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Trends in IT industry with respect to direct marketing

Discuss Trends in IT industry with respect to direct marketing within the Marketing Management ( RM , IM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; The information below is a selection of data, statistics and trends, largely from the Direct Marketing Association ( www.the-dma.org ). ...

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Sunanda K. Chavan
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Trends in IT industry with respect to direct marketing - October 5th, 2010

The information below is a selection of data, statistics and trends, largely from the Direct Marketing Association (www.the-dma.org).

2005 Direct Marketing Volume by Type:
 Direct Mail: $49.8 billion for catalog and non-catalog combined or 31% of total Direct Marketing

 Telephone Marketing: $47 billion or 29% of total Direct Marketing

 “New” Marketing media (Internet marketing, commercial email, Insert Media): $13.8 billion or 8.6%
Return on Marketing Investment (ROMI)

 $1 spent on Consumer Direct Marketing will yield $12.66 in sales

 $1 spent on Business-to-Business Direct Marketing will yield $10.10 in sales

 A dollar spent on direct marketing for retail purchase in 2005 is expected to have been about 45% more effective than a dollar spent to secure a direct order, and 45% more effective than a dollar spent to generate a qualified lead

 Fund raising yields 40% of what a dollar yields in lead generation

Intended Purpose of Direct Marketing


 Direct marketing continues to move steadily toward lead generation

 Lead generation accounted for $77 billion of direct marketing advertising expenditures, while direct order accounts
for $65.3 billion

 Lead generation makes the largest contribution to sales ($853.8 billion) followed by direct order ($743.7 billion)

Growth Trends


 While all direct order expenditures are expected to grow by 5.3% per year through 2009, up from 2.3% during 1999-
2004, both fund raising and retail purchase spending should grow by 5.3% annually through 2009

 Those sectors where Direct Marketing driven sales are growing fastest include industries investing most heavily in
IT-processes, the services, travel and pharmaceutical sectors; and sectors where nonprofit organizations are most
prominent

 The largest volume of Direct Marketing-driven sales continue to be those industries that are the largest users of
direct marketing in general. Within the consumer market, these include financial institutions, motor vehicle manufacturers

and the leading retail sectors.

Overall Response Rates

 Telephone: 8.55%

 Short Form Direct Response TV: 8.14%


 Coupons: 4.29%

 Co-op/Shared mail: 3.94%

 Dimensional Mail 3.67%

 Catalog: 3.67%

 Magazine advertising: 0.17%

 Statement stuffers: 0.21%

 Newspaper advertising: 0.50%

 Magazine blow ins: 0.63%

 Business to Business campaigns had a 3.25% response rate overall, whereas consumer campaigns posted a 2.78%
response rate
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