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DMA ILNONPROFITCATALOGINCREMENTS OF GENIUSSTATISTICAL FACT BOOK2015The Definitive Source forMarketing’s Most ImportantBenchmarks

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ResearchhThe Directt Marketing AAssociation (theeDMA.org) is the world’slargest traade associatioon dedicated to advancingg and protectiingresponsible data-drivenn marketing. Founded in 19917, DMAand nonprofit organizationns thatrepresentss thousands off companies ause and suupport data-ddriven marketting practices and techniquues.DMA provvides the Voicce to shape poolicy and pubblic opinion, thheConnectionns to grow meembers’ businesses and thee Tools to ensuurefull compliiance with ethhical and bestt practices as well asprofessionnal developmeent.Copyrightt April 201 5 by DMAISBN: 9788-0-9833791 -6-4rNo part of this ppublication maay be reproduuced,All rights reserved.stored in a retrieval sysstem, or trans mitted, in anyy form or by aanymeans, eleectronic, mechhanical, photoocopying or ottherwise withooutthe prior writtenwpermisssion of the coopyright owneer.N THE UNITEDD STATES OF AMERICAPRINTED INDISCLAIMER: DMA doees not warranttee, express oor implied, as toresult to be obtained frrom the use off this report ddata. In no eventshall DMAA, its affiliatess or any otherr entity involveed in providinng thedata hereein have any l iability for lo ss profits or for indirect, sppecial,punitive, oro consequentiial damages, or any liabiliity to any thirrdparty arising out of thee use of this daata, even if aadvised of theeages or liabiliity. All disclaiimers herein shallpossibility of such damaability that caannot be waivved under Staate ornot be applicable to liaFederal laaw.theDMA.oorg/bookstore 2015 Statisticaal Fact DMAD

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ResearchhAs we progress throuugh 2015, maarketing/bussiness ecosysstemsget increaasingly compplex. Howevver, one of thhe uniting facctorsthat stayss at the centeer of all thatt we do as mmarketerscontinues to be the cuustomer. This one-to-one approach haasbeen the cornerstone of marketing as long ass data hasexisted too inform the insights needded to servee those who wwantand needd what our bbusinesses can offer. As a marketer, yyouunderstannd the poweer of data ass you work too manageaudiences, uncover cuustomer insigghts, usecommuniccation/markeeting channeels to garner response anndthen meaasure those ooutcomes to ddo it better the next timee. Yet,even as wew have acceess to more and more daata, finding andapplying relevant infformation is mmore of a chhallenge thannever befoore. It is our sincere hopee that the 377th edition off theDMA Statistical Fact BBook helps yyou find the information youneed to makemthe typpe of powerfful decisions that will dellightcustomerss and benefiit business.We would like to ackknowledge thhe many individuals andorganizations that pr ovided the information aand researchhdata thatt make this bbook a compprehensive annd indispensableresource for the direcct, data-drivven and digittal-marketinggfield. Yoou will find thheir contact ddetails listedd at the end oofthe book. Each of theese research studies contrributesindividually to our kn owledge of data-drivennmarketingg. Together,, they offer a valuable ppicture of theescope and direction oof the markeeting field.theDMA.org//bookstore 2015 Statistical Facct ducction & Acknoowledggemennts

ResearchThis edition includes editorial pieces from key thought leadersfrom the industry. Special thanks to: Bruce Biegel,Samantha Braverman, Kevin Dean, Laurie B. Beasley,Justin Honaman, Lois Brayfield, Jim Davidson, Scott Ellis,Matt Blumberg, Michael J. Becker, Murray Izenwasser,Angie Moore, and Jerry Cerasale. We hope these chapterintroductions will help the data tell a story of the trends andpositive outlooks by channel or industry segments.The production of this report required the skills andperseverance of several people. The DMA research teamreviewed thousands of documents to find the information mostrelevant for marketers. A special thanks to: Robert Traino,Creative Director and Yvonne Polanco, Production Lead, whomade it possible to deliver a beautiful book to market in bothprint and digital formats. And especially to Michelle Tiletnick,Editor, and Meaghan Bradley, Research Coordinator, whospent countless hours working at the individual level withcontributors, as well as going through advertising journals,news sites, blogs and research studies to find relevantinformation.Finally, thank YOU, the marketeer, who lives - data-drivenand omnichannel - and learns from their customers andcampaigns each and every day.Please feel free to contact me if you have questions orcomments regarding this publication.Gina ScalaVice President, DMA Education & ResearchDirect Marketing Association, Inc.gscala@the-dma.org(212) 790-1440theDMA.org/bookstore 2015 Statistical Fact Book

ble of ContentsDIRECT MARKETING OVERVIEW . 1Do You Plan to Reduce Head Count? . 4Do You Plan to Add Staff in the Next Three Months? . 4Do You Have a Hiring Freeze? . 52014 Direct Response Advertising Salaries. 62014 Direct Response Advertising Salaries (Continued) . 7Demographics of Consumers Purchasing by Mail, Phone orInternet . 8Demographics of Consumers Purchasing by Mail, Phone orInternet (Continued) . 9Purchasing Behavior of Mail, Phone or Internet Buyers . 10Key Demographics of Smart or Connected Device Users VersusNon-Users . 11Top Cross-Channel Barriers and Challenges for Marketers . 11How is Your Marketing Integrated Across Channels? . 12Marketing Team Structure . 12Top Challenges to Creating a Complete Customer View . 13Which Three Marketing Channels Offer the GreatestOpportunities over the Next Year?. 14Single Most Important Factor which Enables EffectiveOrchestration of Cross-Channel Marketing Activities . 15Average Face Values Distributed and Redeemed for Coupons . 16Average Coupon Redemption Rates . 172014 US “Measured Media” Spending . 182014 US “Direct & Digital” Spending . 18Spending on Various Data-Driven Marketing Media Channels. 19Process for Reusing and Repurposing Content . 20Content Creation for Targets/Segments . 20Frequency of Content Audit. 21theDMA.org/bookstore 2015 Statistical Fact Booki

ResearchTable of ContentsMost Important Factors in Choosing a Marketing AutomationSystem . 21Most Useful Metrics Used Ior Measuring Marketing AutomationPerformance . 22Most Important Objectives for Your Inbound Marketing Strategyin the Year Ahead . 22Most Effective Tactics Used for Inbound Marketing PurposesVersus Most Difficult to Execute . 23Marketing Vehicle Frequency . 24When Buyers Reveal Themselves to Vendors . 25Sales Closure Rate . 25Why the Sales Team Isn’t Closing with Qualified Prospects. 26Contact Center Measurements Relied on . 27Contact Center Technology Being Used. 27Primary Benefits of Personalization . 28Personalization Capabilities . 28DATA . 29Data-Driven Marketing Economy (DDME) Value Added. 32Total Data-Driven Marketing Economy (DDME) Value AddedEmployment . 33Summary of DDME Value Added Revenues by Dependence onILCD Exchanged Among Firms . 34DDME 2012 Employment: Total, and Dependent on Exchange ofData Among Firms . 35DDME Induced Employment . 36Worldata List Price Index . 37Top Data Marketing Challenges . 38Sources of Data . 39How Soon Go \ou Expect to See a Positive ROI From DataRelated Marketing Expenditures? . 40Frequency of Data Cleaning . 40Benefit of Using Data in Making Decisions . 41Status of Data-Driven Marketing Today and Vision for the Future . 42Department with Primary Responsibility for Marketing Data . 43Top Obstacles to Data Driven Marketing . 43Collaboration Between IT and Marketing When it Comes toSharing Customer Data . 44Priority of Integrating Marketing Technology and Data . 44In-house Capabilities Dependent on Data . 45Spending on Data-Driven Marketing, Compared to PreviousQuarter . 45Revenue Derived From Data-Driven Marketing, Compared toPrevious Quarters . 46Profitability Derived From Data-Driven Marketing, Compared toPrevious Quarters . 46ii2015 Statistical Fact Book theDMA.org/bookstore

ResearchTable of ContentsData-Driven Marketing Staffing Levels, Compared toPrevious Quarters . 47Most Effective Sources of Marketing Data Used . 47Types of Data 8sed for Marketing 3urposes. 48Importance of Data Quality/Completeness for MarketingSegmentation and Targeting . 48Drivers for Turning Data into Insights . 49Use of Predictive Analytics . 50Value of Data . 50Reason for Data Inaccuracy . 51Owner of Central Data Quality Strategy . 51Data Hygiene TechniTues Used . 52Channels to Collect Consumer Contact Data. 52DIRECT MAIL . 53Number of Mail Order Purchases Within the Last Year byEducation of Household Head . 56Mail Received by Households . 57Response Rates to Standard Mail (A) AdvertisingSolicitations . 57Response Rates to First-Class Advertising Solicitations . 58Treatment of Standard Mail (A) Piece by Shape . 59Usefulness of Standard Mail (A) Piece by Shape . 60Standard Mail (A) Reaction by Industry . 61Response to Standard Mail (A) Pieces by Income . 62Response to Standard Mail (A) Piece by Age of Head ofHousehold . 63Standard Mail (A) Response to Advertising by Shape . 64Intended Response Rates for MaMor Industries by Enclosureof Reply Envelopes/Cards. 65Standard Mail Industry Usage of Reply Mail . 66Standard Mail (A) Response to Advertising by Familiaritywith Organization . 67Receipt of First-Class and Standard Mail (A) by Number ofMail Order Purchases Made in the Past Year . 67Advertising Generating Response . 68Response to Standard Mail (A) Piece by Age of Head ofHousehold . 68Standard Mail (A) Addressee by Industry — Merchants. 69Standard Mail (A) Addressee by Industry — Financial . 69Standard Mail (A) Addressee by Industry — Services . 70Standard Mail (A) Addressee by Industry — Fundraising . 70Treatment of Advertising Mail . 71Standard Mail (A) Content of Mail Piece . 71Standard Mail (A) by Shape . 72Average Number of Mail Pieces Received Per Week . 72theDMA.org/bookstore 2015 Statistical Fact Bookiii

ResearchTable of ContentsResponse to First-Class Advertising from Financial ServicesSubsegments . 73Response to Standard Mail (A) Envelopes and Cards fromFinancial Services Subsegments . 73Standard Mail (A) Receipt by Number of Credit Cards . 74Standard Mail (A) Receipt by Number of Financial Accountsand Insurance Policies . 74Standard Mail (A) Pieces from Insurance Companies . 75Standard Mail (A) Pieces from Credit Card Industry . 76Lettershop Operations . 77Brochures . 78Self-Mailing Formats. 79Reply Cards/Order Forms . 79Outer (or Carrier) Envelopes . 80Bind-In Order Form Envelopes . 80Litho Letters (Not Personalized) . 81Laser Letters (Personalized) . 81Business Reply Envelopes (BRE) . 81Direct Mail — Sample Working Budget . 82Total Number of Mail Pieces (All Classes) Attributed toDirect Mail: 1990 – 2013 . 83Percent of Coupons Distributed, Food vs. Non-Food . 84Coupons Redeemed, Food vs. Non-Food. 84Coupon Redemption. 85Redemption Rates By Method. 86US Direct Mail Marketing Spend . 87Total Data Spend for Direct Mail . 88RETAIL & CATALOG . 89Estimated Quarterly US Retail Sales: Total and Ecommerce* . 93Loyalty Program Memberships . 93Loyalty Program Membership Activity . 94Loyalty Program Membership Type . 94How Willing Would You Be to Shop at Retailers Who HaveExperienced Credit card Security Breaches in the LastYear? . 95Which of the Following Payment Methods Would you 8seto Purchase Winter Holiday Gifts? . 96Smartphone Owners Shopping Preferences . 97Tablet Owners Shopping Preferences . 97Online Shoppers Preference .

INCREMENTS OF GENIUS DATA NONPROFIT RETAIL SOCIAL CATALOG MAIL SEARCH MOBILE DIGITAL EMAIL DMA Research STATISTICAL FACT BOOK 2015 The Definitive Source for Marketing