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.
