Direct Marketing on the Internet
A Research Report for:
The Internet represents a large and growing market for direct marketers. It also offers many advatnages over traditional channels. Enhanced data collection, customization, and offer delivery capabilities allow direct marketers to form more meaningful relationships with potential and current customers at a lower cost. This study examines the implications of the Internet for the traditional direct and targeted marketing functions: data collection, analysis, and offer. Within each area, the study defines some of the leading edge technologies and companies that are using them. In data collection, both passive and active user data collection is examined, in addition to the emerging Open Personalization Standard. The analysis section explores the two theoretical paradigms for analyzing data: reasoning engines and learning engines. The offer section explains the various ways that direct marketers are using the Internet to make customized offers: personalization, targeted advertising, e-mail and web incentives, and community building. The final section speculates on some future trends in Internet direct marketing.