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The number of 'pure' DM pitches handled by AAR in 2008 rose by 10.4% compared with a year ago, with the number of integrated projects up by 15.8%.  AAR handled 119 digital pitches last year, up 19 per cent on the previous year. 

This compares with 289 ad reviews handled by AAR, a decline of 6% on 2007.

AAR DM reviews last year included ING Direct, Domestic & General, Tourism Ireland, won by Entire and Butlins, bagged by Lida.

The AAR's head of direct marketing, sales promotion and integration Tony Spong, said contact strategy work with existing clients drove DM reviews last year, rather than new business, but with a digital twist.

"What we're seeing is the maturing of the digital marketplace from 'let's build the website' to 'let's connect with customers'," Spong said. "So now we're getting the eCRM briefs that require making the connection between brands and consumers stronger."

He added that digital DM agencies with a direct heritage were benefiting from a client perception that pure play digital agencies don't understand how to use customer data.

"A lot of clients tell us 'my digital agency doesn't understand CRM' and while they need new contact strategies, these are very different than before. They are less linear because the consumer now drives the contact themselves."

He cited the SMA Nutrition account, won by Partners Andrews Aldridge, as a good example of the digital business being won by DM agencies.  "That involves building a community to create a dialogue about the brand with consumers using the best of data and digital skills."

Spong believes that 2009 may not be as dismal a year as predictions such as the IPA Bellwether's report would indicate.

"DM had a pretty good year in 2008 and everyone I've spoken to since November has been frantically busy," Spong said. "I was at RMG yesterday and they're busy; I've just come from WDMP and they're busy. Too many agencies talk about the capabilities they've developed and not enough about benefits to the client. Those that are successful right now have worked this out."