Direct Marketing Survey

Direct marketing expenditure will continue to rise steadily over the next few years, according to the findings of a recent survey conducted by Datamonitor. Datamonitor forecasts that direct marketing expenditure will increase from £205m to £218m over the next 5 years and that telemarketing expenditure will rise from £75m to £108m.

The survey questioned 200 marketing executives and 50 agency directors on their views of the direct marketing industry. 80% of the companies contacted used either a direct marketing or sales promotion agency, although only 15% believed that hiring an agency was cheaper than doing work in-house. However, 85% felt that agencies could offer more creative ideas than could be generated in-house.

Direct mail was found to be an effective method for promoting insurance products, while high street promotions were considered to be the best method for banking services. The use of free gifts to promote financial services was deemed ineffective and in some cases produced a negative effect.

The survey found free gifts to be most effective when used to promote cosmetics and toiletries. They were also found to be successful when used to promote household products and leisure products, although the most effective method for leisure products was direct mail.

Datamonitor: 071 625 8548