DMA: Auto retailers benefit from direct marketing

It isn't print ads and it isn't the internet. According to a recent Direct Marketing Association (DMA) report, auto retailers benefited most from direct marketing efforts in 2007. According to the report, retailers spent $7.3 billion on direct marketing efforts and saw revenue from that spend reach more than $243 billion.

by Kristina Knight

That is a return on investment of more than $33.80 for auto retailers.

“Direct marketing plays a key role in the economic vitality of the automotive industry,” DMA Senior Research Manager Anne Frankel said. “DMA and Global Insight measure 52 industry verticals in their direct marketing econometric model. Compared with all other measured verticals, automotive retailers/service stations have the highest ROI and the largest annual direct marketing-driven sales volume.”

The majority of the direct marketing campaigns are geared toward consumers with more than three-quarters of direct mailings aimed at buyers. During the third quarter Toyota, Ford, Chrysler and Dodge sent the most direct mailings.

The report predicts that by 2012 auto retailers will spend more than $9 billion on direct marketing efforts and will see their revenue from those ad dollars reach $108 billion. That is a slight decrease in ROI to about $33.67.

The best way to convert via direct mailing is to include an offer - a percentage or dollar amount off or some kind of free offer.