November 11, 2010

VAT raised to result in 'More Focused' Marketing Campaigns

A new study has found that the forthcoming rise in VAT will have an affect on marketing campaigns. Email marketing and other types of campaigns will need to become more effective in order to win business once the VAT rise comes into effect, a new study suggests.

According to affiliate network LinkShare, a number of marketers believe that mass marketing techniques will give way to individualised campaigns next year when VAT rises to 20 per cent.


More than one in three consumers said they would be curbing their spending habits once the increase is introduced, while 18 per cent expect to see an increased emphasis on measurement and return on investment.

Liane Dietrich, managing director of LinkShare UK, said the VAT increase could have some benefits for retailers and brands which provide value for money.

"Consumers are savvy and dedicated to the quest for the best value; they won’t go back to pre-recession habits when the economy starts to recover," the industry expert said.

"They will continue to base their decisions on the research and value-driven factors that they have become accustomed to over the last eighteen months."

The research comes just days after a study by Acxiom found that retailers who used creative marketing tactics, such as digital channels, in the run up to Christmas could enjoy more success.

By Sarah Wright

Source: THE DIRECT MARKETING ASSOCIATION (UK) LTD


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