Survey Shows Online Spending Boom
(Direct) Those who follow e-mail spending patterns may be in for a surprise. Four years after the dot-com bust, direct marketers are creating a mini-boom, according to Direct magazine’s 2005 online marketing survey. Almost 60% plan to raise their online spending in 2006, and this year they shifted money out of traditional channels to do it.
On average, our respondents allocated 41% of their marketing budgets to online channels this year. That's up from 25% in 2004.
And they moved dollars out of traditional channels to do it. They've budgeted 59% for the old DM channels, compared with 75% last year.
Where are these dollars going? For search, analytics, Web site customization and staff. However, there's little or no growth in outside e-mail list rentals, largely because of the spam issue. But e-mail is still being used for multiple purposes.
These efforts are paying off. Online sales now account for 25% of the respondents' total revenue, up from 20% a year ago. And online orders have been as profitable, or more so, than offline ones.
Companies also are investing in personnel. Nearly 25% added to their online marketing staffs during the first half of 2005, a jump from 14% last year. But growth lags in at least one area. DMers have become wary of using their Web sites to generate e-mail or telemarketing leads. They've also pulled back on renting outside e-mail lists — at least according to one set of responses.
These results are based on responses from 130 qualified participants.
