Live From New Orleans: Guarded Optimism, DIRECT Survey
Marketers are planning to spend more on prospecting and are generally upbeat regarding revenue and spending projections, according to preliminary data from DIRECT’s annual industry survey.
Last year, 34% of the respondents indicated that revenue from direct marketing would increase. This estimate has risen to 39% among the first respondents to the 2000 survey.
The number saying revenue would stay the same shrunk slightly, from 40% to 37%, while those predicting it would fall remained essentially unchanged, going from 14% to 15%.
Changes in respondents’ anticipated DM spending for next year reflected this quiet optimism as well. While 56% said they’d spend more in 2001 — down from 60% last year — 26% indicated they wouldn’t make any changes.
Last year, three of 10 surveyed reported that spending levels would remain constant.
Only 2% believed spending would decrease, compared with 1% in 1999.
According to the preliminary findings, direct marketing spending accounted for some 36% of the respondents’ firms’ revenue and consumed just over 30% of their marketing budgets.
If marketers have felt a pinch anywhere, it’s in margin projections. No, they aren’t falling, but fewer DMers (24%, compared with 35% in 1999) anticipate increases, and the majority expect similar levels (37%, as opposed to 39%). At 13%, those indicating that margins would drop nearly equaled last year’s findings.
Bucking earlier trends, preliminary results show greater emphasis on customer acquisition. Marketers say they allot just over 60% for prospecting and 40% for retention, vs. 50% for both last year. The survey, conducted by the in-house research department of Intertec, DIRECT’s parent company, was sent to 1,200 randomly selected readers of the publication.
Questions covered direct response activity, with special focus on database marketing, mailing lists and electronic marketing. An article describing DIRECT’s survey results in greater detail will appear in the December issue.
