Directional marketing

Directional Marketing is a type of marketing, a measurable form of direct response advertising, whose primary role is to point a potential consumer toward the completion of the sales process or service selection. Unlike traditional direct marketing which typically communicates to unsolicited consumers, directional marketing is primarily consumer initiated where consumers seek out advertising to aid in their purchase decision, e.g., to identify potential vendors with which to do business. Examples of known forms of Directional Marketing media are the Yellow Pages, Internet, or Electronic Yellow Pages and Local search (Internet).^[1]

History

The term directional marketing is believed to have first been used in 2001 by advertising agency TMP Worldwide (now known as TMP Directional Marketing), to describe their focus on advertising opportunities that allow businesses to take advantage of consumer initiated media channels (permission-based or pull-based marketing), such as the Yellow Pages and search engines. These channels allow advertisers to communicate to consumers and provide them with the information and/or direction needed to perform a specific action, e.g., contact the business (phone, Web or walk-in) or make a purchase.

The actual term is derived from a sub-discipline of marketing called direct marketing. Direct Marketing is believed to have been developed in 1961 and specializes in sending advertising messages directly to the consumer, rather than going through traditional media such as television and print advertisements. While direct marketing seeks out the consumer, directional marketing delivers qualified leads to consumers who seek out advertising to aid in their purchase decision. ^[2] However, both types of marketing specialize in targeting a consumer’s individual needs.

With the advent of online search engines and Internet, or Electronic Yellow Pages, directional marketing has become more and more effective over the past decade. The digital component of directional media comprised 10 percent of the total directional media market in 2004, and that share is expected to reach just under 28 percent by 2009.^[3] Online paid local search is a common means of advertising with small- and medium-sized enterprizes (SMEs). Revenue for online paid local search is projected to be about $1 billion in 2008.^[4] Additionally, about 35 percent of SMEs advertise in local print yellow pages, making the advertiser base for local paid search (both online and print) much broader.^[5]

Recorded revenues from directional media in North America for 2004 reached $16.3 billion, accounting for 56 percent of the global directional media market (recorded revenue of $28.8 billion worldwide). Relative to the global advertising market, directional media held a 5.5 percent share in 2004, which is estimated to reach 6.3 percent in 2009.^[6]

Channels

Print Yellow Pages

The Yellow Pages is a directory of businesses within a specific geographical area. The print edition is generally published annually and distributed for free. Businesses obtain a listing in the Yellow Pages through purchasing advertising space.

Internet, or Electronic Yellow Pages

Keeping up with growing consumer demands for instant information, print Yellow Pages have copied and moved their directories online, broadening the digital component of directional media.

Local search (Internet)

Through online search engines such as Google, Yahoo, MSN and America Online, consumers can initiate search for local products and services. Advertisers can profit from leads through organic search results, or through paid search, in which they pay for their business listing to appear at the top of the search results.

Mobile Search

Consumers can also obtain Local search (Internet) results through mobile devices, such as mobile phones or a GPS navigation device, providing an effective marketing tool for advertisers as they reach consumers more directly seeking to make a purchase decision.

See also

• Yellow Pages
• Electronic Yellow Pages
• Local search (Internet)
• Direct Marketing
• Marketing
• Advertising

External links

• The Kelsey Group - Directional Media Strategies Conference
• TMP Directional Marketing - White Papers
• Search Engine Strategies Conference & Expo

References

1. ^ The Kelsey Report White Paper “Global Directional Media Forecast 2004–2009” TKR White Paper #05-01 by Neal Polachek; February 4, 2005
2. ^ The Kelsey Report White Paper “Global Directional Media Forecast 2004–2009” TKR White Paper #05-01 by Neal Polachek; February 4, 2005
3. ^ The Kelsey Report White Paper “Global Directional Media Forecast 2004–2009” TKR White Paper #05-01 by Neal Polachek; February 4, 2005
4. ^ SearchEngineWatch.com article “Local Search: The Hybrid Future”, http://searchenginewatch.com/showPage.html?page=3296721
5. ^ SearchEngineWatch.com article “Local Search: The Hybrid Future”, http://searchenginewatch.com/showPage.html?page=3296721
6. ^ The Kelsey Report White Paper “Global Directional Media Forecast 2004–2009” TKR White Paper #05-01 by Neal Polachek; February 4, 2005