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Direct Response Marketing

Field Reports

1 Nov, 2007 By: Thomas Haire, Courtney Beth Pugatch Response


REPORT

 

Direct Marketing Tops 50% of Total Advertising Expenditures

 

By Thomas Haire (thaire@questex.com)

CHICAGO — Despite a slowing U.S. economy, growth has been predicted in direct response sales, expenditures and return on investment (ROI). The Direct Marketing Association's (DMA) annual forecast, "The Power of Direct Marketing," reports that direct marketing expenditures account for better than 50 percent of total advertising expenditures.


"For the first time ever, direct marketing represents more than 50 percent of total advertising expenditures in the U.S., growing faster than total advertising spending and the U.S. economy as a whole," said Dr. Peter Johnson, DMA's research strategy and platforms vice president, and lead author of the report. "Marketers are moving dollars into direct marketing because of its higher ROI relative to other forms of advertising. This makes 'direct' a more reliable engine for sustaining sales, incomes and jobs at a time when the mortgage and energy markets are heightening economic uncertainty."

Direct marketing advertising expenditures will see moderate growth in 2007 and are anticipated to see strong growth in 2008. DR advertising expenditures saw an increase of 4.4 percent to $173.2 billion, outdistancing the $166 billion spent in 2006.

Sales for direct marketing in 2007 are predicted to grow 5.2 percent, just slightly lower than the numbers reported for 2006. Growth for 2008 is projected to surpass $2.15 trillion, or 6.6 percent.

 

NBC Universal Acquires the Oxygen Channel

 

By Courtney Beth Pugatch (cpugatch@questex.com)

NEW YORK — NBC Universal announced Oct. 9 that it has acquired Oxygen Media, a cable television network that focuses on female viewers. NBC is paying $925 million for the channel, which is seen as a bargain, as analysts projected the channel's value at nearly $1.5 billion.

The acquisition of Oxygen follows NBC's trend of building a female audience. It purchased the iVillage group of female-oriented Web sites last year for around $600 million.


Jeff Zucker, president and chief executive of NBC Universal, said in a statement that the acquisition of Oxygen would increase NBC's foothold in the advertiser-coveted young, upscale female demographic. Oxygen was founded in 2000 by current CEO Geraldine Laybourne and broadcasts syndicated movies and sitcoms, such as "Roseanne," geared towards women.

Oxygen is now available in 74 million homes in the United States, and NBC has plans to make Oxygen more widely known. Zucker said that NBC would cross-promote the network on iVillage and other NBC Universal properties, such as Bravo, SciFi, MSNBC and the USA Network.

"We've learned that the ability to cross-promote and to use each of those properties together will make us very strong. We will look to create a vertical women's network so that when we go to market, we're selling young women and affluent women in a way that virtually no one else can," said Zucker.

Laybourne will remain as CEO of Oxygen until the end of the year, but has no disclosed her plans after that.

 

Google to Put YouTube Videos on Ad Network

 

By Courtney Beth Pugatch (cpugatch@questex.com)

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