JULY 30, 2003

Daimler Chrysler has joined a long list of marketers who are expanding their targeted marketing initiatives through custom communications programs in both video and print media. The company's Chrysler Million Dollar Film Festival, which funded the development of mini-movies designed for delivery via streaming video, was tied in with last month's Tribeca Film Festival in New York. All three divisions - Chrysler, Jeep and Dodge - are ramping up their custom publishing efforts in association with Meredith Publishing's Integrated Marketing Group.

Meredith, Hachette, Time Inc, Hearst and several independent publishers are experiencing strong growth in their custom publishing divisions as marketers shift budgets to focus on primary customers, following the traditional mantra that 20 percent of customers represent 80 percent of revenues. The abundance of data now available to marketers from a variety of sources points to an even more targeted reality in many industries, where as little as ten percent of a customer base represents 80 percent of a company's revenues.

Traditional mass-based advertising strategies are slowly being exchanged in marketing plans for more highly targeted media efforts, requiring customized creative strategies. Matt Petersen, who was promoted yesterday to Meredith's Vice President and Executive Director of Integrated Marketing (reporting to VP Publishing Director Bob Mate), suggests "there is nothing more important to marketers than their existing customer base. The amount of data now available on existing customers allows them to communicate on an almost individualized customer basis. With the available data, Meredith is able to tailor messages to segments of the customer base, targeting creative messages to appeal to specific audiences based on their purchasing habits, demographics, and other attributes," says Petersen. "Customer loyalty and retention is growing in importance to marketers."

Petersen points out "companies also have consolidated, acquired new assets, and expanded their portfolio of services. It's an important priority for them to communicate the availability of these services to their customers, and custom publishing is proving to be one of the most effective media for accomplishing this." Financial companies, for example, may have originally been exclusively in the insurance business and now they offer banking, mortgages, mutual funds, and full financial planning. MetLife has recently signed with Meredith for a major custom publishing initiative, according to Petersen.

New Study Defines Effectiveness Of Custom Magazines

A new study released this month by the Custom Publishing Council reports that more than 90 percent of consumers and business professionals who read custom publications believe they are an informative source of information. The study, "Effectiveness of Custom Publications," was conducted by Millward Brown. It shows that 64 percent of consumers and 67 percent of business professionals who are regular readers of a custom publication heavily consume the content. "Corporate marketers are moving more money into custom publishing because it works," said Chris McMurry, CEO of McMurry Inc and Chairman of the Custom Publishing Council. Petersen agrees. "The ability to measure effectiveness is a major goal of marketers using custom publishing," he says. "Ten years ago custom published products were nice magazines that made a company's brand look good. In the past five years there's been an increased emphasis on accountability. Marketers are able to define specific ROI measures for custom publications." He adds, "We have been challenged and we challenge our customers to measure custom publications against established ROI goals.

Daimler Chrysler Sponsors "Summer Magazine"

Meredith provides custom publishing services for several major marketers including Daimler Chrysler, Carnival Cruise Lines, Principal Financial, MetLife, John Deere, and Procter & Gamble. Daimler Chrysler's most recent publication is geared to driving their customers into dealerships for servicing. Meredith's custom Summer Magazine focuses editorial content on summer travel within driving distances. Three distinct products were created for Jeep, Dodge, and Chrysler targeting the unique characteristics and interests matching vehicle owners. Four different versions of each were created by geographically regionalizing the travel editorial. "Making the information relevant permeates its way through all custom publishing," says Petersen. "Throughout these publications, there are driving tips, servicing tips, check lists for pre-travel, and dealer service coupons. The publications are value oriented but the primary goal is to drive owners to dealerships to prepare their car for travel."

John Deere Targets Magazine To Larry Divney, Alec Gerster & Other Tractor Owners

Meredith is developing a customer loyalty magazine for John Deere tractor buyers and owners who have purchased a tractor in the past five years. As John Deere has expanded into the home market, the custom publication is designed to keep them abreast of accessories and new models. Because custom magazines are packaged in a non promotional way, it comes across as solution oriented rather than product selling, Petersen suggests. "Custom magazines cut through the clutter people have in their mailboxes. Because the customers have existing relationships with the company, the custom products are not nearly as intrusive as direct acquisition marketing."