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Industry Research

 

New Direct Marketing Report

New Direct Marketing Report

The direct marketing industry is changing. Although the market continues to go from strength to strength, growing by an estimated 15.3% in 2005 to be worth £17.17bn, the composition of the different revenue streams that comprise the industry are beginning to display long-term trends, rather than the `blips' of previous years, which could be explained by economic conditions.

At first glance, it appears that direct response has grown considerably. However, when considered in the context of overall advertising expenditure in the mainstream media, this can only be accounted for by the fact that a growing number of television, radio and print media are including a website address in their advertisements. Organisations are increasingly allocating higher budgets into online marketing.

The rapid increase in the number of broadband connections has a large part to play in this, making the online experience more interactive and offering much more scope for creative people working in this area. More importantly, as audiences continue to fracture, marketers are finding ways of engaging with the audiences lost from one channel in the media they are more frequently likely to use: online.

Marketers are also looking at ways that will help them reach audiences through their mobile telephones, although the technology here is not quite so advanced. Third-generation (3G) technology is not as widespread as broadband and, until it offers the type of integrated campaigns marketers are now considering, it will not be as effective. However, mobile marketing will become a strong part of the direct marketer's repertoire in the years to come.

The two major disciplines of direct marketing — telemarketing and direct mail — continue to be the mainstay of most campaigns. However, budgets are increasingly being diverted away from these into channels that are able to deliver much more detailed customer data, which allow highly targeted, and therefore more effective in terms of response, campaigns. Many organisations have invested in customer relationship management (CRM) software applications, which allow them to collect more detailed customer information. Data-management companies are also able to build very detailed customer databases and it is in these areas that direct marketing will continue to deliver the kind of return on investment (ROI) that clients need.

Some of the direct marketing disciplines overlap, and some of the developments occurring in the direct marketing industry overlap with developments in traditional advertising. The major communications companies are developing, or buying-in, digital capabilities across all of their product offerings. However, with its strength in providing value for money, coupled with its innovations in online and database marketing, can the direct marketing industry finally lead brand strategy?

The following sectors are covered in this report:

• telemarketing
• direct mail
• direct-response television (DRTV)
• new media (Internet and mobile telephone marketing)
• inserts
• database
• direct-response print media — encompassing direct-response national press, magazines and regional press
• door-to-door
• field marketing (which is included in the market size figures, but excluded from the detailed analysis)
• customer magazines
• outdoor/transport
• direct-response radio.
Cinema is included in the market size figures to 2004, but is excluded from the detailed analysis. This is because the DMA has now stopped collecting direct-response data from cinema advertising, as these are now negligible.

 

Ends

The full report is available to purchase from Key Note on 020 8481 8750 or sales@keynote.co.uk, priced £420. 

 

 Link:

http://www.keynote.co.uk/

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