Pressure is on new DMA chair

LONDON - Has David Metcalfe taken on a poisoned chalice or is it the DMA's chance to modernise?

The new chairman of the Direct Marketing Association (DMA), David Metcalfe, took the helm last month at perhaps the most crucial time in the association's history.

As recession bites and direct mail volumes decline in favour of digital channels, observers say the pressure is on the DMA to perform as never before. There's criticism that it is stuck in an offline past (see box, far right) and that it needs to beef up its lobbying clout.

TNT CEO Nick Wells says the DMA "clearly has challenges ahead, such as the political noise about opt-in and environmental issues".

Wells supports the DMA and its role in promoting self-regulation. "(For this reason) I would put more resource into public affairs," he says.

Former DMA chair Rosemary Smith admits that lobbying is crucial ("there are 101 battles to fight on that front") and that the association needs to grow in popularity among client firms.

"I admit there are a number of things we haven't always been on the front foot about," she says. "We need to ask what do clients get out of the DMA? I say we've missed opportunities for selling the collateral that the DMA produces - for monetising its activities."

Metcalfe takes over just weeks after a strategic review by the PA Consulting Group, conducted for the DMA board, which found that it needed to evolve. A new strategy is expected before the end of 2008.

"The DMA needs to make sure it's relevant," says the AAR's head of direct marketing, sales promotion and integration, Tony Spong. "It's had this big review and knows it has to change. Let's see what happens."

But Metcalfe, head of wholesale banking development at Lloyds TSB Scotland, and deputy chairman Fedelma Good, head of marketing privacy and suppression management at Barclays, are used to sectors under pressure. David Robottom, a former DMA director, says: "David will be one of the best leaders the DMA has had in a long time. And Fedelma is really well thought of." Smith, who had a close working relationship with Metcalfe, agrees: "He's cool, calm and collected."

INDUSTRY REACTION

MIKE COLLING - Managing director, Mike Colling & Company

"The DMA has historically been offline in its focus, but the strategic review concluded that it needed to be channel-neutral.

"David was the instigator of the PA Consulting review and the DMA board member tasked with managing it. That review will result in the most-wide ranging overhaul in the DMA's history.

"David also brings a client-side appreciation of the wider relevance of DM, rather than the more discipline-focused suppliers who focus on their own areas.

"When compared with the IAB, for instance, which represents interactive agencies, the DMA is a very broad church.

"Not digital enough? It has a vibrant email council that has produced the only benchmarking survey for best practice in email. And this year's DMA Awards has had a record number of purely digital entries."

MIKE WELSH - Chief executive officer, Publicis Dialog

"There's no way I'd put the DMA logo on my stationery. I suspect many are members because their clients think they should be.

"Traditional direct mail agencies probably think the DMA is marvellous, but for more forward-thinking firms there will be a question mark. Seeing the logo tells me a firm is old-fashioned.

"They have to do something radical and really embrace digital - having someone in their 30s on the board would also help. A young digital supremo would be a fantastic statement of intent.

"They talk endlessly about the jobs DM creates. So does the tobacco industry. It doesn't mean tobacco doesn't kill people. The DMA has the right to exist, but has to be modern, funky and radical."

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