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|Roy S.||Co-Founder & Chairman||TX|
|Duff S.||Chief Executive Officer||TX|
|J.B. R.||Executive Vice President & Chief Marketing Officer||TX|
|******** ********* *********||Media Buying, Media Planning||unknown||present||********|
|** **** ***** ***.||Creative, Media Buying, Media Planning||2017||present||******|
|******** **** ******||Creative, Social||2015||present||********|
|**** *****||media buying & planning||2015||present||*******|
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Digital Opps: Shutterfly 'doubling down' on mobile app marketing (Score 51)
Shutterfly, the online publishing service, recently announced plans to "double down" on marketing to drive customers to adopt its mobile app.
According to CEO Christopher North during this week's Q4 earnings call, the company's analysis shows that existing web customers who adopt the mobile app "become significantly more value customers" (uh, duh?). We've mentioned Shutterfly's mobile investments a
North mentioned that growth in the company's customer segment came entirely from the Shutterfly brand, which was offset by revenue declines in the Tiny Prints, Wedding Paper Divas, MyPublisher and BorrowLenses brands. "With so many brands and technical platforms," he said," our investment in the non-Shutterfly brands has been limited in recent years, and the declining performance reflects this." North added that the company recognizes that Shutterfly relied "too heavily" on complex promotional mechanics that didn't deliver the desired results. And while he believes the industry will always have a "significant" promotional element, Shutterfly needs to streamline its promotions, "particularly as customers shift to mobile."
Having said all this, North stated that marketing as a percentage of revenue will decrease from 20.6% in 2016 to the mid-teens in 2017, as the company consolidates marketing teams and decreaes working marketing dollars as a percentage of revenue.
Therefore, those who can help Shutterfly streamline promotions and deliver high ROI solutions should contact decision makers now. Focus should be on CRM, email, direct marketing and push notifications, which North said "complement" the other marketing channels.
Agency readers with cost-effective ways to raise brand awareness and usage should also reach out. North said the past year's products simply didn't resonate with customers in the way Shutterfly had anticipated and that the execution of products and marketing campaigns could be improved (check out what didn't work for Wedding Paper Divas here) That looks like a cracked door you can bust through like the Kool-Aid man to me. Keep in mind that CFO Mike Pope added that Shutterfly's past practice of deploying more separate brand marketing initiatives has been expensive, which is why it is looking to become better informed about the efficiency of its marketing spend.
Shutterfly's marketing is handled in-house. Triad Retail Media had previously handled creative for the brand, but work was taken in house sometime last year, likely as part of cost-cutting measures. However, if internal marketers find themselves in over their heads, there could be room for a new partner on that front. Meanwhile, GSD&M handles awareness media and media planning for Shutterfly.
New Product Launch: In 2016, Shutterfly launched a number of new physical products and categories. These include new designs and form factors new home decor products and the new statement gifts line or premium personalized gifts.
Media Spend: Kantar Media reports that Shutterfly spent $10.4 million on measured media through Q3 2016. This spend was split evenly between display, search and print ads.
National TV Spend: In 2016, iSpot reports that Shutterfly spent $3.1 million on four national TV spots. All four spots ran during Q4, specifically from Nov. 11 through Dec. 23. See chart for show targeting for these holiday campaigns.
Digital Breakdown: Shutterfly decreased digital display spend slightly in 2016, bringing spend to $7.8 million (946.1 million impressions) from $8.5 in 2015 (1.7 billion impressions). While 78% of these ads were desktop, most of the remaining spend was allocated to desktop video (14%). Mobile ads made up 8% of Shutterfly's 2016 display ads. See
Top 2016 ad destinations included: aol.com, youtube.com, yahoo.com, hulu.com and davidsbridal.com.
2800 Bridge Pkwy
Redwood City, CA 94065
Senior Vice President & Chief Marketing Officer
Director, Internet Marketing