In a survey by Jaywing, the communication management agency, 40% of firms were planning to increase their budgets on direct marketing campaigns using email and SMS, as well as digital television in 2003.
Dave Moore, head of new media at Scope, a sister agency to Jaywing, said: "New media has proven itself capable of delivering double-digit response rates consistently and at a far more competitive cost. That's an attractive proposition, especially in a recessionary climate."
He said that new media marketing was taking off as marketing managers faced increased pressure to get more out of small budgets, and as broadband internet connections take off.
Peter Simpson, commercial director of the bank First Direct, said: "Three years ago, we were spending about 5% of our advertising budget on new media and the rest on press and outdoor.
"We now spend the bulk on new media, simply because it's proving so much more cost effective in delivering new customers to us. It has also helped reduce the acquisition cost of customers by over 20%."
The Heads of Marketing Survey 2003 was carried out by NOP and surveyed 100 senior marketers from a range of sectors.
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