Direct Marketing beats Advertising in ROI

RosenVelocityScaleSmall

First a little background. Advertising is used to build brand image, awareness and loyalty. Direct marketing is used to generate an immediate response or order. This is done through a strong call to action. Purchasing action is generally deferred with advertising. Direct marketing is a way of doing business.

The return on investment for every $1 spent on advertising will yield $5.24 in sales revenue – spend on all direct marketing channels, a whopping – $12.03 in sales.*

Are business noticing, you bet. In 2012 , expected total media spend on advertising will be $150 billion, on direct marketing nearly $170 billion in total dollars spend.

…The return on investment for every $1 spent on advertising will yield $5.24 in sales revenue

In practical terms, most marketing efforts are not 100% advertising nor 100% direct marketing, but a blend of both. If you want to see a great example, explore Richard Rosen’s Convergence Marketing book or take a look at the RosenVelocity Scale which shows 10 sample ads of a TaylorMade Driver. #1 Total Brand – #10 Total Direct.

Here’s the link: www.rgrosen.com/velocity.html

* According to 2011-2012 DMA Power of Direct Marketing Report.

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