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New DMA Report Finds 55 Percent Of Direct Marketers Earn Profits On The Web
Increasing Number of Dot.Coms Integrating Marketing & Operations Systems into Traditional Retail and Catalog Functions
NEW YORK, April 10, 2002 –A new report by the Direct Marketing Association (The DMA) found that more than half (55 percent) of all direct marketers who engaged in e-commerce transactions earned a profit on the Web in 2001. Of those not currently earning a profit, 55 percent anticipate being profitable in 2002.
According to The DMA’s State of the E-Commerce Industry Report 2001-2002, approximately 71 percent of consumer direct marketers have the ability to conduct financial transactions online. Compared to last year, average online revenue per company increased by more than $1 million (from $3,983,500 in 2000 vs. 5,284,640 in 2001).
"Increasingly, direct marketers are leveraging the cost savings, visibility, and customer acquisition benefits of interactive marketing to boost sales and expand their customer base," said H. Robert Wientzen, president & CEO, The DMA. "Successful marketers now realize they need to stick with proven business models using new technology to expand their operations not completely redefine them."
In addition, the report found significant efforts underway to integrate dot.coms into the overall brick-and-mortar retail and catalog marketing and operations infrastructures. Fifty-eight percent of companies now consider themselves dot.corp, and 21 percent either dot.com, or a combination of both. The companies who reported the strongest dot.corp presence are those who market their site to the B-to-B segment (69 percent), medium-sized (61 percent), and small (58 percent) businesses.
The report also revealed that:
The DMA’s State of the E-Commerce Industry Report 2001-2002 was conducted by The DMA in cooperation with the Association for Interactive Marketing (AIM) during the fourth quarter of 2001. The report provides a realistic outlook on how economic changes have affected the interactive playing field, and previews some of the challenges that may lie ahead. Nearly 700 companies involved in direct and interactive marketing contributed to the report.
The full report, available in April, is priced at $495 for DMA members ($995 for non-members) and can be ordered now through The DMA Book Distribution Center. Call 301.604.0187 or visit The DMA’s Web site at www.the-dma.org/bookstore/cgi/bookstore.
The DMA is the leading trade association for businesses interested in interactive and database marketing, with nearly 5,000 member companies from the United States and 53 other nations. Founded in 1917, its members include direct marketers from every business segment as well as the nonprofit and electronic marketing sectors. Included are catalogers, Internet retailers and service providers, financial services providers, book and magazine publishers, book and music clubs, retail stores, industrial manufacturers and a host of other vertical segments, including the service industries that support them. According to a DMA-commissioned study, direct and interactive marketing sales in the United States exceeded $1.86 trillion in 2001, including $118 billion in catalog sales and $30 billion in sales generated by the Internet. The DMA's Web site iswww.the-dma.org, and its consumer Web site is www.shopthenet.org.
Media Contact: Christina Duffney