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A Glossary of Direct Response Terms
Not familiar with some of the terms, acronyms, and concepts often used in Direct Response? We have provided this online glossary as a guide for our clients and partners. This helps to eliminate common confusion about direct response terms, allowing clearer communication and more efficient planning and execution of your campaign. Alphabetical Index A | B | C | D | E | F | G | H | I | K | L | M | N | O | P | R | S | T | V | W
The alternate airing of at least two creative spots wherein the spots are rotated every week on specific stations. That is, on a given station, Spot A runs in Week #1; Spot B runs in Week #2 and so on. Duration of a typical A/B test is usually 4 weeks, but can go longer depending upon objectives of the test. The primary purpose of an A/B test is to isolate the creative as the sole variable to measure. ASCII Stands for American Standard Code for Information Interchange. The code was developed for information interchange among data processing systems, data communications systems and associated equipment. Fulfillment may sometimes request tapes be supplied in this format. ABANDONED CALLS Calls received in a telemarketing center but never reaching a TSR (usually hang-ups due to caller impatience). ALTERNATE OFFER (AO) An offer for an alternate product, i.e., customer did not respond to the initial product offering. APPEND The action that causes data to be added to the end of existing data. Black and whites — the laser prints produced representing mechanical art with full copy in place. BRC Business Reply Card — used in a mail kit to elicit a response from the recipient. A BRC requires no postage from recipent. Postage is billed to a predetermined postal account. BRE Business Reply Envelope — a postage paid return envelope. Postage is billed to a predetermined postal account. BACK END Refers to the development and analysis of a DRTV campaign’s applications, sales or orders relative to inquiries (see Front End). Ideally, back-end results are analyzed by creative, by market and by station in an effort to improve future marketing and media strategies. Used in conjunction with front-end results, but is far more important in determining total profitability. BACKING UP Printing the reverse side of a sheet that has already been printed on one side. BAR CODE A series of vertical bars that represent the numerics of a Delivery Point, a ZIP + 4 or ZIP code. Bar code on mailpieces can be read by high-speed equipment that automatically sorts mail into a pre-programmed sequence. Discounts apply to mail that is pre-bar coded. Under the USPS Classification Reform, both First Class Mail and Standard Mail have new subclasses with a separate rate structure for bar coded mail. BILLING INSERT (BI) Advertising inserts for mail or phone response inserted with a billing notice. BK SCORE Measure of a consumer’s credit risk. The lower the score, the less chance that the consumer will declare bankruptcy in the future. BLANKET In offset printing, a rubber-surfaced fabric which is clamped around a cylinder, to which the image is transferred from the plate, and then transferred to the paper. BLEED An extra amount of printed image which extends beyond the trim edge of the sheet or page. BLOCKED CALLS Inbound calls not connected due to busy signals. BLUELINE A proof produced by the printer using actual film . This is a final proofread and review point before the component goes up on press. BOOK The actual "order" of airtime to a broadcast or cable station, including dayparts, programming, number of spots per week and cost per spot (see Clear, the percentage of booked airtime that actually runs). BPI Bytes Per Inch. The number of characters stored in an inch of magnetic tape. BRAND A form of TV advertising whose primary objective is establishing and sustaining a product or company’s image and identity. Brand, also referred to as "awareness" advertising, is purchased and analyzed differently from direct response. The objective of brand advertising is maximum reach and frequency not cost per inquiry or cost per order. BULK MAIL CENTER A central receiving and distribution point for bulk mail. BUCKSLIP An unfolded direct mail insert highlighting a benefit or feature — approximately the size of a dollar bill. BULK RATE MAIL The old name for Standard Mail. BVS (Broadcast Verifications Services) A video-monitoring service which detects via satellite the time, station, and program in which a TV or radio spot airs. The act of gathering statistics from the call report or electronic reporting devices for the purpose of management decisions. Used for forecasting both TSR defeats and victories. CAMERA-READY Typeset copy which is ready for reproduction in film or printing. CASS Stands for Coding Accuracy Support System and is a USPS program that sets standards for commercial software that appends ZIP + 4 codes. The software must be submitted to an annual audit by the USPS to confirm that the software performs correctly. By passing the audit, the software becomes CASS-certified. CERTIFICATION The USPS periodically tests the accuracy of the commercial software that uses postal files for processing. Address matching software used in Zip+4 processing must be CASS-certified annually. On voluntary basis, vendors may PAVE-certify postal presort software, and may certify the accuracy of the barcode print image. CHESHIRE LABEL Machine-affixable label prepared on continuous form paper usually for addressing purposes. CLEARANCE The number of direct response spots ordered that actually airs, usually expressed as a percentage in media reports. Clearance can be impacted by seasonality with 1st and 3rd Quarters yielding the highest clearance rates and 2nd and 4th yielding the lowest. Clearance of direct response is inversely related to the demand for brand advertising. Typically, clearance rates by quarter are: 1st (75%-90%); 2nd (45%-60%); 3rd (60%-75%); 4th (40%-50%). CMYK (cyan, magenta, yellow, and black), The primary printing colors, used to create full color printing. COATED PAPER Paper having a surface coating which produces a smooth finish. Surfaces vary from eggshell to glossy. COLOR PROOFS / COLOR KEYS A proof that represents the color breaks of a component. It may not be representive of the actual color but is used to verify the color breaks or placement. COLOR SEPARATION The process of separating color originals into the primary stat components. CONTINUOUS FORM Any form designed to be printed continuously on a roll, generally for personalization purposes. Continuous forms have pinfeeds which are used to feed the form through personalization equipment and are then trimmed off. COMP The color layout for a creative. COPY The text for a creative. CPI Cost Per Inquiry, also referred to as Cost per Lead. The primary measurement of success in direct response advertising, it is calculated by dividing the number of inquires or orders generated by a spot into its cost. The lower the CPI, the better it is said to be performing CPM Cost Per Thousand, defined as the cost of a TV spot divided by its "reach" (or number of adults) divided by a thousand. More typically used a measure of cost-effectiveness in print and direct mail media, CPM is also a useful indicator for TV buyers, especially brand buyers. Not used so much in direct response buying and planning. CREATIVE Actual advertising element, such as direct mail, TV, or FSI solicitation, used to solicit response. Common pool of data serving as a single file for data processing application, i.e., zip code database. DAYPART A range of hours (usually 3-4) in a broadcast day that can be purchased as part of a direct response buy. Most stations will carve out set time periods as being available for the placement of direct response ads. Dayparts can be "narrowed" once results indicate differentiation in program CPI performance. DIRECT RESPONSE Also referred to as DR, a unique form of television advertising that relies on highly quantifiable measurement of advertising costs and associated responses generated from those ads. Other distinguishing characteristics of DR include a strong call-to-action, highly negotiable rates and quick cancellation policy (48-72 hours). DMA Designated Market Area, also known as ADI or Area of Dominant Influence. A DMA (which is really a local television market) is defined as those counties that receive a preponderance of a broadcast station’s signal. There are 210 DMA’s in the U.S., totaling more than 105MM households. DUMP Data printed in raw form from a file — used as a check in conjunction with mailing labels or form sign-offs as an indicator that all information is correct. DUOTONE A two-color graphic reproduction of a one-color continuous tone photograph. DUPE ELIMINATION The process through which duplication is removed from a group of lists. The side of the film which should face the lens during exposure. It is coated with a photosensitive silver halide emulsion. ENVELOPE The addressed outer carrier in which the components of the mailing package are enclosed. Measure of determining consumer financial risk. The lower the score, the higher the risk that the consumer will default or be late in repayment of credit. FIELD The location on a tape of a given set of information such as name, address, city, state and zip code. A field may be variable in length or fixed. FILL-IN Name, address and other pertinent information added as personalization to a letter, application or other mailing component. FIRST CLASS Any mailable matter can be sent first class mail, but mail that is of a personal nature and mail that is sealed against inspection must be mailed first class service. This includes personal correspondence, bills and statements, and any other mail that is specific to the addressed individual. Under Classification Reform, first class is restructured into two subclasses for mail preparation and postage rates: Automation (bar coded mail) and Retail (non-bar-coded mail). FIXED SPOT A unit of commercial airtime that is purchased as non-preemptible. That is, the spot cannot be "bumped". Fixed spots are the type of spots that image/awareness advertisers buy along with retailers, automotive and financial/insurance advertisers. Fixed spots, which can be pinpointed to a specific time in a specific program, can cost as much as 3-4 times that of direct response spots. FLIGHT The duration and process by which a TV campaign is aired. Normally characterized by being on air for a set period of weeks, "hiatusing" or going off the air, then returning on air. Flighting can also refer to the integrated use of fixed and DR spots, conditioning the marker with fixed for a period of weeks, then overlaying DR later in the campaign. FORM 3602 Statement of Mailing that must be provided by the lettershop for standard mailing. The 3602 identifies level of sortation, postage rate, number of pieces and the total amount of postage due. It is stamped by the post office when standard mail is dropped off and serves as certification that mail has been received. FOUR-COLOR PROCESS The use of cyan, magenta, yellow, and black inks to create the illusion of full color printing. FOURTH CLASS Includes books, records, tapes, educational materials and printed material that can’t be mailed as any other class of mail. This by another name is parcel post, the USPS service to deliver mail parcels weighing over 16 ounces. FREE-STANDING INSERT (FSI) Advertising insert, either solo or cooperative, inserted into selected newspapers — usually the Sunday edition for maximum exposure. FREQUENCY The number of times a spot airs, usually measured on a weekly basis. Frequency is a crucial component of the direct response methodology as it contributes greatly to building momentum, increasing awareness and reducing CPI. Most direct response schedules are booked at 10-15 spots per week per station. FRONT END Refers to the results of a DRTV campaign relative to leads or inquiries (see Back End). The standard method of measuring front-end success is the cost-per-inquiry (CPI) which calculates dollars spent divided by leads generated. Ultimately, it is the combined outcome of front AND back-end results that determines a campaign’s success. FULFILLMENT The physical handling of an order, information request, premium or refund. Gross Rating Point. In brand advertising, refers to the "weight" of advertising impressions, usually expressed in weekly terms. It is calculated by multiplying the rating of a program times the frequency of spots aired. Example: Airing 15 times per week in a program with a rating of 2 yields a GRP level of 30 points per week. Generally speaking, a level of 300 GRP’s per week is considered a substantial level of impressions. The reproduction of continuous tone artwork, such as a photograph, using dots to re-create tone, shadow, and depth. HICKEYS The spots or imperfections in the printing due to dirt on the press, dried ink skin, paper particles, etc. The handling of incoming telephone sales calls. Generally requires less sophistication, more order-taking skills, on the part of the telephone sales rep than outbound telemarketing because the interest already has been generated by broadcast advertising, direct mail, FSI, etc. INDICIA Preprinted permit in the upper right hand corner of the mailpiece which indicates that postage has been paid to a permit-numbered account. The indicia substitutes for stamps or metered postage. INVALID RECORDS Records which when passed against an edit screen are found to be wrong in some significant way. Such records are "excepted" (bumped) from the file. A means utilized to identify a given promotional effort so response can be identified, tracked and measured. Commonly a combination of numbers and letters. LABEL, PEEL-OFF (OR PRESSURE-SENSITIVE) A self-adhesive label form that can be peeled off its backing and pressed onto a mailing piece manually. LASER PRINTING Personalization print method created by using a laser beam, toner and fuser often allows for extensive degree of character rotation. LETTER OF AUTHORIZATION (LOA) An agreement letter signed by the client agreeing to terms established for the Creative. LETTERSHOP Facility handling all details of the insertion, preparation and mailing of bulk quantities of mail. LIFT NOTE A separate letter/note insertion added to a solo mailing reminding the reader of a specific feature or to consider the offer just once more. LOCK-UP The area needed on a form that does not bleed off the top or bottom (or sides depending on how the piece is printed) due to the limitations of the print cylinder. LTC (Last Telecast) The date on which a TV spot is aired for the first time during a given flight. A means to store names and addresses in magnetic form for sequential processing by a computer. Most tape lists are furnished in fixed-field format on nine-track tape, 1600 or 6250 BPI (bits per inch) in IBM mode. MAIL COUNT The amount of mail deposited with the USPS on a given date as reported on the postage statement provided by the Postal Service. MAIL DATE The date selected for delivery of a mailing program to the USPS. MAILING HOUSE A direct mail service establishment which among other services for the mailer, will affix labels; sort, bag and tie the mail; then deliver it in qualified zip code strings to the USPS for certification. MAKE READY All the preparations to the press before the actual print run. MATCH PRINT A proof showing actual color before the component goes up on press. Actual film is used to create traditional match prints. MATTE FINISH Dull paper finish without gloss or luster. MEDIUM The specific part of a given media—that is the individual magazine, TV station or mailing list. MERGE-PURGE Process to combine two or more lists and remove duplication in the end file. National Change Of Address is a service of the USPS to improve the accuracy of mailing addresses. The NCOA file is complied by the USPS from Change of Address cards that are submitted by movers to their local post office. Mail files can be matched against this file to identify movers and to supply the current mailing address. This service is performed by commercial vendors who are licensed by the Postal Service. Nth SELECTION Method for selecting a random cross section of testing. "Nth" describes a fractional unit that is repeated throughout a list. An example would be selecting one out of every tenth name in a list and fulfilling with a different mailing package than the rest of the names, thereby creating a test file. NET NAMES The actual number of names of a given list mailed after a merge-purge. The process of using an intermediate blanket cylinder to transfer an image from the image carrier to the paper. Also called OFFSET lithography. ONE-STEP A one-time offer designed to make a sale in a single transaction. OPACITY That property of paper which minimized the "show through" of printing from the back side or the next sheet. OSE Outside envelope used as the carrier for the mailing components. OSOPTICAL CHARACTER READER (OCR) An electronic scanning device that can read typed characters and convert them to magnetic form. The nine-digit zip code system is designed to utilize an OCR to read the address back and to print a nine-digit bar code on the piece. OUTBOUND TELEMARKETING The initiation of outgoing telephone sales calls. Usually requires more sophistication than an incoming call program because more "selling" is required, greater sales rep frustration is involved, and there is a greater risk of telephone sales burnout. List of individuals maintained by the Direct Marketing Association (DMA) who do not wish to receive mail solicitation of any type from anyone. Used as part of the merge-purge process by some clients. PARSE To divide a group of words and/or numbers into components. In data processing, parsing typically puts first and last name into their own fields, title into its own field, primary and secondary addresses into their own fields, etc. PARSING A system of analyzing a name and address record — by each of its parts, individually. An essential step to successful matching of one file to another. PASS-ALONG An added response piece included in a mailing that the recipient, should they find the mailing of interest, may give to a friend or associate so they in turn may respond. PERSONALIZATION A means to add the name, address, keycode, etc. of the individual to a mailing piece. PHOTOREADY/REPRO The copy that is generated by the personalization house. It assures that the personalized front of a letter matches the pre-printed back. PMS Pantone Matching System—the color system for Mechanical Art. PREEMPTIBLE Refers to a direct response commercial’s potential to be removed from a station’s log of commercials to air. Sometimes referred to as "bumped", this term refers to spots that are purchased as direct response with a lower rate, but a higher chance of not clearing or airing. PRESORT Mailers can earn postage discounts by sorting mail and putting it in trays or sacks that can be easily routed by the USPS. Containers of mail destined for the same three-digit zip location (three-digit sortation, or to the same a five-digit zip location (five-digit sortation) or to the same carrier route (carrier route sortation) can be transported and processed more quickly, and so earn discounts. Mail that isn’t presorted [residual or basic (full) rate] must be sorted within the postal system several times before reaching its final destination. The USPS offers discounts for those who prepare the mail for direct delivery to post offices or to carriers at post offices. PROMPTS Outline format to provide a progressive linear track for a telephone sales rep to follow. Key statements and responses to repetitive questions/objections are preplanned and rehearsed. PROCESS COLORS The subtractive primaries: yellow, magenta, cyan and black in 4-color printing. A proof of the 4-color separations before a color key or match print is produced, providing the opportunity for color changes. RATE CARD A listing of rates by daypart for a TV or radio station. Direct response media buyers use this card as a starting point for rate negotiation. RECORD A name and address entry on a file, made up of a number of distinct items called fields. RECORD LAYOUT A description covering the entire record length to denote where on a tape each field of the record appears such as name, address, city, state, zip and other relevant data. RECORD LENGTH The number of characters occupied by each record on a file. REFORMATTING Changing a computerized tape list to a different type layout. REPEAT MAILING Mailing of the same or very similar packages to a list for the second time. RESPONSE RATE The percentage of responses received from a given promotional effort. RETURN POSTAGE GUARANTEED Standard mail so marked, if undeliverable, will be returned for a fee. ROLLOUT The process by which test results and findings are expanded either geographically, financially or both. Also involves extending the duration of activity. This is the logical next step in the direct response methodology in which performance test data on market, creative, station and daypart are analyzed and used to execute a larger more sustained effort. ROP Run of Press—advertisement in newspaper or magazine. Names added to a mailing list for protection, quality control, and to determine if a mailing has been received. SCRIPT A prepared textual presentation that is closely followed by TSRs as a tool to convey their telephone sales message. SELF-MAILER Card or folded piece placed in the mail stream without an outside carrier. SEGMENTATION The process of segregating or selecting specific records from a list with specific criteria. Creating major customer segments or minimarkets using the most significant historical purchase data. SEQUENCE NUMBER Unique identification number assigned in sequence order to individual records in a given file. Once allocated to a given record, that sequence number cannot be used for any other record in that file. SHEET-FED PRESS A printing press that prints on separate sheets of paper. Used for smaller print runs or components that need very good quality. STANDARD MAIL Standard mail which was called third class or bulk rate has three subclasses for preparation and for postage rates: Automation (bar coded mail), Enhanced Carrier Route and Regular (includes 3/5 Presort and Basic Rate mail). SUPPRESSION Utilization of data on one or more files to remove any duplication of specific names that the mailer wishes to be removed before mailing. SET-UP CHARGE A flat print or production charge assessed in addition to the cost per thousand. SPOT A TV commercial. In direct response, the most common unit is the :60, though :90’s and :120’s have been used extensively and with great success. The 30-second spot is generally not used as a direct response unit, though it (and the :60) are the units of choice for image and awareness advertising. A file produced by, and readable by a PC, wherein individual records are separated by keyboard tabs. TAKE-ONES Direct response offers available in boxes or display to be "taken" by any who see them. An inexpensive way to distribute simple consumer offers at high traffic locations. TARGET MARKET The ideal audience for a mailing effort. Usually defined in psychographic and demographic terms. TEASER A bit of introductory copy, usually on the outside envelope, to induce the recipient to open the envelope and find out more. TELEMARKETING A controllable and measurable method of professional marketing using telecommunications and computers. Its basic objective is to increase bottom-line profitability while reducing the cost of selling and improving market share. TELEPHONE SALES REPRESENTATIVE (TSR) Agents who market and/or sell by telephone. Could also be referred to as "telemarketers." TEST CAMPAIGN Mailing of test pieces to a predetermined number of outside lists to establish a bank for continuation mailing; must not be to only one list which is a "continuous series of one experiment." THIRD/STANDARD MAIL Over 85 percent of mail carrying advertising of promotional material utilizes standard mail postage which costs considerably less than first class. It is primarily advertising mail. Piece weight over 3.3 ounces is subject to additional postage THREE-FIVE-DIGIT SORT (3/5 DIGIT SORT) One of the three levels of sortation for standard mail. All addresses destined for the same three-digit zip are sorted together and placed in trays or bags, and all addresses destined for the same five-digit zip are sorted together and placed in trays or bags. A report which reflects the variance between weekly estimated spending and actual monthly spending as reported by TV or radio station invoice. VIGNETTE An illustration in which the background fades away gradually until it blends into the unprinted paper. A high-speed printing press that prints using a roll of paper. Used for larger quantities. |
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