Direct Marketing ROI for Auto Retailers Nearly $34 for Every $1

January 30, 2008

This article is included in these additional categories:

Automotive | Retail & E-Commerce

Auto retailers spent $7.3 billion on direct marketing campaigns in 2007, driving $248.1 billion in sales – for a return on investment of $33.81, according to the Direct Marketing Association’s first-ever “Direct Marketing Facts and Figures in the Automotive Industry” report.

The 122-page DMA report provides an overview of the automotive industry and nearly 100 charts to help readers benchmark their own direct marketing progress.

Among the key findings:

  • Auto manufacturers spent $8 billion on direct marketing advertising in 2007, realizing $77.8 billion in sales. That translated into a $9.68 ROI per dollar spent.
  • By 2012, auto manufacturers are expected to invest $9.8 billion on direct marketing, yielding $108.1 billion in sales, with an ROI of $11.
  • Automotive retailers, whose direct marketing efforts drive the highest ROI of the 52 US industries tracked by DMA, invested $7.3 billion in direct marketing advertising in 2007. As a result, this sector of the industry saw $248.1 billion in sales and an ROI of $33.81.
  • Vehicle retailers will see a slight decrease in ROI, to $33.67 by 2012. That will result from spending $8.8 billion on direct marketing advertising and earning $297.8 in sales.
  • Direct-order campaigns produced at least 40% of direct marketing sales in 2007.
  • In Q3 2007, Toyota was the No. 1 vehicle brand mailer of service promotions.
  • Of the domestic brands, Ford, Chrysler, and Dodge sent out the most direct mail sales campaigns during Q3 2007.
  • Of the foreign auto brands, Toyota, Mercedes-Benz, and Honda sent out the most direct mail sales campaigns during Q3 2007.
  • Most direct mail sales pieces sent in Q3 2007 were aimed at acquiring new customers.
  • About 75% of the auto industry’s direct marketing investment and sales center around consumers. B2B sales make up the remainder.

About the report:Direct Marketing Facts and Figures in the Automotive Industry” includes economic data from DMA’s “The Power of Direct Marketing: 2007-2008 Edition” regarding two automotive industry segments: manufactures and dealers/service stations; an overview of auto-oriented direct mail pieces based on data provided by Mintel Comperemedia; and a campaign case study from DMA’s 2007 International ECHO Awards.

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