Business Was Good, Will Be Better: DMA Survey

For the 14th consecutive quarter, the Direct Marketing Association’s quarterly review of DM business performance and prospects found that things were good in the last three months and should get better.

The DMA’s quarterly survey of direct marketers, DM agencies and suppliers determined that Q4 2006 earned an indexed ranking of 67 for year-over-year revenue growth. An index score of 50 indicates no change from previous quarters; scores over 50 represent growth.

Last year, industry respondents polled by the DMA gave fourth-quarter 2005 a 61 index.

Those polled were equally hopeful for projected revenue in the first three months of 2007, giving the quarter a 67 index.

DM agencies came in with the most optimistic expectation for the current quarter, providing a projected revenue index of 70. Direct marketers anticipate a 66 quarter — the eighth consecutive quarter their indexed evaluation has been in the 60s. DM suppliers also give first-quarter 2007 a 66, four points off their expectations for the quarter just ended.

“Marketers ended 2006 with a solid performance, with both revenue against same quarter last year and profitability showing improvement over Q3,” said Anne B. Frankel, the DMA’s senior research manager for research and market intelligence. “Revenue projections remain strong for Q1 2007, pointing to continued optimism.”

The DMA has been fielding its quarterly business survey for four years. This most recent survey was taken between January 8 and January 23 2007 and received 588 responses.