DMA Releases Latest Edition of Multichannel Marketing in the Catalog Industry Report

New York, NY, December 11, 2006 - The Direct Marketing Association (DMA) today released its new Multichannel Marketing in the Catalog Industry report, a comprehensive roadmap for best practices and trends in channel integration within the catalog, retail, and e-commerce infrastructures. The report, produced in partnership with DMA member Abacus, features expert commentary by Mark Swedlund, senior vice president, Haggin Marketing, and creates benchmarks that can be used by direct marketers to leverage multichannel marketing opportunities and increase profitability.

“In recent years, multichannel marketing has fueled the evolution of the direct marketing process,” said Anna Chernis, senior research manager, DMA. “The emphasis of the report has incrementally adapted to the multichannel nature of the direct marketing community, in light of the omnipresence of the Internet in virtually all direct marketing efforts.”

It has been fourteen years since the first edition of DMA’s Multichannel Marketing in the Catalog Industry report, which, in its first printing, was known as The State of the Catalog Industry. It then evolved into The State of the Catalog/Interactive Industry. While there have been numerous changes in technology, much of the documented material remains constant.

As direct marketing has evolved and embraced the emerging technologies, so has DMA’s Multichannel Marketing in the Catalog Industry report. But the core approach of uniquely addressing customers as a vital business asset, and the measurement of results, have not changed since the days of catalog marketing when Sears and Montgomery Ward were leaders in the remote shopping world.

The report is intended to help marketers better understand multichannel marketing dynamics, providing benchmarks in multichannel ad strategy/results, operations and fulfillment, financial planning, catalog circulation, merchandizing, inventory management, and shipping and handling.

14th Edition Features Trend Data

New to this year’s edition is trend data from Abacus Alliance that reviews purchase trends throughout the years, including the impact of the Internet, and also suggests marketing strategies to maximize the current conditions.

Additionally, this year's edition compares the buying behavior of consumers who made purchases either as a result of receiving a catalog, doing an online search, or as a result of both.

Top Line Findings

· Internet sales, as a percentage of total direct sales, were 39 percent in 2005. In 2006 it will reach 44 percent.

· Respondents were asked what percentage of Web sales were considered to be new customers who had previously used other channels. Results show that 40 percent of sales were incremental - sales that would not otherwise have occurred; 28 percent shifted from phone or mail.

· Seventy eight (78) percent of respondents believe that a better ROI is yielded when a multichannel approach is incorporated into their direct marketing campaigns.

· Supporting evidence of channel convergence, DMA reports that over 80 percent of respondents have consistent pricing, inventory practices, shipping, and fulfillment standards between
channels.

· Catalogers continue to mail more efficiently, sending out mailings at an average rate of once-per-month.

The full report is priced at $245 for DMA members ($445 for non-members). It can now be ordered through DMA’s Book Distribution Center by calling 1.800.344.8328 (US) or +1.610.461.3548 (internationally) and online at www.the-dma.org/bookstore.

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About 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 industry 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 more than 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 2005, companies spent an estimated $161 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures generated an estimated $1.85 trillion in increased sales in 2005, or 7 percent of the $26 trillion in total sales in the US economy (which includes intermediate sales). All together, direct marketing accounted for 10.3 percent of total US GDP in 2005.

The Power of Direct: Relevance. Responsibility. Results.

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