Archive for the ‘Direct Marketing’ Category

Direct Marketing Continues To Grow

According to the Direct Marketing Association’s yearly report, The Power of Direct Marketing, direct marketing is anticipating growth in all areas, including expenditures, return on investment (ROI), sales and employment this year. This is despite an economy that is lagging in most areas.

“For the first time ever, direct marketing represents more than 50 percent of total advertising expenditures in the US, growing faster than total advertising spending and the US economy as a whole,” said Dr. Peter Johnson, the Direct Marketing Association’s research strategy and platforms vice president, and lead author of the report. “Marketers are moving dollars into direct marketing because of its higher ROI relative to other forms of advertising. This makes ‘direct’ a more reliable engine for sustaining sales, incomes, and jobs at a time when the mortgage and energy markets are heightening economic uncertainty.”, as noted on the DMA website. “Overall,” said Johnson, “business performance this year is likely to be measurably brighter than it would otherwise be, thanks to the effectiveness of direct marketing.”

The direct mail market predicts $173.2 billion in advertising expenditures’ by the end of this year, showing a 4.4% increase over last year. The ROI for these expenditures is $11.69/dollar spent, when taking into consideration the $2 trillion dollars in subsequent sales this year. The final numbers for 2006 were affected by the steep decline in the housing market, increases in energy costs as well as a decrease in auto sales. Up to a 5.5% increase in response rates is expected in commercial email, Internet marketing and direct mail.

The report also shows that direct marketers could realize up to a 5.2% increase in sales, which is 1.5% lower than the growth realized in 2006, due to the continuing economic slowdown. Direct sales could hit $2.025 trillion in 2008. The revenue forecast for next year in the report anticipates a 6.6% growth.

To what is this continued growth attributed? It’s felt that marketers continue to source money in to direct marketing due to its ROI when compared to other forms of advertising. With an economy that is continuing to lag, direct mail marketing allows companies to see hard results for their advertising dollar. While many industries continue to see a increase in their direct mail marketing investment, there are still some that are cutting back their direct mail advertising.

According to the report, manufacturing, financial banks, and education services are among many industries that continue to dump significant money into direct marketing advertising. Lags are seen in areas like petroleum, real estate and furniture industries.

Johnson notes that he feels that direct mail marketing will “continue to help sustain the overall US economy.” This estimation is based on the fact that as much as 10.2% of the US GDP, or $1.41 trillion of demand is represented by direct marketing.

Employment in direct marketing in 2007 is responsible for 10.6 million jobs. A prediction of a 2.2% increase is expected for next year. Internet marketing has predicted expenditures of $23.6 billion in 2008, which is almost a $4 billion increase from 2007.

Despite this growth, many company’s marketing departments are concerned about the state of the economy. If the housing market continues to stagnate and fuel costs keep climbing, it is possible that overall marketing expenditures could be adversely affected. Considering direct marketing’s effect on our GDP this year, a decrease in its economic viability is something to be concerned about.

 

From: Scott Allen
About.com

Personalized URL’s

One of the best ways to connect with your customers is to personalize your communications.  A new trend in eMarketing is using personalized URL, or PURL, which is a customized web page or microsite with a unique address for each customer on your list. Incorporating PURLs into your direct mail and or email campaigns, gives you a greater opportunity to connect your messaging with the interactive capabilities of the Internet, which will help convert more direct mail recipients into qualified prospects and valued customers.

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A common example of a PURL is a web page or microsite with a URL such as www.xyzcompany.com/johndoe, in which “John Doe” is a recipient who receives a direct-mail or email message that encourages him to visit the web page or microsite. For each recipient on the list, the web address is unique to the recipient, as is the content of the web page. Also, if a visitor to the web page or microsite is asked to answer a few questions or provide information, the answers provided can be immediately used to determine which secondary pages the visitor is directed to or what specific information is included on secondary pages.

Because a PURL site is personalized, a conversational or more direct tone in the language of the site content can be used to enhance the visitor’s sense of engagement with the organization. However, try to avoid overly detailed and personal level of information on your PURL, this may lead a visitor to feel his or her privacy is being invaded.

Utilizing PURLs are a great way to connect with your customers and prospective customers:

  • Enhance marketing campaigns and messaging
  • Gather and update key customer data
  • Track activity and preference
  • Measure campaign successes
  • Educate potential customers about your company in a fun, interactive way

The costs for a PURL campaign will vary depending on web page or microsite design, programming/data integration, the number of recipients in your list, and the time length of the campaign.

If you are considering using a PURL in your next campaign, please contact us for more information on how we can help you take full advantage of this cutting-edge marketing tool. We have all of the expertise you’ll need.

Direct Marketing – A Deeper Understanding

Marketing is one of the most important factors that assure the success of any business enterprise. Direct marketing is a type of marketing that distinguishes from other types because of its two main defining characteristics.

  1. First, it attempts to send its messages directly to customers without using intervening media. This also includes commercial communication such as direct mail, e-mail marketing with consumers or businesses.
  2. Second, it is focused on driving a specific “call-to-action.” This aspect of direct marketing involves an emphasis on trackable, measurable, positive answers from consumers.

In direct marketing there are further types different from each other in terms of methodology and results. However, doing your internet business, you need to choose only that method which can produce the best outcome for your efforts. This is where you can explore the technique of using direct mail marketing services to have a bright future in the business.

For attracting and gaining new customers you can choose any of the following stratagems of direct marketing:

  1. Direct Mail – A method most frequently used in direct marketing is direct mail. Direct mail allows you to devise marketing sections in different forms. It includes envelope mailers, catalogues, self-mailers, snap mailers, dimensional mailers, brochures, and postcards. Before writing direct mail make it sure that you have specific market target that you want to achieve.
  2. Telemarketing – Is another method of direct marketing that has the advantage of speed in a marketing campaign. It enables you to contact with your clients using telephone. Whenever you make a telephone call, first introduce yourself and then go on to your purpose. Briefly describe your product or service and add how it solves the clients’ needs. At the end you can also ask for a face to face meeting, or to get permission to send them information via e-mail.
  3. Direct Response – In direct response, the customer responds to the marketing message directly. An example of this would be infomercials where the clients view a television presentation of a product. They can purchase this product with a credit card over the telephone or internet.
  4. Personal Selling – Personal sale calls is another technique of direct marketing. First conduct a research on the companies or the target that you are trying to sell your product. For this you can buy a list from a reputable list company. If you take this list make sure that you have complete information on your target market.