Saturday, October 01, 2005

Agency vs. In-House for Direct Marketing

An interesting fact surfaced in a recent analysis by Forrester:

Only 25% of companies use a direct marketing agency and of firms over $100 million nearly two-thirds do not use an agency.
That stat seems to run headlong into my own experience in running one of the bigger promotion marketing agencies in the US. Most prospective clients we called on while soliciting new accounts already had at least one direct marketing agency onboard.

This now points to an overwhelming amount of the work being done in-house.

Another surprising statistic:

Consultants (58%) and service bureaus (57%) lead over ad agencies (22%) and academics (11%)when it comes to providing direct marketing guidance to marketers. This will shift in the future to more outsourcing to consultants than to service bureaus.


At 3:58 AM, Anonymous Sivaraman Swaminathan said...

Interesting to see this post. I have always believed clients do a lot of in-house direct marketing, as a lot of customer infrastructure and knowledge is maintained in-house and invested by clients. Also, most agencies don't have the scale to execute multiple campaigns across touchpoints and hence I believe this happens.

The study only reinforces my belief.


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