Excerpt from: The INSIGHT Blog
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| March 17, 2008 | | Based on a recent study it is expected that direct marketers in the U.S. will decrease their media budgets and at the same time increasing spending on online marketing tactics. | Ryan Moss
Research Analyst
Target Marketing recently released its' "Media Usage Forecast" Report in which nearly 25% of direct marketers from the U.S. who were surveyed said they are planning to cut their media budgets in 2008. Additionally, direct marketers said they would spend more money on customer acquisition compared to customer retention in the upcoming year. This is contrary to 2007 where there was essentially an equal amount of money spent on both areas.
Despite the expected decrease in media budgets, most respondents said they expected to increase the amount of money they spend on online marketing tactics. This trend is consistent with previous studies, which showed that marketers are more likely to reduce spending on other media before cutting online marketing spending. Marketers said they were going to focus on specific online marketing tactics such as E-mail (87%), SEO (72%), SEM (68%), Direct Mail (63%) and advertising on outside websites (62%).
Some other findings from the study include:
- E-mail Marketing being named the best tool for customer retention
- E-mail Marketing being selected as the second best tool in ROI for customer acquisition (Direct Mail was first)
Refer to the chart below to see which marketing tactics offer the stronger ROI for customer acquisition and customer retention.
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