Paid, Organic Search a Big Part of DM Budgets

This didn’t really surprise me. But it did confirm what I and colleagues from sister publications Target Marketing and Catalog Success have been hearing from readers this year: More direct marketers are shifting marketing funds away from print and to the Internet.

This didn’t really surprise me. But it did confirm what I and colleagues from sister publications Target Marketing and Catalog Success have been hearing from readers this year: More direct marketers are shifting marketing funds away from print and to the Internet.

I’m referring to a recently released response rate report from the Direct Marketing Association, which showed that SEM and SEO combined to account for 33 percent of direct marketing budgets. Paid search makes up less of that 33 percent, however — just 8.2 percent.

This report lets marketers compare their own performance with success metrics for six media — direct mail, catalogs, inserts, telephone, e-mail and paid search.

The report also looks at DM budget allocations by channel and changes in budgets, as well as attitudes toward such new media as SMS (texting), social networking, podcasts, blogs, RSS feeds, wikis, online video, user-generated content and virtual worlds.

Other findings from the report include the following:
· 35 percent of marketing budgets are allocated to direct mail, although this number will likely shrink in coming years as digital media take an increasing share of marketing spend;
· response rates were higher than in previous years, perhaps as a result of better list management and more sophisticated targeting; and
· the catalog and retail segment outperforms other industries in direct mail response rates.

The report was conducted through a survey e-mailed to DMA members in Dec. 2008; 1,175 responses were received.

I may be biased, given the publication I edit, but this seems like the wave of the future. What about you? Do you find any of these statistics surprising? Let us know. Post your comment below or send it to me at mcampanelli@napco.com.

Author: Melissa Campanelli

Melissa Campanelli is Editor-in-Chief of Total Retail. She is an industry veteran, having covered all aspects of retail, tech, digital, e-commerce, and marketing over the past 20 years. Melissa is also the co-founder of the Women in Retail Leadership Circle.

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