Direct Marketers Bullish on Online Ads

• Posted: Friday, March 07, 2008
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• Author: pradhana
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• Filed under: Internet Advertising, Market Survey, Online Services

E-mail marketing is still favored for customer retention.

US direct marketers may reduce their media budgets this year, judging by Target Marketing's "Media Usage Forecast" report.

Nearly one-quarter of respondents surveyed in January 2008 said they would reduce their media budgets compared with last year. The number of respondents that said they planned to increase their budget fell about 10%.

Direct marketers on average expected to devote slightly more money to acquisition in 2008, after a mostly equal focus on prospecting and retention in 2007.

The lukewarm results for planned direct marketing spending overall belie a positive outlook for online marketing in particular.

Many respondents said they planned to increased spending on specific online marketing tactics, including e-mail (87%), SEO (72%), SEM (68%), direct mail (63%) and advertising on outside Web sites (62%).

Direct marketers said that e-mail was second in ROI only to direct mail when used for customer acquisition. E-mail was judged as best for customer retention.

Read more - eMarketer

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