DM spending set to exceed current budgets reveals survey

by Daniel Farey-Jones, Brand Republic 14-Jun-05, 07:00

LONDON – Clients are increasing their spend across all forms of direct marketing, especially direct mail and interactive media, according to a new DMA survey.

Just over 30% of companies have increased their current year's direct marketing budget compared with the previous year, and 22% planned to spend more on direct marketing than budgeted in the current year.

The survey, Direct Marketing Expenditure Trends 2005 carried out by The Future Foundation in February and March, also analysed budgets for different forms of direct marketing.

It found that companies were bullish with their allowance for direct mail, with 37% having increased their budget from last year and 35% planning to spend more than budgeted in the current year.

However, interactive media was the area that saw most budget increases, with 43% having increased their budget from last year and 42% planning to spend more than budgeted in the current year.

Database marketing was another increasingly popular area, with 39% having increased their budget from last year and 26% planning to spend more than budgeted in the current year.

Companies planned to spend more than budgeted across all forms of direct marketing, including broadcast, telemarketing, magazines, printed targeted media, press display and field marketing.

The researchers also concluded that direct marketing budgets are less likely to be cut even when total marketing budgets are expected to go down.

The DMA is planning to carry out the budget survey every six months for a minimum of three years.

Mike Barnes, the DMA's director of marketing and business development, said: "The aim of this research was to develop the most comprehensive indicator of overall expenditure trends within UK direct marketing."

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