Monday, November 24, 2008

Direct Marketing spending to outpace traditional ad spend in 2009 (again)

Interesting article from one of my favorite marketing news source - Marketingcharts.com - the Direct Response industry will outpace traditional spend again in 2009. What's more interesting is the breakdown by channel (source: DMA, 2008)
dma-power-direct-marketing-ad-expenditures-vs-total-us-expenditures-2008.png

The overall lead by DM is really caused by Direct Mail (not surprising as branding Direct Mail is notoriously expensive and inefficient) and by new media spending. According to this data, almost 3/4 of online advertising expenditures are still driven by Direct Marketers. Not surprising considering the superior tracking ability. On the flipside - why is the traditional marketing industry still spending about 50% of their budget on TV, magazines, radio and newspapers; all traditional one-way channels?

I would expect a continued shift of traditional AND direct dollars towards online in the next few years and as newspapers and magazines continue to decline, the new media row will only get bigger - lots of room to grow considering that it's still only 13% of total spend!



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1 Comment:

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