The Direct Marketing Association’s Quarterly Business Review reported a 12th consecutive quarter of positive growth over Q2 2005 across its membership in the direct marketing industry.
The survey is a composite of three online surveys of direct-marketing companies, agencies and suppliers. Each survey asks respondents to compare their actual revenue and profitability for the quarter to the year-ago quarter and to early projections. Compiled responses are indexed, with a score of 50 representing no change in performance and a score over 50 representing growth.
Industry members reported an overall index of 66 for growth in revenue over the same quarter last year (SQLY), the DMA announced. The combined index of 47 for revenue vs. original projection indicates a slight decline from early sales expectations for the quarter, which the DMA termed “somewhat disappointing” but a marginal improvement over Q1 2006’s score of 46.
Respondents are optimistic about projected revenue for the third quarter, producing a combined index of 67, the DMA said in a release. Agencies are somewhat more likely than marketers and suppliers to forecast greater growth in Q3 2006.
By industry category, marketers’ index for revenue vs. SQLY rose to 66 from 57 in Q1, while quarterly profitability increased to an index of 72 from 66. Revenue compared to original projections was flat with Q1 2006; revenue projections for the current third quarter produced a 65 index.
DM agencies’ reports of revenue vs. SQLY showed growth at 69, up from Q1, while profits were at 70, a slight gain over the direct quarter. Revenue compared to original projections earned a 52 index; and agencies expect better growth in Q3, producing a 70 index, up 4 points from Q1.
DM supplier revenue growth gave Q2 revenue vs. SQLY a six-point boost to 64, from 58 in Q1, while profitability for the segment rose 1 point to 71. But revenue still underperformed compared to original projections, leading to a 44 index for the segment — slightly better than the Q1 index of 42.
The B-to-B segment showed particularly strong revenue growth, posting 70 for revenue vs. SQLY, a gain of 9 index points over Q1 2006.
Catalogers also reported raised indices for revenue vs. SQLY (65, up from 59 in Q1) and profitability (74).
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