Growth Of The Direct Marketing Industry Online

Projected to Exceed the Rest of the Web in 2001

(EMAILWIRE.COM, January 16, 2001 ) Peterborough, NH - ActivMedia Research (www.ActivMediaResearch.com) - Research data collected in the second annual "The Direct Marketing Industry Online: Perspectives on 2001" shows that E-commerce revenues among direct marketers with offline brick-and-mortar operations are anticipated to grow by 136% while the rest of the Web is expanding at 115%. Conducted by Millard Group and ActivMedia Research and sponsored by The Direct Marketing Association, this year's study builds upon last year's findings and shows the trends that are emerging. It also profiles the most, and least, profitable firms online, and provides documentation of the strategies that make online/offline direct marketers successful.Research analysts believe that because direct marketers carefully planned their Web expansion strategies, they are more likely than dot.coms to be successful. Currently, one-third (36%) of all direct marketers online are profitable, and this proportion is expected to rise significantly over the coming two years. "The Direct Marketing Industry Online: Perspectives on 2001" is the most recent primary research report that asks members of the direct marketing industry how the Internet is affecting their businesses, and where it will take those businesses in the future. The study was created to provide direct marketers with factual data about the impact of online marketing on the traditional direct marketing industry. It contains data and analysis on topics such as revenues, profits and estimated growth, web transactions, e-commerce, Web site characteristics, Web site security and fraud, advertising and promotion, and firmographics. New in this year's report are backend operations and fulfillment issues. "The Direct Marketing Industry Online: Perspectives on 2001" demonstrates how the Internet is extending the sales base for direct marketers in terms of reaching new customers" stated Ben Perez, President of Millard Group. "Rather than cannibalizing sales from offline channels, direct-to-consumer direct marketers who sell online are finding that the majority of their site visitors and buyers are brand new customers, not just offline customers buying through a new channel. Furthermore, most direct marketers are expanding their sales reach geographically when they enter the e-commerce marketplace, both domestically and abroad" continued Perez. Strategies for attaining profitability are described in detail in the study. For example, the survey results identify the relationship between consumer loyalty and profitability. "Sites that attract the most traffic are not necessarily the most profitable" emphasized Perez. "As is often the case in the offline arena, problem resolution is key to building online loyalty. Sites that have occasion for customers to interact with customer service personnel have lower incidence of fraud and other sales losses. Good customer care creates a happier, more loyal online customer". H.R. Wientzen, President and CEO of the Direct Marketing Association, stated that, "The Web "gold rush" appears to be over with direct and interactive marketers now stepping back to refocus on their site development and promotional/marketing practices - focusing more closely on ROI. Going forward, direct marketing companies face several key challenges. Direct/interactive marketers are eager to explore how all aspects of integration between traditional direct channels and the Internet will strengthen their communications with customers, vendors, shareholders and other key constituencies. The findings in this report reinforce the importance of the convergence of the proven direct marketing business models and interactive technologies."MORE INFORMATION:http://www.activmediaresearch.com/direct_marketing_2000.html";The Direct Marketing Industry Online: Perspectives on 2001" data was generated from an online survey sampling of over 500 direct marketing businesses. It is segmented by the type of end-customer; business-to-consumer or business-to-business, and identifies differences in strategy by type. Historical trends in e-commerce among direct marketers as well as future projections are also documented in the report. This study profiles the Web site investment required for direct marketers to build and maintain a successful Web site, as well as the infrastructure required to sustain it. Finally, the most effective promotional and advertising strategies for direct marketers are shown along with the supporting budgets required to implement those strategies. The three-way collaboration between Millard Group, ActivMedia Research and The DMA is intended to provide a penetrating look at emerging directions for the traditional direct marketing industry in a time of revolutionary upheaval. "The Direct Marketing Industry Online: Perspectives on 2001" is available for $1,295 (DMA members receive a $300 discount). All inquiries should be directed to ActivMedia Research Client Services Department at Research@ActivMediaResearch.com, or 1-800-639-9481, ext. 125. The study is also available through The DMA Bookstore at www.the-dma.org/library/publications.ActivMedia, an Internet marketing research company, has been tracking E-commerce since 1994. The firm produces several annual studies of global Internet commerce. Results from previous ActivMedia reports have been cited in Business Week, USA Today, ZDNet, the New York Times, the Wall Street Journal and many other major publications.Millard Group, Inc., is one of the nation's leading service providers in the direct response industry with over 24 years experience in list brokerage, list management, alternative media, marketing services including customized and industry research, and Internet services.The Direct Marketing Association is the leading and largest trade association for businesses interested in interactive and database marketing, with nearly 5000 member companies worldwide. Founded in 1917, its members include direct marketers from every business segment as well as the nonprofit, catalog and electronic marketing sectors. The Association for Interactive Media, AIM, is a subsidiary - reflecting the new direction of DMA's membership and interests.ORDERS / QUESTIONS Client Services research@activmediaresearch.com 800-639-9481 or 603-924-9100, ext 125.PRESS CONTACT Chris Anne Wheeler VP of Information Services Tel: 800-639-9481, 603-924-9100 Ext. 127ActivMedia Research, LLC http://www.ActivMediaResearch.com 46 Concord Street Peterborough, NH 03458 Fax: (603) 924-7258