Was the economy in the early throes of recovery before the terrorist attacks? An e-mail survey conducted among DIRECT’s readers shortly after Sept. 11 shows an increased reliance on direct response marketing.
Respondents derived more revenue from direct marketing than in previous years. During the first nine months of 2001, 45% of revenue was generated through DM, as opposed to just under 36% last year.
Respondents also devoted more resources to the channel. Last year, just under one-third of respondents’ marketing budgets were set aside for direct marketing, compared with nearly 43% during the first three quarters of 2001.
And those that are spending are doing so fervently. Last year, only 18% reported spending at least 80% of the budget on DM. This year nearly three in 10 did.
The results bore fruit. Forty-three percent indicated that during the first nine months of 2001, gross direct marketing revenue was up. And 35% reported that margins rose as well.
However, next year doesn’t look as bright. Only 42% said DM spending would increase in 2002, compared with 55% last year. And 13% said it would decline, more than twice the 5% reporting cutbacks last year.
Even before the attacks, marketers subscribed to the wisdom of holding existing customers dear. On average DMers devoted 44% of the marketing budgets to customer retention efforts, compared with 40% last year, while prospecting efforts slipped from just under 60% of the budget to 56%. The survey was conducted among 4,000 readers of DIRECT magazine who were selected on an nth-name basis; 160 replies were received, a 4% response rate. For more survey results, see the December issue of DIRECT.
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