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.


Explore More Articles.

Marketing Charts Logo

Stay on the cutting edge of marketing.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This