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IBM report sees convergence of direct marketing, branding

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New York—Return-on-investment direct marketing and traditional brand advertising are converging online, according to “Beyond Advertising: Choosing a Strategic Path to the Digital Consumer,” a report released Monday by IBM Global Business Services.

“Digital formats such as social media, online video, mobile communications, gaming and advanced TV enable companies to simultaneously meet transactional and brand-building objectives,” according to the report.

Alternative marketing channels, such as online advertising and word of mouth marketing, are expected to grow to 27% of overall marketing expenditures by 2012, up from 7% in 2002, according to the report. Traditional ad formats, such as print and broadcast TV, are expected to drop from 47% to 32% of share in the same time frame.

The same trends are affecting b-to-b marketing, said Steve Abraham, global leader-media and entertainment industry for IBM Global Business Services.

The report was based on an online survey of 2,800 consumers and one-on-one interviews with 70 marketing and media professionals.

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