Direct Response... The Future of Advertising ACCOUNTABLE

332740_ERA.qxd1
12/20/05
1:01 AM
Page 991
ACCOUNTABLE
MEASURABLE
RESULTS
ANNUAL REPORT
04
05
Direct Response...
The Future of Advertising
332740_ERA.qxd2
12/20/05
1:01 AM
Page 992
THE MISSION
The mission of the Electronic Retailing Association
is to foster the growth, development and
acceptance of the rapidly growing direct response
industry worldwide for companies that use the
power of electronic media to sell goods and
services to the public.
THE VISION
ERA is the trade association that represents the leaders
of direct response, members who maximize revenue
through electronic retailing on television, online and on
radio.ERA strives to protect the regulatory and legislative climate of direct response while ensuring a favorable landscape that enhances e-retailers’ability to bring
quality products and services directly to the consumer.
332740_ERA.qxd3
12/20/05
1:01 AM
Page 1
A Message
From ERA’s President & CEO
Looking Back on a Great Year
hen ERA entered its 2004-2005 fiscal
year, this association had made some
very ambitious promises to its membership. During the course of 12
months, we promised to launch our new magazine Electronic Retailer, to expand our self-regulation programs here in the States and abroad, and
to grow and diversify our membership. Looking
back, even I wondered how we could do it all,
while also maintaining our current government
affairs, membership, conference and research
offerings. So, how’d we do? Did ERA keep its
promises? Read ERA’s 2004-2005 Annual Report
to find the answers to these questions and more.
W
In our industry accountability is key, and the
trade association representing direct response
marketers shouldn’t be any different. Therefore,
this year’s report is designed a little differently in
an effort to showcase ERA’s tangible results and
real benefits. Our goal is to help your business
reach that next level of success, and I believe that
ERA is often so successful because we are able and
willing to take risks and move fast, without losing
sight of our strategic course and direction. Looking
ahead, we must also work to cultivate the programs
and initiatives we have created to enhance the clout
of this incredible industry amongst the business
community and the general public. During the
course of the coming year, one of our primary goals
will be to sustain the positive momentum we have created while ensuring that our benefits and services continue to expand. This
will be no easy task, but as
we’ve shown in this year’s
Annual Report, ERA is
ready for the challenge.
Sincerely,
Barbara Tulipane, CAE
ERA President & CEO
PRESIDENT’S MESSAGE
Inside this report you’ll find a detailed account of
ERA’s various activities for the past fiscal year.
Throughout the next 21 pages, you’ll have the
opportunity to read information on ERA’s financial strengths, top accomplishments and new initiatives. You’ll also be able to learn more about
ERA’s legislative positions, strategic alliances and
international growth. This past year saw a flurry
of activity with new member services, the expansion of our lobbying efforts and more PAC contributions than ever before. In addition, 20042005 was the strongest financial year in ERA’s history, which is no small feat given our significant
financial undertakings to fund both self-regulation and the new magazine. There is no doubt in
my mind that ERA is stronger and more influential than it ever has been, in an industry that continues to flourish. For all this we thank our members and I hope that you are as proud of ERA’s
accomplishments as I am.
during this past year, ERA has done everything in
its power to help you get there. I am personally
very proud of ERA’s growth and of our board of
directors who so tirelessly volunteer their time
and expertise. The story told in these next few
pages is really the result of this leadership team’s
hard work, collaboration and vision.
1
332740_ERA.qxd4
12/20/05
1:01 AM
Page 2
Government Affairs
RA is always on the forefront, fighting to
protect your business interests in
Washington, DC, and beyond. ERA
monitors hundreds of legislative and
regulatory proposals and provides early member updates whenever potential challenges arise.
As an ERA member, you have the opportunity
to make sure you are in the know about issues
that could affect your company’s bottom line.
So which issues have kept ERA busy lately?
E
Data Security/Privacy
Data security bills being debated by various congressional committees provide reason to pause.
While every sensible business leader supports
improving consumer confidence, each major legislative proposal raises important questions that
need to be addressed before a compromise is
reached. In particular, many proposed laws impose
the potential for considerable compliance costs and
increased company liability for Internet retailers.
There is also the difficulty in requiring a company
to comply with 50 different, and often conflicting,
state standards. On behalf of the DR industry,
ERA continues to advocate outlining a plan that is
beneficial to marketers and consumers alike.
GOVERNMENT AFFAIRS
Net Neutrality
2
The beauty of the Internet is its promise of
unlimited accessibility. Anyone with an Internet
connection and a computer may visit any website, post any content and provide any service as
long as there is no interference with the rights of
others to do the same. While we all know the
Internet’s benefits, currently there are no
requirements assuring universal access. The
operators of networks who carry Internet traffic
are under no legal obligation to keep their networks open and free of charge, for any Internet
content. As a result, legal and regulatory decisions have created the framework for broadband
providers to seriously degrade (or even deny) a
company’s ability to reach customers over the
Internet. This concept of “net neutrality” is very
important as direct response marketers continue
to see increasing percentages of revenue derived
from online sales. ERA is leading this fight to
332740_ERA.qxd5
12/20/05
1:01 AM
Page 3
preserve and protect free Internet commerce
through its Online Retail Alliance.
Streamlined
Sales Tax
The Streamlined Sales Tax project is the states’ effort to
require direct marketers to
collect sales tax for products sold in every state in
the country. Currently,
retailers are not
required to collect
sales tax if they
do not have a
business presence in a
given state.
Such regulation will
place significant
administrative
costs on all
“pure play”
Internet retailers if collection
is mandated. Moving forward,
it is a bit uncertain how collection might affect Internet
retailers, but ERA is actively
involved in this issue.
These are only a few examples
of the serious challenges that
face DR marketers and the
future of their business if
government leaders don’t
make the right decisions. ERA members who
are operating in cities and towns across
America should be fully aware of potential
government actions. ERA encourages its
membership to reach out to local political leaders to educate them on this
viable and flourishing industry. As
more and more legislation threatens
the growth of DR, ERA remains committed to fighting on the front lines.
ISSUES AND YOUR BUSINESS
PRIVACY
ERA’s program levels
the playing field and
removes “bad”
marketers from
the industry.
STREAMLINED
SALES TAX
NET
NEUTRALITY
ERA works closely
with legislators and
industry experts to
ensure that new
tax policies are
consistent among
states, while also
minimizing
the financial and
regulatory burdens
for marketers.
ERA advocates
your ability to
market directly to
consumers via the
Internet under fair
conditions.
GOVERNMENT AFFAIRS
ERA protects your
interests as Congress
decides how you
must handle
your customers’
personally
identifiable
information.
ELECTRONIC
RETAILING SELFREGULATION
PROGRAM
3
332740_ERA.qxd6
12/20/05
1:01 AM
Page 4
Initiatives
The Electronic Retailing
Self-Regulation Program
f all the initiatives that ERA has enacted
in recent years, virtually none have been
as wide sweeping as the Electronic
Retailing Self-Regulation Program.
ERSP, as the program has been called, began in
April 2004 in partnership with the National
Advertising Review Council (NARC), the self-regulatory body for the traditional advertising industry.
Noting an industry need to self-regulate, ERA created this program in an effort to identify egregious
DR advertising and remove it as expeditiously as
possible from the airwaves. During the course of
12 short months, this program has received
unprecedented support from ERA members, the
general public and the media and has positioned
ERA as a leader within the business community.
O
Since announcing its first case results in
September 2004, ERSP has reviewed 1730 direct
response advertisements looking for unsubstantiated claims. To ensure that ERSP covers the full
gamut of the DR industry, the program doesn’t
just review infomercials and short form spots, but
also looks at home shopping and e-commerce for
ERSP’s Statistics
INITIATIVES
As of July 13, 2005
4
Total Direct Response Advertising Tracked
Home Shopping Hours Monitored
Direct Response Email Spam Monitored
Direct Response Website Pop-Ups Monitored
Consumer Complaints Pursued
Spanish Language Consumer Complaints
Total Cases: Current and Closed
Cases from Monitoring
Cases from Consumer Challenges
Cases from Competitor Challenges
Cases from Compliance
Cases from 2-minute Short Form Ads
Cases from Long Form 30-minute Infomercials
Cases from Print Advertising
Cases from Website Advertising
1730
145
Approx. 1100
Approx. 900
57
4
60
32
12
14
2
6
33
3
18
fraudulent claims. Over 140 hours of home
shopping have been monitored, as well as 1100
spam emails and 900 website pop-up ads.
Understanding that DR is international, ERSP has
also pursued four Spanish language shows to protect Hispanic consumers. Cases are brought to
ERSP through a myriad of options and virtually
anyone can refer a case, including nonmembers,
industry competitors and general consumers. In
fact, almost 100 consumers have gone online to
www.savvyshopper.org to submit their complaints, which have led to 12 investigations.
Of the 60 cases ERSP had announced at press
time, half have been related to DRTV advertising.
Additionally, 18 have come from web advertising
and three have come from print. One of ERSP’s
primary goals is not just to penalize the marketer,
but actually to work with them to alter their
advertising to stay within the ethical guidelines of
the law. In that same vein, over 80 percent of all
marketers targeted have chosen to modify or discontinue their advertising based on ERSP’s recommendations. This figure is outstanding given
the relative youth of the program and further
illustrates this industry’s firm commitment to
protecting America’s consumers.
While 80 percent of selected marketers have chosen to participate, unfortunately others have not.
Currently, seven companies have refused to participate and thusly, have been referred to the
Federal Trade Commission (FTC). The FTC has
indicated to ERA that they will very carefully
scrutinize any ERSP referral. As a result, one of
ERSP’s first case referrals resulted in a $20 million consumer redress settlement, which was the
largest health fraud judgment in FTC history.
Additionally, ERA has kept its promise and
expelled a member from the association who
refused to adhere to ERSP’s recommendations.
Long after cases are announced, ERSP continues
to monitor marketers who agree to make changes
to ensure that they do. ERSP has no tolerance for
DR marketers who refuse to play by the rules.
332740_ERA.qxd7
12/20/05
1:02 AM
Page 5
ERA EUROPE
ERA’s E-Retail PAC
ERA’s E-Retail PAC is the political action committee of the direct response industry. During the
2004-2005 fiscal year, E-Retail PAC enjoyed
another successful year, with over $93,000 collected in political contributions. ERA’s PAC is essential to help support members of Congress who
understand the issues affecting the electronic
retailing industry. Virtually every year since its
inception, ERA’s E-Retail PAC has grown in
strength and reach and is a crucial industry
resource to promote a unified and powerful voice
within the U.S. legislative process. A special
thanks to the hosts and attendees of ERA’s first
Annual Leadership Dinner which serves as the
foundation for the association’s PAC activities,
with all proceeds earmarked to help educate congressional leaders on this vibrant industry. ERA’s
PAC contributes to both sides of the political aisle
and focuses on key legislators who have the most
impact to affect the future of electronic retailing.
In Particular, Funds from the 2004-2005
Fiscal Year Went to Support the
Following Candidates:
Sen. George Allen (R-VA)
Sen. Gordon Smith (R-VA)
Sen. Bill Nelson (D-NE)
Additionally, ERA
EUROPE’s government affairs activities
have been extensive
and have positioned the affiliate
as the only dedicated television
shopping industry
trade organization in
Europe. ERA EUROPE has worked frequently with the EU by participating in all public
consultations conducted by the Commission, including revisions to the Television Without Frontier
Directive. The Government Affairs Committee has
also conducted four meetings and workshops and
has drafted two position papers which were presented to the Commission Audiovisual Policies Division,
among other activities.
While the affiliate membership base only grew
by four members to 70 active companies, over
85 percent of existing members renewed their
membership. Attendance at the January 2005
meeting for ERA EUROPE members was also a
highlight, with over 20 percent more attendees
than in 2004. Full details on all ERA EUROPE
INITIATIVES
Rep. Jim Davis (D-FL)
Rep. John Porter (R- NV)
Rep. Eric Cantor (R-VA)
Rep. Randy Forbes (R-VA)
Rep. George Radonvich (R-CA)
Rep. John Sullivan (R-OK)
Rep. Lee Terry (R-NE)
Rep. Robert Menendez (D-NJ)
In June 2005, ERA EUROPE, as its own separate
affiliate, completed its first fiscal year. During that
time, ERA EUROPE was exceptionally active in
many areas, including self-regulation, membership
and government affairs. In June 2005, during
ERA’s European Conference & Trade EXPO, ERA
EUROPE officially launched its own self-regulation program, which is now a part of their formal
structure and bylaws. This program is intended to
be a resource for ERA EUROPE members to better
orchestrate a consumer-centered marketing
approach, and to adjust to the advertising
standards and codes applicable to
European markets. While in its
infancy, this program shows
much promise and will
give European regulators another option,
instead of just redress
and injunctions.
5
332740_ERA.qxd8
12/20/05
1:02 AM
Page 6
activities can be found in their first ever annual
report published in December 2005.
Geography of ERA EUROPE’S Membership
Other ERA
EUROPE countries
Italy/
San
Marino
36%
7%
Spain/
Portugal/
Andorra
United
Kingdom
17%
8%
France
9%
10%
Belgium/Netherlands/
Luxembourg
13%
Germany/Austria/
Liechtenstein
ERA in Asia and Latin America
INITIATIVES
In an effort to improve ERA’s reach globally, ERA’s
two international program committees, the Asia and
Latin America Committees, introduced their own
respective plans to increase membership and
improve services in each of their respective regions.
In February 2005, both committees proposed business plans to ERA’s board of directors outlining their
year long strategies. As a result, each committee has
had an exceptionally busy year and has achieved
much in relation to their plans and directives.
6
In particular, the Asia Committee worked
extremely hard to expand its membership base
and has reached out to larger Asian home shopping channels to achieve better recognition
throughout Asia. The committee has used a
number of communication vehicles to accomplish its objectives, including articles in Electronic
Retailer magazine, as well as supplements on ERA
benefits translated into Japanese, Chinese and
Korean. The committee has also focused on educational efforts and networking opportunities,
including sessions at ERA’s Annual Convention,
as well as a conference Self-Help Desk and Asia
Dinner. Looking ahead, the committee plans to
hold an Asia Conference in April 2006 in Hong
Kong to reach out to companies not familiar with
ERA and its activities.
On the other side of the globe, the Latin America
Committee has also expanded its membership base
significantly, from just five members to 23. With a
strong focus on membership, the committee’s yearlong goals are to maintain 100 percent retention
rates, to recruit new Latin American DR companies,
and to grow the new Latin division of the cable and
broadcast membership category. To find out what
services attract members from Latin America, the
committee identified the following through surveys:
accessibility to membership and conferences at an
affordable cost; credibility-building events and
materials; and resources to bring more product suppliers into the region. As a result, the committee has
hosted numerous networking events and an awards
show, as well as expanded their educational reach
and communication offerings through ERA’s website and newsletters.
332740_ERA.qxd9
12/20/05
1:02 AM
Page 7
Alliances
n any organization or business, strategic partnerships are key. In recent months, ERA has
entered into some very important alliances
with other organizations to help expand the
reach and credibility of the DR industry.
I
The Retail Industry
Leaders Association
In early 2004, ERA began a dialogue with the Retail
Industry Leaders Association (RILA). RILA is the
world’s leading organization representing big-box
retailers, their products and service suppliers.
Seeing the potential synergy between ERA’s members and the members of RILA, the association
approached them to determine how best to create a
beneficial relationship for both parties. RILA’s
reception to ERA was great, which illustrates a firm
interest in DR from the big-box retailing perspective. As a result, in April 2005, ERA members were
invited to attend RILA’s Leadership Conference in
Miami. Later that year, ERA members hosted an
educational panel on the future of direct response
during RILA’s annual convention.
While the educational offerings are significant, RILA
also partnered with ERA on distribution of Electronic
Retailer magazine. Currently, every RILA member
receives this publication and many retailers have
offered contributions and suggestions for editorial.
Circulation now boasts executives from Wal-Mart,
Best Buy, Home Depot—virtually every top retailer
in the world. ERA continues to work with RILA on
additional projects to ensure that the DR industry’s
message reaches this very influential market.
relevant issues. With debates heating up, this partnership will be vital to ERA’s members concerned
about the future of television advertising.
ERA created another partnership this year with the
eTail Show, which is coordinated by Worldwide
Business Research. eTail, a leading conference for
multi-channel marketers, is working with ERA on
education, research and editorial distribution.
Recently, eTail attendees received complimentary
copies of Electronic Retailer magazine and looking
ahead, both organizations are determining mutually beneficial ways to reach their respective audiences. Given ERA’s multi-channel focus and the
conference’s similar direction, this partnership is a
natural fit for both organizations.
The Online Retail Alliance
One of ERA’s most important undertakings of the year involved the formation of ORA, the Online Retail Alliance. This coalition of top retailers was founded with the sole purpose of outlining government affairs initiatives and
strategies for web retailers. This alliance, which held
its first meeting in late 2005, is comprised of representatives from within ERA’s membership and from
outside of it, including, eBay, Inc., InterActiveCorp.,
ShopNBC and the Home Shopping Network
(HSN), among many others. While the alliance will
address many issues, its initial focus is on
Streamlined Sales Tax, privacy and net neutrality.
This alliance has been met with exceptional support
since its launch, and its clout and influence is only
expected to improve as it moves forward.
The Interactive Television
Alliance and eTail Show
ALLIANCES
Two crucial partnerships related to
the future of television and the
Internet have also emerged in recent
months. ERA has been in discussions with the
Interactive Television Alliance (ITA) on the future
of television with digitization pending and the proliferation of Video on Demand, DVRs, etc. ITA has
been very instrumental in helping ERA cover this
issue editorially, as well as in our educational programs. ITV’s membership also receives Electronic
Retailer magazine monthly, and multiple government affairs meetings have occurred to discuss
7
332740_ERA.qxd10
12/20/05
1:02 AM
Page 8
Revenue
Overall Financial Results for ERA’s
2004-2005 Fiscal Year (Consolidated)
RA’s financial security continues to grow
each and every year. The 2004-2005 fiscal
year was the strongest in ERA’s history,
with over $5 million in revenue. During
the course of the year, ERA funded some very significant initiatives, including the launch of
Electronic Retailer magazine. While an initial
investment and new member service, this publica-
E
Year Ending June 30
tion is flourishing and will be a significant revenue
producer in the near future. ERA EUROPE’s new
affiliation is also an area where revenue has shifted,
as ERA EUROPE now retains 85 percent of its
dues and 40 percent of all conference revenue.
ERA’s total assets also grew by leaps and bounds,
which can be attributed to the association’s recent
move and acquisition of new resources.
2004-2005
2003-2004
2002-2003
2001-2002
2000-2001
$5,274,552*
$3,897,173
$3,566,244
$2,939,004
$2,778,253
$559,516
$596,606
$403,133
$150,347
- $206,754
Cash & Investments
$1,886,726
$1,726,597
$782,833
$352,544
$104,187
Total Assets
$2,709,596
$1,644,239
$923,757
$600,810
$450,637
Revenue
Net Income
* Please note that $123,657 of this total sum is attributed to ERA EUROPE and is not retained within ERA’s final revenue.
Meetings & Membership Financials
ERA’s meetings and membership departments both contribute greatly to the association’s overall financial security. During the 2004-2005 fiscal year, membership and meetings retained significant financial
resources while also initiating new and exciting member benefits and services.
Overall Meetings Revenue
Overall Membership Revenue
$1,350,150
$2,602,993
$1,221,142
REVENUE
$1,736,048
8
2002/03
$1,205,000
$1,878,058
2003/04
2004/05
** Note: ERA EUROPE only contributes 15 percent of dues to ERA.
2002/03
2003/04
2004/05**
332740_ERA.qxd11
12/20/05
1:02 AM
Page 9
Magazine
Electronic Retailer Magazine
uring its first year, Electronic Retailer
magazine made a strong impact on
the direct response industry by creating a full package, which included the
introduction of its electronic properties,
enhanced circulation, industry-wide show distribution and the debut of a buyers’ guide. To
complement the print magazine, the ER staff
launched an electronic version (eZine) called
Electronic Retailer 24/7. The eZine was well
received and has helped to attract new readers
throughout the U.S. and around the globe.
D
The Electronic Retailer name was further branded
with the introduction of Electronic Retailer News
Direct—a weekly e-newsletter featuring industry
news, as well as important company updates.
Electronic Retailer also launched a monthly enewsletter, called Electronic Retailer Hispanic
Numbers, which features industry news and
research data focused on the U.S. Hispanic market.
Electronic Retailer’s circulation rose from 12,000
subscribers to over 18,000 during its inaugural
year. This rich circulation list is comprised of
executives from big-box retailers and Fortune
500 companies. Further, the magazine has maintained a strong presence at many industry trade
shows and conferences. In addition to show distribution at ERA’s Annual Convention, MidWinter Conference & Trade EXPO and European
Conference & Trade EXPO, the magazine was
present at the DMA Annual Conference,
Consumer Electronics Show and the
International Housewares Show, to name a few.
Nadia Ashrafian, Capital Media, Inc.
Michael de Vere, 2B on TV
Stacy Durand, Revenue Frontier
Steve Edelstein, Fosdick Fulfillment Corp.
Edward Glynn,Venable LLP
Linda Goldstein, Manatt, Phelps & Phillips LLP
Chris Homer, Media Power
Eileen Joyce, Palisades Direct
Jack Kirby, Continuum Commerce LLC
Peter Koeppel, Koeppel Direct
Collette Liantonio, Concepts TV Productions
Nancy Marcum, Marcum Media LLC
Ben Mendelson, Interactive Television Alliance
Marianna Morello,Manhattan Media Services,Inc.
Steve Nober, Mercury Media
Sandra Peters, North Country Media Group
Rick Petry, Downstream
Steve Pittendrigh, InPu!se Response Group
Joan Renfrow, Onyx Productions, Inc.
Henry Scott, Simply Media TV, Ltd.
Gene Silverman, hawthorne direct, Inc.
Kazuhiro Tabata, Prime Network, Inc.
Jeff Tuller, Savvier
Dick Wechsler, Lockard & Wechsler
Richard Whinfrey,Thane International UK
Dan Zifkin, Zephyr Media Group
MAGAZINE
In June 2005, Electronic Retailer created a comprehensive buyers’ guide called the Electronic
Retailer Gold Book. This 196-page supplement
not only offered industry professionals access to
over 700 company listings, but also provided
valuable industry research that pertained to
direct response television, direct response radio
and e-commerce. The magazine’s quality and
reach only continues to expand as more and
more readers and advertisers flock to become a
part of the DR industry’s premier publication.
Members of Electronic Retailer’s
Magazine Advisory Board
9
332740_ERA.qxd12
12/20/05
1:02 AM
Page 10
Research
In May 2005, ERA released its annual multi-channel Consumer Expenditure Study, which measured consumer shopping preferences across four
distinct direct response channels: television (long
and short form), live shopping, online retailing
and radio marketing. This 105 page in-depth
report outlined some interesting findings in
regards to consumer behavior and motivation, as
well as technology usage and television viewership. The results of the study clearly illustrated
that consumers overwhelmingly enjoy the convenience of shopping through direct response channels, and that seven out of 10 respondents view
themselves as multi-channel shoppers in today’s
marketplace.
This study, which was administered by Ellison
Research, was the result of months of planning and
analysis by ERA’s Research Task Force. Looking
ahead to next year’s study, ERA plans to build on
the success of these findings and benchmark more
information to determine consumer trends and
patterns, while also devoting attention to the future
of technology and how the DR landscape will look
when interactive television and other advertising
mechanisms firmly take hold.
Media Performance Report Card
INFORMATION
In June 2005, ERA unveiled its Media Performance
Report Card, which measures media success rates
for long and short form direct response programs.
A qualitative compilation derived from top media
companies, this service was created for members
only, to give them a snapshot of overall media performance rates. It rates how products in the categories of beauty, customer acquisition, entertainment, weight loss, pharmaceuticals, fitness, hardware/electronics, housewares, ingestibles and selfimprovement/financial services performed in media
over the past month, by each individual week.
10
During the past few months some interesting trends
have emerged, including the fact that overall, DR
products have performed pretty consistently in
most categories. ERA members can also begin to
see trends that help determine why campaigns are
succeeding in certain categories, and why they could
be failing in others. In the near future, ERA is looking to expand its category listings to make this
resource even more valuable for ERA members.
Newsletters & Website
ERA maintains a variety of online resources,
including three websites and two e-newsletters.
Its main webpage, www.retailing.org, receives on
average 4500 unique visitors per week. In addition, ERA maintains two more specialized websites, www.savvyshopper.org, dedicated to informing and protecting consumers, and the Invention
Showcase Program website at www.americaninventiveness.org, which each receive on average a
couple hundred hits per week.
ERA expanded its e-newsletter offerings this year
and redesigned its layout and features. In March
2005, ERA successfully launched its brand new
newsletter format, which included the E-News
Weekly e-newsletter specific to industry trends
and information, as well as a bi-monthly
Marketing, Meetings & Membership e-newsletter
on ERA’s events, incentives and promotions.
Distributed to over 6200 opt-in worldwide industry professionals, the newsletters not only provide
valuable industry and association information,
but also drive traffic to ERA’s websites and bring
in advertising revenue. For the 2004-2005 fiscal
year, newsletter advertising revenue nearly doubled. In addition, the circulation grew steadily
with approximately eight to 10 online informational requests daily.
332740_ERA.qxd13
12/20/05
1:03 AM
Page 11
Education
RA’s educational offerings continue to
expand each and every year. In addition to 31 educational sessions during
ERA’s three annual conferences, the
association also hosted three one-day seminars
on legal and regulatory issues affecting DR
marketers. These seminars, held in strategic
cities around the U.S., allowed ERA members
the opportunity to learn detailed information
from top experts while networking with fellow
colleagues. During the coming year, ERA will
continue to host valuable industry seminars
and will also introduce webinars in an effort to
offer more education to industry professionals.
E
Legal Series
ERA offered its Legal Series: “Representing the
Direct Response Client” program in both Santa
Monica, CA, and again in New York City in early
2005. These seminars were designed to provide
attendees with the most up-to-date legal information available in the industry. Seminar speakers included top attorneys in the fields of advertising, entertainment, trademark and intellectual
property law. As an added bonus, ERA offered
continuing education credits for attorneys who
attended the seminar in either location.
Green Lights and Red Flags: FTC
Rules of the Road for Advertisers
EDUCATION
Partnering with the Federal Trade Commission,
ERA created its Green Lights and Red Flags: FTC
Rules of the Road for Advertisers seminar which
took place in March 2005 in conjunction with
the Housewares show in Chicago. The seminar
drew 64 attendees, who were presented with
detailed information about advertising substantiation requirements, legal implications surrounding the Do Not Call List, expertise for online
advertising regulations, and other issues affecting
the direct response industry.
11
332740_ERA.qxd14
12/20/05
1:03 AM
Page 12
Annual Conferences
ERA founding member Greg Renker of the GuthyRenker Corporation received ERA’s esteemed
Lifetime Achievement Award. Throughout the
course of the show, a total of 23 awards were presented from a field of 140 entries, bringing the
annual event to a triumphant close.
ERA’s 2005 Mid-Winter
Conference & Trade EXPO
ERA’s 14th Annual
Conference & Exposition
RA’s 2004 Annual Conference was another
great success. Attendance grew by six percent
and revenue exceeded seven percent growth
overall. In addition, the exhibit floor was
sold-out with a total of 157 exhibitors, including 47
new companies. ERA brought additional excitement
to the trade show floor by creating new pavilions
such as the Radio Tower, the Cable/Network
Pavilion and the MSO Pavilion. ERA’s PAC initiatives took on new life with the launch of ERA’s first
Annual Leadership Dinner. This event raised over
$93,000 for ERA’s E-Retail PAC and esteemed
Congressman John Porter (R-NV) addressed over
100 guests.
E
There was also an informative general session hosted
by former TiVo president and NBC executive Marty
Yudkovitz, which was devoted to the future of television. In addition, on the closing night of the conference during the ERA Awards, industry pioneer and
Annual Conference Revenue
ANNUAL CONFERENCES
$2 million
12
$1.5 million
$1 million
$500,000
2001
2002
2003
2004
In 2005, ERA’s Mid-Winter Conference & Trade
EXPO moved from Biscayne Bay down to Miami’s
South Beach at the brand new Ritz Carlton hotel.
Another record attendance goal was reached, as
attendance grew by four percent. Highlights of
this meeting included the first annual Latino
Awards of Excellence, featuring international star
of TV and film, Rudy Rodriguez as co-host. Over
75 entries were received for nine industry categories related to the Latin American and U.S.
Hispanic marketplaces.
Mid-Winter Conference Revenue
$500,000
$400,000
$300,000
2002
2003
2004
Other conference highlights included a Q&A with
Pamela Jones Harbour, commissioner of the
Federal Trade Commission, and ERA’s President
& CEO Barbara Tulipane. Other general session
highlights included James Jones, co-chairman
and CEO of Manatt Jones Global Strategies and
Elaine Kolish, associate director of the division of
enforcement at the FTC’s Bureau of Consumer
Protection. The exhibit floor was alive with activity and a total of 36 booths, of which 50 percent
were first-timers to the show.
332740_ERA.qxd15
12/20/05
1:03 AM
Page 13
ERA’s 2005 European Conference
& Trade EXPO
ERA’s 2005 European Conference & Trade EXPO
was held at a perennial favorite, the Fairmont
Monte Carlo hotel. To open the event, the conference kicked off its first gala dinner celebration with special guest speaker Nicola Bamford
of BSkyB, who addressed a crowd of over 130
guests. The following morning, ERA’s European
board of directors unveiled their own SelfRegulation Program, following in the footsteps
of ERA’s self-regulation efforts in the states.
Later during the meeting, Luciano Daffarra,
founding partner of Daffarra & Partners, and
Christophe Forax, the EU head of cabinet, tackled self-regulation and counterfeiting during
two insightful educational sessions.
European Conference Revenue
$300,000
$250,000
$200,000
$150,000
2002
2003
2004
In the exhibit hall, international deal making was
a buzz. For the first time in ERA’s history, the
exhibit floor changed from table top displays to a
hard-wall booth system, and there were a total of
15 companies who took advantage of this new
format. While the conference was a success and
Monte Carlo is always a favorite, look for a new
conference location in 2006.
ANNUAL CONFERENCES
13
332740_ERA.qxd16
12/20/05
1:03 AM
Page 14
Membership
Membership
embership experienced another successful year of growth and diversity.
Beginning in June 2004, ERA granted an exclusive charter to ERA
EUROPE to become an affiliate chapter of the
association, therefore retaining 85 percent of all
collected dues. Under this new dues structure,
ERA’s membership grossed $1.13 million in revenue during the 2004-2005 fiscal year.
M
Additionally, some exciting trends emerged, which
is an encouraging look into the future. While suppliers are vitally important to the association, ERA
successfully grew its core membership of electronic
retailers to 56 percent, from 38 percent at the start
of the year. ERA also diversified its membership by
recruiting five new online companies, thus fulfilling one of the association’s strategic goals.
ERA’s Benefits Targeted to Core
Members - Research & Advocacy*
The Electronic Retailing Self-Regulation
Program (ERSP)
The NEW Electronic e-Retailer Hot Tip Sheet,
including links to government affairs
updates
ERA’s active government affairs programs,
advocating privacy, Streamlined Sales Tax,
Regulation E and a host of other industry
initiatives
Complimentary research, including
renowned Forrester Research reports, ERA’s
Media Performance Report Card and annual
Multi-Channel Consumer Spending Study
Access to ERA’s members-only website,
complete with important research and other
relevant industry information
Significant discounts on attendee rates at
ERA conferences
*Please note all ERA members receive both supplier and
core member benefits.
Additionally, four major industry suppliers chose
to enter ERA’s Platinum member program, solidifying their status as industry leaders.
MEMBERSHIP
During the year ERA also launched its Networking
Reception and Speaker Series program. With the
help of the Membership Committee, the association hosted two successful recruitment receptions
during the International Housewares Show in
Chicago in March 2005 and again at the DM Days
Conference in June in New York City. During
these events, ERA recruited 89 companies who
joined ERA, advertised in Electronic Retailer magazine or attended and/or exhibited at ERA’s events.
14
New members joined the association for many
reasons, receiving dozens of exceptional benefits
and services. However, when surveyed, the
majority stated they became members due to
ERA’s self-regulation efforts, advocacy, networking events and multi-channel consumer research.
While all ERA members have access to both categories of benefits, ERA has created targeted mem-
332740_ERA.qxd17
12/20/05
1:03 AM
Page 15
ERA’s Benefits Targeted to Supplier
Members - Exposure and Promotion*
ERA Membership Segments
Additional
Resources
Member listings and logo in ERA’s
Membership Directory and Electronic Retailer
magazine’s Gold Book
Opportunity for interviews in ERA’s
e-newsletter, E-News Weekly
Exposure through company logos and
website links in ERA’s newsletter, both as
new and renewed members
13%
Support
Services
15%
20%
41%
11%
Speaking opportunities at ERA events, webinars and other relevant industry conferences
Media/Network/
National Cable
Access to ERA’s members-only website with
detailed membership contact information
Members-Only Website
Company listing on ERA’s member board at
all annual conferences
Significant discounts on attendee
registration fees at ERA conferences
Participation on ERA’s committees and councils
Advertising, sponsorship and exhibiting
opportunities at a significant discount
*Please note all ERA members receive both supplier and
core member benefits.
ber benefits for core retailers and suppliers.
Looking forward, ERA plans to continue its effort
to attract multi-channel companies by providing
lifetime value and relevant benefits and services.
ERA Members by Region
Africa 0.6%
Middle East 0.4%
2%
Europe
Latin
America
Oceania
18%
Direct
Response
Marketers
E-Retailers
In June 2005, ERA launched its brand new members-only website. Through an individualized
log-in and password, this new feature provides all
ERA members access to a variety of features,
including personalized account information, proprietary industry research, a searchable member
directory and more. Not only can members check
and update their contact information, they can
also view open invoices, event registrations and
make payments. Additionally, they can access a
more complete member directory that includes
full contact information, including primary
names and phone numbers.
With the addition of the members-only website,
ERA also expanded its online services to include
an online registration system. Now, members can
log-in quickly and conveniently to register for any
of ERA’s upcoming events. ERA has also made
industry information available, including access
to recent research studies, monthly updates of
ERA’s Media Performance Report Card and
Forrester Research reports.
6%
3%
U.S.
MEMBERSHIP
70%
Canada
15
332740_ERA.qxd18
12/20/05
1:03 AM
Page 16
Committees
and Councils
David Savage, Cmedia
Education Committee Chair
“The Education Committee succeeded in providing attendees with a comprehensive line-up of
workshops which touched on every facet of direct
response, offering industry newcomers and veterans alike sessions that enhanced their working
knowledge of the business.”
Luis Salaverria, Grupo TV Offer
Latin America Committee Chair
“The Latin America Committee was successful in
its efforts not only to increase Latin membership,
but also to create benefits, services and educational materials and sessions which offered clear
information on how to maximize business in
Latin America.”
RA’s many committees and councils offer
members additional networking opportunities and the chance to impact the association and industry’s future. So what did
each ERA committee and council chair think was
his or her biggest accomplishment in 2004-2005?
E
Committees
COMMITTEES
Dan Danielson, Mercury Media
ERA’s Board of Directors Chair
“In response to the ever-evolving electronic retailing market, the board successfully improved
industry credibility, nominated four new members
to reflect the emerging online sector, expanded the
association’s international reach, and continued its
effort to bring value to all ERA members.”
16
George Hung, GD Spectrum
Asia Committee Chair
“The committee not only increased its Asian membership, but generated strong interest by regional
members and non-members alike that culminated
in a very successful Asia Dinner during ERA’s
Annual Convention which produced excitement
for the 2006 Asia Conference in Hong Kong.”
Vitisia Paynich, Electronic Retailer Magazine
Liaison to the Magazine Advisory Board
“My top accomplishment was to incorporate
article suggestions brought forth by the Magazine
Advisory Board to enhance Electronic Retailer’s
editorial content.”
Sue Bonney, QVC
MarCom Committee Chair
“Being a researcher at heart, I think our greatest
accomplishment was our 2005 research report.
Not only did we benchmark previous research,
we explored new consumer behaviors in multichannel and viewership arenas.”
Stacy Durand, Revenue Frontier
Membership Committee Chair
“The Membership Committee diversified ERA’s
membership with the new cable/broadcast dues
category, recruited online retailers and streamlined member benefits.”
Nancy Marcum, Marcum Media
Meetings & Conventions Committee Chair
“Our top accomplishment was delivering attendees to the trade show who were sophisticated in
nature and qualified to solicit business from the
DRTV experts.”
332740_ERA.qxd19
12/20/05
1:03 AM
Page 17
Councils
Greg Anderson, Salem Radio Network
Radio Council Chair
“Not only has the Radio Council worked tirelessly
to raise the awareness of radio, but the council has
also developed a full range of practical materials
including cutting edge research, ‘how to’ guides
and case studies, as well as expert help in crafting
and implementing campaigns.”
Steve Hamlin, QVC.com
Technology Council Chair
“During the past year, the council launched its
first-ever Technology Pavilion and participated in
educational sessions that helped members meet
their needs on techniques that could be applied to
their business.”
Eric Stanton, Broadcast Response, Inc.
TV Council Chair
“The TV Council has expanded its reach outside
of media buying agencies to include representatives from national cable networks, U.S. Hispanic
agencies and emerging technology companies
while also offering tremendous networking
opportunities.”
Robin Behar, In Clover Marketing LLC
U.S. Hispanic Council Chair
“The council achieved many great things: we
increased membership substantially, furthered
education, created affiliations, actively participated
in the Latin Awards show, and developed key marketing materials to help build awareness.”
COUNCILS
17
332740_ERA.qxd20
12/20/05
1:04 AM
Page 18
Board of Directors
2004-2005
President & CEO
Barbara Tulipane, CAE*
Electronic Retailing Association
Rick Petry*
Downstream (formerly with Euro
RSCG 4D DRTV)
Chair-Elect
Jeffrey Knowles, Esq.*
Venable LLP
Adam Rockmore
Shop At Home Network
Board Members
Mike Ackerman
EMSON/E. Mishan & Sons, Inc.
Greg Anderson
Salem Radio Network
Chairman of the Board
Dan Danielson*
Mercury Media
Denise DuBarry-Hay
Thane International, Inc.
Nathan Fagre, Esq.
ValueVision Media, Inc. (ShopNBC)
Stephen Hamlin
QVC.com
Jorge Hane
Premier Solutions
Michael Henry
Home Shopping Network
Thomas R. Kelly
hawthorne direct, Inc.
Anand (Andy) Khubani
Ideavillage Products Corp.
BOARD OF DIRECTORS
Toni Erickson-Knight
WorldLink
18
Gilles Labouyrie
Home Shopping Service
Mark Lavin
West Corporation
Robert J. Rosenblatt
Tommy Hilfiger
Yuji Sakuraba
Fujisankei Living Service, Inc.
Bret Saxon
Transactional Marketing Partners,
Inc.
Richard Stacey
Northern Response (Int’l), Ltd.
Mark Thornton*
AEGON Direct Marketing Services,
Inc.
Immediate Past Chairman
Jack Kirby *
Continuum Commerce LLC
Chairman Emeritus
Greg Renker
Guthy-Renker Corporation
Ex-Officio
Edwin Garrubbo
American Telecast Products LLC
Christopher Gassett, Esq.
Match.com
Linda Goldstein, Esq.
Manatt, Phelps & Phillips LLP
Nancy Marcum
Marcum Media LLC
Past Chairman’s Council
Representative
Jack Kirby
Continuum Commerce LLC
Tonda Mullis
MarketRights International
*Members of ERA’s Executive
Committee
332740_ERA.qxd21
12/20/05
1:04 AM
Page 19
President & CEO
Barbara Tulipane, CAE*
Electronic Retailing Association
Chair-Elect
Rick Petry*
Downstream
Board Members
Greg Anderson
Salem Radio Network
Steve Armstrong*
HSN
Brian Bieron
eBay, Inc.
Brett Brewer
Adknowledge (formerly Intermix)
Jonathan Congdon
Product Partners (BeachBody.com)
Nathan Fagre, Esq.*
ValueVision Media, Inc. (ShopNBC)
Edwin Garrubbo
American Telecast Products LLC
Anand (Andy) Khubani
Ideavillage Products Corp.
2005-2006
Toni Erickson-Knight
WorldLink
Gilles Labouyrie
Home Shopping Service
Nancy Marcum
Marcum Media LLC
Tonda Mullis
MarketRights International
Adam Rockmore
Shop At Home Network
Richard Stacey
Northern Response (Int’l), Ltd.
Chairman of the Board
Jeffrey Knowles, Esq.*
Venable LLP
Immediate Past Chairman
Dan Danielson*
Mercury Media
Chairman Emeritus
Greg Renker
Guthy-Renker Corporation
Christopher Gassett, Esq.*
Match.com
Past Chairman’s Council
Representative
Dan Danielson*
Mercury Media
Linda Goldstein, Esq.
Manatt, Phelps & Phillips LLP
*Members of ERA’s Executive
Committee
Stephen Hamlin*
QVC.com
Thomas R. Kelly
hawthorne direct, Inc.
Maria Kennedy
Discovery Communications
BOARD OF DIRECTORS
Jorge Hane
Premier Solutions
19
332740_ERA.qxd22
12/20/05
1:04 AM
Page 20
European Board
of Directors
2004-2005
Branimir Brkljac
STUDIO MODERNA
Michael de Vere
2B on TV
Edwin Garrubbo
American Telecast Products LLC
Chris Horobin
CANIS MEDIA, Ltd.
Richard Reitzner
Home Shopping Europe AG
Chairman of the Board
Gilles Labouyrie
Home Shopping Service
Dennis Reustle
QVC-UK
Giuseppe Scavone
InterMax Srl
Eivind Schackt
TV-SHOP EUROPE AB
Henry Scott
Simply Media TV, Ltd.
Wiebe Van Terwisga
!GO group
BOARD OF DIRECTORS
Richard Whinfrey
Thane Direct UK
20
332740_ERA.qxd23
12/20/05
1:04 AM
Page 21
Staff Directory
Executive Office
Magazine Department
Barbara Tulipane, CAE
President & CEO
Gina M. Cohen
Vice President of Publishing/Publisher
Marcel Avargues
ERA EUROPE Executive Director
Vi Paynich
Editor-in-Chief
Sieglinde Friedman
Senior Director, International Board Development
Kim Lewis
Creative Director
Communications Department
Debbie Duhn
Production Manager/Accounts Manager,
International Advertising Sales Manager
Molly Alton Mullins
Director of Communications & Executive Editor
Carrie Harper
Senior Education Manager
Carol Neher
Advertising Manager, National Advertising Sales
Manager
Meetings Department
Kelley Kaufman
Manager of Communications & Publications
Specialist
Karla Kelly
Vice President of Meetings and Conventions
Finance Department
Tracey Messina
Manager of Meetings
Agnes Osborne
Controller
Cecilia D. Mason
Accountant
Government Affairs Department
Bill McClellan
Director of Government Affairs
Mike Candela
Sales Manager – Advertising, Exhibits and
Sponsorships
Tim Brown
Meetings Registrar
Sales, Marketing &
Membership Department
Jennifer A. Gennaro
Vice President of Sales and Marketing
Jason Bell
Member Information Services Associate
STAFF DIRECTORY
Brad Pierson
Manager, Sales and Marketing
21
332740_ERA.qxd24
12/20/05
1:04 AM
Page 22
2000 North 14th Street, Suite 300, Arlington, VA 22201
800.987.6462 • 703.841.1860 • www.retailing.org