Digital marketing is tops, DMA says

For the first time in two years, marketers are reporting increases in revenue, profitability and marketing expenditures—thanks largely to digital channels, says a new study from the Direct Marketing Association and management consultants Winterberry Group.

“After two difficult years, marketers have begun to spend more on marketing as sales and profitability increase, and most of this increased spending is going toward digital channels,“ says Yoram Wurmser, research manager for the DMA, a trade group for marketers. “If you look at the channels for new investment, they’re all digital: e-mail, social media, search, online display and banners.”

More than 48% of marketers and 54% of their marketing services suppliers reported higher profits during the first quarter of 2010 compared to the year-ago quarter, the study says.

In addition, 50% of marketers and 57% of their suppliers expect profits to increase further for the second quarter, the study adds.

"After more than two years of persistent economic challenges, we believe the first quarter may have finally brought the true economic tipping point that the direct and digital marketing community has been eagerly awaiting," says Jonathan Margulies, director at Winterberry Group. "Across all our metrics—revenue, expenditures, profitability, employment and expected growth—marketers and services providers reported better performance and an improved sense of optimism compared to just a few months ago. Hopefully, this is a sign of even more robust economic growth to come."