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DMA Review Finds 12th Quarter of Growth

The Direct Marketing Association’s Quarterly Business Review covering the second quarter of 2006 reported the 12th consecutive quarter of positive economic growth.

Findings indicate strength and growth in revenue versus the same quarter last year with a direct marketing business-wide index of 66. In the QBR index, a score of 50 or above represents growth. Scores below 50 represent a decline.

The review is based on online surveys of DMA marketer, agency and supplier member companies. The second-quarter survey was done July 10-25 and drew 250 responses.

Q2 findings show revenue versus original projection somewhat disappointing at 47, yet a slight improvement over Q1.

The QBR also reported that projected revenue for the current quarter remains strong with an overall index of 67.

All three segments — marketers, suppliers and agencies — expressed optimism for Q3, continuing a yearlong trend of anticipated growth in the coming quarter. Agencies are more likely than marketers and suppliers to forecast greater growth in Q3.

Other findings:

· Q2 was robust for marketers, with revenue and profitability reflecting a resurgence from Q1 results. Revenue versus same quarter last year rose to 66 from 57, while profitability climbed to 72 from 66.

· Agencies posted the best revenue and profitability numbers of the three measured segments. Revenue versus SQLY showed growth with an index of 69, up from Q1 2006. Profitability, at 70, was the strongest of the three metrics and showed a small gain of 2 points from Q1.

· Suppliers’ growth rebounded in Q2, and revenue versus SQLY grew to 64, up from 58 in Q1.

· Business-to-business marketers’ revenue vs. SQLY and profitability indices gained strength in the second quarter. Revenue vs. SQLY soared to 70, up 9 points over Q1 2006.

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