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Home arrow Library of Research Articles arrow Marketing arrow Direct Marketing Expenditure Trends 2005
Direct Marketing Expenditure Trends 2005 PDF Print E-mail
Written by Direct Marketing Assoc   
18 Jan 2006

Direct Marketing Expenditure Trends 2005, Wriiten By The Direct Marketing Association 

Executive Summary
• The results and forecasts from this survey look positive for direct marketing as a whole indicating that it is a stable, steadily growing and integral part of overall marketing budgets.

• Direct marketing budgets are more likely to have increased year on year than total marketing budgets – using a wide and inclusive definition of direct marketing to include all the main DM media and methods (see Appendix).

• Direct marketing budgets have shown less volatility than total marketing budgets year on year perhaps pointing to the longer planning cycles and greater commitment than other marketing communications.

• The results show positive growth in all sub-categories of direct marketing with the biggest year-on-year increases (from a small base) in direct marketing via interactive media.

• Evidence that marketing budgets are subject to greater fluctuation than direct marketing is shown by the fact that the expected actual increase in marketing expenditure in the current year is greater than direct marketing. However, there are also more companies who have said that their total marketing budget will decrease compared to those reducing their direct marketing budget. Therefore, on average companies are more likely to increase their direct marketing rather than total marketing budgets.

• There is some volatility in terms of the anticipated final levels of expenditure by sub-category on direct marketing – with interactive media and direct mail having the largest increase in actual annual expenditure in comparison to their budgets – i.e. more companies have spent more than they budgeted for in these categories than in any other category.

• When it comes to future budgets there is less disparity between expected direct marketing budgets and total marketing budgets – but as in every other case direct marketing budgets are less likely to be cut even where total marketing budgets are expected to go down.

Appendix

Media included in direct marketing definition

Interactive media
Includes websites, email, interactive TV and text message promotions
Direct mail
Database marketing
Broadcast
Includes TV and radio direct response and sales
Targeted Print Media
Includes 3rd party/product despatch, consumer, business and door drops
Magazine display
Includes direct response, sales and contract magazines
Press display
Includes national and regional press display including direct response and sales
Telemarketing
Includes warm and cold calls
Field marketing
Includes in-store, customer acquisition and experiential
Other
Includes outdoor/transport and cinema direct response and sales

Net Score Calculation

Proportion of companies who said something would go up minus the proportion of
companies who said something would go down. (Those responding with ‘same’ were
given a value of zero).
For example:
Budgets to increase = 32%
Budgets to decrease = 18%
32 - 18 = A net score of 14
N.B. The higher the net score the more positive the outlook.

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Enquiries
If you should have any queries relating to the Direct Marketing Expenditure Trends 2005 please contact the DMA on 020 7291 3300.

Last Updated ( 18 Jan 2006 )
 
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