Marketers Reduce TV Spend In Favour Of Direct Marketing

The majority of marketing directors are reducing spend on television and cinema advertising in favour of direct marketing, according to new research from market information provider Key Note.

The study shows that the increasing popularity of direct mail, web activity, telemarketing and interactive television have helped the direct marketing industry to grow by 14.2% since 2000 to reach £11.56 billion.

Key Note claims that this is significant when compared to an estimated 3.2% decline in total advertising expenditure over the same period.

Telemarketing was found to be the biggest sector by spend, with direct mail maintaining second position. Direct marketing across radio and new media was identified as a key growth area, with increasing broadband access expected to enable marketers to develop enhanced advertising messages in 2003.

Simon Taylor for Key Note said: “The internet is set to establish itself as an essential part of the direct marketing industry in 2003, reversing the dot-com backlash, where new media was seen as over-hyped and of limited value.”

Key Note estimates that the number of direct marketing companies in the UK now stands at over 900 and notes that the accelerating trend of many agencies is towards supplying integrated solutions encompassing, advertising, direct marketing, PR and new media.

A recent survey conducted by MORI on behalf of The REaD Group painted a slightly less positive picture of the direct marketing industry, by suggesting that as 29% of consumers want direct mail banned completely and 36% claim to throw away all promotional mailings (see Research Claims Direct Mail Is Staggeringly Unpopular).

Key Note: 0208 481 8750 www.keynote.co.uk

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