Paying More, Getting Less
Direct marketers can’t be blamed for thinking something’s out of whack when it comes to what’s flowing out of their coffers and what’s trickling in. They’re spending more on most channels, only to see ROI fall in nearly all of them.
Not surprisingly, the highest spending growth forecast by the Direct Marketing Association in the latest edition of its Power of Direct Marketing study is on the less-mature electronic channels. Between 2008 and 2009, commercial e-mail expenditures are seen increasing by 20.7%, followed by a 15.9% rise for non-e-mail Web marketing.
Traditional channels, such as catalog and non-catalog direct mail and insert media, will grow at low single-digit rates. These will be trailed by direct response TV, radio and magazine ads, with telemarketing and DR newspaper ad spending dipping slightly.
If anything, even further cuts in spending on DR newspaper ads might be warranted. Sales from this channel are expected to drop 4.4%
