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Page 1: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

Annual Report 2009

-TO-

Page 2: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

LEFT Kelly B. Browning Chairman of the Board

RIGHT John A. Greco, Jr. President & CEO

Chairman & CEO’s LEttEr 1 OnE-tO-OnE markEting 4 aDVOCaCY 8

rEputatiOn managEmEnt 12 EDuCatiOn/prOfEssiOnaL DEVELOpmEnt 16 DirECt markEting EDuCatiOnaL fOunDatiOn 18

markEt intELLigEnCE/rEsEarCh 19

markEt-making/nEtwOrking 20 nOnprOfit fEDEratiOn 22 finanCiaL statEmEnts 24 Dma LEaDErship tEam 27 Dma BOarD Of DirECtOrs 28

Page 3: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

Dear DMA Member:

When looking back on the year we’ve all just experienced, it will stand out as extraordinary in so many

ways for its impact on almost every industry and market. In a climate that provides very little certainty about

what’s ahead, there are at least three things we can be sure of: whatever’s next will be

very different from the past; businesses and nonprofits will continue to look for effec-

tive ways to reach and retain customers, donors, and prospects; and direct marketing

— the interactive, data-driven, online, offline, inbound, outbound, lead-generating,

customer-retaining direct marketing process — will play a vital role in restoring eco-

nomic growth, while leading the way to fulfilling a vision of one-to-one marketing.

As consumer spending changed, advertising and marketing spending in nearly every channel

decreased. However, this downturn came about as marketing was in the process of navigating the shifting

sands of another major transition — moving from traditional, general advertising to measured, multichannel

direct marketing. Global economics and market restructuring over the past year have accelerated this change-

over and intensified its potential to grow sales and restore profits, underscoring the importance of the value

created by a thriving multichannel direct marketing community.

As you’ll see in our financial summary, DMA was affected this year by high fixed costs related to events

with long lead times. Even so, membership renewals have held remarkably steady, demonstrating our mem-

bers’ confidence in the value of DMA participation. Throughout the year, we took steps to weather the storm

and to ensure that we would emerge fully equipped to continue serving the direct marketing community.

We are making do with less, and continuously examining the landscape to determine what can be done

differently to meet the most important needs of DMA members.

Chief among these needs are the vital political representation and issue advocacy DMA provides on

behalf of the entire marketing community. As you’ll read in the pages ahead, the public policy arena has

also changed significantly this year, and challenges for marketers have not abated in any respect. Whether

it’s restrictions on advertising, concerns about privacy, onerous data security requirements, or even the

elimination of a vital marketing channel, the stakes for marketing remain as high as ever.

DMA has long been widely regarded as a respected and valued voice — on Capitol Hill as well as in

key states and international centers — and we continue to do what’s needed to become even more effective

a m E s s a g E f r O m

t h E C h a i r m a n a n D

t h E p r E s i D E n t & C E O

1

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Page 4: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

as advocates. This includes our leadership in implementing cross-industry principles for self-regulation of

online behavioral advertising; our work to prevent state do-not-mail laws with the Mail Moves America

coalition; and DMA’s Internet Alliance, a network of experts tracking Internet and e-commerce issues

pending in 50 states.

DMA advocacy is made credible by the positive reputation that DMA and the direct marketing com-

munity have earned through years of successful self-regulation. We have a strong track record of safeguarding

individual rights while maintaining the flexibility to find good solutions that provide real value for everyone,

based on our DMA’s Guidelines for Ethical Business Practice and Commitment to Consumer Choice.

This year, for example, we upgraded our consumer Web portal DMAchoice.org to a best-in-class

experience for managing multichannel consumer marketing preferences. We’ve also raised the bar for

environmental and social responsibility by pursuing the first major goal of DMA’s “Green 15” practices for

minimizing the ecological impact of direct marketing, and by extending the use of our “Recycle Please”

campaign to more than 100 member companies.

Comprehensive direct marketing education has always been a hallmark of DMA, and this year we

have worked with thought leaders from across the community to ensure that our educational content is

up-to-date and valuable, not only to enhance the careers of the students, but to benefit their employers as

well. We’ve taken major steps to make more education available online through informative virtual seminars

and self-paced e-learning modules, and we continue to offer face-to-face training through public seminars

and customized programs for in-house delivery. Most recently, we announced the DMA Certified Marketing

Professional Program, with a broad curriculum covering every part of the process.

Like most associations, we saw attendance drop at events we sponsored this year. However, even dur-

ing a tough year, people have continued to need what exhibitors have to offer, and the quality of interaction

between exhibitors and attendees has been higher than ever. To ensure that conferences are most relevant to

the demands of today’s multichannel marketing environment, we reevaluated priorities and, in some cases,

consolidated smaller conferences with larger events.

We will continue to support events that are most important to the direct marketing community,

including our Annual Conference and Exhibition, DM Days New York, Email Evolution Conference, and

two DMA Nonprofit Federation events. We also continue to publish four major research reports that are

most useful to all members, including our ongoing econometric study, The Power of Direct Marketing.

2

Page 5: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

DMA will also expand collaboration with other groups to help make sure that the marketing community’s

most important questions are addressed with timely, accessible research studies.

In looking to the future, we have elevated our strategic focus to a global scale, to help DMA members

enter new markets and find new customers or donors, and to extend the global direct marketing capabilities

available for both US and non-US marketing campaigns: We’re working closely with Japan Post to deliver

DMA-developed educational content in Japan; in Saudi Arabia this year, we launched the Arab DMA, our

newest affiliate, serving a region in which practically no direct marketing exists today; and we made strong

progress with key stakeholders in China to implement the appropriate strategy for developing the direct

marketing process in that enormous market.

As global direct marketing continues to evolve in 2010 and beyond, multichannel direct marketers

have an extraordinary opportunity to lead all marketing into a new era of profitable growth. A new kind of

marketing is quickly becoming reality. Based on data and analytics, the new marketing paradigm uses intelli-

gence to integrate every interactive channel — from mail, phone, and PC to mobile devices, social networks,

and new addressable services. Rich data and digital technology have made every marketer a direct marketer.

Supporting and protecting the direct marketing process has never been more important.

One-to-one marketing is an exciting vision, and a goal best pursued with a powerful group behind

you. DMA is that group: the one organization most capable of keeping all communications channels open

and economically viable. DMA can help every marketer improve results across all channels and through

every step of the process — from mail to Web, to mobile to addressable TV, and everything in between —

and using the latest in data and analytics.

As you’ll read in this report, direct marketing has a real chance to shine in every market and channel,

making our community an integral part of the solution. We’re very proud of all we do to serve you, and we

strongly urge everyone to get involved to make your DMA even stronger.

Sincerely,

Kelly B. Browning John A. Greco, Jr. Chairman of the Board President & CEO

3

Page 6: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

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Marketing budgets are moving from mass advertising to multichannel direct.

What’s it all about? The bottom line is profitable results.

Our world is changing. People are changing. Communications are changing.Marketing today takes place in a constantly changing landscape, meaning marketers

must continuously explore new ground, while simultaneously sharpening the skills and established fundamentals that have worked effectively so far.

Marketing is always all about a buyer and seller, a prospect and an offer, a need and a solution. In simpler times, a shop owner knew every customer by sight. Marketing to them was very much a one-to-one proposition. Over time, mass markets emerged and marketing evolved into the large, complex business process of today, pumping value throughout the 21st-century global information-based economy. Now a vision is emerging of a new type of marketing, one with the capability of engaging millions of customers and donors — one-to-one.

One-to-one marketing holds the answer to two of today’s most critical needs: con- trolling costs, and assigning accountability for a predictable, measureable return on all marketing spending.

Brand marketing conveys what marketers want people to know about their product or service, while direct marketing makes use of what marketers actually know about their customers, donors, or prospects: how to reach them, what their interests and preferences are, and their willingness to engage in a continuing marketing relationship. The appearance of multiple digital communications channels in every aspect of daily life over the past two decades has long since blurred the boundaries between brand and direct.

Today, marketing spending is clearly shifting to the direct side of the field, and within the direct marketing process, the migration from traditional interactive channels, such as mail, to new digital channels, such as mobile, is clearly accelerating.

M a r k e t i n g

-TO-

SOURCE The Power of Direct Marketing: 2009-10, Direct Marketing Association

Page 7: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

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Multichannel direct advertising54%

Massadvertising46%

2 0 0 9

Marketing budgets are moving from mass advertising to multichannel direct. Direct marketing is rapidly becoming the

one-to-one interactive discipline favored

by all types of business and

nonprofit organizations.

What’s it all about? The bottom line is profitable results.

An integrated, one-to-one approach to marketing in online and offline channels uses many of the same fundamental principles as direct marketing: testing response variables, analyzing marketing data, and adjusting to improve effectiveness, especially in ongoing relationships. Veteran marketing executives know that measuring the impact of traditional brand mass marketing requires months, if not years.

Combining today’s instant digital communications with marketing techniques developed and perfected in the original “interactive” channels — mail and telephone — can provide marketers with benchmarks in minutes instead of weeks. Advances in data processing, analytics, list compiling, digital asset management, and other new technologies, have turbocharged the direct marketing process with powerful new tools for guiding and executing marketing campaigns and strategies to achieve the highest returns.

Each step in the evolution of direct marketing — from mailbox to telephone, to personal computers to mobile devices, and now to digital boxes and readers — has broadened both the scope and economic impact of direct marketing. At the same time, its fundamen- tals, including the mathematics of testing and measurement, remain constant. Proven direct marketing tools — addressability, personalization, and direct response — add value in every channel, from email and postcards to catalogs and websites, from text messages to online video, social networks, mobile, and addressable digital services, and beyond. From online to offline, direct marketing is all about one-to-one.

One-to-One Direct Marketing: Relevance, Responsibility, ResultsPowering the direct marketing process are three perennial benefits for all participants,

beginning with the ability to be relevant to people’s interests, and timely in addressing their needs. Relevance is essential in today’s world; it’s the key to breaking through the clutter surrounding prospects. People appreciate and increasingly demand conveniently available information whenever, wherever, and however they want it.

The most successful direct marketing offers are personally meaningful to individual recipients. They’re delivered in the right channel at the right time, in keeping with individual

Page 8: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

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preferences. Making engagements relevant at every touch point builds strong marketing relationships, strengthens loyalty, and increases sales. The ability to tailor the message, medium, and means of delivery — on a minute-by-minute basis, 24/7 — is creating important new opportunities to gain attention and build

engagement, and along with these opportunities come significant responsibilities.

One-to-one marketing takes relevance to new heights, based on vast amounts of marketing data flowing quickly and easily, integrating all channels, online and offline. Such data is necessary to execute strategy, respond to changes, and control distribution by tracking responses across a broad mix of channels. With customers, donors, and prospects concerned about trusting marketers to protect their privacy and honor their preferences, there is a constant danger of new laws and regulations that could constrict this vital flow of marketing data.

Establishing trust through responsible actions has always been a key part of the direct marketing process, which by nature is business conducted at a distance. As a consequence, the direct marketing community already has a powerful track record of effective self-regulation and a strong framework for one-to-one marketing in new channels, including email and mobile.

Effectively delivering measurable results for buyers and sellers in every channel is what direct marketing does best. The direct marketing process is huge, and adds well in excess of a trillion dollars of incremental final demand to the US gross domestic product. Direct marketing campaigns in all channels drive more than $1.7 trillion worth of annual sales through the US economy, and as much as three times that amount of sales globally.

More than 54 percent of all advertising spending now goes into direct mar- keting channels in the US — more than $149 billion in 2009. Direct mail cam- paigns and catalogs make up $44.4 billion of that amount, with projected growth rates in the low single digits returning in 2011. Much higher growth rates are associated with email and Internet marketing, which last year attracted $23.7 billion

internet Searchinternet Displayinternet OtherCommercial emailSocial networkingMobile telephone MarketingDirect Mail (non-Catalog)Direct Mail (Catalog)Direct response tV Direct response newspaperDirect response MagazineDirect response radioinsert MediaDirect Marketing Other

$ 243.9 +10.7% Cagr

140.5 +8.3% Cagr

59.5 +13.9% Cagr

26.0 +9.2% Cagr

14.3 +15.9% Cagr

2.1 +37.5% Cagr

334.3 +0.5% Cagr

445.8 +3.7% Cagr

110.5 +4.1% Cagr

128.7 +6.3% Cagr

110.4 -3.9% Cagr

68.4 +2.6% Cagr

27.7 +3.9% Cagr

9.5 +5.1% Cagr

16.7 +6.7% Cagr

2009 total Direct Marketing-Driven Sales in Billions

Direct MarketingMedium

On

li

ne

Of

fl

in

e

M a r k e t i n g

-TO-

SOURCE The Power of Direct Marketing: 2009-10, Direct Marketing Association

Page 9: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

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of spending. Globally, direct marketing expenditures are roughly estimated to exceed US$400 billion.

As one-to-one marketing continues to emerge, these digital direct channels will continue to lead growth through the downturn and beyond. The most rapid growth will occur in the newest direct channels: social networks, 3G mobile, and

addressable television, and direct marketers moving toward one-to-one marketing will continue to use data and analytics to maximize return on investment. On average, direct marketing advertising returns more than twice the average for non-direct advertising — $11.65 for every dollar spent.

Direct marketing is a powerful and consequential process, an extraordinary engine for economic growth in the US and around the globe. Sharing the use of this process is a large and incredibly diverse professional community, led by DMA member organizations. DMA is the world’s leading trade association dedicated to keeping all marketing communications channels open and economically viable, while offering valuable assistance in improving marketing results — online and offline. One-to-one marketing is best done with a powerful group like DMA behind you.

To achieve the full value of one-to-one marketing, DMA strives to create the most attractive market space possible for all direct marketing participants: businesses and customers, nonprofits and donors, consumers and policymakers. This is a multifaceted, challenging task, too large for any individual entity to tackle alone. Together, DMA members accomplish a tremendous amount that benefits the entire marketing community. Involved individuals and committed organizations from all areas of direct marketing allow DMA to provide the most valuable member services: advocacy, reputation management, education/professional development, market- making/networking, and market intelligence/research.

The more people become involved in DMA, the more powerful DMA can be in fulfilling the vision of one-to-one marketing.

$ 243.9 +10.7% Cagr

140.5 +8.3% Cagr

59.5 +13.9% Cagr

26.0 +9.2% Cagr

14.3 +15.9% Cagr

2.1 +37.5% Cagr

334.3 +0.5% Cagr

445.8 +3.7% Cagr

110.5 +4.1% Cagr

128.7 +6.3% Cagr

110.4 -3.9% Cagr

68.4 +2.6% Cagr

27.7 +3.9% Cagr

9.5 +5.1% Cagr

16.7 +6.7% Cagr

Projected Compound annual growth rate

from 2009-2014

On average, each $1 spent in 2009 on direct marketing advertising drove a return of $11.65 in added sales. By 2014, the average return on direct marketing invest-ment will rise to $12.03.

Total 2009 direct marketing-driven sales of $1.738 trillion are projected to average 5.1% annual growth through 2014.

Page 10: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

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DMA President & CEO John A. Greco, Jr. with Representative Edolphus (Ed) Towns (D-NY), Chairman of the House Oversight & Government Reform Committee.

(Left to right) Kelly B. Browning, DMA 2009 Board Chairman; Senate Majority Leader Harry Reid (D-NV); John A. Greco, Jr., DMA President & CEO; and Donn Rappaport, 2008 DMA Board Chairman. At the DMA08 open-ing session, Senator Reid welcomed attendees to the state of Nevada.

DMA members met with Congress-man Peter Roskam (R-IL) during DMA’s Illinois Hill Day. DMA Hill Days give members the chance to discuss issues relevant to their businesses with members of Congress.

A D v O C A C Y

Page 11: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

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A powerful group…has a proven track record in advocating public policy

DMA members can take pride in the position we’ve attained over the years as a strong, proactive advocate for the marketing community — and a familiar, authoritative voice that speaks for the direct marketing process in Washington, DC, throughout the country, and around the world.

Public policymakers play a key role in one-to-one communications because they’re constantly trying to balance consumer and commercial interests in the markets where the two intersect. DMA recognizes the fundamental role that public policy plays in an open, healthy, and productive direct marketing process.

DMA’s Government Affairs team closely monitors trends and developments in public opinion and policy that affect direct marketing in any channel — online or offline. DMA works aggressively to make sure that any proposed legis- lation or regulation will be consistent with the needs and interests of the direct marketing com- munity. Our members are often asked to testify at hearings and other meetings where issues that affect the future of marketing are weighed.

As an advocate for direct marketing, DMA represents members and their positions before Congress as well as the executive branch and federal agencies, including the Federal Trade Commission (FTC), the Federal Communica- tions Commission (FCC), and the Postal Regulatory Commission (PRC), as well as their global counterparts.

DMA works closely with the US Postal Service (USPS) to ensure that our members’ voices are heard and given due consideration

as postal reform is implemented in the face of falling volume and rising costs, and we take part in Universal Postal Union (UPU) proceedings throughout the world representing the direct marketing community.

Over the past year, DMA has taken the lead in organizing a coalition to advocate for marketing on the specific issue of consumer notice and choice in online behavioral advertise- ments — a source of growing public commen- tary and concern. In February 2009, the FTC called on advertisers, publishers, Internet advertising networks, and service providers to create a credible and vigorous self-regulatory framework for online behavioral advertising. In Congress, the House Energy and Commerce Committee held hearings, and several commit- tee members called for legislation.

DMA members oppose any legislation that would hamstring Internet advertising. Conven- ient access to popular Internet content, services, and applications that consumers expect at no cost is, in reality, increasingly paid for by Web advertising. Increasing the relevance of advertis- ing helps advertisers by narrowing distribution and improving results. It also provides con- sumers with messages that are in context and driven by each user’s own interests and actions.

In July 2009, DMA’s coalition of key trade groups (including the American Association of Advertising Agencies, the Association of National Advertisers, the Interactive Advertising Bureau, and the Council of Better Business Bureaus) released comprehensive privacy prin- ciples for the use and collection of behavioral data in online advertising, an unprecedented collaboration representing the entire marketing and media community.

To allay public concerns about the kind of information that should be collected from consumers, how it should be used, and what choices consumers have regarding these

Page 12: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

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practices, our coalition developed seven key principles for a self-regulatory process. These principles begin with educating people; go on to cover specific issues of transparency, consumer control, data security, material changes, and sensitive data; and, finally, call for accountability in implementing the process. DMA and the Council of Better Business Bureaus, a leader in building marketplace trust, will work cooperatively to

develop and promote accountability programs to encourage widespread adoption of the principles.

Overall data security continues to be an issue of concern, not only in hundreds of state law proposals each year, but also in several congressional committees. Both the House and Senate held hearings this year on the need for additional legislation to safeguard confidential financial and health data. In June, the House Committee

A D v O C A C Y

“Consumers deserve transpar-ency regarding the collection and use of their data for behavioral advertising pur-poses. I am gratified that the Direct Marketing Association, working with a group of other influential associations — representing a significant component of the Internet community — has responded to so many of the privacy con-cerns raised by my colleagues and myself. These associations have invested substantial efforts to actually deliver a draft set of privacy principles, which have the potential to dramatically advance the cause of consumer privacy. I com-mend these organizations for taking this important first step. I am hopeful that suc-cessful implementation will follow. In the meantime, I encourage the entire privacy community to continue a dia-logue that places the interests of consumers first.”

PAMeLA JONeS HARBOuR

FTC COMMiSSiONeR

“I appreciate DMA’s outreach on issues before the Senate Com-merce Committee. The expertise of the association and the mem-bers, both in Mississippi and throughout the country, is valuable to Congress’s ongoing policy discussions.”

SeNATOR ROgeR WiCkeR (R-MS)

“I have greatly enjoyed work-ing with DMA over the years on issues relating to marketing and commerce. I continue to value the Association’s input, both from its staff and from DMA members in Arkansas, who represent over 13,000 Arkansas jobs.”

SeNATOR BLANCHe L. LiNCOLN (D-AR)

“I’ve long enjoyed working with DMA on a number of important issues, and appreci-ate DMA’s input on emerging technology, tax, and postal issues.”

SeNATOR THOMAS CARPeR (D-De)

“Direct Mail is one of the most powerful tools available for marketers to grow reve-nue in a down economy. The Postal Service and DMA work collaboratively to assure the maximum return on your investment in the mail.” JOHN (JACk) e. POTTeR

POSTMASTeR geNeRAL AND

CHieF exeCuTive OFFiCeR

uNiTeD STATeS POSTAL SeRviCe

“DMA is a respected and engaged advocate for direct marketing that also plays an important public service role through its environmental initiatives. I, like many policy makers, stay informed through DMA’s advocacy on the value of direct mail and the contribution to the nation’s

economy by the direct market-ing industry.”

NANCi e. LANgLeY

viCe CHAiRMAN, uS POSTAL

ReguLATORY COMMiSSiON

Page 13: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

on Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection approved a bill on which DMA is now working closely with House staff to craft optimal final legislation.

Concerns about the continued viability of the mail as a high-performing marketing channel heightened this year, as the recession and other factors caused the USPS to incur major losses, exacerbated by huge retiree health payment obligations. DMA has actively supported H.R. 22 and S. 1507, bills that seek to modify some of the retiree payments. The USPS has gone to Congress to dis- cuss service reductions as another avenue to cutting losses, including five-day delivery. DMA believes that efficien- cies and innovations must precede elimination of services.

For example, DMA has long advocated seasonal pricing. As early as 2007, then DMA Chairman Markus Wilhelm urged the USPS and the PRC to introduce seasonal and even daily discount rates to increase mail volume during slower times. This year, for the first time, the USPS took advantage of pricing flexibility that DMA advocated so strongly during postal reform by conduct- ing a “summer sale” to encourage large mailers to increase volume over last year and save between July and September.

Beyond the difficulties at the post office, state legislatures continue to propose do-not-mail registries in response to environmental and privacy concerns, which are sometimes ill-informed. This year, six do-not-mail bills were introduced in four states, but none passed. The San Francisco Board of Supervisors passed a non- binding resolution calling on California and Congress to set up do-not-mail registries.

Carefully monitoring and taking action when nec- essary to keep the facts about mail in focus is the mission of Mail Moves America. This coalition was formed a few years ago by DMA, other mailing community associations, and companies in the paper, printing, mailing, market- ing, publishing, and advertising industries, as well as the users of mail advertising. Mail Moves America continues to help fight do-not-mail proposals wherever they appear.

In the 17 years since the US Supreme Court ruled that physical presence, or nexus, is necessary for states to compel companies to serve as tax collectors, a number of states have sought ways to redefine nexus and require remote sellers to collect tax. This year, facing major budget deficits, eight states introduced such bills. North Carolina and Rhode Island enacted laws that may decrease state revenues due to terminating affiliate

networks in those states. Hawaii and California also passed nexus bills, but each was vetoed by the governor. DMA’s Internet Alliance argued that the change would spell disaster for many businesses, a message reflected in both vetoes.

When a proposal to include language in the econo- mic stimulus allowing states conforming to the “Stream- lined Sales and Use Tax Agreement” to tax sellers located outside the state came up in early 2009, DMA actively contacted the House and Senate tax-writing committees, and sent a letter of strong opposition to congressional leadership. Citing the anti-stimulus nature of the pro- posal, DMA advocated against the provisions, a position that was upheld in the final legislation.

DMA also provides electronic publications to keep members abreast of legislative and regulatory developments. These include Politically Direct and Direct from Washington.

Every position advocated by DMA is strengthened considerably by our successful track record with self- regulation — valuable credibility based on our decades as a leader in the development of comprehensive self- regulatory guidelines for all facets of direct marketing. We base our advocacy on the principle that self-regula- tion, which is fluid and flexible, is preferable in most cases to laws, which are narrow and absolute — and a much better way to address ongoing changes in technology, markets, and business practices.

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ADVOCACY-RELATED WEBSITES

DMA Government homepagewww.the-dma.org/government

DMA Legislative Action Center www.DMAaction.org

Direct Voice, the DMA PAC www.the-dma.org/dmapac

Internet Alliance www.internetalliance.org/

Mail Moves America coalitionwww.mailmovesamerica.org

Self-Regulatory Principles for Behavioral Advertising www.the-dma.org/principles

keY ReSOuRCeS

Page 14: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

In 2009, DMA launched the flagship issue of Point, a digital publication focused on one time-ly, highly relevant topic explored in-depth by several high-level experts representing a variety of viewpoints from the marketing spectrum.

DMA President & CEO John A. Greco, Jr. (Right) presented the DMA 2008 Marketer of the Year Award to Jed Paulson, eBay Senior Manager of Marketing Technology (Left).

The DMA International ECHO Awards honor direct marketing campaigns that have raised the bar in terms of strategy, creativity, and results. Campaigns recognized by ECHO dem-onstrate excellence in marketing and creative execution as well as insight into audience behavior.

(Left to right) DMA Hall of Fame Inductees W. Howard Lester, Williams-Sonoma Chairman of the Board and CEO; and Charles Williams, Williams-Sonoma Founder and Director Emeritus; with Dr. Marjorie Kalter, Chair-man of the DMA Hall of Fame Committee.

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R e P u T A T i O N M A N A g e M e N T

Page 15: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

A powerful group…safeguards its trustworthy reputation

As new practices emerge to enable one-to-one marketing, enhancing the trust and confidence people place in marketing will become more essential than ever. In a multichannel environment, losing trust in one channel has consequences in every other channel as well.

DMA and its member companies have long recognized that the best way to gain trust is through effective self-regulation based on definitive shared guidelines and best practices for dealing responsibly with customers, donors, and prospects. For more than four decades, DMA has maintained and updated its Guide- lines for Ethical Business Practice to reflect developments in technology and media, and to keep pace with the changing needs and expectations of consumers.

In recent years, for example, we’ve added guidelines on data collection and sharing, fund- raising, and email authentication. The newest initiative, DMA’s Commitment to Consumer Choice, demonstrates how strongly DMA mem- bers value and honor the individual preferences and choices of consumers.

To provide consumers with greater choice, DMA has continued to expand and enhance our consumer preference service, DMAchoice. We’ve built a best-in-class Internet site dedicated to all forms of consumer choice with a current priority

on mail preferences, a source of great consumer interest from both privacy and environmental standpoints.

New features and functions allow con- sumers to manage their own preferences — by category or by brand. Separate categories for consumers to consider are catalogs, magazines, pre-approved credit offers, and other types of advertising mail. We educate visitors about the implications of the choices they can make within each category, allowing more informed decisions about their preference choices.

DMAchoice.org has been featured exten- sively in news media across the country over the course of the year, and as our story got out, the tone of the coverage became much more positive than it was before the website was upgraded. Now, for the first time, we connect consumers directly to individual brands and merchants for any change: opt-out, opt-down, and opt-in. Con- sumers can suppress only what they do not want to receive and continue getting what they do want.

For direct marketers, choice by category means more names are open to marketing, and fewer names need to be suppressed than when mail preference was an all-or-nothing option. From now on, catalog and multichannel mer- chants, magazine publishers, and other market- ers will each only need to suppress less than half of the new names on our DMA Mail Preference Service opt-out list, leaving over half the names on the list available.

With a major spotlight on the issue of online behavioral advertising, our Ethics Policy Committee is collecting member input in order to revise existing DMA guidelines to align with the “Self-Regulatory Principles for Online Behavioral Advertising” developed this year by a DMA-led coalition (see p. 9). Similar work is

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R e P u T A T i O N

DMAchoice is an online tool developed by DMA to help you manage your mail. This site is part of a larger pro-gram designed to respond to consumers’ concerns over the amount of mail they receive, and it is the evolution of the DMA’s Mail Preference Service created in 1971.

Hall of Fame inductee Jan Brandt, Vice Chair Emeritus, AOL and member, Pilot Group, with Donn Rappaport, 2008 DMA Board Chairman.

The 2009 Diamond ECHO award was presented to Shackleton for its campaign, “Niger Luxury Club,” which helped Action Against Hunger raise money for its project in Niger.

DMA members can download the DMA Member Logo for use on websites, catalogs, bro-chures, and advertisements. It’s an opportunity for market-ers to demonstrate that they are part of an outward-looking organization focused on ethical marketing standards.

Electra Weeks, accepting the DMA Hall of Fame Award on behalf of her mother, direct marketing legend Andi Emerson, Founder, President, and Board Chair, John Caples International Awards.

3D-DMA Daily Digest delivers a daily snapshot of the mul-tichannel marketing world, putting vital marketing intel-ligence at marketers’ fingertips. Since its launch in 2001, 3D has been consistently praised for delivering the day’s essen-tial news, hot trends, and technological developments in a fast, easy-to-read format.

DMA rang the NASDAQ closing bell to kick off DM Days New York.

3DDMA DAILY DIGEST

DMA’s Green 15 is an innova-tive environmental action program that includes new-member encouragements and requirements, educational initiatives, and tools to com-municate environmental commitments with customers and business partners.

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underway on guidelines for mobile and social marketing, all with the goal of providing DMA members with generally acceptable principles of conduct while ensuring that our community builds consumer trust in the marketing process across all the channels.

In 2009, DMA and two other trade groups — the Electronic Retailers Association and the Interactive Advertising Bureau — were invited to fill new board seats on the National Advertising Review Council (NARC), a respected and active 30-year-old self- regulatory body. DMA’s longstanding leadership in self-regulation for direct marketing naturally comple- ments the NARC mission of self-regulating truth in advertising. As new channels, new media, and new integrated marketing techniques blur the line between brand and direct marketing, this is a major step for advertising self-regulation to change with the times and keep pace with new challenges.

Implementing responsible, ethical, and sustainable marketing practices is not only the right thing to do, it makes sound business sense as well. The “triple bottom-line” is the focus of DMA corporate and social responsibility work adding environmental and social considerations to the financial ones: planet, people, and profit. The benefits of this approach can include greater efficiency, higher revenues, lower operating costs, and enhanced customer relationships.

In January of 2009, the change of administration in Washington increased focus at all levels of government on environmental issues. DMA, with counsel from the Committee on Environment and Social Responsibility, leads industry-wide efforts to improve the environmental performance of the marketing community and raise our public profile, creating a solid foundation for communicating with policymakers about the effective- ness of self-regulation and responsible marketing.

DMA in 2009 launched a groundbreaking professional development program: the Environ- mentally Responsible Marketing (ERM) Certificate. Through this program, we help user and supplier organizations to build up in-house expertise on environmental and sustainability issues germane to direct marketing. For organizations further along the path of developing eco-responsible policies, we created a new ECHO Green Marketing Award to honor the most innovative campaign using environmentally responsible and sustainable marketing strategies and techniques.

In 2009, DMA’s Green 15 and Environmental Action Program won the American Society of Associa- tion Executives (ASAE) 2009 Associations Advance America (AAA) Award in a national competition.

To help members stay ahead of the curve, DMA in 2009 rolled out a virtual briefing series on compliance issues, and launched a monthly e-bulletin for members. Both provide the latest self-regulatory perspective on ethics, privacy, environmental, and consumer protection issues. DMA’s staff continues to work with consumers on a daily basis to resolve issues with marketing claims and offers by both members and nonmembers.

DMA also rolled out a new digital publication this year — offering a wide vista of perspectives and practices from marketing innovators and thought leaders — Point. Each edition of Point focuses on a single timely topic, explored by high-level experts from across the spectrum of marketing.

Throughout the year, DMA reaches out to con- sumers, the media, and other key stakeholders who influence perceptions of direct marketing to protect and extend our reputation for respecting consumers and acting responsibly.

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REPUTATION-RELATED WEBSITES

DMA Commitment to Consumer Choice Resource Centerwww.dmaccc.org

DMA Environmental Resource Center www.dmaresponsibility.org/ERC

DMA Environmentally Responsible Marketer (ERM) Certificate program

www.dmaresponsibility.org/ERMDMA ECHO “Green Marketing” Award

www.dmaresponsibility.org/GMAPoint: DMA thought leader perspectives

www.the-dma.org/point/

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Thousands of marketers from around the globe gather for DMA’s Annual Conference & Exhibition to get the latest intelligence from marketing experts and thought leaders, through a wide variety of educational programs, pre- and post-conference intensives, keynotes, and panels. The DMA Annual Conference & Exhibition (DMA2010) will take place Octo-ber 9-14, 2010, in San Francisco.

At DMA’s inaugural event, Mobile Marketing Day, expert speakers representing leading-edge compa-nies shared insight on the latest developments in mobile market-ing, as well as how to use and monetize it.

Designed to make marketers com-petitive in the global marketplace, the DMA Certified Marketing Pro-fessional Program covers all areas of direct marketing, including strategic planning, digital market-ing, social channels, creative, data- base, measurement, and analytics.

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e D u C A T i O N / P R O F e S S i O N A L D e v e L O P M e N T

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A powerful group…educates people and creates competencies

DMA educational programs, across a full range of delivery options, help both the individual looking to excel and the organization looking for competence.

A changing world such as ours requires that people constantly refresh their knowledge and add new capabilities and skills to keep pace with competition. Organizations competing in the marketplace need employees who are competent and ready to achieve excellence in their marketing efforts.

DMA’s public seminars, held in New York City and other major cities, are second to none for people learning to apply the proven tech- niques and best practices of direct marketing. From breaking into social media to mining the marketing database for improved results, DMA seminars show how to spend marketing dollars wisely and effectively.

For large staff training, DMA offers customized In-Company Education courses tailored to an organization’s specific needs and delivered on-site — an easy and affordable way to improve marketing results.

With many people tied to the office for various reasons these days, DMA is offering

online education courses and virtual seminars that can be accessed from anywhere. Self-paced e-learning modules capture valuable information from DMA in-person seminars on subjects such as search engine marketing and copywriting, offering participants unparalleled opportunities to gain vital expertise on a wide range of market- ing issues critical to both career and business success.

This year, we introduced the DMA Certified Marketing Professional program, a first-of-its-kind innovative and flexible pro- gram that’s expected to set global standards for direct marketing education. Initially, the program will encompass 16 modules covering all core areas of direct, interactive marketing, including strategic planning, digital marketing, social channels, creative development, database marketing, measurement, and analytics.

Courses leading to certification are available both online and in person. People who attended selected sessions at DMA09 in San Diego, where over 130 sessions in nine targeted categories of instruction were offered, received initial credits toward certification. This option will extend to other DMA con- ferences and events during the year. Anyone can sign up for the program, and individuals who work for DMA member companies will receive additional benefits throughout their course of study, beginning with special mem- ber pricing.

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Changes in the economy, technology, and public policy require marketers to constantly reevaluate how and where they do business. The need for well-trained people who are ready and able to meet recognized global standards of excellence will never abate.

DMA education enhances the entire direct market- ing community by presenting direct marketers with the knowledge and skills needed to deliver one-to-one marketing in today’s competitive and challenging times.

DMEF’s mission is to attract, educate, and place top college students in the business of direct/interactive marketing, supported by an extensive array of programs, events, and networking opportunities. The Foundation gives marketing professionals, students, and academics the opportunity to network and to celebrate the growth of multichannel marketing.

DMEF’s Next Generation Leaders, a unique 8- to 12-month rotational program, enables top university graduates to acquire valuable work experience. The Foundation’s Annual Rising Stars Awards honor out- standing marketing achievements by professionals 40 years and younger.

The Foundation’s offerings also include its Professors’ Academy; Direct/Interactive Marketing Research Summit; Next Generation Leaders; Scholar- ships Program; Student Career Forum; and Annual Awards Dinners. DMEF’s interactive website, www.directworks.org, provides academicians, corporations, and students with a multitude of information and resources.

Established in 1966 by DMA members who wanted to give back to the profession, DMEF is a separate, 501(c)(3) nonprofit educational foundation supported by tax-deductible contributions. It is the only national foundation of its kind solely committed to introducing and engaging professors and college students in direct/interactive marketing.

EDUCATION-rElATED WEbsITEs

DMA In-Person and Online Education www.the-dma.org/calendar

DMA Certified Marketing Professional Program www.dmacertificate.org

DMA Catalog of Events www.dmacatalog.org

DMEF homepage www.directworks.org

Donate $5, Mobile Giving Text the word ‘DMEF’ to 20222

i-Go Direct Job Bankwww.igodirect.org

Direct Marketing Timelinewww.directworks.org/Timeline/Default.aspx

Professor’s Academy www.directworks.org/Educators/proacademy/welcome.aspx

Next Generation Leaders www.directworks.org/students/Default.aspx?id=310

Journal of Interactive Marketingwww.directworks.org/Educators/Default.aspx?id=220

Interactive Direct Marketing Program Map www.directworks.org/students/Education/InteractiveMaps.aspx

Key ResouRces

Next Generation leaders, DMEF’s and DMA’s unique 8- to 12-month rotational program for recent college graduates, brings together its first and second year Associates during DM Days New York (left to right): Magda losonczy, Andrea Derricks, Kelly lewis, Jessica Young, Nicole lombardo, Kara Daddario, and Francisco Alberini.

(left to right) Gary s. laben, DMEF Chairman and President, and CEO, Knowledgebase Marketing Inc.; DMEF Education leadership Award recipi-ent Jon roska, CEO & Chief Creative Officer, roska Direct; and Allen W. Dyon, DMEF board Trustee, and Chief Marketing Officer, DMrA.

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M A R k e T i N T e L L i g e N C e / R e S e A R C H

As direct marketing continues to evolve toward a future model of multichannel, integrated one-to-one relationships based on data, analytics and testing, timely and accurate information about the direct marketing process remains vital to marketing research, and a key to developing market intelligence.

DMA publishes four top-priority research reports that form a foundation for measuring and analyzing the impact and value of direct marketing. Our flagship report, The Power of Direct Marketing: ROI, Sales, Expenditures and Employment in the US, has for over a decade benchmarked the economic impact of the direct marketing process in every channel. DMA’s Quarterly Business Review tracks key metrics among mem- bers, such as current and projected sales, profitability, employment, and ROI.

DMA’s Statistical Fact Book and Response Rate Report present a wealth of information direct marketers can use in answering questions about their own marketing plans. Both books, and a wide variety of other DMA research publications, are available online though

the DMA Bookstore.Also available online is the new

Library of ECHO Award Case Studies — a breakthrough in learning opportuni-ties from direct marketing community role models. The ECHO Awards is the only competition of its kind in which entrants submit full case histories with strategy details, actual examples of creative executions, and documentation of results.

The library provides subscribers with access to full case histories and all collateral material submitted with outstanding ECHO entries, using online media to provide the experience of all elements of each case history. We expect this service to provide tremendous value, not only to market researchers, but also creative people and general marketing strategists.

A powerful group...keeps a finger on the pulse of marketing

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RESEARCH-RELATED WEBSITES

DMA Bookstore www.the-dma.org/bookstore

International ECHO Awards and Library of ECHO Award Case Studies

www.dma-ECHO.org Direct Marketing Vendor Search

www.the-dma.org/vendorsearch 3D – DMA Daily Digest – daily e-newsletter

www.the-dma.org/3dnews

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DMA’s Nonprofit Federation (DMANF) presented its 2009 Nonprofit Organization of the Year Award to the American Society for the Prevention of Cruelty to Animals (ASPCA).

Exhibitors representing state-of-the-art goods and services for every market-ing channel gathered to showcase solutions, tech-nology, and innovative practices at the DMA08 exhibit hall.

Comedy took center stage as Jay Leno hosted the 2008 International ECHO Awards Ceremony & Gala.

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M A R k e T - M A k i N g / N e T W O R k i N g

Ivanka Trump of the Trump Orga-nization keynoted at the 2009 DM Days New York Conference & Expo.

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A powerful group…brings people together to make markets and networks

Many members moving into social networking are finding DMA in all the right places, and the vital information communicated at DMA con- ferences now lives on beyond the event in recorded formats for online and virtual delivery.

Although, like most associations and other sponsors of travel-related events, DMA saw a decrease in attendance during 2009, we also saw participation in our online and virtual events grow significantly.

Our annual DMA Conference and Exhibi- tion is the global event for integrated marketing, with something for everyone in the marketing community, from entry-level to senior executive. DMA2010, to be held in San Francisco, will again be a magnet for the latest ideas, trends, and innovations that make the multichannel direct marketing process an essential driver of sales and growth for today’s global economy.

DMA’s Global Leaders’ Forum brings together top professionals in the direct market- ing community from around the world, leaders of influential marketing services and advertising agencies, and senior executives from all types of advertisers. This limited-seating event is both a powerful program on marketing strategy and a valuable opportunity to compare notes with colleagues and peers.

Email marketing is an increasingly important part of multichannel direct market-

ing, and DMA’s Email Experience Council (eec) brings together a large number of people interested in exploring the capabilities of email to examine how email and other online and offline media affect one another.

Mobile marketing and social media were hot topics in 2009, and will no doubt continue to be so for years to come. DMA launched new Special Interest Councils for these two fast- growing constituents of the ever-changing direct marketing community — creating unique opportunities for sharing experiences, learning from experts, and successfully integrating new marketing channels. DMA membership makes individuals eligible to participate in councils spanning 22 segments and categories, ranging from analytics to search. Each council’s Advisory Committee acts as a resource for overall DMA efforts in advocacy, reputation management, education/professional development, market- making/networking, and market intelligence/research.

DMA established the iDirect Leadership Committee in 2009 to bring together top direct and digital marketing and advertising experts from across the community who will help advance the vision of one-to-one marketing with customer-focused actions and digital processes — all powered by comprehensive data systems. Co-chairing the committee are Direct Marketing Hall of Fame member and Engauge Chairman Stan Rapp, and Acxiom Corporation Senior Vice President Tim Suther.

Also in 2009, DMA chartered a new global network of top direct marketing professionals united by a shared dedication to the high stan- dards of creative strategy, marketing excellence, and business success that distinguish our Inter- national ECHO Awards each year. The estab- lishment of the ECHO Academy of Direct Marketing Arts & Sciences is a major step

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forward for the worldwide marketing community as it continuously advances the standards of excellence in every direct marketing channel.

Our DMA Affiliate Network extends throughout the direct marketing community via 24 local groups across the country, tapping into the strength that comes with unity and deep political grassroots. DMA provides many tools and benefits to assist these regional volunteer organizations and their members. We have one DMA affiliate in France, and as of this year, another in Saudi Arabia (see p. 23).

Along with the rest of the world, DMA got on board the social networking wave in a big way in 2009. DMA has become a familiar presence on social media sites Facebook, Twitter, and LinkedIn. As a result, we’re opening up communication with potential new members all over the world, and making our service to existing DMA members even stronger.

The Nonprofit Federation of the Direct Marketing Association (DMANF) serves and represents nonprofit

organizations and professionals by promoting public awareness and increasing receptivity to direct marketing- driven philanthropy.

For more than 25 years, DMANF has been providing its members with cutting-edge fundraising information, membership development, new media integration support, and a tenacious lobbying presence.

The Federation offers world-class research, and educational and networking opportunities for nonprofit marketers and fundraisers, including annual conferences, virtual seminars, mentoring programs, and a new Critical Issues Seminar.

The Federation works with the federal government to ensure that relevant issues and the needs of charities are well-represented before Congress. This year, the Federation joined forces with a coalition of national charities to fight against a proposal seeking to limit the value of itemized deductions for charitable contributions.

In all of the 50 states, DMANF advocates for the interests of nonprofits on issues such as postal rates and delivery service, data protection, fundraising account- ability, and charitable tax deductions.

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NETWORKING-RELATED WEBSITES

Email Experience Council (eec) www.emailexperience.org/

DMA Special Interest Councilswww.the-dma.org/segment

DMA Affiliateswww.the-dma.org/affiliatenetwork

ECHO Academy of Direct Marketing Arts & Sciences www.dma-echo.org/echo-academy.jsp

DMA Career Center www.the-dma.org/careercenter/

DMANF Homepagewww.nonprofitfederation.org

DMANF Staff & Advisory Councilwww.the-dma.org/dmanfcouncil

DMANF Publications [email protected]

UPCOMING DMA EVENTS

European Email Marketing Conference www.emailmarketingconference.com

National Center for Database Marketing (NCDM) www.ncdmevents.com

2010 Washington Nonprofit Conference www.the-dma.org/2010nonprofit

Email Evolution Conferencewww.emailevolution.org

Annual Conference for Catalog and Multichannel Marketing (ACCM)

www.accmshow.com National Conference on Operations & Fulfillment (NCOF)

www.ncof.com DM Days New York

www.dmdays.com DMA Annual Conference & Exhibition (DMA2010)

www.dma2010.org

DMA SOCIAL NETWORKS

DMA on Twitter twitter.com/dma_usa DMA on LinkedInwww.the-dma.org/linkedin DMA on Facebookwww.the-dma.org/facebook

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Today, practically every- one is looking for ways to expand business, reach more people, and become more profitable.

For DMA member suppliers and marketers, this means entering new global markets, or elevating participation in them.

In 2009, DMA undertook several major global initiatives to help members enhance the quality and availability of global direct marketing capabilities to improve both US and non-US marketing campaigns. We’ve recently established partners and affiliates in Asia, South America, Africa, and the Middle East to supplement long-standing relationships with international groups in Europe, Japan, and the Americas.

DMA members in 42 countries benefit from improved gateways into new international markets, and by having DMA as a central resource for global direct marketing. In April 2009, we launched the Arab DMA as a new affiliate — a tremendous opportunity for global direct marketing. For ADMA members in Saudi Arabia, it’s a way to develop new industry and postal infrastructure they’ve never had before.

For direct marketers everywhere else, it’s an opportunity to gain access to 300 million new potential customers.

In China, DMA is working closely with all stakeholders in that rapidly chang- ing society to allow the Chinese econ- omy and markets to benefit from the improved effectiveness and productivity that the global marketing process brings.

Our first global direct marketing education initiative, the DMA Certified Marketing Professional program, allows marketers throughout the world to benefit from the same high-quality pro- fessional development, and to earn a credential recognized across countries and regions. (See p.17)

As global direct marketing con- tinues to evolve, multichannel direct marketers have an extraordinary oppor- tunity to lead all marketing into a new era of profitable global growth. No matter where you travel these days, direct and digital are combining — leading the way to a new world of one-to-one, intelligent advertising powered by data, analytics, and direct interactive response.

From online to offline — and around the world — it’s really all about one-to-one, and having the advantages of a powerful group behind you. DMA is proud to be that powerful group, wherever direct marketing is practiced around the world.

A powerful group…extends its members’ global reach

(Top) DMA partnered with the China Direct Mail Association (CDMA) to promote business development across China. (Left to right) Ramesh A. Lakshmi-Ratan; DMA President & CEO John A. Greco, Jr.; Mr. Li Guo Hua, Chairman of China DMA and Deputy Postmaster General of China Post; and Mr. Li Gao Zhao, Secre-tary General of China DMA. (Bottom) DMA President and CEO John A. Greco, Jr. addressed the gathering at the 2009 Arab Direct Mail & Marketing Forum in Jeddah, Saudi Arabia, where DMA announced the formal launch of the Arab Direct Marketing Association (ADMA).

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A s s e t s :

Cash and Cash Equivalents $ 278,277 Receivables 926,353 Prepaid Expenses and Other Assets 1,219,974 Investments 11,022,461 Fixed Assets, net 1,613,323 Intangibles, net 2,340,162

tO tA L A s s e t s $ 17,400,550

L I A B I L I t I e s A N D N e t A s s e t s

L I A B I L I t I e s : Accrued Expenses $ 2,902,026 Short-Term Borrowings 2,800,000 Deferred Income 3,895,130 Deferred Rent 746,815 Pension Liability 2,989,042

tO tA L L I A B I L I t I e s 13,333,013

N e t A s s e t s :

Unrestricted 4,067,537

tO tA L N e t A s s e t s 4,067,537

tO tA L L I A B I L I t I e s A N D N e t A s s e t s $ 17,400,550

DIRECT MARKETING ASSOCIATION, INC. AND SUBSIDIARYCONSOLIDATED STATEMENT OF FINANCIAL POSITIONJUNE 30, 2009

t h E 2 0 0 9 D m a f i n a n C i a L s t a t E m E n t s

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O P e R At I N G A C t I V I t I e s

Operating Revenues, Gains, and Other Support: Membership Dues $ 13,330,411 Conferences and Events 12,635,839 Seminar Revenue 2,133,997 Subscription Revenue 1,173,210 Publication Revenue 499,834 Advertising Revenue 370,795 Contributions 526,210 Other Income 165,807

tO tA L O P e R At I N G R e V e N u e s , G A I N s , A N D O t H e R s u P P O R t 30,836,103

O P e R At I N G e X P e N s e s

Program Services: Membership 2,207,261 Conferences and Events 9,554,563 Educational Services 2,374,743 Research and Strategic Information 616,255 Government Affairs and Internet Alliance 4,185,420 Non Profit Federation 800,311 Corporate and Social Responsibility 1,024,290 Consumer Preference Services 489,517 Public and Media Relations 1,096,007

tO tA L P R O G R A m e X P e N s e s 22,348,367

Supporting Services: General Administration 10,727,605 Fundraising 492,716

tO tA L s u P P O R t I N G e X P e N s e s 11,220,321

tO tA L O P e R At I N G e X P e N s e s $ 33,568,688

DIRECT MARKETING ASSOCIATION, INC. AND SUBSIDIARYCONSOLIDATED STATEMENT OF ACTIVITIESJUNE 30, 2009

t h E 2 0 0 9 D m a f i n a n C i a L s t a t E m E n t s

(Continued)

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26

Deficiency of Operating Revenues, Gains, and Other Support Over Operating Expenses (2,732,585)

N O N - O P e R At I N G A C t I V I t I e s

Restructuring Charge (869,000) Interest and Dividends 448,923 Realized Losses (930,273) Unrealized Gains 108,993

tO tA L N O N - O P e R At I N G A C t I V I t I e s (1,241,357) Decrease in Net Assets, Before Other Pension-Related Changes (3,973,942) Cumulative Effect of Adopting the Measurement Provisions of SFAS No. 158 (256,000)Net Losses Not Yet Recognized as a Component of Net Periodic Pension Cost (1,232,911)

D e C R e A s e I N N e t A s s e t s (5,462,853)

N e t A s s e t s , B e G I N N I N G O f Y e A R 9,530,390

N e t A s s e t s , e N D O f Y e A R $ 4,067,537

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe Direct Marketing Association, Inc. (“the Association”) is a not-for-profit trade association engaged in serving its members and advancing the interests of those involved in multichannel direct marketing with the government, the media, and consumers. Its mission is to encourage the growth and effective ethical use of multichannel direct marketing through advocacy/public policy; education and professional development; reputation management; market-making and networking; research and market intelli-gence; and corporate and social responsibility programs that strengthen consumer/donor trust and ethical business practices.

The consolidated financial statements include the accounts of the Association and its subsidiary. Significant inter-company accounts and transactions have been eliminated in consolidation.

The Association and its subsidiary are tax-exempt under Internal Revenue Code Section 501(c)(6).

AUDITED FINANCIAL STATEMENTSKPMG LLP has audited the Association’s complete financial statements, which include the Association’s consolidated statements of financial position as of June 30, 2009, and the related consolidated statements of activities and cash flows for the year then ended, and have expressed an unqualified opinion on them. For the year ended June 30, 2008, McGladrey & Pullen, LLP audited the Association’s financial statements. Copies of both sets of statements are available from the Direct Marketing Association, Finance Department, upon request.

MEMBERSHIP STATEMENTAt the close of FY 2009, DMA had 3,115 corporate members, including members of the Internet Alliance (IA), a DMA sub-sidiary. Since the close of FY 2008, this was a net decrease of 294 corporate members. Names and addresses of current company members are available at the Direct Marketing Association, Membership Department, upon request.

DIRECT MARKETING ASSOCIATION, INC. AND SUBSIDIARYCONSOLIDATED STATEMENT OF ACTIVITIESJUNE 30, 2009

t h E 2 0 0 9 D m a f i n a n C i a L s t a t E m E n t s

(Continued)

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John A. Greco, Jr.President & CEO

Linda A. Woolley, J.D.Executive Vice President, Government Affairs

Terri L. BartlettPresident, Direct Marketing Educational Foundation

Sue R.E. GeramianSenior Vice President and Chief Communications Officer

John HoranSenior Vice President and Chief Financial Officer

Tom ShimkoSenior Vice President and Chief Marketing Officer

Xenia (Senny) Boone, J.D.Senior Vice President, Corporate and Social Responsibility

Jerry Cerasale, J.D.Senior Vice President, Government Affairs

Kenneth P. EbelingSenior Vice President, Member and Segment Services

Julie A. HoganSenior Vice President, Conferences and Events

Jodie Sangster Senior Vice President, Global Development and Education Services

Robert A. GrecoVice President, Finance, and Controller

Marie A. AdolpheVice President, Program Development, Direct Marketing Educational Foundation

Ron BarnesVice President, State Affairs

Gerald F. Longo, CMPVice President, Logistics and Operations

Paul A. McDonnoughVice President, Conferences and Events

Neil C. O’KeefeVice President, Multichannel Segments

Lee ShufroVice President, Sales

Rachel ThomasVice President, Government Affairs

Christopher QuinnExecutive Director, Nonprofit Federation

Karina Peña GarciaSenior Director, Marketing

Helen LeeSenior Director, Nonprofit Federation

Serenity EdwardsDirector, Corporate and Social Responsibility

Rachael FeigenbaumGroup Show Director

Andrew LazarDirector, Applications and Database Development

Yasmin MelendezGroup Show Director

Jeanne K. MurphyDirector of Development, Direct Marketing Educational Foundation

Margaret A. MulvihillDirector, Office of the President and Board Administration

Barbara J. ParkerDirector, Award Programs

Donna LoPortoDirector, National Sales for Conference and Events

Lisa Merizio SmithDirector, Segment Services

Curtis J. WilsonDirector, Executive Communications

Larry WortheyAssistant Director, Creative Services

DMA Leadership Team: Seated from left: Kenneth P. Ebeling, Terri L. Bartlett, Marie A. Adolphe, Margaret A. Mulvihill Standing from left: Neil C. O’Keefe, Julie A. Hogan, Ron Barnes, John Horan, Jodie Sangster, Lee Shufro, Sue R.E. Geramian, John A. Greco, Jr., Linda A. Woolley, Jerry Cerasale, Robert A. Greco, Tom Shimko, Gerald F. Longo, Senny Boone, and Paul A. McDonnough

D m a L E a D E r s h i p t E a m

Page 30: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

28

Wesley D. Protheroe*President & CEO

Gerber Life Insurance Company

Joel Quadracci*President & CEO

Quad/Graphics, Inc.

Brian Wolfe*Executive Vice President

Consumer Marketing & Sales

Time Inc.

Leslie Abi-KaramExecutive Vice President

& PresidentMailing Solutions

ManagementPitney Bowes Inc.

Bill BassPresident

Charming Shoppes Direct

Susan D. GoodmanCEO

Goodman&Company

Karen R. HaeflingChief Marketing and

Communications OfficerKeyBank

John V. HealyChief Executive Officer

Dydacomp Development Corporation

Reuben HendellChief Executive Officer

MRM Worldwide

George IttnerPresident

The Territory Ahead

Kelly B. Browning*Chairman

Executive Vice President & Chief Operating OfficerAmerican Institute for

Cancer Research

Eugene R. Raitt*Vice Chairman

Senior Vice President, Accident & Health and Chief

Marketing Officer, Asia Allied World Assurance Company

David S. Williams*Treasurer

President & CEOMerkle Inc.

Christine Aguilera*SecretaryPresident

SkyMall, Inc.

John A. Greco, Jr.*President & CEODirect Marketing

Association

Gian-Carlo PeressuttiSenior Vice President,

Public AffairsRR Donnelley

Robert A. QuigleyPresident

Quigley Consulting Group

Arun SinhaChief Marketing &

Communications OfficerZurich Financial Services

Gary SkidmorePresident, Corporate Officer

Harte-Hanks, Inc.

Pat SnyderSenior Vice President of

Merchandising & MarketingCabela’s

2 0 0 9 D M A B O A R D O F D i R e C T O R S

Page 31: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

Glenn S. EisenExecutive Vice President

Direct MarketingGuthy-Renker LLC

Rick ErwinPresident

Data Division Experian Marketing Services

Nancy EvensenPresident & CEO

NetNowVideo

Brian FetherstonhaughChairman and CEO

OgilvyOne Worldwide

Steve FullerChief Marketing Officer

L.L. Bean Inc.

Gary S. LabenChief Executive Officer

KnowledgeBase Marketing Inc.

Chairman, Direct Marketing Educational Foundation

Yuchun LeeChairman & CEOUnica Corporation

Mary L. MillerSenior Vice President/Chief

Marketing OfficerPetSmart

Matt O’GradyPresident

Nielsen Claritas

Godfred P. OtuteyePresident & CEO

Money Mailer LLC

Donn Rappaport*Immediate Past Chairman

CEOZumbox

ChairmanALC

G. Steven Dapper*Chairman & Founder

hawkeye

Andrew Goldberg*President/CEO

Publishers Clearing House

Don McKenzie*President & CEO

Direct Group

Gerry Pike*Managing Director

DMSA, Inc.

Dawn ZierPresident-Global Consumer

MarketingReader’s Digest Association

Markus Wilhelm2007 Chairman

CEOAKS Marketing and Media

Stephen M. Lacy2006 Chairman

President and Chief Executive Officer

Meredith Corporation

Ronald L. Bliwas2005 ChairmanPresident/CEO

A. Eicoff & Company* denotes DMA Executive Committee Member

29

Page 32: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

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Cert no. 110644

This annual report was printed on Utopia Green U2:XG paper, which is FSC-certified, contains 30% post-consumer recovered fiber, and made using electricity generated by renew-able resources such as wind energy, hydropower, and biogas.

The Power of Direct: Relevance. Responsibility. Results.

HeadquartersDirect Marketing Association1120 Avenue of the AmericasNew York, NY 10036-6700212.768.7277

www.the-dma.org

Washington, DC OfficeDirect Marketing Association1615 L Street, NWSuite 1100Washington, DC 20036-5624 202.955.5030

Page 33: The DMA Annual Report 2009 · tive ways to reach and retain customers, donors, and prospects; and direct marketing — the interactive, data-driven, online, offline, inbound, outbound,

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Announcing the DMA Certified Marketing Professional™ Program

The New Global Standard for Direct Marketing Education

As the discipline of direct marketing becomes more global, more digital, and increasingly complex, practitioners need specialized education to build and deploy smarter programs. Just as critical is the need for an international standard recognizing professional excellence that transcends borders.

The DMA Certified Marketing Professional™ Program is a 16-module program that covers all core areas of direct marketing, including strategic planning, digital marketing, social channels, creative development, database, measurement and analytics. DMA Certified Marketing Professionals will be recognized by the global marketing community as having the skills and intelligence to be marketing leaders, anywhere in the world.

Built-in flexibility for time-starved professionals

● Take Modules in person or through our e-learning center● Earn credits by attending select sessions at DMA conferences

Designed to make you competitive in the global marketplace

● Integrated with international direct marketing programs from foreign educational institutions● Learn in English, Japanese or Spanish

Provides in-depth knowledge on in-demand skills

● Module work includes web marketing, e-commerce, social, database, research and testing, creative, finance and more.

Disclaimer: DMA does not guarantee, warrant, or endorse the products or services of any firm, organization, or person. Certification by DMA indicates that a person has met the specific requirements of the certification process, but is not a guarantee of competency, accuracy, or any particular result. Information about Certificants is provided by Certificants themselves and DMA is not responsible for any incorrect or outdated information about Certificants. DMA does not assume any duty to the public for the services of Certificants or any other person or entity participating in or receiving services from Certificants. DMA SHALL NOT BE LIABLE FOR ANY LOSS, DAMAGE, INJURY, CLAIM, OR OTHERWISE, WHETHER AN ACTION IN CONTRACT OR TORT, AND SHALL FURTHER NOT BE LIABLE FOR ANY LOST PROFITS, OR DIRECT, INDIRECT, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OR ANY KIND (INCLUDING WITHOUT LIMITATION ATTORNEYS FEES AND EXPENSES).

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