WHAT WE DO  PORTFOLIO  ABOUT US  MARKETING NEWS   Press Releases   Articles   BLOG  CONTACT US Study Says Marketers Shifting Toward Internet, Direct Mail By Erin White Staff Reporter of THE WALL STREET JOURNAL LONDON�Marketers plan a long-term shift away from traditional media advertising and toward other so-called marketing services, particularly Internet marketing and direct mail, suggests a new study of more than 700 companies released Wednesday. Not all marketing-services areas will benefit equally. The percentage of overall marketing spending that marketers dedicate to sales promotion should decline, and that devoted to public relations will remain the same, suggests the study, produced by the University of London's London Business School and French ad firm Havas SA. By contrast, direct mail and interactive marketing, which includes e-mail marketing and Web sites, look more promising. "They're more measurable and seen as good value for money as people get better at targeting," said Patrick Barwise, a London Business School management and marketing professor, one of the study's authors. The study is notable for its emphasis on total marketing spending rather than only ad expenditures. The survey looks at spending in the world's five biggest ad markets -- the U.S., Japan, Germany, the United Kingdom and France -- and is based on interviews with more than 700 companies during the summer and fall. The report also provides a detailed look at spending plans by advertiser category group, from automobiles to telecommunications. The study says media advertising, which includes television, radio, press, posters and cinema, will account for 44.4% of marketing spending in the five countries by 2003, down from 45.4% in 2001. Direct mail will grow to 13.3% in 2003 from 12.8% in 2001. Interactive marketing, which includes such tactics as e-mail marketing, Web-site design, Internet advertising and cellphone ads, will command a 7% share in 2003, up from 6.1% in 2001, the study predicts. The role of sales promotion is set to decline to 19.4% of the mix in 2003 from 19.8% in 2001. Public relations and sponsorship activities will remain steady with about a 12.8% share, according to the study. "The shifts indicate a significant change in the way expenditure is being used," said Alan Styler, strategy and marketing director at Havas direct-marketing agency EHS Brann. "It's important to see them as pointers to the mindset of the people we've researched." The predicted strong growth in interactive marketing is somewhat surprising, because Internet advertising has been widely criticized for being ineffective and annoying. But the study's authors explain that marketers now are using the Web for more than Internet ads, and they like what they see. E-mail marketing and Web sites, for instance, have proved to be useful tactics not only to drive sales but also to gather information about customers, said Mr. Styler. "It's a very productive channel in terms of learning." article list: Confusing Spin With Strategy - Patrick Di Chiro Coffee's For Closers - Patrick Di Chiro An Open Letter To Al Ries, Ad Age Columnist Here's Where to Find Integrated Marketing - AdAge Getting a Bead on 'Buzz' - Virginia Postrel Survey: Network TV Does Worst Job of Proving Advertising ROI - Judann Pollack Toughening Your Brand - Lynn Upshaw Playing the Search-Engine Game -Mylene Mangalindan, WSJ At Last, a Way to Measure Ads, - Michael Totty, WSJ Small Firms Can Survive Sqeeze By Revamping Marketing Efforts - Jeff Bailey, WSJ Study Says Marketers Shifting Toward Internet, Direct Mail - Erin White, WSJ PORTFOLIO   |   HOME   |   CONTACT   |   PRIVACY