Optimism in dm market increasing despite tough business environment according to Industry Trends Survey

To view the full survey please visit: http://www.dma.org.uk/shared/statistics.asp

Feedback from the survey in Q3 has produced some interesting results that on the whole are positive. Imbalances between the sectors appear to have stabilised and some media seemed particularly buoyant with more than 50% of those surveyed registering better business conditions. Sectors showing particular optimism included: door to door; email marketing; field marketing; inserts; mailing houses and financial services.

This optimism continued when respondents were asked to report on whether incoming business was up from Q2. Feedback generated from this question produced the best figure since the survey began with 45% of companies claiming that new business was up compared to 26% in Q2. However, it is impossible to ignore that nearly a third (31%) of respondents had taken in less business than three months previously.

Simon Davis, DMA Business-to-Business Committee member commented, “There are many positive aspects to be taken from this survey and the industry should therefore, remain hopeful that the current economic conditions will improve in 2004. However factors such as increasing globalisation, a loss of quality staff within direct marketing and the effects of commoditisation need to be addressed to ensure that the quality and effectiveness of the campaigns produced, and the services offered by the industry remain at the high levels expected.”

When asked whether business was better than twelve months previously, only 33% of companies agreed that it had improved, a 9% drop compared to the results from Q2. The number of respondents claiming that business was better than three months ago also fell by 5% although only 15% of businesses said it was worse compared to 26% in Q2 indicating that improvements may be seen in the fourth quarter results.

Employment levels within the industry appear to have stabilised (36% of businesses stated that staff levels were up and 30% said they were the same), and most sectors now claim to be recruiting. This is a huge improvement from the 55% of respondents that confirmed they had cut staff in Q2 and the 34% of companies stating that staff levels were down in Q3, attributed this to resignations and not redundancies. Virtually the entire industry is enthusiastic about the future of direct marketing with 72% of businesses predicting that business will be better in three months time and only 3% forecasting that it will get worse.

For further information, please contact:

Liz Bastone
DMA PR Officer
Tel: 020 7291 3315
Email: liz@dma.org.uk

Editor’s Notes:

About the Direct Marketing Association (UK) Ltd (DMA)

The DMA UK is the largest trade association in the marketing communications sector, with almost 900 corporate members. The DMA’s mission is to maximise value for members, whilst maintaining and enhancing consumer trust and confidence in the direct marketing industry.

To assist, the DMA administers a portfolio of Preference Services that allow consumers to register their contact details, free of charge, should they choose to reduce the amount of direct marketing approaches they receive via mail, telephone, fax and email.

DMA members benefit from added protection, intelligence and growth, which together we call the Power of Association. Within these three areas, DMA member services include government lobbying, free legal advice, training & development, representation on DMA Councils, networking opportunities, regular updates of current dm issues/legislation, research, use of the DMA logo, promotion of member companies and discounts on a range of dm products/services.

Over £11.85 billion was spent on direct marketing activity in 2002, resulting in over £60 billion worth of sales. This makes direct marketing one of the top ten industries in the UK. For further information please visit http://www.dma.org.uk