Digital More Popular than Print in Latest DMA Report

Doc is a big fan of the Direct Marketing Association (DMA) an industry group that provides not only a lot of good research and direct-marketing updates, but lobbies Congress on behalf of direct marketing interests. In June, the DMA released its Quarterly Business Review (QBR) for the first quarter of 2010.  DMA partnered with Winterberry Group, a leading strategic management consulting firm that helps advertising and marketing companies build shareholder value, on this report.

As the trends toward increased accountability and technical innovation continue their rise in popularity and ROI among the business community, the digital channels have consumed the top slots for new marketing spending.  The study shows that for the first time in two years marketers and their service providers reported across-the-board increases in revenue, marketing expenditures, and profitability compared with both the fourth quarter of 2009 and the same quarter last year (SQLY).  Their optimism about the second quarter also grew.

"After two difficult years, marketers have begun to spend more on marketing as sales and profitability increase, and most of this increased spending is going toward digital channels," said Yoram Wurmser, DMA research manager.  "If you look at the channels for new investment, they're all digital:  email; social media; search; online display; and banners. . . .The same five channels had the largest increase in ROI."

Some key findings include:

• As they did last quarter, marketers cited "improved data analytics tools and processes" as the leading driver of new or expanded direct/digital marketing activity.

• In a marked improvement from last quarter's response, marketers and suppliers both noted that first-quarter profitability improved (in the aggregate) versus the previous quarter and SQLY.  More than 48 percent of marketers and 54 percent of suppliers reported higher profits during the first quarter of 2010 versus first quarter 2009.

• Similarly, both marketers and suppliers reported higher confidence with regard to their expected future profitability than last quarter — with over 50 percent of marketers and 57 percent of suppliers projecting improved bottom-line performance during Q2 (compared to 43 and 54 percent who were similarly optimistic last quarter).

• As in previous quarters, digital channels continue to gain most new marketing spend — with e-mail; social; search; online display advertising; and mobile approaches joining the teleservices channel among those that grew in adoption versus both Q1 and the SQLY.

The report is free for DMA members, and non-members can purchase a copy for $49.95 from DMA's Bookstore.