The Jolt: DM, a cost-friendly alternative

As advertising and media budgets get squeezed like never before, marketers face an uphill battle to make their ad budgets work harder and more efficiently. Direct marketing is one efficient and cost-friendly alternative.

New research from The Nielsen Company shows advertisers in Hong Kong will increase their ad spending on direct mail by 4% in 2009, up from 2.9% in 2008.

The research shows that the financial, investment and banking sectors will lead DM spending, taking a 25% share of overall spend. Retail, followed by the government sectors will follow with a 19% and 18% share respectively.

But why should marketers take up the DM challenge?

Chris Reitermann, president of Ogilvy & Mather Group Shanghai and president of OgilvyOne China, says with the economy cooling down, direct marketing, or generally taking care of customers will become more of a priority for a lot of companies.

"We definitely see a lot of money shifting towards relationship marketing, direct marketing or what ever you want to call it," he says.

"What is happening now is a very natural. Now that growth is slowing down the market is becoming more competitive, I think targeted communication becomes more of a priority."