Direct dynamism: despite shrinking marketing budgets, client expenditure on direct marketing has increased by ten per cent since last year. David Reed takes a look at the industry's movers and shakers. (Special Report: DM Reputations Survey)

Marketing Week, November, 2002 by David Reed

These are strange times for direct marketing agencies. According to the Direct Marketing Association (DMA) Census for 2001, client expenditure on direct marketing (DM) increased by ten per cent. This goes against the general downward trend of marketing budgets and proves yet again that the discipline tends to be counter-cyclical.

However, DM agencies were faced with budget cuts, a lack of new business and widespread reductions in staff. This year's Marketing Week Direct Marketing Agencies Reputation Survey -- carried out in conjunction with the DMA -- shows more dynamism as a result of closures and mergers than from improved agency performance.

This gap can be explained partially by a rise in the number of clients working directly with DM suppliers, combined...