Regulators Take Aim at Suppliers

p d mKATRINA - One Year LaterSHOULD WE BEPROSPECTING AGAIN?

COMPLETE FALL SCHEDULE OF SEMINARS & EVENTS INDUSTRY NEWS & NOTES

AN OFFICIAL PUBLICATION OF THE PHILDELPHIA DIRECT MARKETING ASSOCIATION SEPTEMBER/OCTOBER 2006

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KATRINA - One Year LaterSHOULD WE BEPROSPECTING AGAIN? page 3

MARKETING BRAINSEmail Success is Moreabout Marketing thanTechnology page

SUPPLIERS BEWAREFederal RegulatorsTake Aim at Supplierspage

MARKETING BRAINSEmail Success is Moreabout Marketing thanTechnology

SUPPLIERS BEWAREFederal RegulatorsTake Aim at Suppliers





pdma news sept/oct 10/6/06 12:05 PM Page 1

Charles L. (“Chuck”) Andes, who was a master marketer and recip-ient of the William Penn Award, Philadelphia’s highest honor forbusiness leaders who have made outstanding contributions in civicservice, died August 17, 2006 in Bryn Mawr, Pennsylvania.

Mr. Andes’ career in marketing, general management, venture capi-tal, and civic service spanned more than 50 years, highlighted byhis service as Chairman and CEO of The Franklin Mint and, subse-quently, The Franklin Institute, retiring as Chairman Emeritus of theInstitute.

Andes was born and raised in Swarthmore, PA, where his father wasa prominent home builder. He attended Swarthmore College and earned a Bachelors degreefrom Syracuse University. In 1952, he joined Adtech Industries, a direct marketing distribu-tor of specialty advertising products, then became National Sales Manager in 1956 andPresident of Adtech in 1961.

Andes joined his friend Joseph Segel at The Franklin Mint in 1967, becoming its firstExecutive Vice President. In 1970, he was named President of its U.S. Division, and FranklinMint stock began to be actively traded on the New York Stock Exchange. When Segelretired in 1973, Andes became CEO and Chairman of Franklin Mint Corporation, which bythen had expanded internationally and was also producing coin-of-the-realm for several foreign countries.

Under Andes’ direction, sales at The Franklin Mint grew steadily, due largely to a program ofproduct diversification from coins and medals to porcelain, crystal, die-cast collectibles andleather-bound books, while still maintaining its status as the world’s largest private mint.

In 1979, Franklin Mint Corporation was acquired by Warner Communications (the predeces-sor of Time Warner Corporation) in an agreement forged by Andes with Warner’s SteveRoss. Andes continued as CEO of Franklin Mint Corporation until 1986.

In 1986, The Franklin Institute, America’s oldest science museum, was experiencing atten-dance and financial problems. Andes, who had previously served on its Board, agreed tobecome its full-time CEO and Chairman on a pro bono basis, and he promptly launched theInstitute’s ambitious Futures Center project.

The Futures Center was a $70 million expansion program at The Franklin Institute. Fundingwas raised largely as a result of Andes’ indefatigable efforts, and the Futures Center wascompleted in the spring of 1990. Attendance increased from 500,000 to over a million annu-ally, and the Futures Center received outstanding reviews from around the world.

In 1994, after he retired as Chairman Emeritus of The Franklin Institute and then became thefirst President of The Eastern Technology Council, an association developed to assist tech-nology companies to develop business opportunities and raise capital. Andes grew theCouncil from 150 companies to over 1,000 in three years.

Chuck Andes is well remembered by his family and friends for his keen sense of humor. Intalking about the success he realized at both The Franklin Mint and The Franklin Institute, hesaid “There was a sense of mission and excitement at the Mint, and it was the same thinghere at the Institute. We were banded together by a common purpose—and by the sheer ter-ror of it all”.

Mr. Andes is survived by his wife of 47 years, Dorothea (“Dottebob”), four daughters,Elizabeth Bell, Susan Frost, Karen Andes and Page Morocco, and five grand children.

in memoriam

Editor Lisa Formica, fmi direct, inc.Design/layout Affordable Offset Printing, Inc.Printing Oak Lane Printing, Inc.Lettershop fmi direct, inc.

PDMA Office308 East Lancaster Avenue, Suite 110Wynnewood, PA 19096Voice 610.642.2616FAX 610.642.0628Email [email protected] site www.The-PDMA.org

AdvertisingFor advertising rates and schedules for all PDMApublications and sponsorships, contact Lou Yager at610.664.7374. All ads must be submitted by the 15thof the month prior to the publication month.

PDMA 2006-2007 BOARD OF DIRECTORS

President Rod AmmonStonehouse Media Inc.

Chairman Steve Driscoll

Treaurer Micahel G. CloughleyOaks Direct, Inc.

Secretary Lisa Formicafmi direct, inc.

Board Memebers Aleka AgapitidesInternational BusinessSystems, Inc

Bill DwyerDirect Group

Steve EmoryNetworkDirect

Shannon GoodGood Group, LLC

Eileen HoffmanInnovative Print & Media Group, Inc

Gary KirkmanProtocal Marketing Group

Jim MurphyJim Murphy Communications

Charlie OhanesianThe WordtTech Group

Beth Ann ScullinEnvelopeAmerica, LLC

Denise WilliamsCustomer CommunicationsGroup

SEPT/OCT 2006PDMA DirectViews ispublished bi-monthly byand for members of thePhiladelphia DirectMarketering Associaitionand other interesteddirect marketers. Formore information, visitwww.The-PDMA.org.

Charles L. Andes1930 - 2006

Charles L. Andes

2 I PDMA directviews I SEPT/OCT 2006

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put a color screen on this box, maybe a light blue or yellow

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why all lowercase?

SEPT/OCT 2006 I PDMA directviews I 3

BY GERRI L. SPECHT

Our first glimpse of Hurricane Katrina’swrath appeared as we got off the highway out-side of New Orleans. The exit ramp wasstrewn with furniture, black bags of rottinggarbage, rugs and construction debris. Thekids in my rental van grew silent.

They hadn’t been that quiet for the 18hours we had traveled as a group of 40 highschool youth and adults from West Chester,PA My heart grew heavy - this was the begin-ning of an emotional week.

Direct marketers and many business sec-tors have asked when will the Gulf Coast be aviable market again? When will peoplereturn? When will their lives return to somesemblance of normalcy?

This is very close to what our group expe-rienced in Louisiana this summer. Our West

Chester youth joined six other youth groupsfrom across the US to clean out, de-mold anddrywall 12 homes in East New Orleans. I leada group of six youth to clean out the home ofNorma Wainright, an 84 year-old widow whohad three feet of water invade her home of 50years. Norma left the area before the storm hitand was unable to return for many weeks. Sothe water sat. She lost everything she ownedin her one story home.

Norma is a spry, slight woman who hadworked side-by-side with a previous group toremove carpeting and debris from her home -in 90 degree plus weather. She loved NewOrleans. She loved her neighbors.

My son and his group worked two doorsdown on her best friend’s home. They hadknown each other for more than 30 years. Sheloved her neighborhood, but she wouldn’treturn to this home. She had decided that shewould move to Slidell, 30 or so miles away, tobe closer to her son. That’s where she had

been living for the past 10 months sinceKatrina hit. “It isn’t worth it,” she told us.

The fact is that her neighborhood wasgone and she couldn’t manage waiting forit to return. Ten months after the stormand the local shopping center was stillclosed except for a laundromat that stillhad debris clogging the parking lot.Residents were forced to drive 20 -30minutes for a grocery store. Gas stations,drug stores, clothes stores - empty. Pilesupon piles of garbage and debris and un-emptied porta-johns lined the streets.

I had few expectations before arrivingin New Orleans. The one thing I envi-sioned was that streets would be linedwith storm-damaged homes but withFEMA trailers outside. That wasn’t so.

Streets were empty. FEMA trailerswere far and few between. Some people hadreturned and their homes were restored, butagain very few. Then there were the homesthat had printed signs in their front yardsproudly declaring, ”I am a NEWORLEANS RESIDENT and I WILLRETURN!”

Many of the people we spoke with wereproud and hopeful for the future of theirneighborhoods. They were also tired andfrustrated with the lack of local and federalassistance.

This area is still devastated one yearlater, but I believe the spirit of the peoplewho make the brave, convicted decision toreturn and rebuild will create a new demo-graphic - one that may be slightly differentin regards to race or income level, but willbe strong and devoted to living in an areathat’s not perfect, but it’s home.

I would like to thank the following

Katrina, Kids and HopeDirect marketers and many businesses have asked when will the Gulf Coast be a viable market again?

directmarketing companies who helped me and mygroup with generous financial assistance.

National Mail/Marketing Corporation,Broomall, PAHelios Data Services, Souderton, PANational Mail Graphics, Exton, PAPyramid Graphics, Croydon, PAFMI Direct Marketing, Philadelphia, PAInfo Graphix, Drexel Hill, PAIntegrated Marketing, Myersville, MD

According to sources cited on npr.com, NewOrleans population has decreased by 45%since August, 2005. The returning populationis whiter; up 10% since last year. Fewer s res-idents are below the poverty line: 14% ofMetropolitan New Orleans residents werebelow the poverty line before the storm, thereare 8.5% of families below the poverty lineone year later. Unemployment is up 1.5%, butthat could be indicative of people returningbefore the businesses. Only 33% of retail foodestablishments are open, 50% of the hospi-tals, 85% of the hotels, and 29% of the daycare centers. And with only 17% of thebusses and streetcars running, there’s notmuch help getting to a job.

xcl;avlkadslksdvlkvklsnvlks-dmvsdmmv’sls;dfl;dsdls;vs;vmsd;a’lgsaksd;dfsgmsd;lfs;dfb:Dfb,;ldfkg;dfkgads,g;ldafm;ldf,;dlfg;dflgkdflhmnmfh,;nm;klnm>,c.vb,flkd flb,DFb,l;bdbdf’, bdlf’mb,d,”Fn.FGn.FG”,nlfgn’f.FG.b’fgs,ns’flnFGS”.bnFg,bnlfsgn’;fg;.b,bl’fg,n;’g.b,bn’fg;Amazing New Ways.

asdlkfasdklfjlsdkaklsnlksdmnvlksmvls;ds;dlv;lsdv,;ls,v;lsd,v;lsd,v;lsdsfsdkfl;sdkflsdf;l’sd;lsdm;lsmv;smv;lsdvl;sdv;lsdmv;dsm;lsdf;lsdfl;sdm;sdmv;g;sfk;ldsfkl;dsf;dlsmdsl;vmds;lfs;ldfs;dlf;lsdf;sldvm;lsdfm;dlsf;lsdf;lsdfl;sd;lsd,mvm;lmv;lmv;lsmvl;sdmvl;sdmv;lf;lsd-fentitled, Sea Color in Amazing New Ways.

Gerri L. Specht is the Production Coordinatorfor National Mail/Marketing Corp. and can bereached at (610) 544-8200.


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the name of this company is fmi direct inc.


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“Email success is still,for the most part, moreabout marketing brainsthan it is about technol-ogy.”

This quote stoppedme recently, as I wasreading the executivesummary of a valuabledocument published bymarketingsherpa called

“Email Marketing Benchmark Guide 2006,310 Charts & Eyetracking Heatmaps”.

This got my attention because this is con-sistent with my experience, having beeninvolved with e-mail software for over fiveyears as a developer, publisher and marketer.

To many direct marketers, e-mail is “oldtechnology”, and seems low tech on the sur-face, but it is really just beginning to evolveinto a mature media because marketers arenow leveraging the databases they haveinvested thousands and in some cases millions

to build over the last five years.E-mail technology has become such a

commodity that many advertisers assumethat if they have the latest and greatest soft-ware, the rest is easy. This could not be fur-ther from the truth.

Alan, a friend of mine who is presidentof a major national e-mail service told merecently “If people knew how complicatede-mail was, they probably wouldn’t bother”.True, there still is a lot of technical know-how required that many advertisers take forgranted.

But the real “complication” with email userslies with a required commitment to experiencedmarketing resources to build and manage permis-sion e-mail databases so that the data capturedonline at landing pages, and in e-mail surveysstays current and fresh, making future messagesmore timely and relevant.

Today’s winning e-mail is all about timing,relevance and personalization. The same ingredi-ents required for successful direct mail.

Yes, it’s a lot of work, but the payoff in ROIfor e-mail that is well planned, properly testedand executed is well worth it when you put thesame amount or marketing efforts behind youremail as you do for any other direct media.

Steve Emory is President and CEO ofNetworkDirect, a full service direct responseagency that specializes in building retail and webtraffic with permission e-marketing. ContactSteve at 215-396-2212 or [email protected]


E-MAIL SUCCESS IS MORE ABOUT MARKETING THAN TECHNOLOGYToday’s winning e-mail is all about timing, relevance and personalizaion.

BY STEVE EMORY

continued on page 8

EMORY

E-mail technology has becomesuch a commodity that many

advertisers assume that if theyhave the latest and greatest soft-

ware, the rest is easy.

SOME EXAMPLES OF MARKETING-DRIVEN, SUCCESSFUL E-MAIL:

Advertiser Email Description Great Results Average Results No MarketingRestaurant Chain

Book Chain

CatalogRetailer

Birthday Coupn forFree Meal on brthday

Newly published bookson sale this week;members onlydownload coupon

e-mail timed to deliver justbefore birthdays;70-80% open rate

Don’t ask customerfor birthday; don’tpopulate databasewith personal info.

E-mail message deliveredafter birthday;15-30% open rate

Web or in-store purchaseanywhere; yields 15-30%click thru rate

Don’t have an e-mailmembership list;generic emailawareness ad

In-store purchase only;yields 5-10% clickthru rate

Catalog Fine China Sale

Members only discount-purchase anywhere;20-30%open rate

Don’t segment emailmembers from rentedlists; assume the“Sale”

In-catalog purchase only;5-10% click open rate


Engine Marketing and Web Analytics.Co-Instructors: Steve Emory, President, NetworkDirect; and Michael Stalbaum, CEO UnRealMarketing.

Creative Concepts: 31 Creative Ways toMagnify Your DM Results.Co-Instructors, Jim Murphy, President, JimMurphy Communications; and Bill Spink, ChiefCreative Officer, DMW Direct.

SEMINAR LEADERS:JOANN ALBERTSVice PresidentAMERICAN LIST COUNCILJo Ann's career in direct marketing spans 25years. She is Vice President of American ListCouncil in its Data Acquisition Division, whereshe consults with a large variety of consumerand business-to-business clients on theirprospecting efforts via catalog, publishing andcontinuity marketing. She has worked withdirect mail, insert media and email marketing


Top 10 Reasons to OutsourceYour Company’s Email Marketing

PDMA will present ahalf-day morning sem-inar on "MarketingMagic: SuccessfulStrategies in Onlineand Offline DirectMarketing," onWednesday, November15, at the Crown PlazaHotel in King ofPrussia.

PDMA board chairman and marketing consult-ant Steve O'Driscoll, who organized the four-session seminar, says it offers both newcomersand veterans a look at the latest and most suc-cessful techniques in direct marketing from nineindustry leaders.

Reservations will be accepted on a first-come,first-served basis. Attendance at the four indi-vidual sessions will be limited to a maximum of50 people each.

The four-session marketing seminar runs from 8a.m. to 12:25 p.m., and includes a continentalbreakfast. Each session runs about 115 min-utes. Two sessions go from 8 a.m. to 10:30 a.m,and two from 10:25 a.m. to 12:25 p.m. The costfor one session: $125 for members and $160for non-members; for two sessions: $195 formembers and $250 for non-members.

SEMINAR SCHEDULE:8:25 a.m. to 10:20 a.m. – Choose One:Introduction to Direct Marketing and NewProduction Strategies in Evolving 1-to-1Marketing.Co-Instructors: Mary Anne Noon-Childers,Director of Marketing, S. Walter PackagingCorporation; Jim Capanna, Director ofBusiness Development, the Total MailingSystem; and Tony Nessler, iGen ProductManager, Xerox.

Marketing Strategies: Employing NewMethods to Define Your Target Audience,Select List Characteristics and PerformDatabase Analytics & Segmentation.Co-Instructors: Steve O'Driscoll, MarketingConsultant, and JoAnn Alberts, Vice President,American List Counsel.

10:25 a.m. to 12:25 p.m. – Choose One:Internet Basics: Web Site Development,Integrating Web-Based E-Mail, Search

for such clients as: The Teaching Company, BrantPublications, Ogden Publications, Gevalia Kaffe,Historic Aviation, Massachusetts Medical Society,Christianity Today, DSW Shoes, and George LucasEducational Foundation.

JIM CAPANNADirector of Business DevelopmentTHE TOTAL MAILING SYSTEMJim has been in direct marketing/mailing for over 20

years, providing production service solutions to adiverse Business-to-Business and Business-to-Consumer clientele. His expertise includes data pro-cessing / management, variable data and personal-ization imaging and printing, with complete back-endmailing and fulfillment production services.

STEVE EMORYPresident and Chief Executive OfficerNETWORKDIRECTWith more than 30 years of service as a directresponse advertising and marketing strategist, Stevehas extensive experience marketing financial servic-es to bank and retail credit card customers. Stevewas Program Director for the Franklin Mint,Marketing Director for National Liberty & ColonialPenn Insurance, Senior Vice President Account

Marketing Magic SeminarPDMA offsers Successful Strategies in Online and Offline Direct Marketing

Marketing Magic Seminar -Wednesday, Nov. 15, 2006Successful Strategies in Onlineand Offline Direct MarketingFour morning sessions – two forbeginners & two for advanced!

DRISCOLL

The Crown Plaza Hotel, located at 260 MallBoulevard in King of Prussia, is directlyacross from the King of Prussia Mall. Fordirections, call (610) 265-4076.

continued on page 15


BY ANDREW B. LUSTIGMAN, ESQ.

Regulators and lawenforcement officials areincreasingly using a newtactic against allegedlyfalse or deceptive mar-keting practices. Insteadof challenging the mar-keters themselves, theyare focusing enforce-ment efforts against theservice providers and

suppliers of the marketers.Consequently, suppliers who are not engaged

in any false or deceptive conduct themselvesare now being held accountable for the acts oftheir clients when they knew or should haveknown that something was awry.

The “Dandelion” TheoryGoing after service providers rather than

the marketer is known as the dandelion theorybecause regulators believe that the marketersare like a weed that can only be preventedfrom growing back by cutting out the roots,i.e., the service providers.

And there is some logic to the theory,because regulators are unable to effectivelyshut down deceptive marketers, who can easi-ly start up new “boiler rooms” in other loca-tions, especially with the increased popularityof the Internet and the low cost of internation-al phone calls. Marketers can be locatedfar away from the grasp of United States lawenforcement officials, but they cannot existwithout the services of service providers –such as list suppliers/managers, paymentprocessors, and printers.

By imposing obligations on suppliers ofnecessary services to the direct marketers,regulators believe that they will be moreeffective on an overall scale by challengingthe suppliers than proceeding against the mar-keters themselves.

In addition to the financial burdensimposed by an enforcement proceeding andpotential restrictions in future business activi-ties, suppliers who find themselves embroiledin such legal actions are forced to contendwith negative publicity.

The obvious problem with the dandeliontheory is that it seems to be against publicpolicy for law enforcement to target thosewho are not engaged in wrongdoing whileallowing the marketers to continue to operateunabated.

Indeed, recent enforcement actions againstsuppliers the regulators have not even attempt-ed to take any action against the allegedlydeceptive marketers while at the same timeseeking drastic remedies from the suppliers,such as freezing their bank accounts.

Supplier Liability in the Telemarketing ContextThough many in direct marketing under-

stand that telemarketing is a highly regulatedindustry, there is often a false impression that

the FTC’s Telemarketing Sales Rule (TSR)applies only to those actually engaged intelemarketing.

However, many provisions of the TSRapply not only to telemarketers, but also tothose who provide substantial assistance orsupport to a telemarketer when they knewor should have known that the telemarketerwas violating the TSR. Under this stan-dard, a supplier has an obligation to inves-tigate whether the marketer is in compli-ance with the TSR.

While the TSR’s supplier liability pro-visions have been in effect since 1995, itwas not until 2003 that the FTC actuallybegan utilizing them. After lengthy investi-gations into the list brokerage industry thatinitially focused on compliance with priva-cy issues such as Gramm-Leach-Bliley, theFTC changed focus to compliance with theTSR. As part of its investigation, the FTCobtained marketing materials such as adcopy and telemarketing scripts from listmanagers.

As a result of its investigation, the FTCbrought enforcement proceedings againstat least three list managers that allegedlyknew or should have known that thesematerials violated the TSR (even if it was

not obvious to a non-lawyer). Reportedly, theactions of one list manager was challenged basedon a test rental of only 500 names.

As a result of its investigation, the FTCbrought enforcement proceedings against at leastthree list managers that allegedly knew or shouldhave known that these materials violated the TSR(even if it was not obvious to a non-lawyer).Reportedly, the actions of one list manager waschallenged based on a test rental of only 500names.

The terms of each of the list managers’ settle-ments are nearly identical except for the amountspaid to the government, which were $25,000,$100,000 and $62,500, respectively.

The settlements expressly require the list man-agers to make affirmative efforts to ensure thattelemarketers to whom the lists are rented complywith the TSR’s prohibitions regarding deceptiveacts or practices, credit card laundering and abu-sive acts or practices.

Included in the abusive act restrictions are“do not call” and call abandonment compliance.Even more recently, the FTC brought its first “donot call” action against a supplier


REGULATORS TAKE AIM AT SUPPLIERSSuppliers who are not engaged in false conduct are now being held accountable for the acts of their clients.

LUSTIGMAN




58%

64%

64%

64%

67%

73%

74%

76%

42%

36%

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36%

33%

27%

26%

24%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

A/B testing offers

Subject lines

Landing Pages

A/B testing creative

Personalization w/name

“From” name

Long copy vs short

HTML vs text

WHAT E-MAIL MARKETERS WITH HIGH CLICK-THRU RATES TEST MOST OFTEN:

Tested w/significant results

Tested without significant results

E-MAIL SUCCESS IS MORE ABOUT MARKETING THAN TECHNOLOGYcontinued from page 5



PDMA Dinner: Do DTC Ads Over-Communicate?

Date: Wednesday, October 18, 2006Time: 5:30 - 6:30 PM - Networking Reception

6:30 - 8:30 PM - Dinner and ProgramLocation: DoubleTree Plymouth Meeting,

640 W. Germantown PikePlymouth Meeting, PA 19462

Speaker: Don Apruzzese Sr. Director, Consumer Marketing,Marketing Operations, AstraZeneca

Cost: $45 Members; $60 Non-members

DMEF, PAMA & PDMA: 3rd Annual Educator Direct MarketingSymposium - The Convergence Of Brand And Direct Advertising

Date: Friday, November 10, 2006Time: 8:00 AM – 1:00 PMLocation: Villanova University, 800 Lancaster Ave.

Villanova, PA 19085Cost: $79 In-person attendance;

$29 Live Webcast participationRegistration: Please register online at www.amaphiladelphia.org/

PDMA Morning Seminar: Successful Strategies in Online andOffline Direct Marketing

Date: Wednesday, November 15, 2006Time: 8:30 AM to 12:30 PM (Breakfast included)Location: Crowne Plaza Hotel,

260 Mall Boulevard in King of Prussia, PA 19406Speakers: Mary Anne Noon-Childers, S. Walter Packaging

Corporation; Jim Capanna, The Total Mailing System; Tony Nessler, Xerox; Steve O'Driscoll,Marketing Consultant; JoAnn Alberts, American ListCounsel; Jim Murphy, Jim MurphyCommunications;Bill Spink, Chief Creative Officer, DMW Direct; Steve Emory, Network Direct; and Michael Stalbaum, UnRealMarketing.

Cost: The cost for one session: $125 for members and $160 for non-members;for two sessions: $195 for members and $250 for non-members.

PDMA Monte Carlo Night to benefit Ronald MacDonald House

Date: Wednesday, December 6, 2006Time: 6:30 to 10:30 PMLocation: North Hills Country Club,

99 Station Ave., North Hills, PA 19038

PDMA CALENDAR OF UPCOMING EVENTS


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Denise WilliamsElected New BoardMember

The PhiladelphiaPDMA has elect-ed DeniseWilliams to itsboard of directors.Williams is theVP, New BusinessDevelopment, forCustomerCommunications

Group, Inc. (CCG), and works in thePhiladelphia office of the Denver-basedagency.

Williams will be one of 14 boardmembers who will help push the PDMAto new heights in promoting and educat-ing members while demonstrating thepower of responsible and effective directmarketing. She will assist with a varietyof initiatives, including education, con-tact development, and overall member-ship acquisition and retention strategies.

Williams has more than 20 years ofexperience in advertising and direct mar-keting. During her career, she has heldsenior marketing positions with CIGNA,Aon Direct Group, CNA Insurance, EuroRSCG and DMW Worldwide.

With expertise in business-to-business,business-to-consumer, acquisition andretention, multimedia and management,Williams has led successful strategies forADT Security, Nextel, Paper Direct, TVGuide, CITI, Sun Microsystems, SterlingCommerce, Wells Fargo, ProgressiveInsurance and Capital One.

CCG is a full-service customer market-ing agency, bringing 30 years’ expertise indeveloping actionable, knowledge-drivencustomer marketing initiatives that attract,retain and grow profitable relationshipsfor Fortune 2000 clients.

CCG’s progressive programs supportthe upsell, cross-sell, acquisition, activa-tion and retention efforts of its clients,including A&P, Comerica, CountrywideFinancial, Fifth Third Bank, GeneralMotors, IBM, Kohl’s, Nordstrom, PaylessShoeSource, PETCO and Pier 1 Imports. For more information about CustomerCommunications Group, Inc., visit

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newsnotesWelcome

N E W M E M B E R S

Jim BassoSalesProvide LLC100 Pencader DrNewark, DE 19702-3321(302) [email protected]

Lisa Berman CGSM, Inc.11 Grumman Hill RdWilton, CT 06897(201) [email protected]

Brian Bomberger VicePresident Sales & MarketingMetroGroup901 West Bond StLincoln, NE 68521(402) [email protected]

Jean Cauller GraphicDesignerJC Advertising & GraphicDesign131 Cottonwood CtDoylestown, PA 18901(215) [email protected]

Kevin CollinsPresidentMailing, Inc.128 S. Willow StKennett Square, PA 19348(610) [email protected]

Steven CranePresidentProvide LLC100 Pencader DrNewark, DE 19702-3321(302) [email protected]

Matt Graham VP / General Manager,Fulfillment ServicesDirect Group4 Applegate DrRobbinsville, NJ 08691(609) [email protected]

Caroline GuyMarketing ManagerThomas NETg400 Walnut St, #5DPhiladelphia, PA 19106(617) [email protected]

Kelly Linden Direct Group1595 Reed RdPennington, NJ 08534-5007(856) [email protected]

Tony MoreauVice President - SalesRapido Color705 East Union StWest Chester, PA 19382(610) [email protected]

Robert OlsonLecturerTemple University - School ofCommunication & TheaterDepartment of Advertising2020 N. 13th StPhiladelphia, PA 19122(204) [email protected]

Ajay SegalSVP Marketing StrategyInternet Order, LLC340 North 12th StPhiladelphia, PA 19107(215) [email protected]

Ken ShireyV.P. Associate DevelopmentDirect Group1595 Reed RdPennington, NJ 08534-5007(856) [email protected]

Amanda SteimleMarketing CoordinatorProvide LLC100 Pencader DrNewark, DE 19702-3321(302) [email protected]

Joseph TamneyChief Executive OfficerBoyd Tamney Cross994 Old Eagle School Rd, Ste1015Wayne, PA 19087(610) [email protected]

Jim TooheyChief Financial OfficerDirect Group1595 Reed RdPennington, NJ 08534-5007(856) [email protected]

Michele WhiteSalesProvide LLC100 Pencader DrNewark, DE 19702-3321(302) [email protected]

Jack Williams AstraZeneca1800 Concord Pike, A3B-528Wilmington, DE 19850-5437(302) [email protected]

Email your news to the PDMA today [email protected]. All submissions mustbe e-mailed and received by the 20th of themonth prior to the publication month (i.e.October 20 for the November issue).

ABIS, Inc. of Owings Mills Maryland complet-ed their move into a new state-of-the-art pro-duction facility. The new facility increases thecompanies’ production and warehouse capacityto 80,000 square-feet and greatly enhances ABISability to better serve its clients demanding, highvolume direct mail needs. ABIS also has addedtwo additional OCE pagestreams to their imagingfirepower – bringing their total to 6 continuouslasers – in addition to their sheet fed laser imag-ing, ink jet, bindery, lettershop, and print produc-tion capabilities. ABIS’s new address is 10330South Dolfield Road, Owings Mills, MD 21117.ABIS’s website is www.abis.com.

Annodyne, Inc. celebrates its fifth anniver-sary. Anthony Campisi, who founded the firm in2001, has grown Annodyne from a boutiqueagency specializing in permission-based e-mailmarketing campaigns, to a full-service developerof Internet-centric marketing models. Additionalinformation about the company is available atwww.annodyne.com. To learn more aboutAnnodyne's thought leadership position, visittheir blog at www.newmarketingeconomy.com.

Direct Group, afull-service provider ofhigh-volume directmarketing services,announced that indus-try veteran DonMcKenzie will join thecompany Sept. 5 as itsnew President andCEO. Company founder

Manny Ortiz will continue as Chairman of theBoard, passing day-to-day responsibility for run-ning the company to McKenzie so that Ortiz canfocus on leading the strategic development andlong-term growth of the company, while remain-ing involved in service provided to major clients.

Most recently, McKenzie was President and CEOof Petsky Prunier LLC, an industry-leadinginvestment bank. From 2000 to 2005, he servedas President of Transcontinental Direct U.S.A.(formerly CC3), integrating five separate compa-nies into one that ultimately employed 2,500people and building revenues from $60 million to$260 million in five years’ time. Prior toTranscontinental Direct U.S.A., McKenzie wasPresident of the online division of ADVO Inc.(NYSE: AD), the nation’s largest direct-mail mediacompany.

Ortiz pointed to the recent hiring and promotionof other key executives as evidence of the com-pany’s strategic growth plans, saying, “This isabout augmenting our existing team with experi-enced managers who can lead an organizationwith world-class capabilities. My goal is for ourteam to be the ‘best of breed’ in this industry.”Specifically, the company has recently promotedEd Horowitz from Vice President of Fulfillment toSenior Vice President of Operations, and hasbrought on the following new hires, all of whomboast significant industry experience: MattGraham as Vice President of Fulfillment, KenShirey as Vice President of AssociateDevelopment, and Jim Toohey as CFO.

DMW Worldwide announced that KevinKane has joined the agency as senior accountsupervisor. Kane will support DMW’s commercialaccount group, with primary responsibility forclients in the insurance and financial servicessectors as well as business-to-business andtechnology. Also that Jennifer Warner-Freemanhas joined the agency’s Decision Support teamas senior marketing analyst. Warner-Freeman isalso an expert in SAS and is becoming a SASCertified programmer.

Warren Hunter, president and CEO of DMWWorldwide, announced that the agency recentlytook home five Telly Awards, which recognizeoutstanding non-network and cable televisioncommercials. A Silver Telly — the Telly award’stop honor — was given to DMW and clientAnthem Blue Cross and Blue Shield (Midwest) fortheir “Pinball” commercial. Anthem (East) alsoearned a Bronze Telly for its “Spokesfigure”direct response television commercial. A BronzeTelly was awarded to DMW and Wells Fargo fortheir “Stage Coach” direct response televisioncommercial. A second Bronze Telly was award-ed to Wells Fargo for “Voice of the Customer.”The Hartford’s “Test Drive” commercial wasawarded a Bronze Telly. For more informationvisit DMW’s Web site at www.dmwdirect.com.

FileAmericaannounces that BethAnn Scullin, ofEnvelopeAmerica, wasrecently promoted totheir sister companyFileAmerica. Beth Annwill be working to pro-duce new business, andmaintain current rela-tionships in the northern east coast. For moreinformation contact Beth Ann directly at Beth Anndirectly, 302-354-5143.

fmi direct inc., a full service direct market-ing production company, announced its acquisi-tion of the assets of DM Partners, a direct mailproduction firm in Montgomeryville, PA. Theadditional equipment acquired from DM Partnerswill allow fmi to expand into design and email


MC KENZIE


MEMBERS ONTHE MOVE -

SEE PAGE12

SCULLIN


production capabilities. For more than 25 years,fmi direct, inc. has provided the GreaterPhiladelphia Region with direct mail and fulfillmentsupport. For more information, visitwww.fmidm.com.

MetroGroup, a leading national provider ofdirect marketing services, announced that it hasacquired Proficient Data. Founded in 1991 andmaintaining offices in suburban Chicago andMilwaukee, Proficient Data provides comprehen-sive document output and distribution solutions.Managing, producing and distributing millions ofsensitive, business-critical electronic and printdocuments such as invoices, checks, statements,direct marketing solicitations, and explanations ofbenefits, Proficient Data brings with it the latesttechnology, process innovations and a highly pro-fessional staff of more than 120 employees. Itsstate-of-the-art, file-based document processingsystem allows for page-level tracking, providingoptimal control over the integrity of each mailpiece. For information visit MetroGroup’s websiteat www.metrogroupcorp.com

Harvest Graphics a full-service marketingagency in Doylestown just received certificationas a Women’s Business Enterprise (WBE) by theWomen’s Business Enterprise National Council(WBENC), which is one of the most widely-recog-nized and respected certifications in the nation.This distinction was awarded to HarvestGraphics after the agency went through a metic-ulous selection process. WBENC’s national stan-dard of certification is an arduous processincluding an in-depth review of the business andsite inspection. For more information aboutHarvest Graphics, visit their web site atwww.harvestgraphics.net

Vertex Internet, a web application develop-ment company, announced that they have movedto an 8,000 square foot office building at 701South Broad Street in Lititz, PA. Operations forListrak, a leading hosted email marketing appli-cation created by Vertex Internet, were alsomoved to the new location. Year to date the com-pany has added five new full-time positions tostaff and 90 mid-market and Global 2000 busi-nesses to their list of clients. For the second con-secutive year the company has been named aTop 50 Fastest Growing Company by the CentralPenn Business Journal. Also this month, Listrakwas named winner of the Small BusinessTechnological Excellence Award by the GreaterPhiladelphia Chamber of Commerce. For moreinformation visit www.listrak.com.

MEMBERS ON THE MOVE

New Address:ListrakPaige Flory701 South Broad StreetLititz, PA 17543office-717.627.4528, ext [email protected]/pflory

newsnotes


Not a Member?Join PDMA Today!

www.The-PDMAorg

Join Today!

continued from page 11

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keter’s acts comply with the applicable laws. At a minimum, due diligence should

include a request for and a review of the mar-keting materials being used with an eyetoward the restrictions or obtaining legalapproval from qualified counsel that theadvertising claims are substantiated and other-wise appear to comply with applicable law.

To the extent data is being re-sold, suppli-ers should independently confirm that theresale does not violate any privacy policies orprivacy representations.

Moreover, all due diligence efforts shouldbe well documented by a paper trail in case ofany investigation.

Regulatorscontinued from page 7


– Entrepreneurial Strategies. There, theFTC contended the company allegedly assisteda telemarketer in evading do not call compli-ance.

The payment processing context has alsobeen a significant focus for the FTC, stateattorneys general and even the United StatesDepartment of Justice.

The FTC has filed enforcement actionsagainst payment processors for processing fortelemarketers processors. In one case, the FTCobtained from a payment processor a ban onACH processing and the payment of $3.9 mil-lion in consumer redress.

More recently, the Department of Justicehas brought suit against a local paymentprocessor accusing it of being willfully blindin the processing of payments for telemarket-ing and direct mail clients. That matter is cur-rently the subject of litigation.

It should be noted, however, that the gov-ernment chose not to sue the actual telemar-keters, many of whom continue to operateusing other processors even in the same locale.

Supplier Liability For E-mailThis spring, the New York Attorney

General brought an action against Datran, acompany that transmitted e-mail solicitationson behalf of its clients based on a list suppliedby Gratis Internet – an entity who operatedsuch websites as myfreeipod.com.

Gratis sold a customer list of 7 millionnames to Datran, who sent solicitations to thelist on behalf of its clients.

The NY Attorney General claimed thatDatran’s e-mail solicitations violated the lawbecause the list supplied by Gratis wasobtained in connection with a privacy policyrepresentation that Gratis would “never lend,sell, or give out for any reason” the informa-tion provided by users.

Even though Datran did not make the rep-resentation, the Attorney General held it liablebecause it knew that the representation hadbeen made.

Datran agreed to pay $1.1 million, includ-ing $750,000 as a penalty. The settlement isimportant for all service providers to considerbecause it imposed on Datran the affirmativeobligation to independently verify that the datasupplied complies with the privacy policy rep-resentations made at the time of data collec-tion.

Interestingly, the order expressly providesthat a written representation from the listowner as to compliance would not be suffi-cient to meet Datran’s due diligence obliga-tions.

What does this mean to suppliers? The regulatory actions against suppliers

demonstrate that regulators are now focusingon supplier liability rather than simply holdingmarketers liable for their own misconduct.Businesses that supply marketers must performa due diligence search to ensure that the mar-

Andrew Lustigman, Esq. is a member of TheLustigman Firm, P.C., in New York. He rep-resents direct marketers, advertisers, mediaand Internet companies in all aspects of theiradvertising and business.

In addition, he handles inquires and litiga-tion brought by various federal and state regu-lators, including the Federal TradeCommission, the Federal CommunicationsCommission, the United States Postal Service,as well as state public utility commissions, andself-regulatory bodies such as the NationalAdvertising Division of the Better BusinessBureau.

For more information about The LustigmanFirm, P.C. visit http://www.lustigmanfirm.com

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Kings & Queens of HeartsMonte Carlo Night PDMA Lucky 13th AnnualHoliday Charity EventEach year for the past 11 years, the PDMAhas held a holiday event to benefit the RonaldMcDonald House. This year’s event, MonteCarlo Night, turns PDMA members and ourguests into high rollers for charity, during agala of casino-style games, auctions, food,drink, music, dancing and lots of laughter. Theevening presents a wonderful opportunity toconnect with colleagues and friends, as wellas support a local charity.

The Ronald McDonald House provides a“home away from home” for families of sickchildren being treated at area hospitals.Proceeds from PDMA’s Monte Carlo Night willhelp support the house’s operating costs andfund special projects, such as the spectacularplayroom addition.

Monte Carlo Night will be held on Wednesday,December 7, from 6:30 to 10:30 p.m. atNorth Hills Country Club, 99 Station Avenue,North Hills, PA, 19038. Tickets are $75 forPDMA members and guests. The PDMA wel-comes corporate sponsors to this specialevent. Sponsorship is a wonderful way topromote your business – as well as to give toa great charity. If you are interested, pleasecall or e-mail the PDMA office.

You’re a Member – Use Your Benefits & Discounts!USI Colburn Insurance ServiceFind your solutions to: Life Insurance; Disability Income Protection; Medical Insurance;Prescription Drug Plans; Dental Plans; Vision Care Programs; Retirement Plans; Long-TermCare Benefits. Call or email PDMA to find out how you can reach USI.

ADP Payroll DiscountThrough your membership in PDMA, you can receive a special discount of 15% off of payrolland tax filing services, plus one FREE month. Call PDMA to obtain contact information

Between Jobs?If you have been a PDMA member but now find yourself unemployed, we will waive yourmembership dues for one year or until you find a new job – which ever comes first. Call us!

Job Postings on the WebIf you have a job opening, let hundreds of direct marketers know about it by posting it on thePDMA Web site. Send PDMA an email and we will get you started.


lformica

Note

can we change this headline to: Member Only: Benefits and Discounts!


MetroGroup Corp. . . .page 9 Contact: Chad Spannaus (646) 356-0056

Network Courier Systems, Inc. . . .page 13Contact: Steve Miller (215) 444-0808

Oak Lane Printing… page 12Contact: Mike Dubowitch (856) 727-1144

Oles Envelope . . . page 13Contact: Al Zimmerman (410) 243-1520

Signed, Sealed, Delivered, Inc. . . . page 10Contact: Jon Caruso (610) 563-4651

Telematch . . .page 15Contact: Phyllis James or Ruth Bakerat (703) 658-8321

Tribune Direct . . . page 8Contact: Dave Kazmer (610) 837-6769

The WordTech Group…page 13Contact: Benjamin Ohanesian at (610) 326-7200

Valley Forge Tape & Label Co. . . .page 5Contact: Paul Myers at (610) 524-8900

Thank you to the advertisers in this PDMA Direct ViewsPLEASE UTILIZE THESE DIRECT RESPONSE EXPERTS WHEN YOU CAN

To receive this special notice in the next issue, please place your ad todaywith Lou Yager @ 610.664.7374.

ABC Mailers. . . page 14Contact: Anthony Bucolo (215) 743-7710

Alliance Business Systems . . . page 10Contact: Kevin Mullarkey (610) 544-8188

American Advertising. . .page 14Contact: Gary Levitz 856-866-5535

Aquent . . . page 8Contact: Lisa James-Woodton (610) 828-0900

CJR Fulfillment. . . page 14Contact: Robert Reyes (215) 688-2180

Direct Group. . .page 16Contact: Chris Ryan (856) 241-9400

Intelligencer Printing ....insertContact: Todd Foster (800) - 233-0107

Japs-Olson Company . . .page 4Contact: Debbie Roth (952) 912-1440

Kay Henry & Associates. . . page 10Contact: Shelley Miller (215) 355-1600

Listrack . . . page 6Contact: Paige Flory (717) 627-4528

Management for Roska Direct/Weightman Group,and President of Emory McClure, a division of theMcClure Group. Since he founded NetworkDirect in1997, the company has specialized in developingmulti-channel marketing programs integrating WebSite traffic building and permission e-mail market-ing with traditional direct response media.

JIM MURPHYPresidentJIM MURPHY COMMUNICATIONSJim Murphy, one of very few direct marketing copy-writers with a sales background, has successfullyused his knowledge of the sales process to pro-duce outstanding client results for over 20 years.After working at Roska Direct, and serving asCreative Director at Euro RSCG Devon Direct from1996 to 2003, Jim started his own marketing con-sulting company. In the past two years, he has writ-ten winning copy for a variety of growing compa-nies. Among them: Capital One, Verizon, Amica,Brown+Partners, Inc., the Franklin Mint FederalCredit Union, Stonehouse Media and Student Trust.

TONY NESSLERiGen Product ManagerXEROXTony Nessler is the iGen3 Product Manager forXerox Corporation in the Philadelphia/Delaware/South Jersey area. Tony also helped launch theiGen3 in 2003 in the Southeast United States andPuerto Rico. In his12 years at Xerox, he has served

BILL SPINKSChief Creative OfficerDMW DIRECTBill has been riting and directing direct response winners forover 25 years, promoting everything from autoinsurance and credit cards to supply chain soft-ware, T-shirts and dog treats. The winning workBill and his teams continue to create winsnumerous Benny awards here in Philadelphia,local chapter DMA awards in New England andSt. Louis, and international recognition in theECHOs, plus creative awards in Caples, Clios,Telly, and Communicator competitions.

Michael StalbaumCEOUnREAL MARKETINGMichael founded UnREAL Marketing Solutionsin 1999. Today the company is a full-service,interactive marketing and advertising agencythat offers digital marketing strategy and serv-ices to help advertisers increase the effective-ness and ROI from their online businesses. Theagency was named one of the top 50 interac-tive agencies by Media Magazine in both 2002and 2003. Michael Stalbaum holds a lawdegree and an MBA from Temple University.

To register, go to www.thepdma.org or call thePDMA at 610-642-2616. For information,e-mail the PDMA at: [email protected].

in many different roles, including RegionalManager for major accounts. Tony's primary focushas been the direct mail and commercial printindustries.

MARY ANNE NOON-CHILDERSDirector of MarketingS. WALTER PACKAGING CORP.Mary Anne is responsible for promoting new busi-ness development and expansion through hercompany's catalogue and website. She has ties toboth the Baltimore and Philadelphia regions, hav-ing lived and worked in both metropolitan areasover her extensive direct marketing career. Shehas developed and taught numerous direct mar-keting seminars directed to the beginner andadvance marketer.

STEVE O’DRISCOLLMarketing ConsultantSteve's marketing career started with the launchof the 25-year Ed McMahon campaign for ColonialPenn Insurance in the 1970s and includes the TVGuide marketing campaign in the 1980s and '90sthat made it the #1 US magazine, selling 17 mil-lion copies a week. He also helped the Eagles sellover 8,000 premium seats and luxury boxes atLincoln Financial Field in just 5 months – the onlynew stadium in the country to ever accomplishthis feat. Recognized with over 100 industryawards for marketing campaigns in direct mail,print, TV, radio and Web, Steve’s client experienceincludes E*Trade Bank, Mr. Handyman, CertaProPainters, Quaker Chemical, Merck, and Johnson &Johnson.

Marketing Magiccontinued from page 6


DIRECT GROUPWHERE SMART

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through lettershop, commingling and mail to telemarketing, response and fulfillment.

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Robert AguilarManager,

Network Operations

Ronald Snyder Chief Information Officer

Suzanne WiselySenior Customer Account Rep

Mike DolanSenior Vice President

Lisa ChevrierAccounting Manager

June Busch VP Client Services

Kevin McDonaldSupervisor,Duplication/Print


Documents

Regulators Take Aim at Suppliers