INTERVIEWS
Published: April 14, 2004
SendTec's Greg Morey
 

Note to marketers: Not all email is spam.

Greg Morey is account services director for DirectNet Advertising, a division of SendTec, Inc. SendTec provides end-to-end services for direct marketers that drive businesses and ROI both offline and online. Morey's responsibilities include managing clients' campaign strategy, execution and delivery through online performance paths.

iMediaConnection: What's your biggest frustration these days?

Morey: Misperceptions of email communication by consumers, ISPs and the mainstream press. Email works so well, that it’s a shame it has the perception that it is all spam. For example, we have a new client that we had to embark on a lengthy process with to help them understand that not all email is spam. Government regulators, too, taking a stance that promotes responsible email use rather than an anti-email approach, ultimately, is in everyone’s best interests. Email isn't like the telephone that enables unsolicited calls all the time.

iMediaConnection: What's easier this year than last?

Morey: Publishers have a greater awareness of the impact of per-action campaigns, and the budgets available from direct marketing advertisers using cost-per-action.

iMediaConnection: What do you think increased their awareness?

Morey: The popularity and effectiveness of paid search opened the eyes of many publishers clinging to rate cards. They started to look at it in a different light, and to realize how much money really is out there for them.

iMediaConnection: What’s one of the most successful branding campaigns your company has executed recently, and what made it successful?

Morey: We're a direct response agency that focuses on driving leads and customers. Our campaigns certainly have a secondary branding benefit, but we don't measure it. I would argue that the best brand positioning in the world occurs when you gain a new customer.

iMediaConnection: What’s one of the most successful direct response campaigns your company has executed recently, and what made it successful?

Morey: We launched a campaign with a partner for Pedigree dog food. It included a contest that has a cash prize, as well as a vacation for four -- plus their dog -- to a spa. It has received a tremendous response because we were able to get inside the head of a dog owner by offering a prize they'd really be interested in -- taking their dog with them on vacation. It’s an "Aha!" moment.

iMediaConnection: How was the campaign structured and where did it run?

Morey: It's currently active on several large networks. The creative has a banner component that, when clicked, takes the consumer to a healthy-dog test. They can input information about their dog, such as breed and weight, and are asked questions about the dog's appearance, etc. Based on that, the ad provides them information on the type of dog food they should be feeding their dog -- they may need a slimming formula, a mature dog food or puppy food, for example -- and then once they've done this, they are offered the opportunity to register for the contest.

iMediaConnection: So the ads add value and promote the contest. That's a good combination. Have any of your clients successfully utilized any emerging technologies, such as IM, wireless, iTV, etc.?

Morey: Several accounts in planning include IM. For the teenage market, IM has replaced the home phone, so there's an opportunity for marketers to find them where they're communicating. As far as ITV -- we can't recommend it at this point until adoption grows stronger. Due to our agency’s fiscal responsibility to our clients, we're interested in being followers in this arena rather than leaders should it prove viable.

iMediaConnection: Are you working with search and local search for your clients? Why? And how's it going?

Morey: We're using both national and local search with tremendous success. We even have one client that is drilling down into zip code data to promote online in specific market areas.

iMediaConnection: What are you telling your clients about rich media?

Morey: We're a DR agency with two sides -- offline and online. As part of the offline unit, we have a lot of video talent. That, combined with the online talent, gives us a natural talent pool to draw upon in developing rich media. That said, it's just not viable for direct response right now because of publisher pricing. If pricing were to change, we would probably replace banner placements with rich media in a heartbeat.

iMediaConnection: What can't the Internet do, as much as we wish it could?

Morey: It can't be truly mobile yet. If you've seen the Web on a phone -- it's underwhelming, at best. I don't think we'll see mobile broadband for another 3-4 years.

iMediaConnection: How is the agency-seller relationship these days? How could it be better?

Morey: It's getting better, but there's always room for growth. I've seen great strides in two areas: they are starting to recognize the value of working with an agency, as well as the value of direct response advertising. In regard to the value of an agency, not long ago, sellers let their egos get in the way of working with agencies. Things have matured, and sellers have learned that smart agencies can provide them more business than if they go directly to clients. They are finding that agencies are sustainable, and that if they treat us like partners and not roadblocks, the opportunities can be tremendous.

Regarding the value of DR advertising, we've seen sellers start to embrace direct response because of the paid search bonanza. They now see that direct response advertisers and agencies can be their largest clients if they find a media pricing structure that works on an ROI basis.

iMediaConnection: Are you having issues with Terms and Conditions?

Morey: Rarely. We do a fair amount of performance-based buying. That can get tricky in terms of reporting payment and so on, but we've worked really hard at developing a good tracking and reporting system. That's part of the maturity of the industry -- we're all here to make money and as long as we can align on the key issues of when and how you're getting paid, it isn’t worth it to get hung up on the rest of the stuff.

iMediaConnection: Are you working with your clients' non-interactive agencies? How are you perceived -- as a partner or still as an oddity?

Morey: We do work with other non-interactive and interactive agencies that don't do direct response. We have a solid reputation of presenting our agency’s value proposition in terms a partner can understand, without threatening their business. We establish what makes us unique and what our value proposition is, and then we're happy to take a seat in the background.

iMediaConnection: What's the one thing you wish clients would understand?

Morey: I'm going back to email for this one. It's such a great 1:1 communication vehicle, and it doesn't have to be spam. I wish there was some way that could be understood. The problem is that there are some bad apples who have abused it and spoiled it. But clients who go out on a limb and trust us on this issue end up ultimately being very pleased. We do drive response with it, we do drive sales with it, and we're fully CAN-SPAM compliant. So if any complaints do come up about a client’s email, we are prepared with the opt-in time stamp and IP address.

iMediaConnection: What's the one thing you wish publishers would understand?

Morey: Again, that the Internet is an incredible direct marketing medium, but that rate cards often don’t work. The publishers that do work with us to find placement and pricing find that budgets can get huge and sustainable. But you can't tell us what your media is worth if you're not driving a response -- the sustainable value of media is manufactured by the response that is generated from its use.

iMediaConnection: What remains the industry’s biggest stumbling block?

Morey: As an industry we need to focus on integration. Too often, the Internet is considered an afterthought as it relates to other media during the planning process. The bubble burst effect is still lingering -- advertisers have heard too many horror stories. We need to become media agnostic and focus on what's best for the client.

iMediaConnection: Other than iMediaConnection, what are you reading these days?

Morey: I just re-read Andy Groves' 'Only the Paranoid Survive.' It's a great study in understanding key strategies for managing your book of business. Then, besides keeping up with the trade press, I'm studying for my private pilot license, so that eats up much of my reading time.

iMediaConnection: And finally, tell us something we don't know yet, but that we will this year.

Morey: I'm going to be somewhat self-serving with this answer. When we go to conferences and industry events and talk about what we do and who we do it with, we constantly hear, "We had no idea; we have never heard of you." But with a lot of great new clients like General Electric, Tickle.com and Real Networks, we hope this is the year SendTec hits the industry's radar screen.