B2B Startups Are Turning to Direct Mail

October 23, 2001

According to a recent study by Launch Pad and Blanc& Otus, b-to-b Internet startups are spending more on marketing than they were in 2000. The study surveyed marketing executives at online b-to-b firms across the country.

As would be expected, marketing expenditures accounted for a smaller percentage of total expenditures when compared to last year. Unexpectedly, however, the total dollars went up from an average of $2.8 million a year, up from $2.2 million last year.

Struggling publishers may wonder where these increased dollars have gone. The answer, according to the study, is that more money is being put into direct marketing efforts rather than media campaigns. E-mail campaigns have seen an increase in budget allocations of 300 percent when compared to the budgets of 2000.

The study suggests that online b-to-b companies are investing more heavily in campaigns that generate high response rates rather than branding campaigns. This trend could cause concern for online publishers, who have recently emphasized the effectiveness of online advertising in building brands.

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