Commentary

Direct Marketing Pays Off Big For Auto Retailers

Direct Marketing Pays Off Big For Auto Retailers

The Direct Marketing Association's (DMA) "Direct Marketing Facts and Figures in the Automotive Industry," reveals that auto retailers who spent $7.3 billion on direct marketing campaigns in 2007 saw it drive $248.1 billion in sales, a return on investment of $33.81 on every dollar spent. At the same time, the auto manufacturers spent $8 billion on direct marketing advertising in 2007, realizing $77.8 billion in sales, or a $9.68 ROI per dollar spent.

DMA Senior Research Manager, Anne Frankel, said "Direct marketing plays a key role in the economic vitality of the automotive industry... Compared with all other measured verticals, automotive retailers/service stations have the highest ROI and the largest annual direct marketing-driven sales volume."

The new report provides a comprehensive overview of the automotive industry including some of these key findings:

  • 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.
  • 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, with B2B sales making up the remainder.

For more information and access to the complete report, please visit the DMA here.

 

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