Advertisers Spend More On Direct Marketing

Twice as many advertisers are currently spending more than £5m a year on direct marketing (DM) than three years ago, according to a report published by the Incorporated Society of British Advertisers (ISBA).

ISBA’s eighth DM report shows that over half of advertisers have increased their expenditure on direct marketing in the past year, a trend which is set to increase.

The survey of 513 advertisers shows that nearly a quarter are spending over £5m on DM activities compared with just 11% in 1998.

Creativity is the main criteria for selecting a DM agency and is considered by advertisers to be more important than “strategic input” and “technical knowledge.”

According to the report nearly three quarters of advertisers have increased their DM activity in the last year. However, less than two thirds are said to be satisfied with the data legislation knowledge of their lead agency.

The internet is now considered more popular than post as a direct response mechanism in broadcast media and outdoor, and one fifth of companies now use email to communicate with existing customers, although none have directly substituted e-mail for direct mail.

Jackie Marlow, ISBA director of marketing services, who commissioned the report said: “It is particularly reassuring that DM looks set to continue its growth in the coming year. It is also interesting to note the rise of the use of e-mail and internet activities by DM professionals, especially for direct response, the importance placed on creativity by those selecting DM agencies and the relatively high opinions held by clients of their DM agencies.”

She added: “On the downside it is highly alarming to note that less than two thirds of clients are satisfied with their agency’s knowledge of data protection legislation. It is clear there remains much for agencies to learn in the findings of this study.”

ISBA: 020 7499 7502 www.isba.org.uk

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