How digital media boosts and lifts direct mail

How digital media boosts and lifts direct mail

Last year our firm was fortunate enough to have a client that liked and encouraged our desire to experiment and test.

Situation

We were attempting to test the validity and cost effectiveness of obtaining petitions via direct mail.  To do so, we created a self contained mail piece with perforated petitions.  To further reduce friction, we paid for return postage and used variable printing to pre-fill the petitions with all needed information.  Literally “all” the voter needed to do was sign, date, tear off, and drop in the mail.

Our test universe were households with voters with a history of voting in primaries. It was a large enough test universe to allow for testing multiple conditions.

We were brainstorming different creative elements (social proof, colors, calls to action) and then Ben asked “Why are we limiting ourselves to only direct mail?”

A great question.   We approached the client and said since we are testing direct mail, let’s see if we can push it.   The client agreed with the push and added some additional funds to the project.

We separated three test groups.

  • Group 1 – Control – received direct mail only.
  • Group 2 – Direct mail with a layered a digital campaign over the top.
  • Group 3 – Direct mail, layered digital campaign, and received a personalized text message.

Most direct mail response rates are 1-2%.  We hypothesized that the control group’s response rate would be 1% and Group 2 & Group 3 would be lifted to 2.5%.

Once again, we were dead wrong.

We had a mail date of mid-month.

Digital Media

10 days before the mail went out, groups 2 & 3 began seeing a targeted digital campaign. The creative essentially said “Look for your petition in the mail” and it clicked through to a landing page specifically about the petition.

Both display and facebook were used. The digital audience mirrored the mail groups exactly using proprietary methods.

The digital campaign continued until 10 days after the mail drop. 20 days in total.

Text campaign

The day of the mail drop, Group 3 began to receive personalized text messages:

{first_name}, this is Al from the xx campaign.In the coming days,you will receive a petition in the mail.Please read,sign & return.”

The text was repeated 2 days later, minus the opt outs of course.

Waiting

And then we waited. 1 day…2 days….7 days….nothing.

The panic began to set in. Did we just waste a a ton of money?

No, we did not.

Then came the glorious day of first returns. The PO Box was stuffed AND it contained a note from the post master “please see us at the counter.” At that time, we were handed a basket of returns. We were excited, and couldn’t wait to run the stats. But how long could we wait for returns before computing the stats? Within 10 business days of returns beginning, we received 78% of what were in the end going to receive. However, we received returns for 45 days. Yes, they slowed to a trickle, but I know from the date of signature, the petitions were being signed up to 40 days after the mail drop. Total Returns We were extremely pleased with the returns, but couldn’t wait to explore the data to explore was there a real difference between the groups? When we finally went two consecutive business days, we allowed ourselves permission to compute the “final” stats:

%

Group 1 Response Rates

%

Group 2 Response Rates

%

Group 3 Response Rates

Cost Effectiveness

Yes, we did spend more on Groups 2 & 3. So was the increased response rates more cost effective? Yes! Group 2 (digital media only), even with an increase in spending was a 1% reduction in cost per returned petition when compared to the control group. Group 3 (digital media and texting), Even with an increase in spend, it was a 3.6% reduction in cost per returned petition when compared to the control group.

Conclusion

The secret sauce of this entire experiment was limiting the waste and precisely targeting the digital. As we briefly mentioned, it was limiting the digital audiences to as close of an exact overlay as possible. We were targeting super-voters in a specific geographical area (not everyone with an interest in politics). It was this precision that drove response rates AND made it cost effective. How did we do that exactly? Call us about your next project……
Science Friday: Psychological targeting as an effective approach to digital mass persuasion

Science Friday: Psychological targeting as an effective approach to digital mass persuasion

I once met an attorney who was at the top of her field.  I mean she is a cracker-jack attorney with a crazy intellect and extremely well respected in the legal field. 

I asked her how she became such a great attorney.  Her answer was simple, “When I was in law school, I read every footnote.”

In today’s Science Friday, we have a case where the supplemental information is as interesting, if not more interesting than the study itself. 

Today’s study: “Psychological targeting as an effective approach to digital mass persuasion”  Authored by scholars from Columbia, Stanford, Wharton, and Cambridge. 

It is an interesting study that explored effects when ads are matched to one of the big 5 personality traits, the OCEAN MODEL. 

Study Findings

In research that will stun no one, the authors find”people’s psychological
characteristics can be accurately predicted from their digital footprints, such as their Facebook Likes or Tweets.”

This is the part the drives me nuts – of course this makes sense.  If you tell me what you like, I can then predict things, and I can tailor my messaging….but HOW does one do it?

The authors go on to write “that matching the content of persuasive appeals to individuals’ psychological characteristics significantly altered their behavior as measured by clicks and purchases. Persuasive appeals that were matched to people’s extraversion or openness-to experience level resulted in up to 40% more clicks and up to 50% more purchases than their mismatching or unpersonalized counterparts.

Cool, right?  That is a pretty big lift.
But the real cool stuff is in the supplemental.

How to match Likes to Personality

The supplemental demonstrates HOW they matched advertising to personality types.  That’s the magic.

And it all started with one of those stupid personality tests on facebook.

 

 

So, there you have it…easy peasy….except for the organization that was conducting the personality tests stopped making the data available to researchers.

But could one reverse engineer what the researchers did?   I think so….

CLICK HERE TO TAKE YOUR FREE PERSONALITY TEST (Just kidding)

Conclusion

It is an amazing amount of work that goes into “no brainer” research.  I mean finding that ads tailored to personality increases sales shouldn’t be that much of a shock. However, this study does a great job in reminding us what my attorney friend told me years ago – “there is magic in the footnotes.”  In this case, the footnotes lead to the supplemental materials. PS.  Please keep on taking those personality tests – need data to train models.  Thanks.
Are Republicans Fleeing the Party in Florida?

Are Republicans Fleeing the Party in Florida?

If you believe the press, Republicans are fleeing the party by the thousands – especially after the Jan 6 incident at the capitol.

Well, we don’t believe the press at face value, and we prefer to compile our own data and make our own conclusions.

In the past, we have explored the tremendous amount of churn in Florida’s voters file. 

However, in this case the research question is “In Florida, are Republicans leaving the party?  Follow up:  How does that rate compare to Democrats leaving their party?  Is there an uptick in Replicans leaving the party?”

Methodology

I found some old voter-files in a desk drawer.

file 1 – Florida Voter-file December 2017

file 2 – Florida Voter-file December 2020

file 3 – Florida Voter-file – February 2021

Exploration 1: December 2017 –> February 2021.

Exploration 2: December 2020 –> February 2021.

I loaded each voter file in its entirety.  Then I joined each by the state’s voter ID number.  I dropped any observations that were not on both rolls.  Then I simply looked at the party registration in the first file, looked at the party registration in the second file and if they differ deemed them a “switch”.

Florida Voters December 2017 vs Florida Voters February 2021

In this graph, on the right hand side is Dec 2017 and on the right hand side is the switch.  This graph allows us to see how the switches flowed.  (click the graph for a larger view.)

Florida Voter changes in Registration 2017 - 2021

But this shows us that in that time, 271,431 (22% of total switches) Republicans switched their registration compared to 387,005 (31% of total) Democrats, and 557,092 (45% of total) NPAs.

So in this time period, MORE Democrats in Florida fled their party.

R Detail

Florida Republican voter switches 2017-2021
In this Rep detail, 46% of the switches moved from Rep to Dem, 44% of the switches moved to from Rep to NPA, and 11% moved to Other.

Dem Detail

Florida Dems voter switches 2017-2021

In this Dem detail, 53% of the switches moved from Dem to Rep, 40% of the switches moved to from Dem to NPA, and 6% moved to Other.

NPA Detail

NPA Voter Reg switches 2017-2021

In this case, 52% of the switches moved from NPA to Dem, 40% of the switches moved to from NPA to Rep, and 8% moved to Other.

Florida Voters December 2020 vs Florida Voters February 2021

In this case we redo the counting, but comparing Dec 2020 to Feb 2021.

In this graph, on the right hand side is Dec 2020 and on the right hand side is the switch.  This graph allows us to see how the switches flowed.  (click the graph for a larger view.)

Florida Voter Switches Dec 2020-Feb2021

This shows us that in that time, 39,815 (60% of total switches) Republicans switched their registration compared to 12,933 (20% of total) Democrats, and 1,718 (3% of total) NPAs.

So, we observe a dramatic increase in the proportion of switches – Republicans are moving in greater numbers than they have in the past two years.

R Detail

Republican Vote switches 2020-2021In this case, 59% of the switches moved from Rep to NPA, 23% of the switches moved to from Rep to Other, and 17% moved to Dem.

Dem Detail

Dem vote switches 2020-2021

In this case, 57% of the switches moved from Dem to NPA, 31% of the switches moved to from Dem to NPA, and 12% moved to Other.

NPA Detail

 

NPA voter switches in Florida 2020-2021In this case, 42% of the switches moved from NPA to Rep, 40% of the switches moved to from NPA to Dem, and 18% moved to Other.

Plot twist

In an interesting plot twist and going against the conventional wisdom that the GOP is bleeding ‘suburban women’, 51% of Republican party switchers are male.  Of the Democrat switchers 56% of them are female.

CONCLUSION

In the larger context, in the past two years, the Democrat party lost 387,005 voters to other parties while the Republican party lost 271,431 voters to other parties.   This is compared to 557,092 NPAs that registered with a different party – 52% of them registering as Dems and 40% of them registering as Rep.

REMINDER: this analysis is not looking at new registrations or removals (death).

However, the data doesn’t lie and there is a red flashing light:

In the past 2 years, 22% of the voters switching parties were Republicans.

In the past 2 months, 60% of the voters switching parties were Republicans.

The rate of Republicans switching parties has definitely increased in comparison to a base line and it is something to watch very closely moving forward.

Science Friday: Psychological targeting as an effective approach to digital mass persuasion

Science Friday: Who Enters Politics and Why?

Most interesting research questions begin with a real life problem.

A general political consultant we work with wanted to target digital ads to ‘people who are thinking about running for office.’  This is what we do – we build data driven audiences for people to connect with using various media.

So the question is “What type of insane people run for political office and why?” If we could better answer this question, we could build a rock solid digital media audience to target for this political consultant.

While we do not yet have the ability to read people’s minds as to their political ambition, we start by asking who has done research in this area. At times, the world aligns and you find a good paper that has done just that – reviewed the literature for you.

 

citation: Gulzar, Saad. (2021). Who Enters Politics and Why?. Annual Review of Political Science. 24. 10.1146/annurev-polisci-051418-051214.

 

Dr. Gulzar, from Stanford, does a review of the literature – using comparative data and US data.

This paper presents the difficulty of such a “simple question.”

“Who runs for office and why?” is difficult to even conceptualize and attempting to delve into the ‘whys’ illustrates how completely messy human behavior is.

In addition, this paper doesn’t begin to delve into potential difference between candidates in the hyper-polarized parties and voters in the US.

At Ozean, when we begin an analysis for a potential political candidate there are three main areas we look at: political, environment and then and only then do we look specifically at the candidate.

 

  1. What are the political considerations?  This is where we take a look at the rules, the political calendar, the district or political boundaries,  the historical returns, the political media environment.  Items that are constant over time in this district, state.
  2. What is the current political enviroment?  This is where we look at district composition, incumbency, current polling information, the national political enviroment, where the party is in recruitment process, what additional items are on the same ballot, who else may be in the race from the same party, who else may be in the race from the competiting party, and potential shifts from considerations observed in first phase.  (example – is there a pending change in political boundaries?)
  3. Candidate Traits.  This is the difficult one because depending on 1 and / or 2, specific candidate traits may be irrelevant.  As the old saying goes, the district may pick the representative.  However, assuming 1 & 2 are favorable, what traits make a successful candidate?  Because we have seen in close election after close election, candidates do matter. 

 

But even that progression shows the difficulty in reviewing this literature.  My conceptualization above is more in line with asking “What makes a successful candidate?” not “Who runs for office?”  Two very different questions. 

The research does a good job of exploring the challenge of “unseen candidates”.  These are the candidates that seriously consider a run and don’t declare for whatever reason.

The research attempts to classify three determinants – individual, group, and institutional.

On the individual front, Black is quoted as saying an individual will consider the probability of winning * the benefit of winning – Cost.  Is that net benefit higher than other options?  Like any models this is very simplistic, and I think assumes way too much rationality in the decision making process.  The model completly ignores some of the most important individual traits – the least of them being EGO.

In addition, the author explores the insitutional factors – primarily party recruitment and allocation and steering of resources.

Another group or instutional factors is one that I despise, but it is a reality – dynastic political families –name ID and political networks mean a lot in this game, and much to my chagrin, kids are able to plug into or grew up in these networks. 

Finally, a final instutional factor is the rules.  Filing fees, timeframes, Hatch Act considerations…etc.  The rules of the game – especially when it comes to ballot access – matter a lot in politics.

The author then explores political competency and asks is there a trade off between political competency and political representation.  Said another way, should the elite (weathy, highly educated (so many lawyers), leadership skills) rule us?  Should they rule us when they are significantly different than the district’s citizens?  It is an interesting section, but doesn’t really bring us closer to answering the pivotal question – “Who Runs for Office?”

Well, in this review of the literature – the author admits in the last paragraph – we really don’t have good data on this. 

 

“While researchers often focus on work on political entry or leadership that has a formal political flavor, more work is needed on the antecedents of political entry. What activities and jobs increase the likelihood of future participation in politics as a politician? Tracing the pipeline of political entry before it formally occurs could provide insights into how the political class may be broadened, for instance.”

 

CONCLUSION

While the review of the literature is informative and an relatively easy read, it does shed a light on that fact that we don’t really have great data on who runs for office.

I think some of the more interesting work mentioned in the paper is a new line of research being inspired by Dal Bó et al.  They explored Sweden, but they are attempting to look at individual variables, and I think that has promise.  If you have been in this business, you know there is a ‘type.’ and I would like to see more work done defining the individual traits of those that raise their hand and offer themselves for public service.

Will the Republican / GOP / Trump Party Split?

Will the Republican / GOP / Trump Party Split?

As a company, we embrace “Structured Analysis” techniques in an attempt to minimize biases and ensure we are rigorous in our examination of a question or problem.

This often means before beginning an analysis, we may spend some time reframing a question – especially on that assumes a binary Yes or No conclusion.  “Will the Republican Party split?” can be reframed “Under what conditions do political parties split?”

Another technique is to get out of a binary “yes / no” and ask “What is the probability the Republican Party splits?”

An additional technique we may use is Scenario Analysis.  It is an attempt to generate competing hypotheses that can then be evaluated.  It is also a method that can identify multiple ways in which a situation could evolve and consider the factors.  It is fairly simple technique; we project into the future and brainstorm alternative possible outcomes.  As with brainstorming, some scenarios can be a little out there.  That is okay, it is just important you discuss them.  In the end, you can then assign a likelihood to each scenario.

So in the case, we project two years or three into the future and brainstorm potential scenarios for the Republican party.

In a world after 2022 midterms…..

HIGHLY LIKELY

Nothing Really Changes, and the GOP ‘Civil’ War Is Raging.

  • 2022 midterms are a mixed bag – nothing much changes in power setting in Congress, both wings have victories and defeats.   Maybe control of House and/or Senate flip.
  • The Trump wing and the establishment wing of the party have and will continue to challenge not only Democrats but also the differing Republicans from the other wings. Open seats, especially in red districts, become free-for-alls.
  • One side wins a majority of seats in GOP caucus, but not large enough to move an agenda on their own.
  • Right Wing media fractures – Some conservative media suffering from lawsuits, advertisers fleeing and/or stock holder lawsuits or stockholder pressure realigns and revamps their entire lineup – appeals to ‘establishment’.    Other Right-wing media continues to support Trump wing, offering a platform to promote fringe theories.
  • Q2.0 evolves and flourishes.
  • Corporations who pledged to stop donations to Members of Congress who voted to nullify 2020 election, hold the line.  Fund and promote establishment Republicans.
  • Small-dollar donations continue to fund the non-establishment wing.

Nothing Really Changes, and the GOP Reaches Uneasy Détente.

  • 2022 midterms are a mixed bad – nothing much changes in power setting in Congress, both wings have victories and defeats.   Maybe control of House and/or Senate flip.
  • The Trump wing and the establishment wing of the party no longer actively challenge incumbents but spend money in open seats to win the hearts and minds of their wings’ loyalists.
  • The factions form a coalition type party government that settles into a détente.  No side “wins”, but arrives at a truce, power sharing type agreement, and outcomes are irregular.
  • Corporations who pledged to stop donations to MOC who voted to 2020 nullify elections find loopholes to drain their moral outrage and give instead PACS, to leadership PACS or through trade groups who in turn donate and/or support those members.
  • Right Wing media morphs –  coverage changes with a base of anti-Democrat messaging with specific shows supporting each faction.  Corporate media with stockholders offers a range of opinions.  Internet media continues to be a free-for-all.
  • Other Internet, based conservative media continues to support Trump wing and offer fringe theories and reinforces the trump wing.
  • Q2.0 evolves and flourishes.

LIKELY

Trump Wins – Establishment Wing Dies

  • 2022 midterms became a referendum on Donald Trump (again) and they win.  Ivanka wins a Senate seat beating Sen. Rubio in a primary.  Maybe Laura Trump wins in North Carolina.  Donald Trump extracts revenge and wins primaries against members deemed not loyal enough.  Donald Jr is installed GOP national chair.
  • Party realigns with populists, American-worker message but continues with divisive, off-putting ‘appeal’  in the process – losing educated, women, young, and majorities of minority voters.   Adds to ranks white voters.
  • Trump regains social media platform access.
  • Trump announces run for 2024.
  • ‘Establishment’ Republicans flee the party as registering as NPA or even DEMS.  They are small in number.   Most just realign with Trump.
  • Party shrinks to a national party in name only, continues to win deep red states/districts.   However, controls enough state houses for 2020 redistricting to maintain regional / statewide power.  Over time, in large jurisdictions – likely to lose states like Texas, Georgia, and Florida.
  • Popular vote isn’t with reach, electoral college is trending away.
  • Conservative media does not fracture – Right Wing Media wins/settles lawsuits, advertisers fleeing are replaced with new advertisers, no stockholder pressure.  Media realigns and revamps their entire lineup – appeals and supports Trump wing, Q2.0 flourishes and right-wing media ecosystem is flush with cash.

Establishment Wins – Trump Wing Is Co-Opted And Quietly Fades

  • 2022 midterms became a referendum on Donald Trump (again) – Democrats pick up seats or retain power in House.  Democrats pick up seats in Senate, widen margin.
  • V1 – Party & Voters realigns with a populists, American-worker message, and appeal.  Files down rough edges – Gains in middle / lower class voters regardless of race (actually improves dramatically with Hispanic, Asian, and make small inroads into black voters  – Party competes / wins national elections.
  • V2 – Party and Voters realigns with establishment.  Returns to traditional messaging, files down rough edges.
  • Trump remains on social media sidelines.
  • Corporations who pledged to stop donations to MOC who voted to 2020 nullify elections hold the line and cut off money or move resources to gasp….”supporting business minded Democrats.”

Establishment Wins – Trump Wing Implodes / Dies

  • 2022 midterms became a referendum on Donald Trump (again) and his family is sidelined due to legal issues.  Democrats pick up seats and/or retain power in House.  Democrats pick up seats in Senate, widen margin.
  • The Trump family is crushed or completely distracted by legal issues.  Trump wing is beset by family in fighting for control – will it be Jr or Ivanka?  Or Cotton Or Hawley? Corporations stick by their pledges not to donate to Representatives or Senators that participated in the attempted nullifying of the 2020 election.  Instead, they spend their resources in attacking Trump wing.   Right Wing media does not fracture – Right Wing Media suffering from lawsuits, advertisers fleeing and/or stock holder lawsuits or stockholder pressure realigns and revamps their entire lineup – appeals to establishment, attacks fringe theories.   Media companies are regulated more and fear being held liable for content.  Fringe content is pushed into the deep shadows.
  • Trump remains on social media sidelines.
  • Trump does not have the discipline to keep up a sustained effort needed to emerge through all the issues he faces.
  • Democratic DOJ infiltrates, prosecutes, and jails white supremacist groups and organizations.  Direct ties to Trump wing are proven.
  • Establishment Republicans benefit through no actions of their own.

Establishment Wins – Trump Wing Dies

  • This one could be literally Donald Trump dies and without the specific personality, the Trump wing fades away in his absence.

UNLIKELY

Two scenarios in this are the actual, formal split of the party.  While not impossible, political pros understand that an actual 3rd party means they are highly unlikely to win an election outside a regional area.  We are a first past the post, winner-take-all political system.  Without changes to that system, a 3rd party stands virtually no chance of winning.  Rather, it would likely play the role of spoiler.

Establishment Wins – Trump Wing Starts “Patriot Party”

  • Supported by Internet Media.
  • Small dollar donations support.
  • With Trumps popularity, a significant number of grass-root volunteers, true believers, and potential candidates would migrate.
  • Highly unlikely to win in many competitive places; likely to splay spoiler.
  • Likely to win some deep red seats

Trump Wins – ‘Establishment’ Wing Starts New Party

  • DC, elected officials will not formally switch registration – there is simply too much infrastructure and too much vested in status quo.  Potentially could caucus.
  • Highly unlikely to win in many places; more likely to splay spoiler.

HIGHLY UNLIKELY

Actual Civil War Breaks-Out – violence continues, some states begin to succeed.

CONCLUSION

Frankly, I am not all that happy with this analysis, and I will continue to work on it.  It feels like it lacks imagination, but that may be a function of the most likely scenario is messy and doesn’t neatly fit into a box.  I’ll continue to work on brainstorming outcomes, but in the meantime – strap your helmet on; it’s going to be ugly. What are potential scenarios that I have left out? Factors?