Last year, companies allocated just under 43% of their corporate marketing budget to direct marketing, a figure that fell to 38% this year. But going forward, marketers are looking to spend more—or at least keep expenditures constant.
According to DIRECT’s annual survey of marketing practices, in 2003 48% of respondents anticipate a DM spending increase, with another 34% remaining steady. Last year, 44% said they would spend more in 2002, with another 28% holding the line.
During the first nine months of 2001, 43% of all respondents said their DM revenue had risen from 2000. In 2002 this fell to 32%. But there has been a leveling off. In 2001 22% said it was flat from the previous year, compared with 37% this year. Only 26% said it had fallen off, down from 29% in 2001.
New customer acquisition continues to play a large role in marketers’ efforts. Respondents devote 59% of their budgets to prospecting, virtually identical to the 60% reported in 2001, with the balance going to retention marketing. One reason for this may be e-mail and other, less expensive communication methods becoming more commonplace within customer retention efforts.
Marketers are also acting on the privacy front. Last year only 36% of all respondents said they used both opt-in options on e-mail house lists and opt-out options on traditional mail house lists. This jumped to 43% in 2002.
That said, respondents were less likely to be members of the Direct Marketing Association, which advocates consumer-friendly privacy practices. Only 32% said they were members, compared with just under 36% a year ago.
For the complete survey results, see the December issue of DIRECT.
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