DIRECT MARKETING ASSOCIATION Not Just Mail Jerry Cerasale

DIRECT MARKETING ASSOCIATION Not Just Mail Jerry Cerasale Senior VP, Government Affairs The Power of Direct Relevance. Responsibility. Results Direct Marketing Association

Change Your Name? At a recent fundraiser a U. S. Senator asked DMA’s President and CEO, “Have you considered changing your name. You’re not just a mailing industry group. ” Direct Marketing Association

What is the DMA? • Over 5, 000 corporate members – 55% marketers – 45% suppliers • • Internet Alliance is a subsidiary DMA Non Profit Federation Direct Marketing Education Foundation Co-owner of Interactive Marketing Solutions Direct Marketing Association

More on What We are! • Ethics – Guidelines – Enforcement – Best Practices • Events – Seminars – Conferences – Networking Direct Marketing Association

• Research – 9 million, $900 billion – Remote selling reduce prices? • Councils – – – – Catalog List Teleservices IMAB-Internet ISEC-Compilers Directo Direct TV etc. Direct Marketing Association

DMA’s Issues • Protect the process for remote selling – – – – State and Federal Privacy front Postal front Telemarketing front Interactive front Tax front International front Direct Marketing Association

Privacy • Too high postage rates will put some of you out of business • Inability to share data to find new customers will close all of you Direct Marketing Association

Basic Privacy Position • Customers have choices – A choice to not receive more messages from you – A choice to not have information shared with others – Opt-out – Not Opt-in—as in Europe • Italy went opt-in and saw a 33% reduction in DM in one year! – Opt-in for very sensitive data—medical, financial account numbers, SSN? Direct Marketing Association

Taste of Privacy Issues • Security Breach – Information on customers and prospects is lost • via hackers • via physical loss • via employee theft • via fraud – Notify those individuals Direct Marketing Association

What Data? • • Any information? Jerry buys baseball tickets? Financial account data? SSN? Direct Marketing Association

DMA Position • Only name, contact AND – SSN – Driver’s License – Financial Account Numbers • Only if there is a significant risk of ID theft • No access and correction – If access—not to all data—just that listed above Direct Marketing Association

Spyware or Adware • Programs placed on computers to learn your interests to send you ads • DMA guidelines for notice and easy, complete removal • Some legislators want opt-in • Relate to postal – How do you obtain my interests? – Opt-in by me? Direct Marketing Association

Postal Issues • • Reform—YES w/ hard cap Military Retirement—to taxpayer not mailers CSRS escrow—some for rate relief Rate case—upper single digits is outrageous – Join with others to parcel issues to reduce costs of our members – Concerned w/ flats vs letters Direct Marketing Association

More Postal • Members want DMA to focus on policy, but enter the mail prep regulations when needed and asked • DMA believes that US economy is based upon computer manifests for shipment of goods – Why not the mail – USPS needs to learn KISS! Direct Marketing Association

DNM • DMA fought do-not-call registry – Laughed at by some mailer associations • NOW! Do-Not-Mail bills in 4 states – Why? – Success of DNC • Mailers live in a fantasy world thinking that’s the phone or that’s the Internet • DMA’s Mail Preference Service— 4 million • DMA and Postcom have gathered a DNM Coalition that uses DMA’s state lobbyists’ information Direct Marketing Association

Telemarketing Issues • DNC—discussed • Inbound call and upsell • Call center outside US – – Must tell where you are DMA wants only if asked Must immediately switch to an American DMA wants able to have American call back • Wireless • States—can’t call your customers in Indiana! Direct Marketing Association

Interactive Issues • E-mail marketing—keep it opt-out • Do-Not-E-mail – Worked with FTC to try to prevent such a registry – Utah & Michigan have DNEM registries for kids email addresses for items kids can’t buy – 3 cents per address sent to be scrubbed every 30 days – Is mail next? Direct Marketing Association

• AOL and Yahoo charging for guaranteed e-mail delivery – Nothing to worry about? – DMA is neutral as long as a free channel remains open – One supplier member favors the charge • We’ll send marketing messages as free e-mail • We’ll go after invoices and bills in the US Mail now and go into the guaranteed e-mail delivery Direct Marketing Association

Online Ad Placement Affiliate Marketing • 3 US Senators ask Ad Associations: – Do your members’ know where their on-line ads are seen and by whom? • FTC is concerned that marketers do not know or claim not to know that their ads are “supporting” fraudulent and porn sites Direct Marketing Association

Establish the Parameters • It is your brand – Once trust is lost, it is difficult to gain back • Establish the parameters of where your ads will be placed • Get it in writing • Monitor it • It is YOUR brand! Direct Marketing Association

Taxes • No seller becomes an unpaid tax collector for a state where they are not located – Think of car rental taxes—usually out-of-staters • States have not simplified – – 7, 000+ jurisdictions No uniform definitions No single audit, registration or payment procedure $15 billion uncollected is not true! Direct Marketing Association

Tax on Postage • State simplification project allows taxing delivery charges (postage) • If paid directly to USPS, states cannot tax • If paid to your printer or mailing house, who entered the mail on its permits, then sales tax applies Direct Marketing Association

• Expensive to fight state-by-state • Far from guaranteed victory • USPS should change how postage can be paid to avoid this problem • DMA to MTAC—GET IT FIXED SOON! Direct Marketing Association

International Issues • Coalition of International DMAs meet every year at DMA Annual Conference • International Department involved in the privacy, postal and tax issues abroad Direct Marketing Association

THANKS I hope I haven’t put you to sleep or, worse, frighten you Remember, my soon to be Ph. D son says, “Whatever doesn’t kill you makes you stronger!” Direct Marketing Association

You have my permission to contact me Jerry Cerasale 202. 861. 2423 Jcerasale@the-dma. org Direct Marketing Association