DMA reveals slowdown in direct marketing but predicts solid prospects

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While the third quarter of the year saw a decline in direct marketing company results, the outlook and profitability remains strong, according to the Direct Marketing Association (DMA). During this third quarter the revenue index was 47. (Index scores below 50 indicate year-over-year declines in sales, expenses, staffing and other areas.)

This is the same score that was recorded during the second all india mobile number and email database provider quarter. However, profitability will continue to be strong during this period, reaching an index level of 62, just one point behind the Q1 and Q2 index scores. In addition, looking ahead, steady growth is expected with direct marketing outpacing expenditures for all other marketing disciplines and general advertising, according to annual forecasts contained in the DMA's recently released annual report.


The Power of Direct Marketing." This study forecasts direct marketing sales to grow by 3.7% annually by the end of 2007. As the economy recovers in 2009, strong returns on investment from direct marketing will boost sales growth to 4.5%.

From a financial perspective, digital advertising spending is projected to account for approximately 70% of the global total . Formats such as online video and social media advertising will continue to grow at annual rates of 15-20% and 33%, respectively. In addition, social commerce and programmatic advertising will continue to gain ground, with projections of reaching 25% and 75% of their addressable market, respectively.