Tuesday, April 26, 2011

Direct Marketing Agencies Among Leaders in Social Media

Advertising Age reports that advertising agencies are generating 28% of their revenue from social media.  Advertising agencies generated $8.5 billion in revenue from social media.  While 60% of that revenue came from agencies specializing in social media, direct marketing firms generated the second largest share of 23.5%.

The success of agencies specializing in direct marketing is not surprising as these firms have the experise in customer targeting and outcome analytics that is critical in making social media work.   Direct marketing firms may have a leg up long-term over specialty firms as their customer relationships and ability to integrate multiple modes of direct marketing, including direct mail, may provide a competitive advantage.

The success of traditional direct marketing advertising agencies shows the melding of traditional and social modes of direct marketing.   Recent reports by the Inspector General of the Postal Service suggests that there may be a digital role within the postal ecosystem that could improve the efficacy of social media and even possibly a digital role for the Postal Service that would ensure that digital and physical communications coexist .  It is for this reason that an upcoming conference, Postal Vision 2020 will be bringing together some of the greatest minds in social media, digital and print communications to discuss the future of print and digital communications.   The symposium to be held June 15, 2011 and the Marriott Chrystal Gateway Hotel in Arlington, VA.  To learn more check out Postal Vision 2020 .

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