DMB Speaker: BTB Direct Marketing Is Poised for Growth

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ORLANDO, FL -- Jeff Moriarty delivered the message that all is not "doom and gloom" for the DM industry yesterday as he addressed attendees at the DMA's Direct Marketing to Business conference.


The positive trends he presented included business-to-business DM employment projected to grow 3.9 percent annually through 2007 and advertising expenditures for business-to-business DM forecast to increase 6.3 percent over the same period.


Following the good news, the vice president of list management at MeritDirect's Evanston, IL, location shifted the topic to e-mail.


"More than three-quarters of marketers plan to increase their use of e-mail marketing this year as part of an integrated campaign," he said. "What we find is an e-mail followed by a telemarketing effort seems to be ... the most popular and ... seems to draw the highest response. In that chain of how to go to market ... that combination seems to draw the best results."


Then he mentioned increasing the image recognition of outbound e-mails with logos or graphics, which he encouraged.


"If you're spending ... hundreds of thousands if not millions of dollars in branding efforts, make sure that when you're e-mailing you use that to your advantage," he said.


Also discussed was pricing. This included the range of $50 to $100 per 1,000 for compiled lists. Response lists could range from $55 to $200 per 1,000, "for some of your prestigious business publications" at the higher end of the range.


The general rule for the e-mail list base price is that, "you should probably expect to pay three to four times the postal list price," he said. "One of the things ... you should really look out for in pricing is when you see a cost per thousand, make sure that you inquire whether or not the transmission fee in e-mail is included within that base price. A lot of times it will be on a separate line item. So you might think that it's $250 per thousand when you look at the data card or the information. But then you'll find ... it's an extra $100 per thousand for transmission."


John P. Riley, director, sales operations at Harte-Hanks' market intelligence business unit, San Diego, also spoke during the "Optimizing Lists for New Customer Acquisition" session. He presented three reasons for the success or failure of a business-to-business lead generation campaign. He said 60 percent of the success will depend on the targetability and quality of the database used; 30 percent will depend on the offer presented; and 10 percent will depend on the execution of the campaign.


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