I recently ran across an interesting tidbit of information related to the ROI on Direct Marketing vs. non Direct Marketing spends.
"For 2008, every $1 spent on direct marketing advertising resulted in $11.63 in direct marketing driven sales, on average. Conversely, every $1 spent on non-direct marketing advertising resulted in average sales of $5.24.
By 2013, direct marketing ROI is expected to improve to $12.30 per ad dollar spent. Non-direct marketing ROI is expected to remain flat at $5.23 in sales per ad dollar spent."
The moral of the story.........put more money towards direct marketing, not less.
(Source: The Direct Marketing Association (DMA), The Power of Direct Marketing, 2008-2009.)
About the Author
Gary Ritkes oversees all Business Development and Marketing at SproutLoud. He has been a pioneer in the emerging vertical of Distributed Marketing Technology and is an industry leader and innovator with 20+ years experience in graphic communications and marketing strategy. Gary has been involved with SproutLoud since the inception of the company. Prior to joining SproutLoud, Gary was VP of Marketing for Rex Three, Inc., SproutLoud’s first and largest vendor among its network of providers. He has served many Fortune 1000 clients and worldwide advertising agencies in providing marketing technology direction and optimization. He was an original founder of U.S. based Earth Color Group and a co-founder of Advanced Digital Services (ADS) which was sold in 1996 to publicly traded Katz Digital Technologies. He is a current board member of the local Advertising Federation chapter and has served as a member for other national industry associations including the DMA, AGA, and the CMO council.More Content by Gary Ritkes