Direct marketers as a group foresee 150% growth in online revenue this year, compared with 100% for other online marketers, according to a research study by Millard Group Inc., ActivMedia Research and the Direct Marketing Association. In addition, e-commerce sales are expected to grow to roughly 30% of all DM orders in 2000, from a base of 12% in 1998. DMers also expect a strong bottom line from their online activities. Roughly 50% of those doing business on the Web are making a profit at it, and another 27% expect to be profitable in the next 12 months. The study also shows that the Internet has a strong impact on generating new business. Overall, DMers estimate that their Internet presence has contributed 15% net new business since they began transacting business online. Two-thirds of new online customers are buying direct for the first time. Business suppliers (manufacturers, wholesalers and business services) report that they use their Web sites not for selling but for inf! ormation purposes. Their sites a re used to stimulate offline contact from customers or to generate leads. Almost 1,000 marketers responded to the e-mail survey.
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