News
 How
Much Marketers Will Pay on Database Upgrades?
Direct marketers are expected to spend a lot of
money on database upgrades this year – so says a new
report from Direct Magazine. How much are they
willing to pay and what will they spend it on?
According to Direct’s 2006 database practices
survey, marketers are expected to fork out about
$250,000 for database upgrades this year. Direct’s
report states that 86 percent said their budgets
would either increase or stay the same this year,
while only one percent indicated they would be
scaled back.
Is that too much of a risk? Marketers don’t seem to
think so. According to the magazine, marketers are
confident these expenditures will be rewarding,
mostly because they know how to determine how it
will pan out.
The magazine notes that 70 percent of marketers plan
to install or enhance data mining capabilities,
while 40 percent want to expand storage capacity.
About 20 percent are tinkering with the idea of
adding in a data mart or to outsource it in general.
Nearly 40 percent of those surveyed expect to spend
more on developing/maintaining their systems in
2007, and more than 50 percent say they predict a
jump in their general direct marketing budgets, the
magazine reports.
But personalization seems to be the iffy factor. The
magazine’s survey states that 40 percent of
marketers have no idea if their personalization is
working. Still, nearly two-thirds personalize their
products, services and marketing communications.
Companies that market to businesses are more likely
to personalize, the magazine states.
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