Direct marketing pays off big for US auto retailers

The Direct Marketing Association's (DMA) "Direct Marketing Facts and Figures in the Automotive Industry," reveals that auto retailers who spent US$7.3 billion on direct marketing campaigns in 2007 saw it drive US$248.1 billion in sales, a return on investment of US$33.81 on every dollar spent. At the same time, the auto manufacturers spent US$8 billion on direct marketing advertising in 2007, realizing US$77.8 billion in sales, or a US$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 US$9.8 billion on direct marketing, yielding US$108.1 billion in sales, with an ROI of US$11.
• Vehicle retailers will see a slight decrease in ROI, to US$33.67 by 2012. That will result from spending US$8.8 billion on direct marketing advertising and earning US$297.8 in sales.
• Direct-order campaigns produced at least 40% 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% 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, visit the DMA here.