DMA study: Profitability on the upswing

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New York—For the first time in two years, more direct marketers and service providers reported increased quarterly profits, according to the Direct Marketing Association’s Quarterly Business Review.

More than 48% of marketers and 54% of suppliers reported higher profits during the first quarter compared with the year-earlier period, when 41% of marketers and 33% of suppliers reported higher profits.

In addition, both marketers and suppliers reported higher confidence with regard to their expected future profitability, with more than 50% of marketers and 57% of suppliers projecting improved bottom-line performance in this year’s second quarter, compared with 43% and 54%, respectively, that were similarly optimistic last quarter.

DMA partnered with consulting company Winterberry Group on the report, which was based on two online surveys conducted in April and May, generating 301 responses.

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