Direct marketing is dead! Long live direct marketing!

Citation

Miskin, M. (2008), "Direct marketing is dead! Long live direct marketing!", Direct Marketing: An International Journal, Vol. 2 No. 4. https://doi.org/10.1108/dmij.2008.32502dac.001

Direct marketing is dead! Long live direct marketing!

Article Type: Seminar report From: Direct Marketing: An International Journal, Volume 2, Issue 4

Experian, Nottingham, UK – 17 September 2008

On 17 September 2008 the Direct Marketing Association North (DMA North) held a lively evening seminar at Experian, Nottingham, debating the future of direct marketing, on the theme: “Direct marketing is dead! Long live direct marketing!” The opening remarks were made by Tony Kane, Managing Director of Touchpoint Communications and Chair, DMA North, before he handed the floor to Brian Child of Brian Child Marketing, who argued that direct marketing is indeed dead.

Brian must be commended for taking on the role of devil’s advocate in a room packed full of direct marketing practitioners, none of whom were keen to hear the bells tolling for their businesses. His argument was premised on the assumption that digital media cannot be classified as a new direct marketing channel. He therefore adopted the standpoint that traditional direct marketing, in its former days of direct mailings of catalogues, special offer prize draws and the like is dead. He did discuss digital marketing channels, but only to point out their ineffectiveness, quoting Michael Dell in saying, “The internet should have been direct marketing on steroids, but it isn’t”. He stated that today’s trends in e-marketing have led to a lack of responsibility, and suggested that spam mail has killed the effectiveness of this particular direct marketing channel. Brian argued that the world has changed, and that it is “mayhem out there”. He went on to say that the costs of direct mail outs have risen so much as to make them barely profitable. Environmental factors too must today be considered, along with the consumer perception that paper marketing methods generate irresponsible waste.

Brian harked back to the old days of glory and the skills that were once held by truly great copy writers. He argued that this craft has been lost – direct marketing is now a numbers game as opposed to a creative practice. He concluded that a different skill set is needed for e-commerce, and that the direct marketing industry as we know it is dying.

Next to address the room was Deborah Womack, Principal Business Consultant, Experian. Deborah is an expert at improving the effectiveness of her clients’ email marketing and data-driven digital marketing activities. She argued that direct marketing is still an integral part of the marketing mix and that with technological innovations these are exciting times for direct marketing. She tempered this argument with the premise that direct marketers are today engaged in a battle for resources with the sexier side of marketing – the commercial makers.

Deborah suggested that the results of direct marketing are proof of their cost effectiveness. Compared to the huge costs entailed in mass advertising, mass mailing can be proven to be more cost effective in delivering marketing messages. She proposed that there is no point to mass communication – that we need to understand exactly who it is we are talking to, and this is where direct marketing can excel.

In discussing the new technologies, she denigrated RSS as being ineffective, due to a lack of direct targeting. In response to Brian’s argument that e-marketing is not direct marketing, and that skills are being lost, Deborah was keen to point out that skills are transferable. Whilst she is now a digital marketer she has transferred the skills she learnt within the creative industries of her formative career to be of true benefit to herself as a digital marketer.

Last to speak was Rosemary Smith, Chair of DMA and director of RSA Direct and Opt 4. Rosemary argued that digital marketing is direct marketing. Those working in digital marketing do need the copy skills perfected from the old days of direct mailings. She countered Brian’s arguments on consumer apathy and environmental degradation saying that the consumer can be won over. To counter decreasing email open rates, better channel response analysis is needed. With regard to environmental concerns, Rosemary pointed out that the DMA is part of the Green agenda, and that in fact the waste produced by direct marketing is minimal in comparison to other industries. Any government restriction placed on the industry will be limited, due to the sheer size of the industry and the employment it creates. However, she argued that the industry does need to change. Rosemary believed that moves towards an “Opt-in” world are possible, and that permission is something of which all direct marketers need to be aware. The industry needs to stop using old data – in other words, to stop sending things to people who are no longer there – and it should no longer take the use of personal information for granted. Indeed, the opt-out option on the edited Electoral Roll has seen a 40 per cent increase in use. Direct marketing also needs to stop using unnecessary packaging, and consider the environmental implications of their activities more closely. Rosemary summarised by saying that the industry needs to self regulate to ensure continued effectiveness.

Tony Kane summarised the debate stating that the industry must to embrace change, in recognition of consumer privacy, environment threats, new and emerging communication channels and the dynamic legislative landscape, in consideration of the £125billion direct marketing annual sales, the £16.4 billion annual expenditure and the 886,000 people employed in the direct industry. He invited a question and answer session from the floor. The general consensus from speaking with delegates appeared to be that whilst direct marketing is certainly not dead, it is faced with threats, and that innovation and diversification are needed now more than ever to survive in the current business climate.

Mary MiskinEmerald Group Publishing