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Direct Marketing Expected To Grow Slower Than Other Targeted Media

02 Sep 2010
Posted by Market and Main Media

Projections for direct marketing spending and revenue indicate the sector will lag in growth versus other targeted media categories. According to the Veronis Suhler Stevenson Communications Industry Forecast, the targeted media sector will experience a compound annual growth rate (CAGR) of 6.1% from 2009 to 2014. This growth will be driven by gradual economic recovery, advances in digital technology and secular trends. Pure-play consumer Internet and mobile services will also positively impact growth. However, hampered by reductions in Postal Service delivery and increases to postal rates as well as the Do Not Call list, direct marketing’s CAGR will likely only be 3.1%. Business-to-business media is also anticipated to grow at this slower rate of 3.1%.  For this analysis, direct marketing include direct mail, telesales, catalog, email and DRTV.

WHAT DOES IT MEAN TO ME?
In reality, projected slow growth rates, particularly for DRTV, are the result of robust growth in 2009 when DR inventory was plentiful and rates were favorable. Growth momentum will stall due to higher general TV inventory demand following the recent healthy network upfront and busy scatter marketplace. The recent poor economic climate was actually a favorable one for most Direct Marketers; therefore, as the economy recovers and TV inventory demand strengthens, DRTV clearance will level off or even decline. Using DRTV buying professionals will help direct marketers get the most from the diminishing DR inventory.
RELATED
“Slow Growth Ahead for Direct Marketing, Report Says,” DMNews 8/10/10 www.dmnews.com/slow-growth-ahead-for-direct-marketing-report-says/printarticle/176729/

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