annual report - Electronic Retailing Association

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2003 - 2004
annual
report
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
the companies who 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 revenues 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.
elcome to the Electronic Retailing Association’s
2003-2004 Annual Report. Inside you will find
information on many of ERA’s initiatives from
the past year, which most importantly include the launch
of our Self Regulatory Program and Electronic Retailer
magazine. Both of these programs helped fulfill the
strategic objectives set by the Board of Directors and
ERA’s membership. In our continuing effort to meet the
needs of our members while improving industry credibility,
we strive for transparency in governance, equality in
our dues structure and the expansion of business
opportunities and diversity.
W
Looking back over the past year, I am pleased to report
that we are well-positioned for the future and it is
thanks to the vision, dedication and hard work of ERA’s
volunteers that we have moved forward so smoothly.
We began the year strategizing on how best to maximize
membership dollars to grow ERA’s influence in the
regulatory arena, increase credibility among electronic
retail consumers, and expand the reach of our membership. I believe we have made exceptional progress in
achieving all three.
ERA’s Self Regulatory Program, unprecedented in nature
and unique by design, offers a clear signal to consumers
and federal regulators, that electronic retailers are responsible, respectful and reputable. ERA’s Electronic Retailer
magazine not only furnishes essential regulatory news,
industry information and trends, but, again, harnesses the
positive power of this industry for all to see. In addition,
we have also been working to embrace the diverse and
changing face of the industry by growing ERA’s membership. Beginning with ERA’s Board of Directors, all five
shopping channels are represented, as are members from
the retail, radio and online sectors. While recruiting over
100 new members this year and retaining 75 percent of
our current membership, we are widening the net.
As we look to 2005, one of the most essential features of
any successful and competitive association is its ability to
identify and utilize research data. We will be building on
our current library to include global research information,
industry trend analysis and consumer patterns. Our hope
is to continue to bring you timely information that will
benefit your business and its future prosperity.
Another important initiative of the last year was to
further the development of key relationships with federal
regulators and Congressional leaders, while also expending PAC funds to increase clout and influence. We also
made excellent strides in this area as evidenced later
in this report. Finally, as the direct response industry
changes, ERA must be on the crest of the wave to bring
members and consumers alike timely information through
our communication vehicles and at our annual events.
Again, I want to thank you for your support, your
enthusiasm, and most importantly, your commitment in
shaping your association and creating an environment
where all segments of the industry may come together.
I wish you continued prosperity and encourage you to let
me know what more we, as staff, can do for you.
A Message from
ERA’s President & CEO
Sincerely,
Barbara Tulipane, CAE
ERA President & CEO
1
Electronic Retailing Association’s
2003-2004
Board of Directors
Board Members
Mr. Mike Ackerman
EMSON/E. Mishan & Sons, Inc.
Mr. Greg Anderson
Salem Radio Network
Mr. Stephen F. Breimer, Esq.
Bloom, Hergott and Diemer LLP
Ms. Denise DuBarry-Hay
Thane International, Inc.
Mr. Jorge Hane
Premier Solutions
Mr. Thomas Kelly
hawthorne direct, inc.
Ms. Toni Erickson Knight
WorldLink, LLC
Chairman of the Board
Mr. Jack Kirby
Continuum Commerce, LLC
President & CEO
Ms. Barbara Tulipane, CAE
Electronic Retailing Association
Chair-Elect
Mr. Dan Danielson
Mercury Media
Mr. Jeffrey Knowles, Esq.
Venable, LLP
Mr. Gilles Labouyrie
Home Shopping Service
Mr. Randy Ronning
QVC
Mr. Robert Rosenblatt
Tommy Hilfiger (formerly with HSN)
Mr. Yuji Sakuraba
Fujisankei Living Service, Inc.
Mr. Bret Saxon
Transactional Marketing Partners, Inc.
Mr. Richard Stacey
Northern Response (Int’l), Ltd.
Mr. Mark Thornton
AEGON Direct Marketing Services, Inc.
Immediate Past Chair and
Past Chairman’s Council Representative
Ms. Linda Goldstein, Esq.
Manatt Phelps & Phillips, LLP
Ex-Officio Board Members:
Mr. Mark Lavin
West Corporation
Mr. Earl Greenburg
Transactional Marketing Partners, Inc.
Ms. Nancy Marcum
Marcum Media, LLC
Mr. Ray Wysocki
Retail Distributors, Inc. (RDI)
Mr. Rick Petry
Euro RSCG 4D DRTV
Chairman Emeritus
Mr. Steve Pittendrigh
Inpu!se Response Group, Inc.
2
Mr. Richard Prochnow
Media Outsourcing, Inc.
Mr. Greg Renker
Guthy-Renker Corporation
Electronic Retailing Association’s
2004-2005
Board of Directors
Board Members
Mr. Mike Ackerman
EMSON/E. Mishan & Sons, Inc.
Mr. Greg Anderson
Salem Radio Network
Ms. Denise DuBarry-Hay
Thane International, Inc.
Mr. Nathan Fagre, Esq.
ShopNBC/ValueVision Media, Inc.
Mr. Greg Gemette
HSN
Mr. Stephen Hamlin
QVC
Mr. Jorge Hane
Premier Solutions
Chairman of the Board
Mr. Dan Danielson
Mercury Media
President & CEO
Ms. Barbara Tulipane, CAE
Electronic Retailing Association
Chair-Elect
Mr. Jeffrey Knowles, Esq.
Venable, LLP
Mr. Anand (Andy) Khubani
Ideavillage Products Corp.
Mr. Thomas Kelly
hawthorne direct, inc.
Ms. Toni Erickson Knight
WorldLink, LLC
Ms. Tonda Mullis
MarketRights International
Mr. Rick Petry
Euro RSCG 4D DRTV
Mr. Adam Rockmore
Shop At Home Network, LLC
Mr. Robert Rosenblatt
Tommy Hilfiger
Mr. Yuji Sakuraba
Fujisankei Living Service, Inc.
Mr. Bret Saxon
Transactional Marketing Partners, Inc.
Mr. Richard Stacey
Northern Response (Int’l), Ltd.
Mr. Mark Thornton
AEGON Direct Marketing Services, Inc.
Immediate Past Chairman and Past
Chairman’s Council Representative
Mr. Jack Kirby
Continuum Commerce, LLC
Ex-Officio Board Members:
Mr. Gilles Labouyrie
Home Shopping Service
Mr. Edwin Garrubbo
American Telecast Products, LLC
Mr. Mark Lavin
West Corporation
Ms. Linda Goldstein, Esq.
Manatt Phelps & Phillips, LLP
Ms. Nancy Marcum
Marcum Media, LLC
Chairman Emeritus
Mr. Greg Renker
Guthy-Renker Corporation
3
Electronic Retailing Association’s
European
Board of Directors
Board Members
Mr. Branimir Brkljac
Studio Moderna
Mr. Edwin Garrubbo
American Telecast Products,
LLC
Chairman
Mr. Gilles Labouyrie
Home Shopping Service
Vice Chairman
Mr. Chris Horobin
Sirius Retail Television, Ltd.
Executive Director
Mr. Marcel Avargues
ERA Europe
Mr. Douglas Bornstein
Marketing Concepts, Inc.
Mr. David Chaladoff
David Chaladoff Media, Inc.
Mr. Tom Fenton (Deceased)
Solution Communications, Inc.
Mr. Giuseppe Scavone
InterMax Srl
Mr. Kevin Harrington
Reliant International Media Corporation
Mr. Henry Scott
Simply Media TV, Ltd.
Mr. Timothy Hawthorne
hawthorne direct, inc.
Mr. Michael De Vere
2B on TV (Media), Limited
Mr. Jeffrey Knowles, Esq.
Venable, LLP
Mr. Dennis Reustle
QVC UK
Ms. Nancy Marcum
Marcum Media, LLC
Mr. Eivind Schackt
TV Shop Europe AB
Mr. David Marsh
American Telecast Corporation
Mr. Richard Whinfrey
Thane Direct UK
Mr. Greg Renker
Guthy-Renker Corporation
Dr. Tobias Schmid
Home Shopping Europe AG
Mr. Gene Williams
Power Media Marketing Group
Mr. Wiebe van Terwisga
!GOTM fulfillment
4
ERA/NIMA
Founders Circle
Government
Affairs
ERA continues to be the leading voice protecting you
and your company’s interests in the ever-changing
world of U.S. regulation and legislation.
companies access to Stateside Associates, a
service that monitors state legislation in each
of the 50 states. Stateside Associates also provides ERA members with cutting edge analysis
on issues relevant to their business, so members
can stay informed on what’s happening in their
own backyard.
rom the implementation of its Self Regulatory
Program to campaigning on the challenges
presented by Regulation E, ERA has become
the primary advocate for marketers using
electronic mediums to sell goods and services
to the public. ERA and its efforts directly impact
your company’s profitability and without ERA
monitoring the industry’s issues, your business
could be greatly affected.
F
With so many issues in play each and every day,
a dedicated team of individuals is required to
stay ahead of the legislative curve. ERA’s
Government Affairs Committee is comprised of
both leading industry attorneys and political
professionals from a number of ERA’s member
companies. This awesome array of talent is
supplemented by a full time, dedicated staffer
with over a decade of political experience, as
well as one of the most experienced lobbyists
in Washington, DC, who brings over 20 years of
insider expertise to the table. This group serves
as the industry’s "brain trust" on issues affecting
the world of electronic retailing.
While ERA’s national advocacy efforts are a
primary focus of the organization, ERA also
devotes resources to monitoring industry issues
statewide. In particular, ERA offers its member
ERA also serves as the principal source for
industry-specific information, by providing details
on legislative changes, trends and regulatory
rulings in the government affairs section of
Electronic Retailer magazine. Special sections
of the magazine provide in-depth issue reviews,
as well as a forum for regulators to speak
directly to the industry. Combined with ERA’s
newsletter and website, timely information on
industry issues is available 24 hours a day,
seven days a week.
ERA takes its government affairs efforts very
seriously and served as an advocate on a number
of issues throughout the year. In particular,
ERA was extremely involved on the following
initiatives during the 2003-2004 fiscal year.
5
Government
Affairs continued
6
Regulation E (Debit Card/Credit Card)
Endorsements & Testimonials
In its 2002-2003 annual report, ERA advised
that recent settlement provisions related
to the Visa/MasterCard lawsuit created
significant problems with respect to continuity
plans when a customer uses a debit card for
payment. After a year of intense meetings
with federal regulators, industry organizations
and ERA’s membership, the Federal Reserve
issued a notice of proposed rulemaking that
closely mirrors the recommendations put
forth by ERA and its members. The Federal
Reserve’s rulemaking, expected to be
completed in early 2005, removes a significant
barrier on debit card use for continuity
payments. There continues to be a push for
additional clarification through regulation
and/or legislation in the near future, and ERA
will work with regulators to ensure the best
possible outcome.
Sources at the Federal Trade Commission
(FTC) continue to state that the FTC soon
will release its long awaited research study
targeting typicality claims in endorsements
and testimonials. In 2004, ERA met with the
FTC to educate staff about industry concerns
related to the release of this document,
and the importance of testimonials and
endorsements to the direct response industry.
This study is slated for release in the spring
of 2005 and ERA stands ready to advocate
on its members’ behalf, dependent upon
the findings.
Unsolicited Commercial Emails
(UCE)/SPAM
During 2004, ERA continued its work on the
CAN-SPAM legislation passed by Congress
the previous year. ERA filed comments on
a number of requests by the FTC as they
continue their work to implement the
legislation and report on it to Congress.
Weight Loss Advertising
ERA also worked with the FTC throughout
2003-2004 regarding the release of its voluntary weight loss media guidelines designed
to help reduce the airing of deceptively false
weight loss advertisements. Initial reports on
this effort have been positive, with the FTC
indicating a 50 percent reduction in the number
of deceptive ads in this category. In particular,
ERA was instrumental during numerous
meetings, contributing information to help
the FTC draft these guidelines.
ERA’s
E-Retail PAC
t proved to be another successful year for
the Electronic Retailing Association’s political
action committee, E-Retail PAC, which was
created to help educate legislators on the direct
response industry. ERA has over $80,000 on
hand from its members who contributed to
election campaigns of major Congressional
leaders during this past year. E-Retail PAC
continues to expand and is an important industry
resource that promotes a unified and powerful
voice within the U.S. legislative process.
In particular, funds from the 2003-2004 fiscal
year went to support the following candidates:
I
United States Senate
Senator Barbara Boxer (D-CA)
Senator Tom Daschle (D-SD)
Senator Byron Dorgan (D-ND)
Senator Charles Grassley (R-IA)
Senator Judd Gregg (R-NH)
Senator Frank Lautenberg (D-NJ)
Senator Patty Murray (D-WA)
Senator Harry Reid (D-NV)
Senator Ron Wyden (D-OR)
United States House of Representatives
Representative Mary Bono (R-CA)
Representative Richard Burr (R-NC)
Representative Cliff Stearns (R-FL)
E-Retail PAC continues to expand and is an important
industry resource that promotes a unified and powerful
voice within the U.S. legislative process.
Over 65 ERA members contributed
to the ERA’s E-Retail PAC and a
special thanks to the 2003-2004
contributors:
Mike Ackerman
EMSON/E. Mishan & Sons, Inc.
Greg Anderson
Salem Radio Network
Steve Armstrong
HSN
Nadia Ashrafian
Capital Media, Inc.
David Baldassi
Northern Response (Int'l), Ltd.
Peter Bieler
Media Funding Corporation
Stephen Breimer
Bloom, Hergott & Diemer LLP
Brett Brewer
Intermix Media, Inc.
John Cabrinha
Mercury Media
Jim Collis
IR Holdings
Stacy Durand
Mercury Media
Nathan Fagre
ShopNBC/ValueVision Media, Inc.
Sean Fay
Envision Response, Inc.
Joel Gable
Ellison Media Company
Ben Giordano
Media Solution Services
Jeff Giordano
IR Holdings
Linda Goldstein
Manatt Phelps & Phillips, LLP
Earl Greenburg
Transactional Marketing
Partners, Inc.
Lynn Hamlin
GoodTimes Entertainment
7
ERA’s
E-Retail PAC continued
Jorge Hane
Premier Solutions
Thomas Kelly
hawthorne direct, inc.
David Meine
O’Currance Teleservices
David Savage
American Telecast Products, LLC
Kevin Harrington
Reliant International Media
Corporation
Rod Kempkes
West Corporation
Cheryl Mercuris
Quality Resources
Kevin Shaughnessy
Respond
AJ Khubani
Telebrands Corporation
Keith Mirchandani
TriStar Products, Inc.
George Simone
Celmark International
Anand Khubani
Ideavillage Products Corp.
Tonda Mullis
MarketRights International
David Tanzer
GoodTimes Entertainment
Jack Kirby
Continuum Commerce, LLC
Steve Netzley
Euro RSCG 4D DRTV
Mark Thornton
AEGON Direct Marketing Services, Inc.
Toni Erickson Knight
WorldLink, LLC
Steve Nober
inQ Inc.
Jim Thulin
TCI Direct
Jeffrey Knowles, Esq.
Venable, LLP
David Peet
AmeriNet, Inc.
Barbara Tulipane
Electronic Retailing Association
Peter Koeppel
Koeppel Direct, Inc.
Rick Petry
Euro RSCG 4D DRTV
Charles Wagner
Jewelry Television
Nancy Lazkani
Icon Media Direct, Inc.
Steve Pittendrigh
InPu!se Response Group, Inc.
Vicky Walz
Convergys
Fern Lee
GoodTimes Entertainment
Dick Prochnow
AmeriNet, Inc.
Loren Wayne
Koeppel Direct, Inc.
Jeff Mandell
Mercury Global, Inc.
Patrick Raymond
Raymond Entertainment Direct
Katie Williams
Williams Worldwide Television
Nancy Marcum
Marcum Media LLC
Bob Rosenblatt
Tommy Hilfiger
Johnny Mathis
Livemercial
Gregory Sater
Rutter Hobbs & Davidoff
Kerry Hatch
GoodTimes Entertainment
Tim Hawthorne
hawthorne direct, inc.
Bill Hay
Thane International, Inc.
Chuck Hengel
Marketing Architects, Inc.
Bill Hildebolt
Expo Communications, Inc.
Tony Hoffman
EMSON/E. Mishan & Sons, Inc.
Mike Hussey
The Professional Education Institute
Stephen Jacobs
GoodTimes Entertainment
8
ERA’s
Self Regulatory Program
n April 2004, ERA unveiled its much-anticipated
self-regulation program to the world. This
program was created to improve industry
business practices and increase consumer
confidence, while also allowing direct response
professionals a forum to review claims independently of federal regulation. After many months
of planning, ERA finalized its program in early
2004 under a partnership with the National
Advertising Review Council (NARC). NARC, who
administers ERA’s Self Regulatory Program, is
an independent body whose mission is to provide
guidance and set standards of truth and accuracy
for national advertisers through voluntary selfregulation. NARC is the body that established
the policies and procedures for the CBBB’s
National Advertising Division (NAD), the
Children’s Advertising Review Unit (CARU), and
the National Advertising Review Board (NARB).
I
In July, attorney Peter Marinello was appointed
as head of this program, referred to as ERSP, or
the Electronic Retailing Self-Regulation Program.
Marinello previously served as the associate
director of the National Advertising Division of
the Council of Better Business Bureaus, which
he joined in 1993.
By August 2004, polices and procedures for ERSP
were finalized and, under Marinello’s direction,
case review began. In specific, the program’s
policies stipulate that all marketers in question
must provide adequate substantiation for their
“When other organizations ask me about how they could make
self-regulation work for their industry, I refer them to the
Electronic Retailing Self-Regulation Program to use as a model."
Rich Cleland
Assistant Director
Federal Trade Commission’s
Division of
Advertising Practices
claim within 15 days of an evidence request,
and all reviews will be completed within 60 days
of notification. If the claims are found to have
inadequate support and the marketer does
not pull the program or make the necessary
alterations within the specified time period,
that individual or company is referred directly
by NARC to the Federal Trade Commission,
or another appropriate regulatory agency if
necessary. To further the reach of the program,
ERSP’s guidelines state that any advocacy group,
direct response marketer or consumer may refer
suspect advertisements in an effort to remove
offenders from the airwaves. In addition, ERA
launched a consumer complaint log in July to
provide a convenient forum for consumers to
submit their complaints.
ERA’s Self Regulatory Program has received
significant coverage by the press, and has
reviewed multiple cases to date. Numerous
noncompliant marketers have been referred to
the FTC, who has indicated that they will give a
"close look" to any case referred by the program.
During an ERA interview, Rich Cleland, assistant
director of the Federal Trade Commission's
Division of Advertising Practices, stated that
"The Federal Trade Commission has been very
supportive of the Electronic Retailing Association
and its efforts toward an industry-wide selfregulation program. When other organizations
ask me about how they could make self-regulation work for their industry, I refer them to the
Electronic Retailing Self-Regulation Program
to use as a model."
9
Membership
Membership Revenue 1996 - 2004
$250,000
2004
$810,000
2003
$0
1996
RA continues to expand and develop new
membership initiatives, and this past year
was a good indication of how far the
organization has come. Referrals from current
ERA members continue to be a major source for
building membership, accounting for 40 percent
of new members for the fiscal 2003-2004 year.
Overall, new members totaled 103, which
signified a healthy 6.5 percent growth rate.
1999
2000
E
10
$780,000
1998
$735,318
1997
$360,000
$500,000
$674,645
This was a successful
year for growth
and membership diversity.
$680,346
$750,000
$763,970
$1,000,000
$1,339,197
$1,250,000
$1,292,145
$1,500,000
In addition, ERA also worked to diversify its
audience, and experienced a 13 percent
expansion rate in radio direct response company
representation. This is due largely to the
activities of ERA’s Radio Council, who enacted
new initiatives and marketing opportunities
throughout the year.
In total, over $1.3 million was collected in
membership dues during the 2003-2004 year.
Much of these funds directly contributed to
ERA’s programs and services, particularly to
ERA’s new Self Regulatory Program. Specifically,
members cited ERA’s networking opportunities,
government affairs efforts and research
studies as the top reasons for renewing their
membership.
2001
2002
Special Thanks
To Our Recruitment Event Sponsors
MEMBERSHIP SEGMENTATION
Segment
E-Retailer
In addition to current programs like research
and government affairs, ERA also launched its
Member Services Program in 2004. This was
designed to offer members valuable services at
discounted rates. Some examples of services
that are available include:
■
Discounted subscriptions to Adweek magazine
■
Savings on Avis rental cars
■
Reduction in payroll fees from Ceridian
Corporation
■
Lower subscription rates for the Infomercial
Monitoring Service Report
■
Discount on Latin Focus, a Latin American market
reporting service
■
Savings on airline tickets through United Airlines
GEOGRAPHICAL LOCATION
Count
%
Region
Count
%
252
69.04%
138
37.81%
Media
52
14.25%
Support Services
50
13.70%
Europe
66
18.08%
Product
50
13.70%
Latin America
17
4.66%
Production
Canada
16
4.38%
Asia
14
3.84%
Grand Total
365
34
9.32%
Additional Resources 26
7.12%
Integrated Marketers 15
4.10%
Grand Total
Under the leadership of Jeff Giordano, ERA’s
Membership Committee had an active and
productive year. Along with the recruitment of
new members, the committee also continued
to evaluate membership service programs and
assisted with local events, which recruited many
of ERA’s newest members.
365
USA
Looking ahead to 2005 and beyond, ERA
continues to strive to provide the best possible
opportunities and is enacting new programs to
help members prosper and succeed. Under the
direction of ERA’s 2004-2005 chair Stacy Durand,
the committee hopes to further expand ERA’s
membership and diversity, while securing an
even higher annual retention rate.
11
ERA’s
Annual Meetings & Events
Annual Meeting Attendee Revenue
13TH ANNUAL CONFERENCE & EXPOSITION
ERA’s annual meetings continue to expand at an
exceptional rate and the 2003 Annual Conference
and Exposition was no exception. With almost
2600 registered industry professionals, this
meeting experienced an attendance growth rate
of 17 percent. In addition, over $600,000 was
collected in attendee revenue, up 11 percent from
2002. Attendance also continues to diversify;
over 13 percent of total attendees were based
outside the United States, with over 150
attendees from Canada, Latin America and Asia
specifically. The trade show floor officially sold
out as well, and boasted 22 new companies
out of a total 148 exhibitors.
2001
$604,543
$517,660
$406,617
2000
$200,000
$0
Annual Meeting Attendance
2002
2003
Annual Meeting Exhibition Revenue
$600,000
2,000
$400,000
$692,757
2,575
$715,402
$800,000
3,000
1,000
$200,000
0
12
$412,041
$400,000
$564,759
In the Exhibit Hall, a Cable & Broadcast
Pavilion, targeting a very important segment of
ERA membership, was added on the show floor
joining the International Center, Champion
Circle Club and Producers Studio.
$600,000
$637,340
For the second year in a row, keynote speaker
Larry King welcomed ERA delegates to the
standing room-only General Session. ERA’s
educational sessions also were well attended,
as were the evening events which included
ERA’s Welcome Reception poolside and the
ERA Awards.
$800,000
$0
2000
2001
2002
2003
2000
2001
2002
2003
INTERNATIONAL SUMMIT 2003
ERA’s International Summit was held in Maui,
Hawaii in December of 2003. This intimate
meeting hosted 60 international leaders from
around the world who came together to discuss
global strategies and current issues affecting the
Pan Pacific and Asian direct response communities. Educational sessions covered topics that
included international distribution, media buying,
product sourcing and the changing regulations
affecting business in regions around the globe.
Spring Conference Attendance
750
635
500
ERA’S SPRING CONFERENCE & TRADE EXPO
In February 2004, 635 attendees descended onto
the Ritz Carlton hotel in Key Biscayne, FL to
attend ERA’s Spring Conference & Trade EXPO.
This meeting boasted 85 more attendees than
the previous year, which helped increase revenue
by 12 percent. Informative educational sessions
included presentations from the FTC on federal
regulation and compliance, as well as the latest
information on the Latin American and U.S.
Hispanic markets. Luis Lauredo, executive
director of the Free Trade of the Americas, also
addressed attendees during the General Session,
as did ERA’s leadership on the specifics of ERA’s
Self Regulatory Program. ERA’s evening Super
Bowl Party was exceptionally well attended, as
was the Exhibit Hall, which housed 41 exhibitors.
250
0
2000
2001
2002
2003
2004
13
ERA’s
Annual Meetings & Events continued
ERA INSTITUTE
In addition, ERA also launched its first-ever
Institute Series by hosting two legal seminars
in 2004. These seminars took place in Los
Angeles and New York City, and attracted over 90
attendees collectively. Attorneys, direct response
marketers and brand managers attended these
one-day events to learn more about legal issues
facing the direct response industry and the
regulatory trends that are on the rise. ERA also
offered valuable CLE credits to attorneys in
attendance.
ERA’S EUROPEAN CONFERENCE 2004
$100,000
14
$210,721
-$320
$0
$100,566
$100,000
$146,563
European Conference Revenue
$114,346
Monaco’s Monte Carlo Grand Hotel hosted ERA’s
European Conference in June 2004. With 332
industry professionals in attendance, 2004
marked the first time that 50 percent of meeting
attendees were European direct response
marketers, which signified an exceptional
increase in European attendance overall.
The trade show floor hosted approximately 30
exhibitors as well, resulting in a 134 percent
increase in revenue compared to 2003. ERA’s
European Board of Directors addressed the audiTotal
ence and outlined many of ERA Europe’s current
initiatives and regulatory concerns. Educational
$300,000
sessions also included in-depth
discussions on international regulatory issues
$200,000
and trends.
2000
2001
2002
2003
2004
ERA’s
Sponsors
ERA Thanks
its 2003-2004
Sponsors
!GOTM fulfillment
Icon Media Direct, Inc.
Premier Solutions
Adcomm Advertising
Infomercial Monitoring Service (IMS)
Protocol Marketing Group
AEGON Direct Marketing Services, Inc.
InfoWorx
Salem Radio Network
ARM Direct, Ltd.
InPu!se Response Group, Inc.
Smart Inventions Incorporated
Baker & Hostetler, LLP
Interglobal International Ltd.
Sullivan Productions
BJ Global Direct
InterSourcing SA
Tara Productions, Inc.
Bloom, Hergott & Diemer, LLP
Koeppel Direct, Inc.
Telebrands Corporation
C Spot Run Productions, LLC
Livemercial
Thane International, Inc.
CambridgEcommerce
LiveOps
The Vector Group
Cesari Direct
Manatt Phelps & Phillips, LLP
the800source
Cmedia
Marcum Media, LLC
Titan Tape & Duplication
Concepts TV Productions, Inc.
Media Group, Inc.
Trade Point BV
Continuum Commerce, LLC
Mercury Media
Transactional Marketing Partners, Inc.
EMSON/E. Mishan & Sons, Inc.
Modern Postcard
TransFirst ePayment Services
Ernst & Young
Moulton Logistics Management
Venable, LLP
Euro RSCG 4D DRTV
National Fulfillment, Inc.
WADL - TV38 – Detroit
Guthy-Renker Corporation
Northern Response (Int'l), Ltd.
West Corporation
hawthorne direct, inc.
Ontel Products Corporation
WorldLink, LLC
Home Shopping Service (HSS)
Onyx Productions, Inc.
HSN
PAX TV
15
Communications & Research
Public Relations and Outreach
his past year was a remarkable one for
ERA’s public relations initiatives and media
outreach. Most notably, in April 2004,
ERA unveiled its Self Regulatory Program to
the world at a press conference comprised of
speakers from ERA, the National Advertising
Review Council and the Federal Trade
Commission. This program received extensive
media coverage by such renowned publications
as the New York Times and on such prominent
media outlets as Good Morning America, CNBC
and CBS. In December 2003, ERA’s president &
CEO Barbara Tulipane also was commended
during an FTC press event and her post-coverage
interview ran on over 25 television stations
around the U.S. During the course of the year,
information on ERA’s conferences and services,
as well as the direct response industry overall,
has been covered by more than 100 news outlets
worldwide.
T
However, ERA’s outreach efforts have not been
limited solely to media coverage and news story
placement. In recent months, ERA launched
a complaint log on its savvyshopper.org
website to allot a forum for consumers to
register advertising claim complaints.
Submissions to the log are referred directly
to the Electronic Retailing Self-Regulation
Program and to date, over 50 complaints have
been received by the program from concerned
consumers.
16
In June 2004, ERA began a new relationship
with the public relations firm Weber Merritt
Strategies (WMS), based in Washington, DC.
WMS, a Clark & Weinstock company, is
a respected public affairs firm and since
commencing its retainer, this firm has positioned
ERA and its programs in front of dozens of
today’s leading publications, including the
Washington Post, Los Angeles Times and
the Chicago Tribune, among others.
which included the addition of a consumer
complaint log for ERA’s Self Regulatory
Program. In July, ERA launched a third website,
www.americaninventiveness.org, devoted to
its Invention Showcase. This site houses pertinent information on ERA’s seminars and new
product program. Looking ahead to 2005, ERA
will release a members-only website designed to
provide information on proprietary membership
news and online registration capabilities.
ERA’s Website and E-Newsletter
ERA’s weekly newsletter continues to improve,
and circulation currently reaches approximately
6,000 opt-in recipients, up from 5,400 at the
start of 2004. In addition to information on ERA’s
programs and services, this newsletter also
provides weekly industry news on the latest
technologies and trends. Starting in 2005, ERA
plans to enhance the look of its newsletter and
improve its overall functionality.
ERA launched its completely redesigned
website, www.retailing.org, in April 2004.
This site was streamlined and enhanced with
new navigational features as well as improved
graphics and timely information. Updates and
improvements were also made to ERA’s consumer
protection website, www.savvyshopper.org,
Likelihood of Purchasing Through Shopping Method in Future
ERA’s 2004 Research Study
In June 2004, ERA released its second annual
research study, which measured consumer
shopping habits and preferences in four distinct
direct response channels: radio, TV infomercials,
home shopping and the Internet. In this study,
commissioned by independent research company
Guideline New York, over 1000 respondents
rated their overall shopping experiences, and
overwhelmingly preferred direct response to
shopping in a traditional retail store. Overall, 64
percent of respondents rated shopping via radio
as "excellent or very good", and 80 percent rated
their experience the same for home shopping.
Online consumers are the happiest with their
shopping experience, with an 89 percent rating
of "excellent or very good" while 61 percent rate
shopping through TV infomercials the same.
On average, almost 70 percent of shoppers in
all four categories plan on shopping through the
same channel again in the future.
Home Shopping
Radio
4%1%
8%
7%
12%
17%
47%
24%
49%
31%
78% Definitely/Probably
61% Definitely/Probably
TV Infomercials
Online
1%
10%
11%
22%
20%
38%
This study concluded that direct response is a
viable, useful and convenient retailing opportunity that will be utilized repeatedly by consumers.
Next year, ERA hopes to expand its capabilities
to encompass more research opportunities, while
also providing global information and analysis.
70%
28%
90% Definitely/Probably
50% Definitely/Probably
Likely to Purchase
DEFINITELY
PROBABLY
MIGHT / MIGHT NOT
PROBABLY NOT
DEFINITELY NOT
17
Electronic Retailer Magazine
In 2004, Electronic Retailer magazine also applied
for the BPA Worldwide Audit, which is the global
industry resource for verified audience data and
media knowledge. In more than 20 countries,
BPA delivers consumer and business media
audits of unsurpassed rigor, objectivity, accuracy,
transparency and timeliness, and has stringent
auditing procedures to ensure that they are fair
on each and every audit, across all types of
media properties. By ensuring the quality of
ERA’s circulation, the reach of this publication
is verified and certain for its advertisers and
subscribers.
Members of Electronic Retailer’s
Magazine Advisory Board
Nadia Ashrafian, Capital Media, Inc.
Michael De Vere, 2B on TV (Media) Ltd.
Stacy Durand, Mercury Media
Steve Edelstein, Fosdick Fulfillment Corp.
Anthony Giombetti, formerly of ShopNBC
Edward Glynn, Venable, LLP
Linda Goldstein, Manatt Phelps & Phillips, LLP
n June 2004, ERA began preparing for the
launch of a new industry magazine. Within
eight short weeks, Electronic Retailer
magazine premiered as the resource for direct
and general marketers, retailers and catalogers
who are looking to expand their marketing
opportunities and reach. Each month, the
publication delivers in-depth articles, case
studies, informative columns and important
industry news and research focused on DRTV,
home shopping, radio direct response, print
advertising and online marketing. This global
publication is distributed 12 times per year to
over 14,000 qualified subscribers at such prestigious companies as Procter and Gamble, Home
Depot, Sharper Image, Target and Wal-Mart.
I
18
Electronic Retailer magazine also created its
own Magazine Advisory Board this year (see
right), in an effort to make certain that editorial
content covers the full gamut of the industry.
This board is comprised of some of the most
widely recognized industry professionals, both
in the U.S. and internationally, who represent
various industry facets, including media buying,
media production, home shopping, online
marketing, fulfillment and legal services.
Chris Homer, Media Power
Eileen Joyce, Palisades Direct
Jack Kirby, Continuum Commerce, LLC
Peter Koeppel, Koeppel Direct, Inc.
Collette Liantonio, Concepts TV Productions, Inc.
Nancy Marcum, Marcum Media LLC
Ben Mendelson, Interactive Television Alliance
Marianna Morello, Manhattan Media
Services, Inc.
Sandy Peters, North Country Media Group
Rick Petry, Euro RSCG 4D DRTV
Steve Pittendrigh, InPu!se Response Group, Inc.
Karissa Price, Lexicon Marketing, Inc.
ERA
Europe
Incorporated as an
Independent Association
The 2003-2004 fiscal year was exceptional for
ERA in Europe. In June, both the European Board
of Directors and the U.S. Board of Directors
designed an affiliate agreement which separated
ERA Europe from ERA’s standard membership.
The major provision of this agreement was that
ERA Europe, equipped with specific bylaws and
budgets, was incorporated as a non-profit legal
entity in Brussels. By becoming its own association, ERA Europe maintains complete control of
its priorities and programs. This new level of
regional independence and maturity was saluted
as a milestone in the association’s strategic
integration of the U.S. and Europe, to build
the base for global organizational growth.
Members based in Europe are now members
of ERA Europe and still receive the benefits
and privileges associated with ERA’s entire
membership. However, this incorporation will
provide stronger regional representation, giving
ERA Europe permanent access to European
institutions that directly impact global direct
response. In addition, ERA Europe’s bylaws
and Board organization now mirror the structure
in the U.S., and the Board has expanded to 12
seasoned volunteers from leading European
companies. These Board members also share
leadership in six permanent committees that
focus on advancing the strategic goals set during
the second European Strategic Seminar held in
May 2004.
Membership Growth &
Meeting Attendance
ERA Europe’s membership also grew steadily
to 68 members at the end of the fiscal year.
Membership dues accounted for more than
$186,000 USD, which is up from $158,000 the
previous year. In addition, ERA’s European
Conference was one of its most successful to
date, in both revenue and attendance. The
Education and Programming Committee continued
to increase the show’s educational sessions in an
effort to cover more international industry trends.
In addition, ERA Europe hosted a well-attended
one day annual meeting of European members
and guests in January 2004. Over 45 representatives from member companies exchanged
information, debated on industry and association
issues around Europe, and gave input on their
priorities to the European Board of Directors.
Revenue collected from dues and these meetings
helped fund many of ERA Europe’s initiatives,
specifically its government affairs and selfregulation efforts.
Government Affairs
In April, ERA Europe presented a position
paper proposal to the European Commission,
which helped to positively influence industry
regulations regarding the Television Without
Frontiers Directive. This memorandum defines
how member states must adjust and update the
application of the current directive during an
extended revision process in 2004-2006. ERA
Europe’s Government Affairs Committee was
instrumental on this issue, and, in close
cooperation and coordination with other
European trade organizations, also was an
influential part in molding other industry issues
as well.
In addition, ERA’s Self Regulation Program in
Europe is almost complete. Under the active
guidance and leadership of the Self Regulation
Committee, the detailed guidelines, plans and
procedures were drafted and will be finalized
and tested during the start of the next fiscal year.
The full program is expected to launch in late
2005, and is expected to set a precedent to be
recognized around the world.
19
ERA
Europe’s Committees
GOVERNMENT AFFAIRS COMMITTEE
2004-2005 Leaders
Tobias Schmid
Home Shopping Europe AG – Germany
Mike De Vere
2B on TV (Media) Limited – United Kingdom
2003-2004 Leader
Giuseppe Scavone
InterMax Srl – Italy
NATIONAL EUROPEAN
COORDINATION COMMITTEE
2004-2005 Leaders
Branimir Brkljac
Studio Moderna – Slovenia
Henry Scott
Simply Media TV, Ltd. – United Kingdom
2003-2004 Leader
Branimir Brkljac
Studio Moderna – Slovenia
MEMBERSHIP COMMITTEE
2004-2005 Leaders
2004-2005 Leaders
Richard Whinfrey
Thane Direct UK – United Kingdom
Dennis Reustle
QVC UK – United Kingdom
Eivind Schackt
TV Shop Europe AB – Sweden
Wiebe Van Terswiga
!GOTM fulfillment – The Netherlands
SELF REGULATION COMMITTEE
LEGAL AND FINANCIAL COMMITTEE
2004-2005 Leaders
2004-2005 Leaders
Gilles Labouyrie
Home Shopping Service – France
Chris Horobin
Sirius Retail Television, Ltd. –
United Kingdom
Giuseppe Scavone
InterMax Srl – Italy
2003-2004 Leader
Giuseppe Scavone
InterMax Srl – Italy
20
EDUCATION, PROGRAMMING &
CONFERENCE COMMITTEE
Edwin Garrubbo
American Telecast Products, LLC –
U.S & United Kingdom
Financial Highlights
Financial Results for ERA’s 2003-2004 Fiscal Year
RA continues to grow more fiscally healthy
and financially stronger each and every
year. The 2003-2004 fiscal year was no
exception, as ERA collected over $3.8 million
in revenue, and had over $1.5 million in total
assets. In total, the association netted over
$650,000 for the year, which is 60 percent
more than in 2003. ERA’s Board of Directors
has mandated for ERA to have a six-month
operating budget in reserves, and the association continues to make large strides toward
achieving this objective. By maintaining
financial prosperity, ERA is able to fund more
programs and services that directly benefit
the membership, especially this year’s new
self-regulation program. This year proved to be
more fruitful than many in the past, and ERA is
well-equipped to represent the dynamic direct
response industry and its future interests.
E
(Consolidated)
2003
2002
2001
2000
$3,897,173
$3,566,244
$2,939,004
$2,778,253
$2,666,686
$653,106
$403,133
$150,347
- $206,754
- $224,892
Cash & Investments
$1,726,597
$782,833
$352,544
$104,187
$242,894
Total Assets
$1,644,239
$923,757
$600,810
$450,637
$690,106
Revenue
Net Income
2004
Revenue
-250,000
$1,000,000
$750,000
$500,000
$250,000
2000
2001
2002
2003
2004
2000
2001
$1,644,239
$403,133
$1,250,000
2002
2003
2004
$0
2000
2001
$600,810
$0
$1,500,000
$450,637
0
$2,000,000
$690,106
$1,000,000
Total Assets
$1,750,000
$150,347
$250,000
-$206,754
$3.89 Mil
$500,000
-$224,892
$2.94 Mil
$2.78 Mil
$2.67 Mil
$3.56 Mil
$750,000
$3,000,000
$2,000,000
$653,106
$4,000,000
Net Income
2002
$923,757
Year Ending June 30
2003
2004
21
Committees & Councils
BOARD COMMITTEES
Ethics Committee
2003-04 Chair: Linda Goldstein
2004-05 Chair: Mark Thornton
Staff Liaison: Sigi Friedman
Strategic Planning Committee
2003-04 Chair: Dan Danielson
2004-05 Chair: Jeff Knowles
Staff Liaisons: Barbara Tulipane, Sigi Friedman
Marketing/Communications
Committee (MarCom)
2003-04 Chair: Rusty Robertson
2004-05 Chair: Sue Bonney
Staff Liaisons: Jennifer Gennaro,
Molly Alton Mullins
STANDING COMMITTEES
Executive Committee
2003-04 Chair: Jack Kirby
2004-05 Chair: Dan Danielson
Staff Liaisons: Barbara Tulipane, Sigi Friedman
Finance Committee
2003-04 Chair: Randy Ronning
2004-05 Chair: Rick Petry
Staff Liaison: Marge Abenante
Nominating Committee
2003-04 Chair: Jorge Hane
2004-05 Chair: Jack Kirby
Staff Liaison: Sigi Friedman
Policy & Bylaw Review
Committee
2003-04 Chair: Thomas Kelly
2004-05 Chair: Thomas Kelly
Staff Liaison: Sigi Friedman
22
Awards Committee
2003-04 Chair: Denise DuBarry-Hay
2004-05 Chair: Rick Petry
Staff Liaisons: Susan DeLany, Tracey Messina
Education Committee
2003-04 Chair: Karla Crawford Kerr
2004-05 Chair: David Savage
Staff Liaisons: Susan DeLany, Tracey Messina
Government Affairs Committee
2003-04 Chairs: Jim Lehrburger/Linda Goldstein
2004-05 Chair: Jeff Knowles
Staff Liaison: Bill McClellan
Meetings & Conventions
Committee
2003-04 Chair: Wendi Cooper
2004-05 Chair: Nancy Marcum
Staff Liaisons: Susan DeLany, Tracey Messina
Membership Committee
2003-04 Chair: Jeff Giordano
2004-05 Chair: Stacy Durand
2004-05 Co-chairs and Liaisons:
Sponsorship co-chair: Stacy Durand
Membership acquisitions co-chair:
Michael Moreau
Internal affairs co-chair: Joe Porrello
Radio Council liaison: Ted Holcomb
TV Council liaison: Andrew Blickstein
Technology Council liaison: Vacant
Staff Liaison: Jennifer Gennaro
New Product Program Committee,
U.S. & International
2003-04 U.S. Chair: Eileen Simms
2004-05 U.S. Chair: Eileen Simms
Staff Liaison: Jennifer Gennaro
2003-04 International Chair: Arnoud Litjens
2004-05 International Chair: Arnoud Litjens
Staff Liaison: Marcel Avargues
COUNCILS
Asian Council
2003-04 Chair: Robert Roche
2004-05 Chair: George Hung
Staff Liaison: Sigi Friedman
Radio Council
2003-04 Chair: Greg Anderson
2004-05 Chair: Greg Anderson
Staff Liaison: Sean Carter
Te c h n o l o g y ( f o r m e r l y W e b )
Council
2003-04 Chair: Steve Hamlin
2004-05 Chair: Steve Hamlin
Staff Liaison: Molly Alton Mullins
Te l e v i s i o n ( f o r m e r l y M e d i a )
Council
2003-04 Chair: Rob Medved
2004-05 Chair: Eric Stanton
Staff Liaison: Sean Carter
Latin American/U.S. Hispanic
Council
2003-04 Chair: Saadin Solah
2004-05 Chair: Luis Salaverria
Staff Liaison: Sigi Friedman
23
ERA
Staff
EXECUTIVE OFFICE
GOVERNMENT AFFAIRS DEPARTMENT
Ms. Barbara Tulipane, CAE
President & CEO
Mr. Bill McClellan
Director of Government Affairs
Mr. Marcel Avargues
Executive Director of ERA Europe
MAGAZINE DEPARTMENT
Ms. Marge Abenante
Executive Vice President
Ms. Gina M. Cohen
Vice President of Publishing/Publisher
Ms. Sieglinde Friedman
Senior Director, Board Development
Ms. Vitisia Paynich
Editor-in-Chief
COMMUNICATIONS DEPARTMENT
Ms. Carol Neher
Accounts Manager
Ms. Molly Alton Mullins
Director of Communications &
Executive Editor
Ms. Kelley Kaufman
Communications Manager
Ms. Debbie Duhn
Accounts Manager
MEETINGS DEPARTMENT
Ms. Susan DeLany
Vice President of Meetings & Conventions
Ms. Tracey Messina
Manager of Meetings & Conventions
Ms. Becky Heider
Meetings Coordinator
24
SALES, MARKETING & MEMBERSHIP
DEPARTMENT
Ms. Jennifer A. Gennaro
Vice President, Sales & Marketing
Mr. Joel Broyhill
Senior Director of Sales & Strategy
Mr. Sean Carter
Director of Member Relations
26