e-commerce and more. Starting in 1999, I’m proud to have been (and continue to be) one of the pioneers on the forefront of new technologies in the electronic retailing space. My team was the first to stream infomercial video online (years before YouTube existed), was the winner of the very first “Best Website” award ever presented by ERA in 2001, and I’ve continued to introduce new tools and concepts to the industry through my articles in Electronic Retailer magazine, and speaking at dozens of industry conferences. Whether it’s the shift from “Call Now” to “Visit our website,” SEO, innovative shopping carts or social media marketing, this industry is always changing…and always fascinating.

Here are a few of my “remember when” memories from 1986:

  • “COD” was the payment option of choice for most consumers calling to order.
  • Orders were mailed or faxed from the call center to the fulfillment center. There was not data transfer!
  • For really big clients, we sent a reel-to-reel magnetic tape every couple of days containing their orders.
  • The “Golden Girls” were big on TV. (Twenty-five years later, Betty White is still hot on TV.)
  • A gallon of gas was 89 cents.
  • Richard Simmons made his FIRST appearance on QVC.
  • When they weren’t watching infomercials on TV, people were watching “The Cosby Show” and “Magnum P.I.”
  • There was only one “toll free” prefix…and it was 1-800.
  • One last memory of the past 25 years: The friends I’ve made in the business are second to none. To this day, I have business relationships stretching back to the very earliest days of my career, and I’m proud to call these same people my friends these many years later.

So now it’s your turn. What are YOUR favorite memories of the DRTV / Infomercial / Electronic Retailing business? How did you get started? What “remember when” highlights would you add to the above list?

Please leave your thoughts in the Comment section below and let the reminiscing begin!

Marty M. Fahncke is a consultant, speaker and writer working with companies around the world to increase the effectiveness of their marketing strategies. Fahncke is a regular contributor to Electronic Retailer magazine, and is a member of the Magazine Advisory Board. Be sure to check out his blog at http://www.MartyFahncke.com.

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Posted in Advertising, Direct Response, direct marketer, drtv | 4 Comments »

Social Media Websites - A Source for Advertising & Marketing

Thursday, July 15th, 2010

Many people believe that it’s fair to say the marketing industry has
changed more so over the past decade or so than it has since its
inception. Classic marketing techniques such as direct mail, print and
radio advertising are no longer considered to be nearly as effective
as they were in the past, and have been eclipsed by digital marketing.
The advent of technology has changed how people consume media, which has had a direct effect on how marketers reach their target audience.

Digital marketing is without a doubt the future of the industry, and
it is best for agencies to jump on the bandwagon early before it is
too late to get with the times.

Social media is perhaps the most popular aspect of technology to
emerge in the last few years, and has quickly become an institution.
With websites such as Facebook and Twitter, people have never been
able to integrate their online and offline lives together better than they can now. Since so many people spend a good deal of time visiting and updating their profiles on sites such as these, marketers have come to realize that there is no better way to reach people these days than through social media. Taking advantage of social media sites can make marketing easy and inexpensive.

Marketers use social media in a variety of different ways. Most social
media sites sell ad space, which can be used to target either a national or local market. Marketing agencies are learning that since these sites can target someone based on their location it is not much different than advertising in print, yet it costs a whole lot less. On top of these methods, marketers are also starting to set up their own Facebook and Twitter accounts so that they can report any type of news or events. If the page is fun and interesting to read, it may even be possible to develop a following of people that you can market to on a regular basis. Using social media to this effect is perhaps the single most important thing agencies can do.

James Mowery is a computer geek who writes about technology and related topics. To read more blog posts by him, go to online dating.

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Posted in Advertising, Marketer, Online, Social Networks | No Comments »

ERA Annual Awards - Call for Entries!

Monday, May 10th, 2010

ATTENTION! The ERA Annual Awards - the  premier awards program for the DR industry - is looking for submissions for the 2010 Awards. You have until Monday, May 24 to prepare and submit your finest campaign or production. Categories range from Best Long Form U.S. Hispanic to Best Live Shopping On-Air Guest and everything in between.

Download the 2010 ERA Annual Awards Submission Packet and submit your entry by May 24!

Contact Ashley Cavell or visit retailing.org/Annual_Awards for more information.

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Posted in Advertising, Branding, Direct Response, ERA, Infomercials, Video, direct marketer, drtv | No Comments »

Tier 2 Networks – How To Ensure You Are Getting Quality Traffic

Thursday, February 25th, 2010

New ad networks are popping up all the time. Some of them have earned a negative reputation as providers who deliver poor quality traffic.  Unfortunately, these networks have not operated with advertisers’ best interests in mind, and as a result, Tier 2 networks in general have received a bad rap. It’s important to remember, however, that not all networks are created equal. Before initiating a partnership with a Tier 2 network, you need to ensure they can deliver the quality traffic you are seeking. Here’s a helpful checklist of issues to address while you are vetting search networks, along with some specific questions to ask to help determine if the network is a fit to help you reach your PPC campaign goals:

1. Experience – it’s important to work with a tried-and-tested network with a proven track record.

How long have you been in business?
Can you share client case studies and/or testimonials as validation of your achievements?

2. 3rd Party Partnerships – some networks employ partnerships with 3rd parties to help ensure click quality and safeguard against invalid traffic. For instance, Anchor Intelligence and Click Forensics are two traffic quality solution companies that many networks work with to serve as a kind of check and balance to their internal traffic controls.

Do you have any 3rd party traffic quality partnerships in place?
How do you determine how to filter invalid traffic?

3. Targeting and Tracking Capabilities – you need to assess whether the tier 2 network you are evaluating operates on a platform with the necessary capabilities/abilities to meet your targeting needs.

Do you offer any/all of the following?

  • Geo-targeting –focus your ads in the location of your desired customers
  • Ad Scheduling/Day Parting –schedule your ads to only appear at certain times of day
  • Conversion Tracking –see what traffic sources are converting for you and which ones aren’t, so that you can adjust campaigns accordingly

    • 4. Customer Service – make sure the network you are considering has the customer support to help you optimize your campaigns and reach your goals.

    Will I have a dedicated account manager?
    Who will be held accountable for helping me ensure my campaigns are running smoothly?

    Asking these basic questions are the first step towards broadening your PPC campaigns to include valued and trusted tier 2 networks. Leverage these questions as a starting point when looking to expand your reach beyond your existing PPC campaigns with complementary campaigns on Tier 2 networks. Let us know if the comment section if you have any questions, or feel we’ve left anything pertinent off our list.

    Kaley Dobson is the Marketing Manager at LookSmart

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    Posted in Advertising, Online | 2 Comments »

    One Upside to the Down Economy: More Viewers

    Thursday, February 25th, 2010

    koeppel_headshotWhile everyone’s been focusing on the lousy unemployment rate, no one’s been taking much notice of some news that may be very good indeed for those who have jobs – in advertising, anyway.

    Deloitte recently released a State of the Media Democracy survey that indicates the recession has actually caused an uptick in the number of TV viewers who are tuning in on any given day.

    While the survey also revealed that attendance at movies, concerts, and sporting events has gone down significantly, it seems that many Americans are filling the void in their entertainment schedule by tuning in to new or favorite programs more frequently. Purchases of video games and DVDs are also down, which may be another indicator as to why viewers are returning to the good-old TV.

    One of the most telling statistics cited by the survey is that 34% of respondents ranked TV watching as their favorite media activity. This is good news for advertisers because it’s not only a huge increase from 2008 – where only 27% of respondents said their favorite media activity was television – but because respondents are increasingly seeing TV as their ideal medium.

    It is likely that many respondents cited TV as their media activity of choice because of the associated cost of partaking in this activity as compared to something else like, for example, concert-going. That said, the survey was set up so an answer like concert-going could be given; the fact that TV was still the most-mentioned speaks volumes about the universality of this activity.

    Whether or not it’s the cheapest form of entertainment available, it seems to be official: Americans have rekindled their love affair with the TV.

    Peter Koepell is the President of Koeppel Direct and has over 25 years of advertising, marketing and media experience.

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    Posted in Advertising, Research, drtv, media | No Comments »

    ERA Networking Reception in the Windy City!

    Thursday, February 18th, 2010

    “Chicago, Chicago
    That toddlin’ town
    Chicago, Chicago
    I’ll show you around, I love it
    Bet your bottom dollar
    You’ll lose the blues
    In Chicago, Chicago”

    Lose YOUR blues and join your direct response industry colleagues on Monday, March 15 at the first ERA Networking Reception of 2010. Conveniently taking place during the International Housewares Show in Chicago, this ERA Networking Reception is one that you won’t want to miss. ERA Networking Receptions draw large, but social and manageable crowds, allowing you to easily make new contacts away from the busy show floor of the Housewares Show.

    Come to Flatwater Restaurant (just over two miles away from the convention center) from 5:00 - 7:00 p.m. and eat, drink and chat the evening away. There is also a networking dinner taking place after the reception at Flatwater should you wish to continue the networking after the reception ends.

    For more information and to register, visit www.retailing.org/Chicago. See you there!!

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    Posted in Advertising, Direct Response, ERA | No Comments »

    January 2010 Issue Now Available Online!

    Friday, January 15th, 2010

    January 2010 ERElectronic Retailer’s January 2010 issue featuring Jeff Taylor (founder of Monster.com and CEO of Eons.com) is now available online. For more information on Jeff’s upcoming keynote address at the ERA Great Ideas Summit, click here.

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    Posted in Advertising, Branding, Direct Response, ERA, Electronic Retailer, Europe, Government Affairs, Infomercials, Support Services, affiliate marketing, drtv, e-commerce | No Comments »

    New Strategies Used in Spending this Holiday Season

    Tuesday, January 5th, 2010

    koeppel_headshotThe economic downturn first hit just before the holidays last year and companies were by no means eager to continue to throw money into advertising when it was clear no one was buying.

    Consumers and companies alike were panicking, and everyone stopped spending. This year, though, we may be seeing the economic boost the holidays have always promised – and we might be getting that present a little early.

    A wide range of retailers put money into holiday campaigns, and they showed more enthusiasm for spending ad dollars than they have in previous years, especially in TV.

    The Gap, for example, hasn’t bought television ads for two years, but returned to the tube this year with a new campaign. Wal-Mart, K-Mart and other bargain-priced stores pitched the savings tip hard this year, as consumers cautiously began to spend money again while sticking within their budget.

    By positioning themselves as the places where consumers can get the most bang for their buck, both stores hope to see a good return on their ad investment.

    Best Buy, J.C. Penney, Home Depot, Lowe’s, Sears, OfficeMax and many others jumped on the ad bandwagon. While strategies and ad mediums differed, the message was the same: Spend money this holiday season, but shop here and you’ll spend much less.

    I think you will see an extension of this message following the holidays, to try and tap into a more cost conscious consumer mentality even as the recession recedes. Retailers and marketers who can effectively position their products and services as good values will have more success in today’s challenging marketplace.

    Peter Koepell is the President of Koeppel Direct and has over 25 years of advertising, marketing and media experience.

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    Posted in Advertising, Branding, media | 3 Comments »

    Search Advertising: A Look Back at 2009…And How to Prepare for 2010

    Wednesday, December 23rd, 2009

    It’s that time of year again when we start to see industry pundits and influencers thoughtfully reflect on the year in review. Overall, 2009 has been a tough and tumultuous year for the economy, and digital advertising, as a whole, has not been immune to that. A look back at the year in search, however, tells a slightly more promising story.

    While some things continue to remain the same in search advertising—for example, the market dominance of Google, Microsoft and Yahoo—there were some major market shifts, which are going to impact the year ahead. From the introduction of Bing to the major search deal between Microsoft and Yahoo!, one thing is for certain: as we head in to 2010, these dynamic industry events have search marketers and advertisers on their toes.

    There has been news to write home about, too. Just this past month, both Efficient Frontier and SearchIgnite issued reports based on search advertising industry data from the third quarter of 2009. Both reports indicate paid search spend was up during that time period, compared to Q2.

    This latest industry data comes on the heels of the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC) release of the IAB Internet Advertising Revenue Report for the first half of 2009, which indicates that search revenues were up slightly from that same period in 2008, amounting to more than $5.1 billion for the first six months of 2009.

    While all of this recent market data certainly alludes to an underlying sense of cautious optimism, given the ups and downs of the past year, it’s certainly understandable that many search marketers are still hesitant, and unsure of how to move forward in 2010. Our tip? Don’t put all your eggs in one basket. One important thing advertisers can do right now is to diversify their efforts by complementing campaigns on major search sites like Google, Yahoo! and Microsoft, with alternate sources of traffic with less-competitive CPCs.

    What’s the bottom line for 2010? Innovate, diversify, and think outside the de facto search standards. Your ROI will thank you for it.

    Gill Brown is vice president of advertising network sales for LookSmart.

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    Posted in Advertising, e-commerce | No Comments »

    The Future of Media

    Tuesday, December 8th, 2009

    koeppel_headshotJeff Zucker, the president of NBC Universal recently gave an interview in which he made predictions about the future of media, ad buying and selling, and the role of consumers in media consumption.

    A few of his predictions included:

    • • Media will trend more toward “a la carte” options so customers can pick and choose the features they most want in their media consumption.
      • Interactivity is going to play a huge role in future media advertising.
      • Targeted advertising will become more important, including using locations to find out where consumers are and what they’re buying.
      • Mobile technology will be a 24/7 commodity, with smart phones being a necessity for all consumers.
      • Television will continue to rely on great content to command the highest advertising dollars.
      • Consumers will have more control about how they choose to access media content.
      • Media will have to learn to keep up with the pace of changing technology; there’s no going backward when it comes to new innovations.
      • Methods of researching the best places to put television advertising dollars must be overhauled; the current process is outdated and it’s losing advertisers’ money.
      • Social networks and search will become even more integral to media consumption.
      • Prime-time television will trend more toward big events, news and information than entertainment.

    I feel that Zucker has hit on many key issues related to the future of media; however I think that the convergence of TV and online media and the overall shift by consumers and advertisers to online media are key trends that need to be added to Mr. Zucker’s list.

    Though most of his speculations wouldn’t be argued by the majority of the media industry, the things that constantly surprise Zucker are still the speed of media change. Keeping up with the future developments may be the most important challenge any advertiser needs to address, while execution seems to be less important in today’s fast changing media environment.

    Peter Koepell is the President of Koeppel Direct and has over 25 years of advertising, marketing and media experience.

    Posted in Advertising, media | No Comments »

    INTELLIGENT ROUTING: THE SOLUTION FOR DROPPED CALLS

    Friday, November 6th, 2009


    Now that the annual bloodbath known in direct marketing as “Red October” is over, the usual conjecture regarding why results for DRTV have not been better ensues. One of the culprits that has surfaced in a big way is dropped calls. As difficult as it is to get the consumer - to pick up the telephone and call to order, imagine a marketer’s - frustration to learn that his or her call center may have dropped as much as 70 percent of the calls! It may sound far-fetched, but this is the  sort of statistic floating around the industry based on actual campaign results.

    This is why intelligent call routing can be so vital to a business - that relies on in-bound telemarketing. Intelligent routing allows you - to send calls to multiple locations and establish hard rules for how those calls are received. So, for example, if a direct marketer wants to use multiple telesales centers or even home-based agents, he or she can split the incoming calls among any number of different locations.

    Further, the marketer can establish a rule whereby if a call is not answered within a set number of seconds by the first location in the cue, it is then re-routed to another location. This is truly a win for everyone involved, for nobody triumphs when a call goes unanswered–not the consumer, whose enthusiasm for a product is dampened by a bad experience, not the marketer, who loses out on the precious sale, not the ad agency struggling mightily to make an airing payout, and certainly not the telemarketer who has to face the wrath of all of the above!

    Scott Richards is CEO of Dial 800, a company that specializes in marketing optimization. Among the company’s offerings is IntelliRoute, intelligent call routing that ensures direct marketers calls get to the right place the first time, every time. Richards can be reached at scott.richards@Dial800.com or 1-800-DIAL800.

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    Posted in Advertising, Direct Response, Infomercials, drtv, teleservices | 8 Comments »

    ERA Spotlight Sessions: Endorsements and Testimonials - Pop Quiz!

    Monday, November 2nd, 2009

    The FTC has recently released new Guides on Endorsements and Testimonials. These new Guides mean new rules for all types of marketers and talent. But are you ready to comply? Take this pop quiz to see if you are prepared:

    1. Can celebrities have liability for endorsing a product that does not work?
    2. Can you ever use a disclaimer like “results not typical”?
    3. Do you need to do a study to show what the generally expected result will be for your product? If so, what kind of data do you need?
    4. Are you responsible for the claims your affiliates make? If so, what can you do to avoid liability for the actions of rogue affiliates who make claims you don’t agree with?
    5. A celebrity wears clothing with your logo as part of a contract. Is this an endorsement?
    6. What is a clear and conspicuous disclosure on a blog?
    7. When you show a testimonial, are you claiming that others will experience similar results?
    8. Can you structure your TV spots in a way that does not send consumers the message that they will experience similar results?
    9. (How) Can you comply by simply editing your existing spot?
    10. What is the FTC particularly concerned about? How can you make sure you are complying with the Guides?

    Get the answers to these questions and ask your own at the ERA Spotlight Sessions: Endorsements and Testimonials. The first session is December 7 in New York City, the second session is December 14 in Long Beach, CA and the final session will be a live webinar on December 17 (free to ERA members).

    Rich Cleland, an Assistant Director in the FTC’s Bureau of Consumer Protection will participate in each session. He will be joined by top legal experts in the industry to answer your questions. The two in-person sessions will be half-day events including two panels and a question and answer session with all of the panelists. These in person sessions will give you the opportunity to meet and share strategies with others experiencing similar challenges. See the details and register now. retailing.org/ERA_Spotlight_Sessions

    Tomi Turner is ERA’s legislative manager.

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    Posted in Advertising, Direct Response, ERA, Government Affairs, Just for fun..., Research, drtv | 1 Comment »

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