Digitas - Competitors

Digitas Competition

Now Viewing Digitas's competition in: Direct Marketing Services (primary)

Recent Developments

US Lags in Realizing Mobile's Marketing Potential - US marketers have been slow to tap the direct marketing potential of mobile phones. Marketers realize that mobile marketing is different from Web, but have yet to develop a knowledge base and expertise in the medium. While mobile may be the first direct mass medium, it's underrepresented in most brands' ad budgets. But that could change as marketers see mobile as a way to advertise to consumers at points of purchase.

Direct Marketing Affected by Slowdown - Once thought to be recession-proof, the direct marketing industry suffered a decline in first quarter 2008. The Direct Marketing Association's Quarterly Business Review Index fell to 48 from 55 in first quarter 2008; an index reading of 50 represents zero industry growth. The current economic slowdown and rising postal rates and paper prices have hurt the industry. Financial marketers particularly have cut back on mass mailings due to the mortgage crisis and credit crunch.

Email Increasing as Direct Marketing Medium - In its annual survey of direct marketers, Direct magazine finds that email is increasingly being used. Over 70 percent of respondents use email to reach customers and 50 percent use it to reach prospects. Over half of respondents indicate that they'll increase their email budgets next year.

Competitive Landscape

Demand is driven by economic activity and corporate profits. The profitability of individual companies depends on their targeting services, creative skills, and marketing ability. Large companies have advantages in economies of scale in database analytics, marketing, and automated operations, which allow them to compete more aggressively on price. Small companies can compete effectively by specializing in a particular industry, geographic market, or service type. The direct marketing services industry is labor-intensive: average annual revenue per employee is less than $150,000.

Full Industry Overview For Direct Marketing Services

Direct Marketing Services Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US advertising and related services, like direct marketing services, is forecast to grow at an annual compounded rate of 3.7 percent between 2007 and 2012.

Advertising and Related Services Growth Slow and Even

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.