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Direct Marketing Market Report 2007
Key Note Publications Ltd, Nov 2007, Pages: 142


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Although direct marketing has always been about advertising to individuals, in the past most direct marketing campaigns took a `mud at the wall' approach through blanket campaigns that would hopefully include the particular audience they wanted to reach. However, the industry has developed since then: increasingly sophisticated databases give marketers access to more detailed information about their target customers, and customers can rule themselves out of receiving marketing messages or count themselves in if the product or service is something in which they are interested. As such, new media channels have given both marketers and customers more choice.

Although advertisers might mourn the decline of the single mass-marketing channels, consumers have moved on and now elect to receive — or not to receive — marketing messages through whichever channel is most convenient for them. The new media channels are beginning to reach critical mass themselves and marketers are migrating their media budgets away from the traditional channels. The stalwarts of the industry, telemarketing and direct mail, are still strong, but the trend is away from these channels and into online and e-mail marketing. Mobile marketing is still very much in its infancy.

The value of the traditional direct marketing channels remains, and marketers are keen to harness the strengths of each and integrate them to create campaigns that will support the message through a variety of media. The expertise required in managing these new channels to market is developing most rapidly in small start-up agencies, which are creating market niches for themselves. Furthermore, they are moving from being just production houses to include value-added services, and this makes them more attractive to clients — as well as to predators seeking to increase their own capabilities through acquisition.

This trend is particularly true of e-mail marketing, but there are also strong developments in data, with list owners building businesses around their proprietorial lists and agencies seeking to increase their expertise in this area in order to develop greater customer insight.

2006 saw a high level of criticism of the industry from the popular media, based around the suspension of a postal worker who informed customers how they could opt-out of receiving door drops. Summer 2006 was quickly dubbed direct marketing's summer of discontent, with a record number of people subscribing to the mail and telephone preference services to have their names removed from marketing lists. The industry is still questioning whether this is signalling the demise of direct mail and telemarketing.

For telemarketing in particular, the moving of customer-facing operations overseas is beginning to be re-examined. Many companies understand the value of providing higher-quality call handling and have elected not to move their operations overseas, or to bring some parts of it back. Coming back with them are the Indian companies that have built up their own expertise: two major acquisitions of UK telemarketing outsourcing companies were made by India-based companies in 2007, with the intention of meeting the demand for UK-based call handling. Telemarketing may be down, but it is not out.

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