Direct response channels see biggest budget boost

Direct marketing spend bounced back in the second quarter, one of only three media channels to see an increase in spend, as companies turned to direct response channels for instant results, according to the latest Bellwether report.

DirectMarketing

DM budgets increased 2.5% in the three months to 30 June. Spend fell 1.8% in the first quarter (see chart below).

Mel Cruickshank, chairman of the IPA’s direct marketing group, says the reverse shows companies are “turning to direct marketing to provide return on investment against marketing spend”.

Spend on search increased by 4.6% in the quarter, while online ad spend rose 1.9%. Increases were 4.3% and 9.3% in the first quarter respectively.

Chris Whitelaw, chairman of the IPA’s search group, says that in the current economic climate, companies look to “immediate and efficient customer acquisition channels” to shore up profit.

“The strength of search marketing conversions rates continues to support marketers’ confidence in the channel despite the ambiguous macro-economic signals,” he adds.

Spend on sales promotion suffered the steepest decline, down 7%. Spend had dipped 6.8% in the first quarter.

Overall, marketing budgets were revised down 2.2% in the second quarter.

Latest from Marketing Week

Tesco, M&S, Just Eat: 5 things that mattered this week and why

m&s

M&S chief outlines digital-first strategy after profits plummet Marks & Spencer (M&S) is gearing up for a digital-first future, after its revealed on Wednesday (23 May) that profits had dropped a massive 62.1% to £66.8m compared to the previous year. A day earlier, the struggling retailer confirmed it will close more than 100 stores over […]

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here