Is Direct Marketing Relevant Anymore?

DM News, the venerable tabloid that I remember reading while cutting my direct marketing teeth back at Oracle in the late 1980s, is switching from a weekly to bi-weekly publication schedule.

This prompted a discussion on LinkedIn wondering if the change augured tougher times ahead for direct marketers. On the contrary: after almost 20 years in the profession, my experience is that direct marketing very often picks up during economic downturns for the simple reason that marketing budgets shift to measurable, ROI-based activities.

No, what I think the change at DM News signals is less about the health of direct marketing as a whole, and more about a) the decline of print media, and b) whether the term “direct marketing” is even relevant anymore. The answer to the second question, I fear, is increasingly: no.

Our agency has in large part mirrored the evolution of the direct marketing business. 15 years ago we were a direct mail agency. 10 years ago, as B2B marketing shifted online, a large percentage of our business was in developing email campaigns to rented lists. Today, we run integrated campaigns that involve a myriad of different vehicles – some offline and some online – but the amount of actual list work is minimal. In that sense, B2B direct marketing in the classic sense – renting a targeted list of contacts and blasting your message to that list – has long seen its heyday.

I don’t even refer to CDI as a “direct marketing agency” any more, because I find that, especially in high-technology, “direct marketing” sounds dated (and I’ve had clients say as much.) I use “demand generation agency” more often, one: because it reflects current terminology, but also because it defines us by the results we generate for our clients rather than the tools we use on their behalf.

15 years ago, much of B2B direct marketing/demand generation was still push-based. You found your audience and pushed your message to them through vehicles like email and direct mail. Today, demand generation is largely pull-based, or more specifically, search-based. Especially in a down economy, it makes little sense to be blasting your message to a cold list when so few individuals are buying anyway. A much smarter strategy, as we are preaching to our clients incessantly of late, is to build a strong online presence – through search, content syndication, social media, and the like – so that whenever any one individual decides to look at solving the problem your company or product solves, you have a better chance of engaging with him or her. The email campaigns we develop today – lots of them – are almost entirely built within the context of lead nurturing programs designed to “stay in front of” prospects our clients have generated through pull-based media.

I wish DM News well, and I hope they’re around in another 20 years. If they are, my guess is that they will have long since dropped the “DM” from their masthead.

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3 Comments

  1. Rod DeVar
    Posted April 21, 2009 at 7:22 pm | Permalink

    Hi Howard, you make an interesting observation in your blog post. An integrated media mix is the 21st century approach to marketing; however, it is important to keep in mind that Direct Mail, while traditional, is still alive and making a powerful impact by delivering measurable results.

    According to the 2009 Marketing in a Down Economy survey conducted by Advertising Age Custom Publishing, when respondents were asked to select only two media channels this year, respondents chose Direct Mail as one of those channels. In fact, 55 percent say their spending on Direct Mail will stay the same or increase this year.

    Direct Mail offers your customers a personalized and tactile way to engage with your company, in an efficient, targeted manner. And in this economy, customer engagement is paramount. By reaching out to your customers and forming a one-to-one relationship, Direct Mail increases the likelihood of customers making a purchase and builds brand loyalty.

    Direct Mail benefits both the sender and the recipient. Individuals use Direct Mail to look for special offers and deals, and business use Direct Mail to deliver results and demonstrate ROI – both very important things in today’s economy.

    Rod DeVar
    Manager, Direct Mail
    United States Postal Service

  2. Posted April 26, 2009 at 11:55 pm | Permalink

    I like to think of the Internet in terms of real estate… the more real estate you control, the more profitability you can have. Likewise, the more websites, articles, directory listings, comments, links, videos, etc… that you have, the more likely you’ll form profitable relationships with potential customers.

    So I look at everything online in terms of expanding my ‘real estate’ on the Internet.

  3. Posted May 11, 2009 at 10:16 pm | Permalink

    Excellent points for consideration! Loved your insight on push- and pull- based media. Nowadays, pull-based media are indeed becoming more prevalent. I’d agree also with Rod, direct mail marketing allows for a more specific and targeted manner of reaching customers. Thanks!

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