The majority of UK direct marketing operations are expected to comply with the new regulations but it’s likely to increase costs, and the industry believes it is still too closely associated with the term “spam”.
These are the conclusions of a newly-formed industry think tank, the IDMF Marketing Forum. The Forum represents The International Direct Marketing Fair, the annual convention – now in its 26th year – which brings together the worldwide direct marketing industry in London each March.
The IDMF Marketing Forum comprises 30 key players in the direct marketing and mailing sector, from companies employing more than 200,000 people in total.
For its first project, the IDMF Marketing Forum has looked at the new ‘Privacy and Electronic Communications Regulations’ which came into force in December 2003. The regulations are designed to protect people against unsolicited email and SMS messages unless the recipient has positively “opted –in” to receive them.
Ninety-two per cent of the Forum members who took part in the project believe that the new regulations are a “Good development for the DM (direct marketing) industry” and 85 per cent believe “They will improve the industry’s credibility”.
However, the Forum has major concerns about the effects on the UK direct marketing industry, a £2 billion operation which sends out 5.7 billion items every year. Thirty-eight per cent of IDMF Marketing Forum members fear that “The UK direct marketing industry will lose out to overseas operators”. A similar number are worried that the regulations will put up costs for the highly-competitive industry, or that they will be widely ignored.
The direct marketing industry has worked hard in recent years to distance itself from the “junk mail” tag. However, 69 per cent of the IDMF Marketing Forum believe that the sector is either “closely” or “very closely” associated with the electronic term for junk mail – spam.
They are also concerned that the regulations have not been effectively communicated to the general public. Sixty-two per cent said they were “not well” or “not at all” communicated.
Despite this, nearly 77 per cent believe that the majority of UK direct marketing operations will comply with the regulations.
The IDMF Marketing Forum has been formed to report regularly on key topical issues affecting the direct marketing sector. The next International Direct Marketing Fair will be held on 2, 3 and 4 March 2004 at Earls Court 2, London. For further information, visit www.idmf.co.uk or call 020 8910 7000.
