News
The latest news in DATA
Top Stories
-
DMA Strengthens Guidelines Regarding Data Compiler Responsibilities
Washington, DC, June 12, 2007 — The Direct Marketing Association (DMA) announced today that it has strengthened and clarified provisions within its Guidelines for Ethical Business Practice that relate to the collection and sharing of consumer information by data compiler organizations.
“As new technologies continue to advance how we collect and share consumer information, we have to make sure that our policies for protecting that information also stay ahead of the curve,” said DMA President & CEO John A. Greco, Jr. “From the largest company to the smallest, our future as marketers depends on how we create and nurture trusted relationships with consumers.”
As developed over the past year and approved by the Executive Committee of DMA’s Board of Directors this month, the new guidelines apply to “data compilers” — defined as “any company that assembles personally identifiable information about consumers (with whom the compiler has no direct relationship) for the purpose of facilitating the renting, selling, or exchanging of information to non-affiliated third-party organizations for marketing purposes.”
“Marketers are responsible for ensuring that the messages they send out are in compliance with applicable laws and DMA’s ethical guidelines,” reminded Patricia Kachura, DMA’s senior vice president for ethics and consumer affairs. “But as the stewards for consumer information, data compilers have a duty as well to ensure that the information they collect is used responsibly.”
All DMA members are expected to comply with DMA’s self-regulatory guidelines as a condition of membership.
Under the new guidelines, when entering into agreements with third-party organizations for the rental, sale or exchange of consumer information, a data compiler must:
· Establish written or electronic agreements that define the rights and responsibilities of the compiler and customer with respect to the use of marketing data.
· Require customers to state the purpose for which the data will be used.
· Include language in their agreements with other DMA members that requires compliance with applicable laws and DMA guidelines. Non-DMA member customers should be required to follow all applicable laws and encouraged to comply with DMA’s guidelines.
· Require that marketing data be used only for marketing purposes. If the data are non-marketing data but are used for marketing purposes, they should be treated as marketing data for purposes of this new DMA guideline.
To ensure that customers are using data properly, DMA will now require its data compiler members to:
· Randomly monitor, through seeding of lists or other means, the use of their marketing databases to ensure that customers use data in accordance with their stated purpose.
· For sensitive marketing data, compilers should review materials to be used in promotions to help ensure that their customers’ use of the data is both appropriate and in accordance with their stated purpose. Sensitive marketing data include data pertaining to children, older adults, health care or treatment, account numbers, or financial transactions.
· If a database compiler is or becomes aware that a customer is using consumer data in a way that violates the law and/or DMA’s ethics guidelines, it should contact the customer and require compliance for any continued data usage, or refuse to sell the data and/or refer the matter to the DMA and/or a law enforcement agency.
The new guidance also lays out clear requirements for data compilers in responding to consumer inquiries, including:
· Upon a consumer’s request, and within a reasonable time, suppressing that consumer’s information from the compiler’s and/or applicable customer’s prospecting database.
· Not prohibiting an end-user marketer from divulging the database compiler as the source of the marketer’s information.
· At a minimum, explaining to consumers, upon their request for source information, the nature and types of sources they use to compile marketing databases.
More information on the new guidelines is available at www.the-dma.org/guidelines/quickreference.shtml.
-
Direct Marketing Expenditures Account for 50% of Total Advertising Expenditures, DMA's 2007 'Power of Direct Marketing' Report Unveils
Chicago, IL, October 16, 2007 — Despite a US economy that shows signs of softening in key areas, growth is predicted in direct marketing (DM) expenditures, sales, return on investment (ROI), and employment through 2008, as reported in The Power of Direct Marketing, the Direct Marketing Association’s (DMA) annual forecast of direct marketing’s economic impact on the US economy, including advertising expenditures and sales. The 2007 edition of the DMA report, which was first published in 1995, was released today.
“For the first time ever, direct marketing represents more than 50 percent of total advertising expenditures in the US, growing faster than total advertising spending and the US economy as a whole,” said Dr. Peter Johnson, DMA’s research strategy and platforms vice president, and lead author of the report. “Marketers are moving dollars into direct marketing because of its higher ROI relative to other forms of advertising. This makes ‘direct’ a more reliable engine for sustaining sales, incomes, and jobs at a time when the mortgage and energy markets are heightening economic uncertainty.”
Direct Marketing Advertising Expenditures:
Moderate Growth in 2007, Strong Growth in 2008
The $173.2 billion in direct marketing advertising expenditures that marketers are predicted to make by the end of 2007 represents a modest 4.4 percent increase over the $166 billion actually spent in 2006. The actual 2006 figure did not achieve the higher levels that initially had been predicted for it at this time last year due to the greater-than-anticipated decline in home sales, lower automobile sales, and higher energy prices.
Direct Marketing Sales:
Modest Growth in 2007, Strong Growth in 2008
Direct marketers should expect a reasonably successful 2007, and realize about 5.2 percent annual growth in sales. This figure is 1.5 percentage points lower than the growth recorded for 2006, and is due to the economic slowdown that continued through the middle of 2007. In 2007, total