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More Thoughts on the 2017 DMA Response Rate Report

Debora Haskel

History is repeating itself as last month’s post on the latest edition of the DMA Response Rate Report is continuing to attract many subscribers and new readers. Clearly, marketers are anxious to find a way to benchmark their multichannel marketing efforts and gain new insight into their return on marketing investment (ROMI).

As I mentioned in Part 1 of this series, email ROI was named “king of the digital mountain,” and direct mail continues to show strength. Repeated reports of the demise of both channels continue to be premature. Since every retailer I visit—online or in person—wants my email address, I can attest to its value in that market alone.

Where Marketers Are (and Aren’t) Putting their Money, According to the DMA Response Rate Report

The DMA reports that marketers and agencies are wasting millions on multichannel marketing execution that doesn’t work, and as cross-platform media consumption evolves, linking spend to performance is becoming even more complicated. As an indicator of how multichannel is changing how marketers need to think about their programs, this year’s report included a question for marketers about the use of certain “leading edge” technologies to provide a snapshot of technology adoption.

The two technologies with the highest adoption rate are programmatic marketing (32%) and mobile payments (31%) while virtual reality (7%) and Beacon technology (4%) are at the bottom of the chart. These statistics are likely due to the fact that marketers are waiting for evidence these technologies are more than passing fads, but survey respondents may also simply lack the resources to test and implement them—that is, VR and Beacon’s use may be limited to retailers who did not represent a significant sample of Response Rate Report respondents.

Use of online display showed a 16-point gain compared to the 2016 study, but marketers also indicated a dramatic decline in response rate and ROI for that channel. In 2016, online display was ranked as the highest digital medium for response. This year, it fell to last place.

If your browsing experience is like mine, you are seeing more evidence of retargeting and remarketing every time you shop for something online. The 2017 Response Rate Report confirms our experience; more than half (55%) of survey respondents are using remarketing, and we expect that will continue.

Where Marketers Should Be Putting their Money

According to this year’s report, keep an eye on paid search. Usage jumped from 37 to 55 percent in a year and posted the second-largest projected increase in future usage. Paid search is proving effective for lead generation; it tied with email sent to house lists as the most used medium for generating leads. The use of third-party, paid search management tools also grew slightly in the past year.

As expected, social media usage gets stronger each year. According to the survey, it’s the most favored medium for brand awareness, especially in B2C campaigns. Because social media seems designed primarily for mobile use, it also has the highest mobile click rate. And to demonstrate that new and old can peacefully co-exist, social media is tied with email for the lowest projected decrease in usage over the next 12 months.

We expect next year’s report will focus on how marketers are implementing identity technology as identity tools and technology continue to evolve. This means the industry will continue to evolve from time-tested, channel-specific metrics like clicks, views, and conversions to metrics that focus on marketing and media touchpoints to build and track the customer journey.

Need help determining what channels will be most effective for your next campaign and how to ensure they complement each other? Contact me here to talk about the results you’re seeing now, how they compare to the industry benchmarks, and how IWCO Direct can help add more power to your marketing.

link https://www.iwco.com/blog/2017/08/22/2017-dma-response-rate-report-part-2/
Debora Haskel


Debora Haskel

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