DMA Releases 'Direct Marketing Facts and Figures in the Automotive Industry'

ROI of $33.81 Realized by Auto Retailers Who Used

Direct Marketing Techniques in 2007

New York, NY, January 28, 2008 — Auto retailers who spent $7.3 billion on direct marketing campaigns in 2007 saw it drive $248.1 billion in sales. The return on investment of $33.81 is just one astounding statistic among many that may make auto industry direct marketers gear up and review the Direct Marketing Association’s (DMA) first-ever “Direct Marketing Facts and Figures in the Automotive Industry.”

This new 122-page report provides a comprehensive overview of the automotive industry from three perspectives:

· Economic data from DMA’s “The Power of Direct Marketing: 2007-2008 Edition” regarding two automotive industry segments: manufactures and dealers/service stations.

· An overview of auto-oriented direct mail pieces based on data provided by Mintel Comperemedia.

· A campaign case study from DMA’s 2007 International ECHO Awards.

The report also provides nearly 100 charts to help readers benchmark their own direct marketing progress.

“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.”

Other key findings from the DMA report include:

· Auto manufacturers spent $8 billion on direct marketing advertising in 2007, realizing $77.8 billion in sales. That translated into a $9.68 ROI per dollar spent.

· By 2012, auto manufacturers are expected to invest $9.8 billion on direct marketing, yielding $108.1 billion in sales, with an ROI of $11.

· Automotive retailers, whose direct marketing efforts drive the highest ROI of the 52 US industries tracked by DMA, invested $7.3 billion in direct marketing advertising in 2007. As a result, this sector of the industry saw $248.1 billion in sales and an ROI of $33.81.

· Vehicle retailers will see a slight decrease in ROI, to $33.67 by 2012. That will result from spending $8.8 billion on direct marketing advertising and earning $297.8 in sales.

· Direct-order campaigns produced at least 40 percent of direct marketing sales in 2007.

· In Q3 2007, Toyota was the No. 1 vehicle brand mailer of service promotions.

· Of the domestic brands, Ford, Chrysler, and Dodge sent out the most direct mail sales campaigns during Q3 2007.

· Of the foreign auto brands, Toyota, Mercedes-Benz, and Honda sent out the most direct mail sales campaigns during Q3 2007.

· Most direct mail sales pieces sent in Q3 2007 were aimed at acquiring new customers.

· About 75 percent of the auto industry’s direct marketing investment and sales center around consumers. B-to-B sales make up the remainder.

“Direct Marketing Facts and Figures in the Automotive Industry” costs $135 for DMA members and $240 for non-members and is now available for download at DMA’s Bookstore. To purchase and download the new report, click here.

About Direct Marketing Association (DMA)

The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents nearly 3,600 companies from dozens of vertical industries in the US and 50 other nations, including a majority of the Fortune 100 companies, as well as nonprofit organizations.

In 2007, marketers — commercial and nonprofit — spent $173.2 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures generated approximately $2.025 trillion in incremental sales. In 2007, direct marketing accounted for 10.2 percent of total US gross domestic product. Also in 2007, there were 1.6 million direct marketing employees in the US. Their collective sales efforts directly supported nearly 9.0 million other jobs, accounting for a total of 10.6 million US jobs.

The Power of Direct: Relevance. Responsibility. Results.

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