Direct Marketing, Mail Order, and E-commerce News from the National Mail Order Association

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How will Direct Marketers be Spending their Advertising Dollars?

A Direct Magazine survey reveals marketers will be spending more on
direct marketing endeavors, including increased mail campaigns. The
survey states 2007 will be a better year because of the actions taken
by marketers in 2006; and direct marketers will “reap the rewards of
increased targeting, analytics and customer knowledge.”

It could be that the increase in direct marketing spending could be attributed
to a shift in strategy. According to the survey, the focus of a direct marketer’s
budget in 2005 was 58 percent prospecting and 42 percent retention. In
2004, it was 62 percent prospecting and 38 percent retention. The study
also found that B-to-Bers are dedicating 63 percent of their DM budgets
to prospecting, compared with 49 percent for consumer marketers.

According to the study, direct marketing spending is rising, with 57
percent of respondents saying there will be a jump in direct marketing
expenditures this year. Meanwhile, 47 percent stated there will be an
increase in DM spending in 2004.

Here’s a rundown on anticipated changes in 2006 spending – it’s based
on respondents using each method:

                                      Increase Decrease No Change
Card packs                        14%       10%        76%
Co-op mailings                    29%       9%         67%
Direct mail to customers       48%       5%         47%
Direct mail to prospects        59%       4%         37%
Direct response promotions   49%       5%         46%
DRTV advertising                 32%       15%       53%
Freestanding inserts             42%      4%         53%
Package inserts                   27%      6%         67%
Search engine marketing       56%      4%         41%
Search engine optimization    63%      3%         35%

   Source: Direct Magazine www.directmag.com
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