Back to the March 2005 issue.

Disc Marketing in the 21st Century

(by Craig Cooke, CEO)

Interactive CD-ROMs have been used as a marketing tool for many years. Although this format does not garner the attention of other interactive formats such as email or search, it is a viable tool. In fact, it is an under utilized medium, as many marketers are unaware of the capabilities of this format. In addition, another disc-based format is the DVD. Market penetration of DVD players has reached a level of ubiquity among consumers. This is the 21st century, and disc marketing has evolved into a powerful and effective advertising medium.

Multimedia applications can be distributed on CD-ROM or DVD-ROM. These applications usually contain a presentation containing video, audio, animation, imagery and more. These presentations are engaging, but 21st century disc marketing goes beyond this standard. By combining Internet technology with a disc-based format, the medium becomes a powerful tool for gathering market intelligence as well as attracting and retaining customers. A prime example is Point-Click Catalog technology (pccatalogs.com). With this technology, printed catalogs are converted into interactive CD-ROMs that track usage of the CD and viewer behavior. Even the content can be updated, making the format a dynamic medium rather than a static medium. Benefits of converting printed catalogs include reduced production and shipping costs, sometimes up to 70%. Also, a major benefit is maintaining a tangible format that gets directly in front of viewers, attracting them to a company’s products and engaging them with multimedia content. The format even allows for sales conversions, in other words, a term I like to call, “Disc Commerce.”

Another format gaining popularity among marketers is the E-CD or Enhanced CD. This is a dual CD format containing a multimedia application viewable on any computer and music tracks playable on any audio CD player. The idea behind this format is the added value music contributes to the CD. It extends the branding experience. A Forrester Research conducted a study stating that over 65% of recipients of an E-CD played the music more than once. People keep the CD rather than throw it away because of the value placed on music. Other findings from the report include:

  • 15.2 million U.S. households have already received at least one free marketing CD — including CDs featuring music alone and E-CDs.
  • 87 percent of recipients, or 13.2 million households, actually played the discs they received.
  • 94 percent of those who played a marketing disc “enjoyed at least one feature.”
  • Multimedia content plays a critical role as the “threshold feature” in drawing recipients into these discs and towards the brand.

The DVD format is gaining in popularity as well due to its ease of use and market penetration of DVD players. High quality video presentations and interactive menus create compelling content for the target audience. The format goes well beyond the 30 second commercial, allowing viewers to choose what they are interested in. Another advantage is the ability to segment the market, focusing on delivering a marketing message to the most qualified candidates. The result is a more cost-effective method of reaching prospects compared to mass-market network television commercials.

A common objection I often hear is “Why should I bother with a CD-ROM when I have a website?” It’s a great question. Discs are best utilized in conjunction with a website. The website serves as the centralized hub of information. The CD-ROM or DVD acts as an extension of the website. It is a tangible format that a consumer holds in their hand. It can be distributed via direct mail, at tradeshows, point-of-purchase displays and by other means. It acts as an incentive for a prospect to take action - to actually view the disc and then proceed to visit a website. People are bombarded with marketing messages all day long. How are they supposed to remember all the website URLs that can fulfill their needs? It is impossible. People need to be contacted through various advertising mediums in order to take action. CD-ROMs and DVDs are cost-effective and powerful mechanisms for achieving this objective.

Keep your eyes open for opportunities to utilize this format. I have discussed a small portion of the benefits from this medium, and the possibilities are endless. The 21st century is full of innovative interactive tools, and disc marketing is one tool that has evolved to maintain its effectiveness within the marketplace.





Statistics Corner

Small businesses are seeing response rates as high as 20% by using targeted search marketing within their local areas.

Roughly half of online shoppers conduct research on a search engine before making an online purchase.

58% of Google searchers visited at least one of the other top two search engines, Yahoo! and MSN Search.

The new Firefox web browser has obtained a 20% market share among Internet viewers.

Internet users with household incomes over $150,000 surged 20% to 10.3 million in the last calendar year, making it the fastest growing of all income groups in the U.S.

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