|Login / Logout / Resources for Consumers / Create a FREE Online Account / Contact Us|
|Membership||Issues||Events||Professional Development||Who We Are||Contact|
DMA S QUARTERLY BUSINESS REVIEW (QBR) FINDS DIRECT MARKETERS LOOKING TO MODEST GROWTH DESPITE DECLINE IN YEAR-OVER-YEAR REVENUE FOR QUARTER III
Economy-Wide Factors Continue to be Cited in Soft Revenue Performance
Las Vegas, NV, October 13, 2008— The Direct Marketing Association (DMA) today released its Quarterly Business Review (QBR) for the third quarter of 2008, complete with 2009 forecasts for marketers and suppliers, in conjunction with the DMA08 Conference & Exhibition, the Global Event for Integrated Marketing.
The QBR Revenue Index vs. Same Quarter Last Year (SQLY) for Q3 2008 was 47, remaining the same from Q2. In the QBR Index, scores below 50 represent a decline in direct marketing business performance during the quarter versus the SQL, while a score of 50 represents no change and scores above 50 represent growth.
Despite the third quarter of soft revenue performance, overall profitability remained robust at 62, with each of the three segments that QBR benchmarks (marketers, agencies, and suppliers) posting a positive index in the high 50s and better.
"Overall, findings reveal that weak economic conditions experienced in the third quarter of 2008 are continuing to cause direct marketers to face softer revenues compared with the same quarter in 2007," said Anne B. Frankel, senior research manager. "While the Revenue vs. SQLY (same quarter last year) metric was negative for the third consecutive quarter, it is heartening that the Profitability results were positive."
Published every quarter, DMA’s Quarterly Business Review allows direct marketers, agencies, and suppliers to benchmark their performance on key metrics such as: current and projected revenue; profits; ROI; sales; employment; as well as a wide range of expenditure areas.
* * *
QBR HIGHLIGHTS FOR 2008 QUARTER III
Direct Marketing Community: An Overview
Q3’s Profitability remained solid at 62, just one point behind the Q1 and Q2 index. This quarter’s Revenue vs. SQLY, with an overall index of 47, is on par with that for Q2.
The profitability index was healthy for all three segments, with Marketers and Agencies outperforming the Supplier segment. Agencies again had the strongest index at 66; followed by Marketers with an index of 64; and Suppliers with an index of 58.
Projected revenue for Q4 2008 remains positive, but reflects modest expectations for revenue growth, with an index of 51 — a metric that suggests that Direct Marketers continue to be apprehensive about the economy.All three segments have similar Revenue projection indexes for Q4 2008: a Supplier index of 50, an Agency index of 51, and a Marketer index of 52.
Issues of Concern to Marketers
General Economic Conditions once again took an overall first place in terms of factors most likely to impact revenue for Q4 2008, with 57% citing it as a concern.
"Given the widespread apprehensions revolving around the state of the economy, it comes as no surprise that direct marketers, on the whole, express very conservative expectations in terms of revenue for Q4 2008," continued Frankel. "On a brighter note, the Q4 2008 Revenue projections for the Marketer segment moved out of negative territory, possibly reflecting hopes for a boost from increased sales tied to the holiday season."
Due to the current economy, Marketers seem fairly certain of a recession, with over two-thirds (70%) saying that it is very or somewhat likely. Given these expectations, it is not surprising that Marketers express modest expectations in terms of their revenue for Q4 2008.
QBR Highlights Relating to Direct Marketers
QBR Highlights Regarding Direct Marketing Agencies
QBR Highlights Regarding Direct Marketing Suppliers
Direct Marketing Breakout: B-to-B Segment
Direct Marketing Breakout: B-to-C Segment
Direct Marketing Breakout: Catalog Segment
About DMA’s Quarterly Business Review
DMA’s Quarterly Business Review (QBR) for the third quarter of 2008 is based on three online surveys of marketer, agency, and supplier companies. The surveys were conducted by DMA’s Research and Market Intelligence department from September 18, 2008 through September 23, 2008. Altogether DMA received 331 survey responses.
DMA members can download the report, for free, and non-members can purchase a copy for $49.95 from DMA’s Bookstore byclicking here.
About Direct Marketing Association (DMA)
The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents more than 3,400 companies from dozens of vertical industries in the US and 48 other nations, including half of the Fortune 100 companies, as well as nonprofit organizations.
In 2008, marketers — commercial and nonprofit — will spend $176.9 billion on direct marketing, which accounts for 52.1 percent of all ad expenditures in the United States. Measured against total US sales, these advertising expenditures will generate approximately $2.057 trillion in incremental sales. In 2008, direct marketing accounted for approximately 10 percent of total US gross domestic product. Also in 2008, there were 1.6 million direct marketing employees in the US. Their collective sales efforts directly support 9.3 million other jobs, accounting for a total of 10.9 million US jobs.
The Power of Direct: Relevance. Responsibility. Results.
# # #