Clear direct marketing growth in Germany

Despite the critical overall economic situation, the direct marketing boom does not show signs of stopping. In 2003, German companies invested EUR 30.8 billion in direct customer dialog, 1.8 billion more than 2002. The number of companies active in direct marketing has also risen: last year, 994,000 set up direct customer approach. Addressed mailing retains first place among direct marketing instruments; 2003 company investments in this type of advertising came to EUR 10.7 billion. These are results of the Direct Marketing Germany 2004 (Direktmarketing Deutschland 2004) study, containing direct marketing data, facts and trends, presented by Deutsche Post at DIMA.
Trade is first and foremost responsible for the uptrend in direct marketing, coming in at EUR 4.5 billion over 2002 with total outlay of EUR 11.2 billion. The study attributes this in part to the effort to address customers in an even more targeted and efficient manner in light of persisting weakness in consumption. In contrast to trade, manufacturing reduced its direct marketing expenditures, paying out EUR 4.4 billion last year as compared to 2002?s EUR 6.5 billion. A slight retreat in investments is also registered in this service industry. With EUR 15.2 billion, it nevertheless remains on top and still in advance of trade.
81 percent of all German companies with annual revenue of EUR 250,000 or greater engaged in dialog with their customers in 2003, a figure 2 percent higher than in the previous year. This increase and the rise in total direct marketing expenditures is, however, juxtaposed to a drop in investments by individual companies. These expended an average EUR 31,300 in the past year for direct marketing, or a EUR 3,400 decrease year-on-year.
In reference to company size, the following is seen: again occupying first place are the big corporations, with 2003 expenditures of EUR 14.4 billion. Showing clear gains were small and most of all medium-sized enterprises, the latter with an expenditure increase from EUR 10.1 billion in 2002 to EUR 11.8 billion in 2003.
Addressed advertising material, with EUR 10.7 billion, remains the direct marketing medium with the highest expenditures. Bringing up the rear are telephone marketing, at EUR 4.9 billion, and the Internet at EUR 3.9 billion. Among traditional media with response elements, advertisements/inserts with response elements take the lead. Companies spent EUR 5.7 billion for these media in 2003, corresponding to an increase of EUR 0.7 billion. In looking at the media individually from the context of utility, the Internet takes top position. In 2003, 80 percent of all companies active in direct marketing used the Internet as a direct marketing medium, followed by 30 percent using addressed advertising material, 24 percent for active telephone marketing and 23 percent for passive telephone marketing.
The opinion research institute IPSOS surveyed 3,000 companies with annual revenues in excess of EUR 250,000 for the Direct Marketing Germany 2004 study, drawn up together with Deutsche Post?s Market Research Service Center (MRSC). This year for the first time the study also highlighted couponing. Result: To date, only ten percent of companies active in direct marketing use couponing – great potential is still present here. The most important form of couponing is the discount coupon, with point of sale the most important distribution channel.
The forecast for 2004 is cautiously optimistic: The study concludes that total expenditures of EUR 32 billion will bring the year in at slightly over the 2003 level. Growth is expected in the Internet, addressed advertising material and e-mail marketing.
The Direct Marketing Germany 2004 study can be downloaded free-of-charge at: www.deutschepost.de/dmm.
(link to study in German only)