Improvements in Key Performance Indicators Point to Renewed Growth
New York, NY, May 17, 2012 — The Direct Marketing Association (DMA) today released its Quarterly Business Review (QBR) for the first quarter of 2013. DMA partnered with management consulting firm Winterberry Group on the report.
According to respondents to the DMA/Winterberry Group Quarterly Business Review survey, improvements across a number of key performance indicators — including spending on data-driven marketing (DDM) media, revenue generated by those efforts, company profitability, and staffing investments — suggest that 2013 may bring a renewed focus on growth for both marketers and the industry of suppliers who support their efforts.
Although DDMers began their year with a slightly more bearish outlook than in the previous quarter, the vast majority of survey respondents (70.8 percent) agreed that the practice of DDM is well positioned for future growth.
“Clearly, 2013 ushered in with it a reasonable dose of the uncertainty and economic malaise that we saw constrain growth during the concluding months of last year,” noted Jonathan Margulies, Managing Director at Winterberry Group. “Fortunately, it appears that much of that sentiment was grounded in individual threats—such as the “fiscal cliff” and sequestration battles—that are not likely to continue imparting the same impact. Marketers and service providers should take heart that virtually all other first-quarter performance indicators point to strong growth prospects ahead for the DDM community.”
The Growing Influence of Data
Following several quarters of slowing spending growth, respondents reported that their organizations are spending more on DDM activities and expect growth to continue for the near term. General interest in DDM solutions is also up, fueled by the growing availability of marketing data and technology, which marketers are eager to leverage in an effort to understand and engage consumers in meaningful ways.
“We are seeing a renewed optimism in the data-driven marketing community this quarter – and with good reason. With a constantly growing wealth of data and technology at their fingertips, today’s marketers are recognizing the incredible potential that data-driven marketing brings to their businesses,” said Linda A. Woolley, DMA’s president and CEO. “This is further evidenced in the accelerated data-driven spending growth we see this quarter — and by the increased growth rate in staffing – the first we’ve seen since Q4 2010.”
Revenue Generated from DDM Activity
About DMA’s Quarterly Business Review
DMA’s Quarterly Business Review (QBR) for the first quarter of 2013 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 April 2013 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 246 usable survey replies, which included 141 marketer respondents and 105 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 strategic consulting firm that supports the growth of advertising, marketing, media and information organizations. Affiliated with Petsky Prunier LLC—a leading investment bank providing merger and acquisition advisory services to companies in the same sectors—the Firm offers its clients strategic perspective that is unparalleled in its addressable industries, while PPLLC maintains exceptional relationships with industry executives and business owners. This combination of market intelligence, research and strategic operating experience (as well as the ongoing dialogue among buyers and sellers of marketing businesses) provides an educated outside perspective that we bring to each engagement.
For more information, visit: www.winterberrygroup.com
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About Direct Marketing Association (DMA)
The Direct Marketing Association (www.thedma.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 — spent $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 generated approximately $2.05 trillion in incremental sales. In 2012, direct marketing accounted 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 supported 7.9 million other jobs, accounting for a total of 9.2 million US jobs.
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