When Macy’s Inc. was established as a national brand in 2004, its leadership insisted that each store stay connected to its local community. The resulting “My Macy’s” localization initiative gives stores the latitude to be good corporate citizens in their communities while selecting merchandise according to local tastes, preferences and seasons.
The company took this “stay close to your customer” strategy to a new level in November 2010, when it personalized its direct mail marketing strategy to target regional preferences and individual shopper habits, too.
Tim Peterson | Direct Marketing News
Marketers will spend $163 billion on direct marketing in 2011, a 5.6% increase compared with last year, according to a report released by the Direct Marketing Association (DMA) on Oct. 2. The report also found that direct marketing accounts for 52.1% of total U.S. ad spending.
The DMA projected that direct marketing ROI will reach $12.03 of sales per dollar of expenditures in 2011.
Next year, digital marketing’s share of marketing budgets will increase by two percentage points to 21%, according to the DMA. Of the various direct marketing channels, mobile is forecast to experience the most growth over the next year, rising by 38.7% to $1.2 billion. By contrast, direct-response magazine, radio and newspaper spending are all expected to decrease over the next year, with direct-response newspaper advertising predicted to decline by 9.9% to $7.0 billion.
Telemarketing is expected to remain the top spending channel, growing by 0.8% next year to $36.9 billion. Direct-response TV is expected to follow at $22.9 billion, a 3.8% bump from 2011.