DMA Releases Quarterly Business Review (QBR) for Q2 2010
Rise of Direct Marketing Spending Suggests Continued Economic Rebound
NEW YORK, Sept. 5 /PRNewswire/ -- The Direct Marketing Association (DMA) today released its Quarterly Business Review (QBR) for the second 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.
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For the second consecutive quarter, direct and digital marketers reported improvements across virtually all key performance indicators during Q2 2010. These gains, for marketers and service providers alike, suggest a strengthening rebound. Marketers appear more optimistic about their future profitability, as their focus continues to shift steadily to digital channels including online display advertising, search, email, mobile, and other digital media.
"This report highlighted some positive and important information for all of us," said Yoram Wurmser, director of research for DMA. "Since the recession in 2008, marketers have been able to maintain profits mostly by vigilantly cutting costs. Marketers in Q2 finally have enough faith in their future profitability to start spending again, albeit cautiously. The rise of spending suggests the economic rebound that started in late 2009 has continued steadily. This spending is due in large measure by improved data analytics and confidence in new media channels, two factors that will be instrumental in future success and an economic recovery."
"Given the sluggish pace at which the broader economy has rebounded, it's certainly a good sign to see the direct and digital marketing community reporting two consecutive quarters of positive growth," added Jonathan Margulies, a director at Winterberry Group. "It's now clear that the digital revolution—driven by the maturation of online marketing channels such as search, display advertising and e-mail—is leading the recovery effort. We absolutely expect to see more marketer emphasis on data, technology and other critical 'digital drivers' in subsequent periods."
Some key findings include:
- Channel specific return on investment sustained its growth from last quarter across all direct and digital channels.
- As in previous quarters, digital marketing channels continue to command the lion's share of new marketing investment — with the email; social; search; mobile; and online display approaches joining the direct mail (non-catalog) and teleservices channel among those that grew in adoption versus both Q1 and the SQLY.
- Marketers cited improved data analytics tools and processes as the leading driver of new or expanded direct/digital marketing activity.
- Both marketers (53 percent) and suppliers (53.6 percent) noted that second-quarter profitability improved (in the aggregate) versus the previous quarter and SQLY.
About DMA's Quarterly Business Review
DMA's Quarterly Business Review (QBR) for the second quarter of 2010 is based on two online surveys conducted by DMA's Research and Market Intelligence department in July 2010. Altogether DMA received 532 usable survey responses.
The report is free for DMA members, and non-members can purchase a copy for $49.95 from DMA's Bookstore by clicking here.
About Winterberry Group
Winterberry Group is a unique, global strategic consulting firm that helps advertising and marketing companies grow shareholder value. Based in New York, it offers a combination of corporate strategy, market intelligence and merger-and-acquisition due diligence support services aimed at helping clients identify opportunities for growth and achieve transformative results. The Firm's global stable of clients includes service providers, marketers and financial investors representing every segment of the advertising and marketing industries, including Acxiom Corporation, Alterian plc., American Capital Strategies, arvato Services / Bertelsmann AG, Canada Post Corporation, Capital One Financial Corp., The Carlyle Group, Direct Group, Eastman Kodak Company, eCircle AG, Hewlett-Packard Co., IWCO Direct, MediMedia USA, Meredith, Onex Corporation, Rosetta, Transcontinental, Inc., Xerox and Yahoo!.
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About Direct Marketing Association (DMA)
The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents companies from dozens of vertical industries in the US and 48 other nations, including nearly half of the Fortune 100 companies, as well as nonprofit organizations.
In 2009, marketers – commercial and nonprofit – spent $149.3 billion on direct marketing, which accounted for 54.3% of all ad expenditures in the United States. Measured against total US sales, these advertising expenditures will generate approximately $1.783 trillion in incremental sales. In 2009, direct marketing accounted for 8.3% of total US gross domestic product. Also in 2009, there were 1.4 million direct marketing employees in the US. Their collective sales efforts directly support 8.4 million other jobs, accounting for a total of 9.9 million US jobs.
The Power of Direct: Relevance. Responsibility. Results.
SOURCE Direct Marketing Association, Inc.
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