Direct Marketing Services Industry Trends

Multichannel Marketing

Marketers increasingly are using multiple channels to direct their messages. Whereas firms used to specialize in one medium or another, clients now prefer firms with expertise in multiple ways to communicate their message. Email marketing is cheap but often gets caught in spam filters. A combination of direct mail and online marketing can be more effective in targeting consumers.

Customer Consolidation

Many customer industries have undergone substantial consolidation in the past five years, which reduces the number of potential customers. Two industries that frequently use direct marketing, financial services and telecommunications, have both seen significant merger activity.

Catalogs’ Role Increasing

Many experts predicted that Internet shopping would render catalogs obsolete, but it just changed their role in that catalogs have become brand-builders. The catalog remains the most effective way to emotionally appeal to consumers, and more catalogs are being mailed than ever. Consumers still prefer to look through catalogs, even if they order merchandise online.

Labor Productivity

Labor costs as a percentage of direct marketing revenues have been declining. Use of graphics design systems and automated mailing equipment has eliminated many of the manual steps in producing direct mail campaigns. As a result, overall industry employment has declined more than 20 percent over the past 10 years.