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US marketers cautiously optimistic, says DoubleClick survey

New York headquartered DoubleClick, which provides marketing tools for advertisers, direct marketers and web publishers, has released the results of its Marketing Spending Index, the first of a bi-annual survey designed to track trends and acceptance of both offline and online marketing tools.



The study that covered nearly 200 US marketing professionals shows marketers to be cautiously optimistic about the growth of their media budgets for the remainder of 2002. It also reveals that websites have already become a critical sales channel, and a larger proportion of respondents expect web sales to increase over the next 12 months than any other sales channel.



The study that also tracked the usage, spending and perceived effectiveness and revenue impact of various tools in the marketing mix found that while 23 per cent of respondents expect 2002 marketing budgets to decline from 2001 levels, 27 per cent expect them to stay the same and 50 per cent expect them to increase. Email budgets, in particular, are expected to increase, with 61 per cent of respondents expecting their email marketing budgets to grow over the next twelve months.





Relative to other forms of marketing, email (+17 per cent) and online marketing (+9 per cent), along with direct response TV (+18 per cent) and channel marketing (+15 per cent) are expected to see increases in budgets in 2002. Traditional media including TV (-1 per cent) print (-1.4 per cent) and radio (-2.3 per cent) are expected to see a small decrease in relative spending, while telemarketing (-7 per cent), direct mail (-7 per cent) and catalog marketing (-13 per cent) are expected to see the largest relative decline. Online advertising was cited as the third most commonly used form of advertising (54 per cent) behind print (86 per cent) and direct mail (58 per cent), and slightly ahead of TV (53 per cent), radio (47 per cent) and email (44 per cent).



Relative Growth/Decline of Marketing Budgets (per cent)

Direct response TV + 18

Email + 17

Channel marketing + 15

Online marketing + 9

TV - 1 Print - 1.4

Radio - 2.3

Telemarketing - 7

Direct mail - 7

Catalogue marketing - 13



According to the survey, websites account for 12 per cent of respondents' sales, the third largest revenue source behind retail (30 per cent) and a direct sales force (28 per cent). Additional sales channels include resellers (11 per cent), telephone (nine per cent) and catalogs (seven per cent). In addition, three quarters of respondents (74 per cent) expect revenue generated online to further increase during the next 12 months, the study says.



Websites were also described as the second most pervasive sales channel with more than 55 per cent of respondents selling their products or services online. Almost 60 per cent use a direct sales force and 48 per cent use retail stores. Other channels include resellers (37 per cent), telephone (37 per cent) and catalogues (31 per cent).

The survey found that only 56 per cent of companies have tools in place for measuring the effectiveness of online advertising, while 60 per cent have tools for measuring email. 65 per cent of marketers have tools to measure their TV and promotions.

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