Acquisition Spending, Direct Mail on the Rise: Winterberry Report.
Interesting market analysis and forecast for 2011 by Bruce Biegel, managing director of Winterberry Group, interviewed in Chief Marketer.
In general, direct and digital marketing are not the dominant advertising channels, as compared to traditional media. Paper-based direct mail is making a little comeback, expected to rise 5.8% in 2011.
Worth reading the whole piece.
Filed under: Direct Commerce, News, Opinion, acquisition, advertising, Direct Commerce, Direct Mail, DRTV, multi-channel
Kevin Hillstrom: MineThatData: 16 Multichannel Marketing Myths.
This is a great post, which you should read in detail. I picked it up from a consultant friend, Ernie Shell, who blogs at Direct Commerce Systems. Kevin’s post, in effect, reminds me of how much the direct commerce trade press struggles to report real information, rather than the self-interested sales pitches of companies who will benefit from promoting their view of what builds sales via the direct channels.
Read and learn from Kevin’s post. It’s great stuff.
Filed under: Direct Commerce, Opinion, catalog, Customer Care, customers, Direct Commerce, Direct Mail, direct marketing, DRTV, email marketing, marketing integration, multi-channel, paper catalogs, retail sales, retention, Web
Direct Magazine published an article entitled “Direct Response Rare Bright Spot in Nielsen Report.”
The gist of the report is that DRTV advertising spending has increased recently, while other categories have declined. That is great news for the industry — and includes many of my friends.
But let’s also keep it in context. Spending in most advertising media is declining. Newspapers are thinner. Magazines are thinner. Radio is less interrupted.
In this economy, any expense that a business cannot clearly measure it’s ROI is under review, if it hasn’t already been cut.
The reduced demand for most forms of advertising is leading to lower rates. DRTV companies can buy network spots like never before. Good for them.
But ultimately, the real test is whether, when the economy comes back, will general advertisers adopt the direct response type model to clarify and perfect the measurability of their TV / Radio / Newspaper / Magazine advertising?
Obviously, it’s too soon to tell. So, in the mean time, enjoy the ride … all the way to the bank.
Filed under: Direct Commerce, News, DRTV
This is a headline in Direct, here’s a link to the entire article.
I pretty seriously disagree with the implications of the headline. The jist of the article highlights how the total direct mail volume is declining — which has nothing to do with the headline. There are fewer advertisers on TV these days — fewer on radio — fewer in newspapers.
The decline in advertising activity relates to the general decline in the economy, and has little to do with the impact of the medium itself.
While general TV advertising is down, direct response television is increasing pretty dramatically.
What is changing is the economics of the marketplace. Companies who have not been managing themselves well are fading or disappearing.
On top of that, if anyone sees direct mail as a “mass marketing” channel, they probably should not have been using the medium in the first place. Every competent direct mail person I’ve every known would have loved to eliminate every non-responsive name they could.
Jacking up mail volume, just to get big numbers is always a losing proposition.
Filed under: Direct Commerce, News, advertising, Direct Mail, DRTV
Here’s one of the headlines in today’s Washington Post Newspaper:
New Prime-Time Ads Act Now
The article relates the plight of local TV stations where their rates for prime time advertising have dropped, in some cases as much as 75%, and there are still a lot of availability.
As the article points out, this is translating into a dramatic increase in direct response television advertising, because the spots are available and cheap. So, DRTV merchants can afford the spots and can make money with them.
We need to watch to see if how long this trend lasts. Certainly, it should last until the economy recovers enough for traditional advertisers to reclaim their budgets. But it could also have the same type of impact that the internet had on print advertising.
The internet taught mainline advertisers that there was a way to measure their print advertising directly, rather than just thru “gross rating points” or “gross impressions.” This may do the same for television advertising — we’ll have to wait and see.
In the meantime, we may see a boom in DRTV advertising while the economy remains in the doldrums.
What fascinating times we live in!!
Filed under: Direct Commerce, News, advertising, DRTV, economy, Washington Post
There’s an article in the December issue of Direct provides some of the answer to this question. It’s based upon data from the DMA .
Here’s a chart of the data, showing Projected Sales by Direct Channel for 2009 (in $ billions).
What surprised me a little, when I first saw this data, was the relationship of Direct mail / catalog to Direct mail / non-catalog. I was surprised the catalog numbers were so much lower. But, at the same time, then I noticed the Web marketing / non-email numbers. You might be tempted to think this web marketing sales number is based upon Search or Advertising, but it is also likely driven a lot by catalogs.
I don’t know about you, but when I order from a catalog, I often place the order on the catalog web site, just to avoid all the up-selling, which to many consumers is annoying.
It also seems likely that the Telemarketing sales number is driven a lot by catalog. These three channels seem to be closely linked and almost impossible to differentiate.
This is great information for Service Providers who are assessing where to devote their marketing efforts to secure new clients.
Filed under: Direct Commerce, catalog, Direct Mail, DRTV, sales, Web