Learning Centre
What is direct marketing?
Direct Marketing is the most Cost-effective and efficient marketing vehicle in the uk.
Companies use direct marketing to contact customers directly with information about potential products they may be interested in.
It Covers everything from email marketing to direct mailing, with Consumer sales generated by direct marketing are estimated to be a significant £76.4 billion per annum – just over 9% of total UK consumer spend, and Business to business direct marketing generating an estimated £57 billion worth of sales. For this reason the average Return On Investment in direct marketing is high compared to other mediums
Direct Marketing Facts
Direct Marketing
• In the UK Consumer sales generated by direct marketing are estimated to be a significant £76.4 billion per annum – just over 9% of total UK consumer spend. (DMA economic impact analysis 2008)
• Business to business direct marketing generating an estimated £57 billion worth of sales. (DMA economic impact analysis 2008)
• Estimated sales have increased by 6.6% since 2006, with the internet accounting for £56.1 billion or 42% of the total. (DMA economic impact analysis 2008)
• The total value of direct marketing to the UK economy has grown to £50.5 billion, representing 15.4% growth since 2006.(DMA economic impact analysis 2008)
• Expenditure on direct marketing budgets has had a healthy 9.8% growth in total value from 2006, which includes an increase in the total number of companies. (DMA economic impact analysis 2008)
Mailing
• Direct mail accounts for the largest proportion of all expenditure at 26% confirming its continuing significance to the industry. (DMA economic impact analysis 2008)
• 66% of companies surveyed (with a turnover of more than £1m), undertook direct mail activities, spending on average £35,000 per annum (DMA economic impact analysis – direct mail 2007)
• The value of sales generated as a result of direct mail in the UK is £17 Billion. (DMA economic impact analysis – direct mail 2007)
• In a survey of 3,942 advertising mail campaigns: The average response rate for both b2b and b2c was 11.6%* (Royal mail)
• For every £1 spent £14 is generated – DMIS
• The average consumer spends approximately £577 through Direct Mail per year -DMIS
Telephone
• Telephone and email produced the highest response rates - 2.60% and 2.45%, respectively - among direct marketing media channels in terms of generating leads. - (Direct Marketing Association's "2006 Response Rate Trends Report")
• Telemarketing is the fastest growing marketing approach in Europe. In recent years 70% of Europe’s largest and most profitable companies have added Telemarketing to their existing Sales and Marketing strategy. – red wasp
• The average success rate of an outbound telemarketing campaign is anywhere from 5 to 15 percent ( telemarketing & call centre solutions report - Nadji Tehrani)
Email Marketing
• 1,000 marketers polled on their views regarding email marketing, with 78 per cent suggesting that the channel is either excellent or good in terms of return on investment. (The Email Census 2009)
• Email generates 1% to 2.5% of sales for 18.7% of all retailers in the survey. - Internet Retailer (2007)
• Email generates 2.51% to 15% of revenue for 37.4%. - Internet Retailer (2007)
• Email's ROI index is 70 percent higher than any other direct-response marketing vehicle. - Direct Marketing Association (2006)
• 83.2% of marketers surveyed chose email marketing as the most important advertising mediums they will use in 2007. - Datran Media Research (2007)
• Email marketing is the top online marketing method for retention, above search engine positioning, banner ads, sponsorships and other programs. - Direct Marketing Association (DMA) (2005)
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