November 20, 2012 — The Direct Marketing Association (DMA) today released its Quarterly Business Review (QBR) for the third quarter of 2012. DMA partnered with management consulting firm Winterberry Group on the report.
Despite ongoing uncertainty about the fate of the economy and its potential impact on broader business opportunities, a vast majority of respondents to the third quarter 2012 Quarterly Business Review survey said they are confident about the practice of direct and digital marketing (DDM) and its prospects for future growth.
“Increasingly, marketers are expressing confidence in the prospects of direct and digital marketing, with a majority of respondents expecting their revenue to increase during the fourth quarter,” said Linda A. Woolley, DMA’s acting president and CEO. “Notably this quarter, more marketers are reporting that the availability of data and the general demand for DDM media are having a positive impact on their organizations’ DDM activity. ”
A full three-quarters of surveyed US marketers and marketing service providers said they were bullish about the growth prospects for DDM — with a plurality (47.1 percent) saying they “strongly agree” that the practice of direct and digital driven marketing is well positioned to grow in the future. This represents a slight increase from last quarter, when 72 percent of respondents voiced similar confidence.
On an index basis, respondents echoed a similarly modest improvement in confidence from the second quarter. The DMA/Winterberry Group panel of marketers and service providers reported a composite confidence index of 3.91 in the third quarter (on a 1-to-5 scale), up from 3.85 in the preceding period.
In describing the opportunities they see emerging to define the practice of DDM, respondents were near-universal in their commentary on the importance of data and technology-driven insights in enabling more impactful customer interactions. Some said, for example:
Other key third-quarter findings include:
About DMA’s Quarterly Business Review
DMA’s Quarterly Business Review (QBR) for the third quarter of 2012 is published by the Direct Marketing Association, with research and analysis provided by Winterberry Group. Its conclusions are based on results from an online survey of DMA members, deployed in October 2012 and focused respectively on marketers and the marketing service and technology solutions providers that work with them to develop, launch and optimize campaigns. Altogether, DMA received 322 usable survey replies, which included 156 marketer respondents and 166 providers of marketing services and technology solutions.
The report is free for DMA members. Non-members can purchase a copy for $49.95 from DMA’s Bookstore.
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!.
About Direct Marketing Association (DMA)
The Direct Marketing Association (www.the-dma.org) is the world’s largest trade association dedicated to advancing and protecting responsible data-driven marketing. Founded in 1917, DMA represents thousands of companies and nonprofit organizations that use and support data-driven marketing practices and techniques.
In 2012, marketers — commercial and nonprofit —will spend $168.5 billion on direct marketing, which accounts for 52.7 percent of all ad expenditures in the United States. Measured against total US sales, these advertising expenditures will generate approximately $2.05 trillion in incremental sales. In 2012, direct marketing accounts for 8.7 percent of total US gross domestic product and produces1.3 million direct marketing employees in the US. Their collective sales efforts directly support 7.9 million other jobs, accounting for a total of 9.2 million US jobs.
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