Opinions

Direct Marketing in the Year Ahead

Posted by Michael Benedek on January 15th, 2013 at 1:03 pm

With the close of 2012, the online ad industry is percolating with industry predictions for the New Year. There are several trends that we can expect will continue in 2013 as well as new ones that will arise. According to my crystal ball, I believe we will see:

• The inevitable continuation (and acceleration) of marketing data/analytics providers migrating from offline to online

• The inevitable continued migration of advertising budgets from search-to-display

• Increased demand for data (as we're still in the 2nd or 3rd inning of a long game)

• Consolidation taking place as highest-quality data providers rise to the top

Migration of budgets from offline to online is something that direct marketers have been experimenting with for some time, and this New Year is no different. Marketers, who have leveraged offline data to reach consumers through direct mail and other traditional offline channels, will continue to follow their target customers as they migrate online and onto mobile devices. Offline data companies that stand still will be left behind as marketers test, scale and leverage high-performing online data, sometimes on a stand-alone basis and sometimes integrated with offline data.

Along with this trend is the continued tendency for consumers to spend a significantly greater proportion of their time browsing rather than searching. To capture these audiences, sophisticated marketers will continue to migrate their budgets from search to display in order to mirror consumer media consumption patterns, reduce customer acquisition costs, and leverage scalable media sources as well as integrated and available third party data.

With consumers spending more time online and on mobile devices, demand for high quality, aggregated third party data will continue to increase as test budgets translate into permanent demand for high-performing data.

Finally, as the need for data grows, the Luma chart will become more consolidated as data-providing companies with high-performing, unique data sets rise to the top of the market.

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