Direct Marketing Industry Has Positive Third Quarter
The direct marketing industry saw a distinct improvement in business conditions in the three months to September 2003, according to the latest Industry Trends Survey from the Direct Marketing Association.
The study shows that imbalances between the sectors appear to have stabilised and some media seemed particularly buoyant, with more than half of those surveyed registering better business conditions.
Around 45% of respondents claimed that new business was up during the third quarter of this year, compared to just 26% in the same period the previous year. Sectors showing particular optimism included door to door, email marketing, inserts, mailing houses and financial services.
However, it was not all good news for the sector and nearly a third of respondents claimed to have take less new business than in the three months previously.
When asked whether business was better than twelve months previously, only 33% of companies agreed that it had improved, a 9% drop compared to the results from the previous quarter. The number of respondents claiming that business was better than three months ago also fell by 5%, although only 15% said it was worse, compared to 26 in the second quarter of this year.
Simon Davis, DMA business-to-business committee member, commented, “There are many positive aspects to be taken from this survey and the industry should therefore, remain hopeful that the current economic conditions will improve in 2004.”
He added: “However, factors such as increasing globalisation, a loss of quality staff within direct marketing and the effects of commoditisation need to be addressed to ensure that the quality and effectiveness of the campaigns produced, and the services offered by the industry remain at the high levels expected.”
The latest figures from the Advertising Association show that direct mail failed to recreate the significant increases it has seen in the past with adspend rising by just 0.6% year on year to £557 million (see Gains For Radio And Outdoor Fail To Boost UK Adspend).
However, recent research from Carat urged advertisers to recognise that direct mail is more than a direct response medium and can be highly effective at raising awareness and communicating brand identity (see Research Urges Media Planners To Recognise Direct Mail).
DMA: 020 7321 2525 www.dma.org.uk
Recent Related Stories from NewsLine Direct Mail Increases Share Of Below The Line Spend DMA Launches Boldest Ever Consumer Marketing Campaign New Research Reveals Strength Of Email Marketing
Subscribers can access ten years of NewsLine articles by clicking the Search button to the left