In the News:
Companies Are Spending More of Their Advertising Dollars on Direct Marketing

There has always been a chasm – and, yes, some resentment – between traditional advertising and direct marketing. Traditional advertising has a glamorous, "Madison Avenue" image. Direct marketing? Well, it's more like the ugly stepchild of the ad world.

But maybe the tide is starting to turn …

This year – for the first time in 49 years – the prominent Cannes Lions Festival presented an award for the best in direct marketing. Up until now, only the big guns in traditional advertising had received these prestigious awards. In fact, direct marketers weren't even allowed inside the velvet ropes of the festival.

Why the sudden shift?

Money.

In 2001, direct marketing ad expenditures grew in a tough economy, while traditional ad spending shrank. Sales generated from direct marketing rose 9% to a whopping $1.86 trillion in 2001! With numbers like these, the festival simply couldn't turn its back on direct marketing any longer.

What does all of this mean for you? A HUGE market base! A lot of companies are becoming more aware of the benefits of direct marketing – and are spending more of their ad budgets accordingly. According to Roger Hatchuel, chairman of Cannes Lions, marketers now spend roughly 50% of their ad dollars on direct marketing.

Reference: USA Today – June 17, 2002

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Published: September 3, 2002

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