DMA Report: DM Growth Continues But Slower

Despite recession fears the fourth quarter of 2007 marked the 18th consecutive quarter of direct marketing growth, according to the Direct Marketing Association's Quarterly Business Review.

Data compiled from surveys of DMA-member marketers, agencies and suppliers indicated more modest fourth quarter growth and less rosy future forecasts, compared to past quarters.

The 30-page report found that revenues generated by agencies were higher than revenues generated by either marketers or suppliers.

Marketers overall experienced a slight decline in profitability, but still marketers typically were more profitable that agencies or suppliers.

Direct marketers cited the economy as the factor most likely to affect revenues in the first quarter of 2008, followed by clients' budgets.

Forty-seven percent of direct marketers surveyed say a recession is somewhat likely during 2008 and 19% say a recession is very likely this year.

Budget adjustments are anticipated in event of a recession, although 47% of those surveyed expect marketing budgets will be the same, while resources are reallocated.

A shift between postal and e-mail marketing is evident. Some 42% have plans reduce spending on postage, while 50% plan to increase spending on e-mail marketing.