Database marketers spend an average of $3.5 million annually on outsourced marketing services, according to a new study from Forrester Research Inc. Just under one third spend more than $5 million a year, while slightly more than one-quarter spend less than $1 million.
On average, these marketers use nearly nine different vendors, and 65% indicated they would welcome a chance to consolidate their activities. According to Forrester, the first type of service bureau to fall will likely be standalone e-mail service providers. Marketers are looking into developing integrated contact strategies across both e-mail and traditional mail channels, and will want partner firms that can synthesize both services within the boundaries of a single campaign.
If they can’t consolidate, they may be able to cut expenses: Falling technology costs have sparked demand in the $400,000-$750,000 mid-market range among firms that don’t have the resources to build in-house expertise, according to the study.
The functions most commonly outsourced include list brokerage and enhancement data; data quality and hygiene; statistics, modeling and other analytics; creative and postal, e-mail and telemarketing program management.
While few marketers are willing to send strategic decisions out of house, 65% identify strategic services as playing an important role in their outsourcing decisions. Forrester attributed this to vendors’ ability to keep up with technology changes being an attractive inducement to send functions out from under marketers’ roofs.
For its study, Forrester surveyed 49 database marketers drawn predominantly from the financial services, retail and consumer goods industries. The respondents were primarily focused on the consumer market.
