DMA Report Finds 10th Quarter of Growth

Share this article:
The DM industry posted its 10th consecutive quarter of positive results for marketers, suppliers and agencies, according to the Direct Marketing Association's Quarterly Business Review, covering the final quarter of 2005, released yesterday.


The review is a benchmark of the industry's financial performance. It identifies trends affecting future performance, including changes in sales revenue, customer response rates, marketing expenditures and staffing levels. Results are based on 304 responses the DMA received to an online survey of member companies in January.


The QBR revenue index was 68, which nearly matches the index figure of 69 in the fourth quarter of 2004, the highest index number in any quarter since the review's inception in 2002. The Q4 index exceeded the DMA's projected revenue figure for the quarter, which was 64.


The index, which is a score out of 100, compares revenue with the year-ago quarter. A score of 50 means no change while above 50 indicates growth and below 50 signals a decline.


The DMA segments the industry into users, agencies and suppliers in the report. The overall projected revenue index for Q1 2006 is 64.


Overall, direct marketers reported a weighted average sales increase of 12.4 percent in Q4 2005. In the business-to-business segment, weighted average sales rose 16.9 percent versus 2.4 percent in the previous quarter. Catalogers saw their revenue index dip to 55 from 59 in Q4 2004, and the projection for Q1 2006 revenue is 57.


The DMA also broke out the financial services and nonprofit sectors for the first time for Q4 2005. Financial services marketers showed an index of 81, and nonprofit fundraisers showed an index of 68.


Kristen Bremner covers list news, insert media, privacy and fundraising for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters
Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

Hawk Search Widens its Global Reach

Hawk Search Widens its Global Reach

Hawk Search's solution offers support for more than twice as many languages as other site search providers, according to the company.

Candidates Offer Change In The Form of Targeting

Candidates Offer Change In The Form of Targeting

A campaign for Ben Carson raised $2.8 million despite his lack of cooperation.

Target Names Retail Veteran Brian Cornell as CEO

Target Names Retail Veteran Brian Cornell as CEO

He leaves the top job at PepsiCo Foods to take the spot vacated by Greg Steinhafel in the aftermath of the data breach.

Copyright © 2014 Haymarket Media, Inc. All Rights Reserved
This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization.
Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions.