DMA/Winterberry 2015 Q2 Quarterly Business Review Reveals Record High Revenue for Data-Driven Marketers

Contact: Mike Uehlein, muehlein@the-dma.org 

New York, NY, August 13, 2015 — Driven by the potential of “Big Data” and growing returns in both sales revenue and profitability, marketers are now spending and profiting more on data-driven marketing (DDM), according to DMA/Winterberry Group’s Quarterly Business Review (QBR) survey.  The Q2 2015 QBR shows significant growth across nearly all performance indicators, particularly in sales revenue, which grew faster than any period since Q1 2014. Confidence reached a high point for data-driven marketers in Q2 2015, with more practitioners (84.2%) expressing confidence in its growth than at any point since 2012. In addition to continued accelerated DDM spend, results also showed a renewed focus on traditional channels, reversing a downward spending trend of at least six months or more.

“These research findings suggest that marketers are confident in the value of data-driven marketing – and they’re putting in the investment to prove it,” said Neil O’Keefe, DMA’s Senior Vice President, CRM and Member Engagement. “Marketers are recognizing the importance of a consistent investment in the customer across all channels, with increased expenditure not only in digital tools, but a renewed focus on traditional media as well – with the first increase in direct mail expenditure that we’ve seen in the past six months. Responders are also investing in acquisition, which is done traditionally when expectations and profits are high.”

“The significant acceleration in revenue growth we are seeing reported in the Q2 2015 QBR point to marketers’ greater ability to integrate the full spectrum of technology and channels to deliver greater relevance and improve customer experience,” said Jonathan Margulies, Winterberry Group’s Managing Director. “This is effectively signaling a shift away from old distinctions between ‘general’ and ‘direct’ marketing methods. In short, we’re accelerating toward a world where all marketers are data-driven and looking to those methods as a means of both acquiring and engaging customers.”

While more marketers than ever before are expressing confidence in DDM – the intensity of that confidence is also surging. Panelists reported a sentiment of 4.33 on a scale of 1-to-5, (with 5 indicating a “strong” level of confidence in the practice of DDM) – an increase from 3.87 from the previous quarter.

“To what extent do you agree that the practice of DDM is well positioned to grow in the future?”q22015qbr

 

Other Report Highlights:

  • For the first time in over two years, more panelists said that their DDM-generated revenue grew compared to the previous period (45.7%) than reported flat quarter-over-quarter performance (44.7%)
  • Spending continues to increase in the email channel—with an index of 3.30 and social media, indexing at 3.25 – on a 1-to-5 scale (with 5 indicating spending increased “significantly”).
  • Panelists said they increased spending on direct mail for the first time since late 2012 (at an index of 3.01 in Q2, up from 2.93 last quarter and 2.92 the previous two quarters)
  • Nearly equal numbers of survey panelists indicated that they would be focusing on expanding new customer acquisition efforts (61.4%) and improving existing customer relationships (60.6%) as priorities in 2015.
  • DDM practitioners project their investment in the industry will continue to grow, with 53.9% predicting their DDM spending will remain constant next quarter, and 39.2% saying that their DDM investments are likely to increase.

DMA/Winterberry Group’s Quarterly Business Report (QBR) survey is provided as a benefit of membership in DMA. Non-members can purchase a copy for $49.95 from DMA’s Bookstore.

About DMA’s Quarterly Business Review

The Quarterly Business Review is published by the Direct Marketing Association (DMA), with research and analysis provided by Winterberry Group, a New York-based strategic consulting firm serving the advertising, marketing services, media and information industries.

Its conclusions are based on results from an online survey of DMA members, deployed in July 2015. Q2 QBR survey data is comprised of the responses of 422 survey respondents, including 266 marketers and 125 technology or service suppliers

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

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.  DMA provides marketers with INNOVATION that accelerates business growth, EDUCATION that develops talent and ensures compliance with ethical and best practices, and ADVOCACY that advances policies which support innovation in marketing.

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