Nov 29, 2005 6:01 AM, PROMO Xtra, By Richard H. Levey

(Direct Newsline)—A fearless prediction: 2007 is going to be a banner year for direct marketers.

And 2006 will be a good one for vendors. That's because DMers intend to invest heavily in both technology and media next year, according to Direct's annual forecast survey.

Consumer firms are looking to spend more aggressively than their B-to-B counterparts.

The bad news is that fewer companies anticipate a rise in their margins in 2006. And that may be due to a heightened interest in prospecting.

Meanwhile, they're spreading their dollars around multiple channels. They have increased their spending on Web advertising, direct mail, e-mail and search, while turning away from DRTV and radio. Also on the downslide are space advertising and telemarketing.

"Consumers are paying more attention to things that are tailored to their likes and dislikes, hence the decline in newspaper advertising and broadcast TV," said Don McKenzie, CEO of DM-focused investment banking firm Petsky Prunier LLC.

For the full survey results, see the December issue of Direct Magazine.

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