The survey, conducted among delegates to an event hosted by database marketing and customer insight company Alterian, predicted a 50% growth in profits from "insight and analytics" and data processing, and even faster profit growth from digital data processing, which includes email, SMS, clickstream and interactive TV.
Attendees at Alterian's annual workshop included executives from data industry leaders including CACI, EHS Brann Discovery and Experian. Questioned about current and future revenue and profit trends, they predicted a decline in the profitability of industry staples such as data sales and name and address processing.
Profits from insight and analytic activities are set to grow from 14% to 20% of gross profits over the next three years, an increase of 50%, while digital processing profits were predicted to rise from 4% to 11% of overall profits.
"The nature of marketing service providers' business is changing; traditional revenue streams are slowing down while new opportunities open up," Alterian CEO David Eldridge said.
Speaker Eric Schmidt, senior research analyst at Forrester Research, presented new findings from the 2005 Forrester Database Marketing Benchmark Survey in areas such as technology adoption and channel integration, and discussed implications for marketers.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .