Overview and Future Prospects of the Direct Marketing Market in Russia

What are the advantages of direct marketing?

The Direct Marketing (DM) market can be divided into two main groups. The first group comprises the market of direct advertising, including mailouts for marketing, advertising, PR purposes, as well as integrated projects and DM. According to experts, DM accounts for approximately 80% of the DM market.

The second group represents the market of mass direct business mailouts, which includes various notices and billing services such as Pension Fund notices, land tax, vehicle tax, and invoices.

Currently, the potential of DM is highly appreciated by leaders in marketing services. Its methods and techniques are not only utilized in the retail sector but also in other industries such as financial services, insurance services, and telecommunications.

It is important to clarify that many people often confuse direct marketing with direct mail. Direct marketing, in fact, encompasses any form of personalized communication with consumers that aims to achieve the highest response rate. It involves the creation and maintenance of databases to establish and cultivate relationships with both existing and potential customers. The ultimate goal of DM is to adopt an individualized approach towards potential buyers, establish contact, and foster long-term mutually beneficial relationships.

In contrast to their American counterparts, Russian advertisers tend to undervalue the effectiveness of direct marketing

It is crucial to perceive direct marketing not only in its traditional sense but also as database marketing, which involves constructing marketing communications based on databases targeting specific audiences. This serves as the foundation for developing successful DM campaigns. The market prospects for direct marketing are extensive, with a noticeable rise in client interest in this marketing tool. Interestingly, it appears that the global financial crisis has actually expedited this process.

Let’s now shift our attention to various direct marketing tools, including postal mailouts, express delivery, telemarketing, mobile marketing, e-mail and internet marketing, and fax mailouts.

Over the past 2-3 years, there has been a noticeable consolidation of companies operating in the direct marketing (DM) field with those specializing in emerging tools such as internet marketing and mobile marketing. This integration of different areas with DM has opened up possibilities for an entirely new level of services and products. Analysts predict that in the coming years, direct marketing will claim a significant share in the media mix of Russian advertisers, surpassing the current 1-2% allocation. Comparatively, in the United States, DM expenses account for approximately half of all advertising costs for companies, while in Europe, it ranges between 20-30% depending on the country.

Currently, many companies in the DM market offer innovative integrated advertising solutions that combine the capabilities of existing databases with the potential of internet marketing and mobile advertising. This highlights the importance of customer-centricity in integrated marketing communications, indicating that it represents the future of marketing communications.

Paper does not relinquish its position

Clients frequently inquire about the effectiveness of different types of mailouts – paper or electronic – and the reasons behind their efficacy. When selecting a mailout strategy, what criteria should guide our decision?

While some may argue that the popularity of direct marketing is waning, I’d like to explain why that’s not the case. It’s crucial to remember that the internet serves as more than just an advertising platform; it’s also an excellent tool for direct marketing. By direct marketing, I don’t mean “spam,” but rather a personalized approach to recipients through carefully chosen mailing lists, in line with the three primary objectives of direct marketing: a targeted audience database, meticulous selection (to avoid spamming), and adherence to email regulations regarding content and design.

Here are some important considerations: It’s advisable to utilize mailouts for existing clients who are already familiar with your brand, particularly those who have provided positive feedback (around 10-15%) on your website. Additionally, the database should be segmented, taking into account individual consumer preferences. Sending the same message to everyone is not recommended.

Incidentally

Misconceptions about Direct Marketing

Previously, many people associated DM with the traditional methods of postal and fax sending. However, with the inclusion of SMS and email mailouts, the scope of DM has expanded. Unfortunately, some individuals mistakenly believe that DM annoys and bothers clients. Nevertheless, mailouts have gained popularity and proven to be effective. Why is this so? The answer lies in the oversaturated markets of today, where direct communication with customers becomes crucial for success. It would not be an exaggeration to proclaim the arrival of an era of direct marketing. Although negative emotions may arise, they are typically limited to cases of “spam,” regardless of the communication channel. Therefore, when venturing into DM, it is vital to understand that messages should be interesting, informative, and tailored to the target audience. If a client receives relevant information, they are likely to engage further with the sender.

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