2007 Annual Report

Working to keep every channel open and economically viable for all marketers.

We call it sustainability.

Let us tell you what we’re doing to get there.

John A. Greco, Jr. Markus Wilhelm President & CEO Chairman of the Board

he future means many different

things to different people. Today’s

increasing focus on sustainable

development, broadly stated,

emphasizes the need to find creative

ways of ensuring the best balance of outcomes for

people and the environment, both for now and into

the indefinite future. What that future holds is often

difficult to see, but it’s essential that we all try to

anticipate what’s ahead, and to prepare for it now.

That spirit sums up a broad-based trend in

virtually every aspect of life today—including

marketing. Marketing, like so many other systems

and processes in this day and age, faces a new

reality that’s challenging the “economics of abun-

dance” model that traditionally provided marketers

with an endless source of opportunities for getting

their messages across and making sales.

Now marketing faces the possibility of scarcity,

such as restrictions on various marketing channels—

which might be brought about by diminishing

consumer trust, forcing policymakers to enact limiting

laws and regulations. In today’s marketing environ-

ment, there is still an abundance of choices and

options for both buyers and sellers, replete with

opportunities for innovation and marketplace

success. However, marketers everywhere need to think

through all of the challenges carefully as they strate-

gically assess the impact of empowered consumers,

new technology, and changing legal requirements.

Creating a vision for the future of marketing is

to explore new ways of creating value for consumers,

buyers, donors, and prospects. When direct interac-

tion takes place in any channel—whether it’s by mail,

on the telephone, through email, catalog, or a Web

site—marketers have an opportunity to make offers

with immediacy and relevance that most people

really appreciate, and to close the loop with the

responsiveness and responsibility that most people

demand. That’s what makes the direct marketing

process so central to the future of all marketing.

SuSTAINING EvErY CHANNEL

Marketers want and need to communicate offers

that are relevant to specific needs and interests

because competition is greater than ever for people’s

time and attention. DMA research of uS consumers

shows that relevance and timing are critical to

successful marketing, across multiple communica-

tions channels. Developing this type of intelligence

is just one part of DMA’s mission to sustain and

grow the most attractive market space possible for

all the buyers and all the sellers who participate in

this end-to-end direct marketing process.

This includes businesses and nonprofit organi-

zations using direct marketing, along with the

professionals and experts who help them do it.

People and institutions setting public policy at the

local, state, and federal levels constitute another

important group that impacts the multichannel

direct marketing process. The next group is by far

the largest: the customers, donors, and prospects

themselves. For DMA, finding and expanding the

common interests of these three groups is our

means of mobilizing the strength of the greater

direct marketing community.

Why do we need to mobilize? We need to make

sure we keep all channels of communication open

T

Letter from the Chairman and the President & CEO

1

between marketers and consumers, and economi-

cally viable so they can achieve the best results.

Consumer trust is a key to success in this endeavor,

but that trust is increasingly being tested by irre-

sponsible acts of a few “bad apples.”

DMA members work hard to earn a good repu-

tation by adhering to our Guidelines for Ethical

Business Practice and meeting requirements for

fair and honest advertising, marketing to children,

use of marketing data, email marketing, teleservices,

and fundraising.

Now we are stepping up to an even higher stan-

dard of responsibility —our new Commitment to

Consumer Choice (CCC), which will enhance oppor-

tunities for direct marketers who use mail to com-

municate with customers to respond to consumers’

concerns and preferences.

PILLArS OF DMA vALuE

As a united community, direct marketers can

speak with an influential voice. When few thought

it still possible, our leadership helped to attain the

first overhaul of the federal postal system in more

than 30 years with the passage of the Postal Ac-

countability and Enhancement Act of 2006.

Now we are bringing our advocacy efforts to

bear in making sure that this new law is implement-

ed in a way that sustains multichannel marketing’s

ability to create value for people using the mail.

We are also making our voice heard loud and clear

in those states that are considering legislation to

restrict or eliminate any marketing channel, wheth-

er it is advertising mail, email, or other legitimate

modes of direct interaction with consumers.

Safeguarding and constantly reinforcing the

responsible reputation of direct marketing will

become ever more important, as noted. This year, we

strengthened and clarified our guidelines relating

to the collection and sharing of consumer informa-

tion by data compiler organizations, with clear

requirements covering the responsibility companies

have to consumers.

responsible stewardship of the environment is

another vital component in the reputation of direct

marketing, and this past year we set in motion an

improvement process. This work included our “Green

15” resolution for measuring the environmental

impact of direct marketing, and a recycling aware-

ness effort called recycle Please for direct mail

and catalogs. Both will help DMA members earn

improved consumer confidence in this important area.

DMA continues to offer the most comprehensive

education programs for direct marketing profes-

sionals. More and more of our content is available

online, such as virtual seminars and self-paced

interactive modules for our new certification pro-

gram in search engine marketing.

Our Direct Marketing Educational Foundation

works with professors and students at both the

graduate and undergraduate levels to strengthen

the academic foundation of the interactive, multi-

channel direct marketing process, thereby ensuring

that we will have a rich pool of new talent to match

the growth we’re seeing.

The networking opportunities, meetings, semi-

nars, and other events we facilitate range from our

annual conference, one of the world’s largest events

for marketers, to smaller gatherings that bring

32

Letter from the Chairman and the President & CEO

together professionals in any one of dozens of

special-interest segments that make up our far-flung

community. We have also launched a variety of

new DMA research efforts with a forward-looking

bent for building market intelligence on today’s

fast-changing marketing scene.

SuSTAINING Our FuTurE

Quite clearly, marketing is not going direct—

it already is direct. More than half of all uS adver-

tising expenditures are related to direct response.

The size, scope, and diversity of the direct market-

ing community have reached new heights. As our

numbers grow, DMA will continue to listen to and

respond to the unique voices from each of the

individual segments that make up the mosaic

of direct marketing.

With everyone’s cooperation and trust, the

growth prospects for direct marketing are outstand-

ing. Together, we will sustain our continued success

into the future through “The Power of Direct”—

relevance, responsibility, and results.

32

Our Commitment to Consumer ChoiceDMA is proud of our long-held commitment to the advancement of ethical business practices that preserve and strengthen consumer trust in the direct marketing community and in our members.

Our self-regulation guidelines have evolved over the decades to reflect the changing needs and expectations of consumers, as well as technological advancements and trends affecting our profession.

We now are proud to take another signifi-cant step forward with the October 2007 introduction of our Commitment to Con-sumer Choice (CCC).

Why is CCC important to consumers and marketers? We recognize that consumers—and their elected officials—have concerns about personal information usage, identity theft, and the environmental impact of unwanted mail. Our new CCC addresses these concerns in a proactive, common-sense, and respectful manner.

Among its initiatives, our CCC now requires members to update their consumer mailing lists monthly, and expand consumer opt-out notifications on all mailpieces. It will also include a year-round monitoring program to ensure marketer compliance.

To learn more about CCC and how it benefits consumers, DMA members, and the greater direct marketing community, please visit www.DMACCC.org or see page nine.

Markus Wilhelm John A. Greco, Jr.

Chairman of the Board President & CEO

54

We’re harnessing the power of technology and working to keep all channels open and affordable.

With all the hype about

emerging technologies, it’s

easy to be tempted by the latest

promising innovation. But at DMA,

we know it’s results—not hype—

that make great marketing.

That’s why we educate multi-

channel marketers about existing

and emerging technologies,

teaching them to use them effec-

tively through time-tested direct

marketing principles. And we have

some of the best experts around

to help us do just that.

DMA’s Interactive Marketing

Advisory Board (IMAB) keeps us

ahead of the curve on marketers’

evolving needs. IMAB’s top tech-

nology executives provide us

with expert advice on the latest

issues relating to new technologies,

as well as insights into emerging

practices, trends, metrics, and

other relevant matters.

Similarly, our Marketing

Technologies Council provides

counsel and education that

communicate the benefits of

technology-enabled marketing,

and offers valuable insight on

advancements that could impact

multichannel marketing.

These expert insights have

prompted DMA to expand its

research. And DMA has promi-

nently featured hot topics—such

as consumer-generated media and

search marketing strategies—on

our Web site, in our member pub-

lications, and at dozens of events.

But we don’t just focus on

the “new.” After all, technology is

recharging every aspect of direct

marketing, including the more

traditional media and practices.

For example, printing—the most

traditional marketing medium—

has been reenergized by advances

in database and digital printing

technologies, causing some

people to call print the “new”

interactive medium.

We also have expanded our

work on the email front, which

has become one of the more

established marketing channels.

In 2007, we merged DMA’s Email

Marketing Council with the Email

Experience Council (EEC), creat-

ing a global organization of more

than 400 professionals who are

focused on the potential of email

marketing via mobile and other

digital devices. For information,

visit www.emailexperience.org.

This year in Washington DC,

we convened our inaugural Email

Policy Summit of marketing,

technology, and policy thought

leaders to discuss policy develop-

ments, market changes, and

advances in technology.

We were among the invited

experts from business, government,

and academia participating at the

Federal Trade Commission’s 2007

summit that explored consumer

protection issues surrounding

spam, phishing, and malware.

In addition, DMA has continued

to introduce member resources

promoting effective, responsible

commercial email, including our

Email Authentication Help Center

and—in partnership with return

Path’s Sender Score unit—a

Web-based Email reputation

registry affording members

access to third-party data about

their email programs.

As the technology landscape

evolves, DMA remains committed

not only to encouraging the

adoption of emerging media, but

to “recycling” traditional direct

channels in ways that comple-

ment new technologies and meet

consumers’ dynamic needs.

In the past decade, technological advancements have permanently changed every channel and every facet of direct marketing—even the traditional methods and practices. As this trend accelerates, DMA helps members take advantage of the “new” and integrate the “old” in innovative, intelligent ways that promote consumer trust and improve marketers’ return on investment.

54

Public policy and perception affect the companies, organizations, and professionals that populate the multichannel direct marketing community. DMA is dedicated to listening to and representing the organizations across the full spectrum of the direct marketing process in government and the media, as well as working with consumer advocacy groups.

76

DMA knows how vital it is

to prepare for tomorrow by

establishing a prominent place

at the policymaking table today.

That’s why we cultivate a strong,

respected voice in support of

direct marketing at the state,

federal, and international levels—

building relationships, earning

trust, and mobilizing resources

every step of the way.

DMA’s Government Affairs team

drives these efforts. Concurrently,

our Corporate responsibility team

advises marketers on ethical

practices, and communicates

our unwavering commitment to

consumer choice and responsible,

respectful marketing.

As marketing channels continue

to expand, so do the prospective

legal and ethical issues marketers

must address. Certainly, data

protection is a top DMA priority.

We work diligently with lawmakers

to strike a balance between estab-

lishing data security measures that

protect consumers and nurture

their trust, and preserving the free

flow of information essential for

legitimate business purposes.

To this end, DMA representa-

tives urge Congress to combat

spyware and impose strong

penalties on those who use down-

loadable software for fraudulent

or harmful purposes. We work to

protect responsible marketers

from being penalized for others’

unscrupulous actions. We also

educate legislators about the facts,

showing how fraud prevention

can work hand-in-hand with

the ethical use of information to

promote the data-driven econo-

my’s continued growth.

Despite the increasing influence

of the Web and other marketing

channels, postal issues remain a

major focus of our advocacy work.

We were pleased to see years

of DMA work culminate in the

passing of a meaningful and

much-needed postal reform law.

But even as DMA’s fight for

postal reform has borne fruit,

we’re confronted with new postal

challenges. On the rate front, we

aim to minimize any damage that

may result from the next rate

increase, by requesting that it be

considered under the new law’s

ratesetting procedures, rather

than those set forth in 1970.

We also are challenged by

state legislators’ calls to create

Do Not Mail registries. In response,

we helped launch Mail Moves

America, a coalition of more

than 50 associations and compa-

nies, working to educate policy-

makers and the media about

the benefits that advertising mail

brings to uS commerce.

In the taxation arena, DMA

continues to oppose efforts on

Capitol Hill to require at-distance

marketers to collect sales tax in

states where the company has no

physical presence, since a genu-

inely simplified sales tax collection

plan has yet to be proposed.

All of DMA’s public policy work

is supported by DMAction, our

“grasstops” lobbying program

that engages our members in

our advocacy efforts, and by our

direct•voice political action

committee, which raises funds

to support the campaigns of

candidates who can positively

affect direct marketing.

In an information-driven

economy, DMA knows it’s not

enough just to be part of the

dialogue. That’s why we use our

resources to transform discussion

into action, building and ensuring

a positive direct marketing future.

We’re investing in political capital that pays dividends.

76

We’re urging marketers to listen to consumers and earn their trust.

98

We’re urging marketers to listen to consumers and earn their trust.

Earning and maintaining consumer trust is a business imperative in today’s marketplace. That’s why DMA is diligently working on multiple fronts—including our Commitment to Consumer Choice program—to promote corporate responsibility within the global direct marketing community, and to enhance the public reputation of our profession.

Consumer trust ranks among

marketers’ most valuable

resources in today’s on-demand,

consumer-driven marketplace,

enabling effective dialogue,

and delivering highly relevant

communications.

Yet trust is increasingly difficult

to earn from a public concerned

about how personal information is

collected, used, and protected. And

once this trust is compromised, it’s

not so easy to renew.

recognizing the vital link

between consumer confidence and

a healthy future for data-driven

direct marketing, DMA has long

been committed to helping mem-

bers conduct business in ways

that preserve and build trust.

In fact, we issued our first ethical

guidelines in the mid-1960s.

resolutely committed to

self-regulation, we strive to ad-

vance self-regulatory practices by

working with key partners, such

as the Federal Trade Commission,

to develop seminars and communi-

cations that educate practitioners

about responsible marketing.

As high-profile data security

concerns have emerged, we’ve

advocated data stewardship on

multiple fronts. We also maintain

an ongoing dialogue with policy-

makers about how best to protect

consumers without impeding

the legitimate exchange of data.

We also act as a marketplace

watchdog, protecting responsible

marketers’ reputations by investi-

gating allegations of non-compli-

ance, referring complaints to law

enforcement agencies, and/or

sanctioning offenders appropriately.

In 1997, DMA raised the bar for

the direct marketing community’s

stance on consumer choice by

unveiling its groundbreaking

“Privacy Promise to American

Consumers.” The Promise required

members to observe key best

practices—among them, giving

notice about data sharing, offering

and honoring consumer opt-out,

and employing DMA’s Mail Prefer-

ence Service (MPS).

Since then, we’ve expanded

on our commitment by developing

ethical guidelines for practices

such as data collection and

sharing, sweepstakes, fundrais-

ing, fulfillment, and marketing

via phone, the Web, and email.

Now we are ready to take

another big step forward.

DMA recognizes that concerns

about personal information use,

identity theft, and the environ-

mental impact of unwanted mail

present formidable obstacles.

As we have in the past, we are

approaching these issues in a

proactive, common-sense manner.

In October 2007, we rolled

out our Commitment to Consumer

Choice (CCC) that responds to

these challenges. Our new CCC

will require members that market

to consumers to:

• Provide customers, donors,

and prospects with notice that

they may eliminate or modify

their receipt of direct mail

solicitations

• Place such a notice on all

direct mail solicitations

• Honor consumers’ opt-out

requests within 30 days

• Establish internal policies

and practices in support of

the CCC

• Update mailing lists using

DMA’s MPS each month

Our CCC program will also

include a year-round program

to monitor marketer compliance.

For information, visit

www.DMACCC.org.

Throughout DMA’s entire

90-year history, we’ve learned that

the needs of consumers, and those

of the direct marketing commu-

nity, are inextricably intertwined.

Only by keeping the lines of

communication open can we

preserve the commercial channels

so vital to us all.98

Environment” is a powerful

term, holding different

meanings for different people.

It expands far beyond air, water,

earth, and trees. Our environment

encompasses everything around

us that we can sense or perceive,

including even the digital environ-

ment that’s pumping out countless

billions of bytes of new digital

information every day.

In all areas of the environment,

DMA is dedicated to helping

members be responsible, respect-

ful corporate citizens. After all,

protecting the environment isn’t

only a matter of doing the right

thing. It’s also an issue with

significant bottom-line ramifica-

tions. In fact, no organization can

afford to ignore how their opera-

tions impact the environment.

Today, consumers and policy-

makers are pressing for eco-friendly

business practices. And these

practices can yield significant

financial benefits, including higher

revenues, lower operational costs,

and enhanced customer trust.

However, successfully “going

green” isn’t easy. That’s why

DMA—with the counsel of our

Committee on Environment and

Social responsibility, comprised

of thought leaders from the full

spectrum of direct marketing—

promotes informative dialogue

about our community’s environ-

mental implications, and develops

workable strategies to help

organizations reduce their impact

on the ecosystem.

In 2007, DMA intensified our

environmental work, unveiling

two initiatives to help marketers

conserve natural resources.

The first is DMA’s “recycle

Please” logo, designed for use

on printed materials. This logo

encourages the recycling of

catalogs and direct mail, spreads

our message about recycling, and

directs consumers to our www.

RecyclePlease.org Web site for

practical tips and resources.

The second initiative came

in the form of a resolution passed

by DMA’s Board of Directors. The

Board is calling on members to

consider implementing 15 key

practices—referred to as the

“Green 15”—in five areas: paper

procurement and use, design, list

hygiene, printing and packaging,

and recycling and pollution reduc-

tion. Our Board will collect and

review members’ feedback, and

in 2008, will set benchmark goals

for implementing changes based

upon that feedback.

Also, DMA’s Environmental

Planning Tool and Policy Generator

guides direct marketers through a

checklist of environmental consid-

erations related to list hygiene,

data management, design, paper

procurement and usage, printing,

packaging, recycling, and pollu-

tion reduction. It also provides

practical steps to take.

All of DMA’s environmental

tools, publications, research, and

related information are accessible

through our online Environmental

resource Center at www.the-

dma.org/environment.

DMA knows that working to

improve our environment—while

building customer trust and

increasing profitability—is a

daunting yet necessary goal. But

achieving one needn’t occur at the

expense of the other. In fact, they

can complement each other. Our

environmental initiatives take a

community-wide view of business

needs and challenges, ensuring

that “going green” will help us

all stay “in the black.”

From boardrooms to mailrooms to living rooms, protecting the earth’s natural resources is becoming a top priority. DMA’s environmental mission is to help all direct marketers identify and adopt practices that are respectful to the envi-ronment. And when we speak of the “environment,” we’re not just referring to natural resources.

1110

“

We’re helping members “go green” so we can all stay “in the black.”

1110

We’re driving home the point that direct is the true future of marketing.

1312

Direct marketing is a true—and growing— economic powerhouse. DMA attributes direct marketing’s growing economic clout and increasing prevalence in the marketing world to three key attributes: the ability to reach consumers and businesses with highly relevant offers, a solid commitment to responsible marketing, and reliable delivery of measurable results. We’re keenly focused on strengthening and accelerating this trend.

For many industries, direct

marketing is today the most

dominant and effective form of

marketing. In 2007, direct response

advertising accounted for more

than half of all uS advertising

expenditures, with total resultant

sales—an estimated $2.025 trillion

in the uS alone—comprising

10.2 percent of the uS Gross

Domestic Product.

DMA works on a variety of

fronts to help our members craft

and execute marketing campaigns

built on our “Three r’s” of market-

ing: relevance, responsibility, and

results. We know that increasing

competency in these core areas

will keep direct a powerful and

growing marketing discipline in

the years and decades to come.

This philosophy shapes DMA’s

conferences, exhibitions, and

other member forums. With the

input of our members, we tailor

educational programming that

helps participants compete

successfully in a rapidly evolv-

ing global marketplace.

We offer cutting-edge seminars

that deliver education and profes-

sional development. reflecting the

rich diversity of our profession,

DMA seminars cover all facets of

multichannel direct marketing.

Led by highly skilled, respected

business leaders, we present

seminars at our New York Seminar

Center, locations across the uS, and

on a customized basis at individual

organizations. We also offer

“virtual” seminars via the Web.

DMA uses its vast resources

of research and market intelli-

gence to present the facts, figures,

and developments—gathered from

the multichannel marketing

front-lines—to provide members

with a deeper, more accurate

understanding of the forces

driving their business and non-

profit fundraising results. It’s no

wonder that many DMA reports—

including our annual Response

Rate Report, Statistical Fact Book,

and The Power of Direct Market-

ing: ROI, Sales, Expenditures

and Employment in the US—are

widely considered the foremost

professional sources of direct

marketing benchmarks.

DMA’s special-interest Councils

help us to advance “The Power of

Direct.” In 2007, we introduced

major improvements designed to

enhance Council membership, and

to provide us with thought-leader-

ship counsel and practical insights

into their specific areas of expertise.

Today, we have 20 Councils:

Analytics, Broadcast, Business-to-

Business, Catalog and Multichannel

Marketing, Circulation, Creative,

Customer relationship Manage-

ment, Direct Marketing Agency,

Directo: Council for Hispanic

Marketing, Email Experience

Council, Financial Services, Insert

Media, International, List and

Database, Marketing Technology,

Pharmaceutical Marketing,

retail Marketing, Search Engine

Marketing, Teleservices, and

Travel and Hospitality.

As information-fueled direct

extends its reach in the marketing

world, DMA is focused on attracting,

educating, and placing new multi-

channel marketing professionals.

The Direct Marketing Educational

Foundation (DMEF) spearheads

the important mission of helping

to supply the growing demand for

“market-ready” direct marketers—

and inspiring and preparing our

field’s next generation of leaders.

For information, see page 23 or

visit www.the-dmef.org.

1312

Today’s richly diverse multichannel marketing community—both commercial and nonprofit—spans a wide range of segments. Through each of the “Five Pillars” of DMA member services, we are committed to promoting the growth and serv-ing the needs of the greater marketing community. But first, we listen carefully to the unique, specific needs and interests of the numerous segments that comprise the whole.

There’s strength in numbers,

but even greater strength

in great numbers united. Just ask

the majority of the Fortune 100

companies that are enjoying

the bottom-line benefits of their

DMA membership.

When your company or

nonprofit organization joins DMA,

in addition to fueling your bottom

line and enhancing your own

career development, you become

part of a powerful force that is

helping to improve the quality

of today’s marketing practices

and promoting consumer trust.

DMA focuses on building

a strong community of direct

marketers, uniting members from

diverse fields to take action that

will secure a positive future for all

who have a stake in data-driven,

multichannel marketing’s success.

Together, DMA members help to

bolster direct’s significant—and

growing—economic power. When

you join us, you’ll be making a

wise investment in your organiza-

tion’s future—as well as your own.

How does DMA help our

members, individually and collec-

tively? Our “Five Pillars” of mem-

ber services stand at the very

core of the value we provide.

One, we represent our mem-

bers, promoting their viewpoints

at policymaking tables. Our

advocacy work is always driven by

the needs and interests of our

members. Our work on this front

includes protecting marketers’

access to, and usage of, the data

they need to market legitimately

and responsibly.

Two, we work aggressively

to enhance the brand or public

image of responsible direct

marketing. We promote ethical

business practices, present “The

Power of Direct” story in the

media, foster effective dialogue

with consumer groups, and honor

excellence in our field.

Three, we educate our mem-

bers, presenting a host of learning

opportunities that cover virtually

every aspect of today’s multichan-

nel marketing. To help meet the

growing marketplace demand for

multichannel marketers, we work

to attract and educate the next

generation of direct marketers

through our Direct Marketing

Educational Foundation (DMEF).

Four, we give our members

the unparalleled advantage of

networking with top professionals

from the full spectrum of direct

marketing disciplines. Members

can join us for more than a hun-

dred conferences, roundtables,

luncheons, receptions, and other

events around the nation. We

invite members to join our spe-

cial-interest Councils, which

provide forums for sharing ideas

and exchanging information.

Five, we present members with

relevant and timely research and

market intelligence, providing the

latest on trends, technologies,

and practices affecting members’

operations and bottom lines.

DMA publications, including

3D–DMA Daily Digest, and our

Web site (www.the-dma.org) are

important channels for keeping

our members informed.

We invite you to learn more

about DMA, our multifaceted

work, and the rich array of mem-

ber benefits and services that we

offer. Simply call us at

212.768.7277, ext. 1155, email us

at membership@the-dma.org, or

visit us at www.the-dma.org/

membership.

1514

We’re building a community dedicated to sustaining direct’s powerful momentum.

1514

D M A M E M B E R R E s o u R c E s

16

“As a former small-business woman, I have appreciated all that DMA has done to promote efficiency and modern operations in government, as well as strongly advo-cate for its members.”Rep. Melissa Bean (D-IL)

“I appreciate DMA’s pres-ence and voice on the key issues affecting business, including efforts to main-tain the Web as a powerful channel for commerce by keeping it free from oner-ous tax and regulation.”Rep. Marsha Blackburn

(R-TN)

“I’ve enjoyed working with DMA on a number of issues, including the long–running battle to keep the Internet free of burdensome taxation so e-commerce can continue to prosper.”Rep. Chris Cannon (R-UT)

“It was great to work with DMA on the passage of the landmark Postal Reform bill. This his-toric legislation was the culmination of many years of hard work and determined effort by all involved.” Sen. Tom Carper (D-DE)

Advocacy

DMA is advancing relevant, responsible, results-driven direct marketing.

MEM

BER

RESO

URCE

S

Today, direct marketers, policy-

makers, and the American public share

a common challenge: balancing

consumer and commercial interests

to create a mutually beneficial future.

DMA prides itself on diligently

responding to this challenge through

strong, proactive advocacy. In fact,

advocacy stands tall as one of our

“Five Pillars” of member services.

In Washington, DC, throughout

the nation, and around the world,

we provide direct marketers with a

clear, informed voice to communicate

their positions with government and

the media.

Our advocacy work is comple-

mented by our many programs that

promote and enhance corporate

responsibility, and communicate

“The Power of Direct” to consum-

ers, the media, and the greater busi-

ness community.

Government AffairsDMA’s Government Affairs

Department closely monitors develop-

ments in policies and political activity

that affect members, working aggres-

sively to promote legislation and regu-

lations that advance the interests of

direct marketers. We make members’

viewpoints known to Congress, The

White House, and federal agencies,

including the US Postal Service and

the Federal Trade Commission.

In 2007, we significantly expanded

the breadth and depth of our advocacy

capabilities, welcoming additional

government relations experts to our

team, including a new vice president

to help enhance our lobbying presence

on the state level, from which many of

our key policy challenges have arisen.

Our state policy work is supported

by DMA’s Internet Alliance (IA), which

is dedicated to promoting consumer

confidence in e-commerce. IA focuses

on issues such as data protection,

social networking, spyware, spam,

and online security. For information,

visit www.internetalliance.org.

Our Nonprofit Federation works

in Washington, DC and the states to

advance the interests of the nonprofit

direct marketing community. For

information, see page 23 or visit

www.nonprofitfederation.org.

Internationally, DMA works with

foreign direct marketing associations

and government officials to remove

or mitigate barriers to cross-border

trade, and to promote direct marketing

in international markets. For informa-

tion, visit www.the-dma.org/international.

Direct Marketing IssuesReflecting the evolution of data-

driven, multichannel direct marketing,

the issues DMA addresses are increas-

D M A M E M B E R R E s o u R c E s

17

“DMA is an effective advo-cate, bringing a wealth of experience on postal issues to Capitol Hill. DMA’s participation was appreciated in getting a meaningful Postal Reform bill enacted into law.” Rep. Danny Davis (D-IL)

“Coming from a state with a large direct marketing community, I welcome DMA’s views and advice as legislation comes before the Senate that could affect multichannel marketing in Nebraska and across the US.” Sen. Ben Nelson (D-NE)

“With its multichannel focus, DMA understands that mail can increase the effectiveness of any media mix. The Postal Service’s association with DMA is committed to the success of everyone whose business is in the mail.” Postmaster General

John E. Potter

“In my decade in the Senate, I’ve worked with DMA on a number of issues. DMA’s members and the greater business community are well served by the association’s work and reputation.” Sen. Gordon Smith (R-OR)

ing in both number and complexity.

Currently, we are deeply involved in

policy debates relating to postal rates,

the implementation of the Postal

Reform Act, the taxation of Internet

and mail-order sales, the environment,

spam, spyware, and telemarketing,

among others.

Certainly, our work to promote

and protect the responsible and

respectful usage of marketing data

is prominent on our advocacy agenda.

While data protection has long been

important to DMA, it is now of critical

importance. Marketing information

fuels direct marketing. Yet a number

of high-profile data-security breaches

have intensified consumers’ identity

theft concerns—and policymakers’

calls for data-protection laws.

DMA recognizes that creating a

secure online marketplace will mean

taking steps beyond those we can

require of our membership. That is

why we call for the passage of legis-

lation in Congress that establishes

a national standard for safeguard-

ing sensitive information, and that

requires prompt consumer notification

when compromised data put them at

significant risk for ID theft.

As we help craft policy, DMA

is diligent in emphasizing the clear

distinction between 1) personal finan-

cial and government identification

information and 2) data relating to

shopping habits. Consumers and poli-

cymakers often mistakenly consider

these two types of data as one and

the same. We make explicit the fact

that marketing data cannot lead to

ID theft. Further, we emphasize that

legislation must protect marketers’

access to the data that enables them

to verify customers and donors, thus

deterring consumer fraud.

Keeping Members InvolvedRecognizing the power of con-

stituent participation, our “grasstops”

political network—DMAction—in-

forms and engages members on key

national and state issues.

Our political action committee—

direct•voice—promotes a favorable

political environment by raising

funds to support congressional

candidates whose election could

affect key issues.

DMA keeps our members up-to-

date on legislative and regulatory

developments that could affect their

organizations and careers through our

quarterly Politically Direct newsletter,

the 3D–DMA Daily Digest, and online

at www.the-dma.org/government.

For information on DMA’s

Government Affairs work, visit www.

the-dma.org/government.

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DMA President & CEO John A. Greco, Jr. (left) and host Dana Carvey (right) present OgilvyOne worldwide’s Bruce Lee with the 2006 Diamond ECHO for Nestlè Purina’s Friskies Milkoholics campaign.

DMA’s Guidelines for Ethical Business Practice is available at www.the-dma.org/guidelines.

DMA’s Member Logo communicates “The Power of Direct” message to our members’ customers, donors, and pros-pects. To download our Member Logo, visit www.the-dma.org/logo.

DMA’s Marketer of the Year Award recognizes the achievement, innovation, and leadership of an indi-vidual or company whose work represents the very best in direct marketing.

DMA knows that the story of direct

marketing—grounded on relevance,

responsibility, and results—is a pow-

erful story. That is why we are so

committed to ensuring that consum-

ers, policymakers, the media, and the

greater business community recognize

DMA membership as synonymous with

trust, choice, convenience, and value.

We work on multiple fronts to

promote our mission of corporate

responsibility in ways that strengthen

the reputation of direct marketing and

enhance consumer trust. This work—

vital to the future of our members and

our community—is key among DMA’s

“Five Pillars” of member services.

Corporate ResponsibilityDMA’s Department of Corporate

Responsibility works to advance

responsible, respectful, and ethical

marketing practices throughout the

direct marketing community, by

providing ethical self-regulatory

guidelines, education, practical advice,

member briefings, and a rich array

of resources. We reach out to consum-

ers, the business community, and

policymakers to showcase the efficacy

of self-regulation built on ethical

business standards.

In October 2007, we unveiled

our Commitment to Consumer Choice

(CCC), an initiative built on DMA’s

long-standing focus on consumer

trust and customer/donor loyalty. The

program requires members to update

their consumer mailing lists monthly

and expand consumer opt-out notifi-

cations, among other actions. Our CCC

will include a year-round monitoring

program to ensure compliance. To

learn more, see pages three and nine

or visit www.DMAccc.org.

Our corporate responsibility mis-

sion is supported by three commit-

tees that work with the DMA Board

of Directors to establish, amend, and

enforce all guidelines: the Ethics

Policy Committee, the Committee on

Ethical Business Practice, and the

Committee on Environment and Social

Responsibility.

Mindful of the increasingly bor-

derless nature of direct marketing,

we are a founding member of the

International Federation of Direct

Marketing Associations (IFDMA), a

forum for DMAs from around the

world to promote self-regulation.

For information on our corporate

responsibility work, visit www.the-dma.

org/guidelines.

Environmental AwarenessAn important part of DMA’s

corporate responsibility mission is

the advancement of environmental

awareness and eco-friendly business

practices. Much of this work is car-

ried out in cooperation with DMA’s

Committee on Environment and Social

Responsibility.

In 2007, we unveiled our Recycle

Please logo. Designed for use on

printed materials, the logo encourages

the recycling of catalogs and direct

mail. The program’s Web site at www.

RecyclePlease.org provides tips and

resources on recycling.

DMA’s Board of Directors in 2007

passed a resolution calling on mem-

bers to implement 15 key practices—

the “Green 15”—in paper procurement

and use, design, list hygiene, printing

and packaging, and recycling and

pollution reduction. In 2008, the Board

will set benchmark goals for imple-

menting these practices.

1918

Sen. Susan Collins (R-ME) —with DMA Chairman Markus Wilhelm (left) and DMA President & CEO John A. Greco, Jr.—spoke to our members about the importance of hearing from business people in policymaking.

Mary H. Teahan (left), president of the International Federation of DMAs, and DMA’s Charles Prescott and Patricia Kachura at IFDMA’s annual Global Symposium on Self-Regulation. In 2006, 27 countries were represented.

DMA’s Recycle Please cam-paign encourages the recy-cling of catalogs and direct mail. For information, visit www.RecyclePlease.org.

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Announcing DMA’s New

COMMITMENTTO CONSUMERCHOICE

Direct Marketing Association, Inc.Headquarters:1120 Avenue of the AmericasNew York, NY 10036-6700212.768.7277Fax: 212.302.6714www.the-dma.org

For more information on the Commitment to Consumer Choice program, seewww.DMACCC.org. You can also contact DMA’s Department of CorporateResponsibility at:

Direct Marketing Association, Inc.1615 L Street, NW, Suite 1100Washington, DC 20036-5624202.955.5030Fax: 202.955.0085Email: CCC@the-dma.org

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October 200720% Post Consumer Recycled Forest Service Certified

DMA’s Commitment to Consumer Choice (CCC), unveiled in 2007, is built on our long-standing focus on consumer trust and customer/donor loy-alty. For information, visit www.DMAccc.org.

DMA’s environmental information

and tools, including our Environmental

Planning Tool and Policy Generator,

are accessible through our online

Environmental Resource Center at

www.the-dma.org/environment.

Consumer ServicesDMA, with partner company

Interactive Marketing Solutions (IMS),

develops list and database management

software and services that mitigate

the challenges posed by data-usage

legislation and consumer preferences.

Founded in 2001 to manage DMA’s

Preference Services, IMS now oversees

the world’s largest private consumer

preference database, distributing

preference information to marketers

and their service organizations for the

sole purpose of removing individuals

from prospect lists in compliance with

state laws and DMA self-regulatory

rules. For information, visit

www.ims-dm.com.

In addition, we offer consumers

redress mechanisms and resources for

safe, informed, at-distance purchasing

and charitable giving. For information,

visit www.the-dma.org/consumers.

Public and Media RelationsRecognizing the power of public

perception, DMA’s Communications,

Public, and Media Relations team

provides an authoritative voice on all

facets of direct marketing, working

to ensure that the public perception

of multichannel direct marketing is

always grounded in fact.

We initiate and respond to numer-

ous media inquiries each year, educat-

ing the media about the consumer and

businessplace benefits of data-driven

direct marketing, and articulating our

community’s positions on important

policy matters. We also spearhead

public communications that foster a

safe, consumer-friendly environment

for at-distance purchasing and chari-

table giving.

Honoring ExcellenceRecognizing and celebrating

excellence and leadership is another

important way that we advance direct

marketing’s reputation and brand.

Each year, we take pleasure in honoring

exceptional achievements by profes-

sionals and companies in our field.

DMA’s Hall of Fame honors those

who have made outstanding contribu-

tions to the practice, growth, and

stature of direct marketing. Since

1978, we have inducted 93 leaders

into our Hall of Fame, including the

2007 honorees: Ronald L. Bliwas,

president/CEO of A. Eicoff & Company,

and Charles D. Morgan, chairman

of the board and company leader of

Acxiom Corporation.

Since 1929, DMA’s International

ECHO Awards have recognized the

world’s outstanding direct marketing

campaigns based on excellence in

strategy, creativity, and results. Our

Global Knowledge Network Center in

New York City houses the portfolios of

all winners and finalists from the past

three years. We also offer for purchase

a CD-ROM portfolio of award-winning

campaigns at www.the-dma.org/bookstore.

DMA’s Marketer of the Year Award,

presented at our Annual Conference &

Exhibition, recognizes the achieve-

ment, innovation, and leadership of an

individual or company whose work

represents the very best in multichannel

direct marketing.

For information, visit www.the-dma.

org/awards.

2120

Sir Richard Branson told DMA06 con-ferees: “There’s no point going into business unless you are going to make an enormous difference.”

Beth Smith leads DMA’s three-day Direct Marketing Institute, our most popular seminar.

Leon Gorman, L.L. Bean’s chairman of the board and former president, key-noted at the 2007 Annual Conference for Catalog & Multichannel Merchants (ACCM).

Sen. Ron Wyden (D-OR) spoke at DMA’s inaugural Email Policy Summit, at which members discussed legal, policy, technologi-cal, and other develop-ments in email marketing.

DMA presents cutting-edge information on all facets of multichannel direct marketing at more than 20 conferences and via the Web.

Time Consumer Marketing President Brian Wolfe (far left), DMA Chairman Markus Wilhelm, Sen. Tom Carper (D-DE), and DMA President & CEO John A. Greco, Jr.

DMA’s Annual Conference & Exhibition is the global event for marketers. DMA08 will be held in Las Vegas.

DMA Chairman Markus Wilhelm addresses DMA’s List and Database Council, which is one of our 20 special-interest Councils.

DMA’s content-rich, high-energy conferences provide conferees with unparalleled opportunities to network with other multichannel marketers from around the globe.

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To compete in today’s highly competi-

tive global marketplace, direct market-

ing professionals must stay on top of

the latest business strategies, techno-

logical developments, and business

trends affecting their operations and

careers, as well as the greater market-

ing community. To help our members

succeed with flying colors, education

is another of DMA’s “Five Pillars” of

member services.

Seminars and ConferencesDMA offers cutting-edge seminars

and “virtual” seminars covering all fac-

ets of multichannel direct marketing,

led by highly skilled, respected business

leaders. To view current seminar titles

and dates, visit www.the-dma.org/seminars.

In 2007, we inaugurated the Search

Engine Marketing Certification Program.

Developed by search experts and

supported by Yahoo!, MSN, and Ask.

com, this program trains participants

to harness and maximize the power

of search marketing. For information,

visit www.dmasearchcertification.org.

Education is a central focus of all

DMA conferences, which offer multiple

program tracks that provide conferees

content-rich sessions taught by lead-

ing practitioners and experts.

To access a calendar of all DMA

events by date, location, topic, or seg-

ment, visit www.the-dma.org/events.

Special-Interest CouncilsOur special-interest Councils

serve an important role at DMA.

In 2007, we unveiled improvements

in the way we operate our Councils,

reflecting the broad diversity of our

community. Our goal was to develop

a more strategic thought-leadership

process that will enhance and grow

the DMA Council community and,

importantly, will provide DMA with

“Counsel from the Councils.”

Each Council offers its members

rich educational opportunities

designed to hone specific skills, and

provides exclusive access to a focused

community of segment leaders. Each

Council also offers its members

special events, ranging from “virtual”

seminars to full-day conferences.

For a list of DMA Councils,

see page 13 or visit www.the-dma.org/

councils. For Council event information,

visit www.the-dma.org/events.

Interactive Marketing Advisory Board

Responding to the growing influ-

ence of mobile commerce, interactive

television, and other emerging tech-

nologies on direct marketing, DMA

established an Interactive Marketing

Advisory Board (IMAB). IMAB mem-

bers, who are leaders in the interac-

tive and mobile marketing community,

help us keep our members ahead of

the marketing technology curve via

DMA seminars, conferences, research,

and member services. For information,

visit www.the-dma.org/groups/imab.

Direct Marketing Educational Foundation

As direct’s dominance in the mar-

keting world accelerates, increasing

the demand for multichannel market-

ing professionals, DMA is focused on

educating and placing “market-ready”

professionals in the workplace. The

Direct Marketing Educational

Foundation (DMEF) spearheads this

work. For information, see page 23 or

visit www.the-dmef.org.

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Sir Richard Branson told DMA06 con-ferees: “There’s no point going into business unless you are going to make an enormous difference.”

Beth Smith leads DMA’s three-day Direct Marketing Institute, our most popular seminar.

Leon Gorman, L.L. Bean’s chairman of the board and former president, key-noted at the 2007 Annual Conference for Catalog & Multichannel Merchants (ACCM).

Sen. Ron Wyden (D-OR) spoke at DMA’s inaugural Email Policy Summit, at which members discussed legal, policy, technologi-cal, and other develop-ments in email marketing.

DMA presents cutting-edge information on all facets of multichannel direct marketing at more than 20 conferences and via the Web.

Time Consumer Marketing President Brian Wolfe (far left), DMA Chairman Markus Wilhelm, Sen. Tom Carper (D-DE), and DMA President & CEO John A. Greco, Jr.

DMA’s Annual Conference & Exhibition is the global event for marketers. DMA08 will be held in Las Vegas.

DMA Chairman Markus Wilhelm addresses DMA’s List and Database Council, which is one of our 20 special-interest Councils.

DMA’s content-rich, high-energy conferences provide conferees with unparalleled opportunities to network with other multichannel marketers from around the globe.

Networking“Networking” can be defined as the

process of creating and sustaining

mutually beneficial relationships for

support, education, and sharing of

ideas and information. These days,

with the growth of social networking

on the Internet, connections are being

made with lightening speed.

DMA is speeding ahead as well.

Each year, as part of the “Networking”

component of our “Five Pillars” of

member services, we present more

than 100 conferences, Council events,

roundtables, seminars, luncheons,

receptions, and briefings, bringing

together a vast network of professionals

from every phase of the multichannel

direct marketing process.

Conferences and ExhibitionsWhen it comes to blazing net-

working trails, nothing compares to

DMA’s Annual Conference & Exhibition,

the global event for marketers. This

preeminent conference (DMA08) will

next take place October 11–16, 2008,

in Las Vegas.

In addition, each year we hold

some 20 conferences representing the

full range of direct marketing disci-

plines. These conferences provide rich

opportunities for networking, cutting-

edge information, and exhibits that

give attendees a first-hand glimpse of

the latest technologies, services, and

supplies. In addition to DMA08, our

2007–2008 conference roster includes:

• Email Evolution Conference

• DM Days New York Conference

& Expo

• Business-to-Business Marketing

Conference

• Annual Conference for Catalog and

Multichannel Merchants (ACCM)

• National Center for Database

Marketing (NCDM)

• National Conference on Operations

& Fulfillment (NCOF)

• Financial Services Annual

Conference

• Insert Media Day

• Circulation Day

For information about DMA

conferences and other events, visit

www.the-dma.org/events.

Special-Interest CouncilsIn addition to providing counsel

regarding specialized areas of exper-

tise, DMA’s special-interest Councils

provide members with rich network-

ing and educational opportunities

throughout the year.

Our 20 Councils present valuable

forums for sharing ideas, develop-

ing solutions to common challenges,

and delving deeper into the skills and

knowledge of a particular direct mar-

keting field. Council members also

have access to the top professionals in

their area of interest, a golden oppor-

tunity to gain insight and expertise

from the very best.

For information about our

Councils, visit www.the-dma.org/councils.

Details about all Council events are

available at www.the-dma.org/events.

Affiliate NetworkDMA’s Affiliate Network continues

to expand, with 22 local direct mar-

keting clubs across the nation. The

network’s mission is to unify the direct

marketing community, and to enhance

national and local networking, educa-

tion, and information for direct mar-

keters across the US. For information,

visit www.the-dma.org/affiliatenetwork.

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DMA’s eight-part Consumers’ Response to Direct Marketing is a first-of-its-kind study of consumer trends and attitudes relating to direct marketing channels.

For nearly three decades, DMA’s best-selling Statistical Fact Book has provided the answers to just about any direct marketing question.

DMA’s Response Rate Trends Report delivers benchmarks relevant to marketing campaigns for 30 products and services in 19 industries, across six media.

DMA’s Integration of DM & Brand covers all aspects of the fusion of direct marketing and branding to create an integrated approach to selling prod-ucts and services.

Since 1995, DMA has tracked multichannel direct marketing’s eco-nomic impact in the US, including sales, ad expen-ditures, and employment.

The National Law Enforcement Officers Memorial Fund’s Craig Floyd (far left) and DMA VP Special Counsel and Nonprofit Federation Executive Director Senny Boone (far right) honor Rep. Tom Davis (R-VA) and Rep. Henry Waxman (D-CA) for their roles in passing postal reform legislation.

Alyssa Herman, director of US development for Doctors Without Borders/Médecins Sans Frontières, accepts the 2007 Nonprofit Organization of the Year Award.

Dave Florence (left), founder and chairman of Direct Media International, receives DMEF’s 2006 Edward N. Mayer Educational Leadership Award from Brian Kurtz, executive vice president of Boardroom, Inc.

Jack Rosenfeld (far right), chairman of Potpourri Group, presents DMEF’s inaugural Rising Star Awards to Daniel Parzych (Alliant Cooperative Data Solutions), Austin Bliss (FreshAddress), Kimberly Miller (Time Consumer Marketing), and William Misloski (Orbitz).

When it comes to authoritative

research, DMA has long been leading

the way. That is why we are proud

to present research and market intel-

ligence as one of our “Five Pillars” of

DMA member services.

Multichannel Direct Marketing Research

Our Research Department mea-

sures, analyzes, and communicates the

direct marketing value proposition for

marketers, consumers, policymakers,

and the media. We conduct extensive

research in key areas, such as economic

impact, consumer attitudes and trends,

performance benchmarking, and public

policy analysis, as well as technology

and its effects on all things direct.

DMA’s ongoing research

includes the annual Power of Direct

Marketing: ROI, Sales, Expenditures

and Employment in the US report;

the Quarterly Business Review that

benchmarks revenue and spending

performance, among other metrics, for

marketers, agencies, and suppliers; the

Response Rate Trends Report; and the

Statistical Fact Book. For information,

please visit www.the-dma.org/bookstore.

Publications and NewsDedicated to keeping members

informed of the news and develop-

ments affecting multichannel market-

ing around the globe, DMA publishes

some of the field’s leading publications.

Our 3D–DMA Daily Digest is a

highly respected resource, summa-

rizing each business day’s headlines

from the leading newspapers, trade

publications, and government. Our

quarterly Politically Direct keeps mem-

bers informed, involved, and ahead of

the curve on public policy that could

affect them. Each month, Currents

and Crossroads provides members with

international direct marketing news.

Web ResourcesDMA’s Web site (www.the-dma.org)

is a rich and lively repository of news,

research, and information on all of

DMA’s multifaceted work, including

policy updates from our Government

Affairs team and a host of guidelines,

tools, and helpful resources from

our Corporate Responsibility team.

The site’s popular features

include our PowerLINK search data-

base, which allows members to locate

brands, markets, companies, and

terms; Direct Marketing Search, a new

search engine with a broad array of

products and services listings; and

our online Job Bank, which matches

employers and qualified candidates.

If you have questions about

gaining access to members-only

areas of our Web site, contact us at

212.790.1500 or customer@the-dma.org.

Global Knowledge Network CenterWith just a phone call or mouse

click, DMA members can access our

Global Knowledge Network Center,

which offers an unsurpassed collec-

tion of resources spanning all facets

of the multichannel marketing process.

Our DirectLINK provides members

with an online portal to a storehouse

of direct marketing information. Visit

www.the-dma.org/directlink.

Members are always welcome to

visit our Global Knowledge Network

Center at our New York headquarters.

Visitors will find an array of resources

to help them navigate the global mar-

ketplace, including our collection of

International ECHO Award portfolios.

American generosity set a

record in 2006, according to

the Giving USA Foundation,

raising a total of $295 bil-

lion. Of that total, $222

billion was given by indi-

viduals. And the majority of

those individual donations

were the result of smart,

respectful, multichannel

direct marketing. That’s a

fact in which direct market-

ers can take special pride.

The Nonprofit Federation

of the Direct Marketing

Association’s mission is to

serve and represent non-

profit organizations and

professionals in ways that

strengthen the public

awareness and receptivity

of direct marketing-driven

philanthropy.

The Federation’s advo-

cacy work encompasses

federal and state legislation

and regulations affecting

such areas as postal rates

and delivery service, data

protection, and issues

relating to fundraising

accountability.

The Federation offers

top-notch education, market

intelligence, and networking

forums—including its four

popular conferences—to

equip fundraising profes-

sionals with cutting-edge

skills and information to

empower their multichannel

marketing efforts.

As news and events

unfold, the Federation keeps

its members up to date

through its weekly News

Update, monthly Critical

Issues Hot Sheet, Nonprofit

Careers eBulletins, quarterly

Journal of the Nonprofit

Federation, and its blog at

www.nonprofitintegrator.org.

For information, visit

www.nonprofitfederation.org.

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DMA’s eight-part Consumers’ Response to Direct Marketing is a first-of-its-kind study of consumer trends and attitudes relating to direct marketing channels.

For nearly three decades, DMA’s best-selling Statistical Fact Book has provided the answers to just about any direct marketing question.

DMA’s Response Rate Trends Report delivers benchmarks relevant to marketing campaigns for 30 products and services in 19 industries, across six media.

DMA’s Integration of DM & Brand covers all aspects of the fusion of direct marketing and branding to create an integrated approach to selling prod-ucts and services.

Since 1995, DMA has tracked multichannel direct marketing’s eco-nomic impact in the US, including sales, ad expen-ditures, and employment.

The National Law Enforcement Officers Memorial Fund’s Craig Floyd (far left) and DMA VP Special Counsel and Nonprofit Federation Executive Director Senny Boone (far right) honor Rep. Tom Davis (R-VA) and Rep. Henry Waxman (D-CA) for their roles in passing postal reform legislation.

Alyssa Herman, director of US development for Doctors Without Borders/Médecins Sans Frontières, accepts the 2007 Nonprofit Organization of the Year Award.

Dave Florence (left), founder and chairman of Direct Media International, receives DMEF’s 2006 Edward N. Mayer Educational Leadership Award from Brian Kurtz, executive vice president of Boardroom, Inc.

Jack Rosenfeld (far right), chairman of Potpourri Group, presents DMEF’s inaugural Rising Star Awards to Daniel Parzych (Alliant Cooperative Data Solutions), Austin Bliss (FreshAddress), Kimberly Miller (Time Consumer Marketing), and William Misloski (Orbitz).

Nonprofit FederationThe Direct Marketing Edu-

cational Foundation’s

(DMEF) mission is to attract,

educate, and place top college

students by continuously

improving the teaching of

world-class direct/interac-

tive marketing. For the direct

marketing community that

has generously supported

DMEF for more than four

decades, that means a steady

stream of market-ready, tal-

ented new professionals.

Established in 1966 by

DMA members who wanted

to give back to the communi-

ty, DMEF today is a separate,

501(3)(c) nonprofit corporation

supported solely by tax-

deductible contributions from

companies and individuals.

Companies continue to

reap rewards from their

investments in DMEF. Thanks

in significant part to DMEF’s

outreach, some 250 US

colleges and universities offer

courses, and 20 offer degree

and certificate programs.

One of DMEF’s most

ambitious programs is its

Direct Marketing Leadership

Development Program.

Sponsored by Harte-Hanks,

Goodman&Company,

Scholastic, and Wunderman,

this program offers college

graduates the rare opportu-

nity to translate classroom

knowledge into real-world

experience.

DMEF provides profes-

sors with valuable teaching

tools—including curriculum

modules and case studies

on relevant, timely subjects—

as well as a rich array of

resources that facilitate

cutting-edge research.

Among these valuable tools

is its Journal of Interactive

Marketing®, which covers

academic research on topics

of interest to multichannel

marketers. For information,

visit www.the-dmef.org.

DMEF

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coNsoLIDATED sTATEMENT oF FINANcIAL PosITIoN June 30, 2007 and 2006

Assets 2007 2006

Cash and Cash Equivalents $ 3,792,186 $ 3,558,292 Investments 11,818,185 10,807,464Accounts Receivable 275,685 133,959Accrued Interest Receivable 84,682 67,139Security Deposit 40,134 –Prepaid Expenses and Deposits 1,189,338 1,355,324Furniture, Equipment, and Leasehold Improvements, net 1,325,957 892,615Intangibles, net 3,395,830 3,993,664Partnership Investment – IMS 358,414 232,039Research, Library, and Reports, at minimal value 1 1

Total Assets $ 22,280,412 $ 21,040,497

Liabilities and Net Assets

Liabilities Accounts Payable and Accrued Expenses $ 3,728,941 $ 4,167,159 Deferred Income 5,358,688 5,583,722 Payable to DM Days Conference 100,000 100,000 Pension Liability 725,455 1,053,712 Deferred Rent 560,335 445,507

Total Liabilities $ 10,473,419 $ 11,350,100

Net Assets

Unrestricted (General Fund) $ 12,833,360 $ 10,137,555 Board Designated Funds (1,026,367) (447,158)

Total Net Assets $ 11,806,993 $ 9,690,397

Total Liabilities and Net Assets $ 22,280,412 $ 21,040,497FINA

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coNsoLIDATED sTATEMENT oF AcTIVITIEsYears ended June 30, 2007 and 2006

Revenues, Gains, and Other Support 2007 2006

Membership Dues $ 14,086,565 $ 12,999,019Meetings and Conferences 16,956,308 15,570,732Global Knowledge Network Services 3,462,272 3,294,513Web Site 264,502 179,346Research and Strategic Information 888,548 913,623Government Affairs and Internet Alliance 436,345 297,000Ethics and Consumer Affairs 7,651 1,316Consumer Preference Services 1,325,131 1,157,862Corporate and Marketing Communications 5,000 5,595Shop-At-Home Info Center – 23,340List Rentals 54,258 73,790Nonprofit Federation 1,104,200 1,044,350Interest, Dividends and Realized Gains and (Losses) 854,575 658,458Unrealized Gains and (Losses) – Net Appreciation 292,534 (400,871)

Total Revenues, Gains, and Support $ 39,737,889 $ 35,818,073

Expenses

Program Services Membership $ 2,417,404 $ 2,097,063Meetings and Conferences 9,563,368 9,791,816Global Knowledge Network Services 2,906,181 2,717,193Web Site 325,080 427,148Research and Strategic Information 1,471,280 1,004,949Government Affairs and Internet Alliance 5,326,293 5,219,776Ethics and Consumer Affairs 880,241 810,465Consumer Preference Services 744,356 793,380Interactive Marketing 108,209 –Corporate and Marketing Communications 1,020,995 1,109,608Marketing Department 2,078,591 1,482,436Marketing Services 577,171 562,808Pension Expense 532,474 82,993Nonprofit Federation 1,026,356 920,306

Total Program Expenses $ 28,869,790 $ 27,019,941

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coNsoLIDATED sTATEMENT oF AcTIVITIEsYears ended June 30, 2007 and 2006

2007 2006

Total Program Expenses (Brought Forward) $ 28,869,790 $ 27,019,941 Supporting Services General Administration 8,412,234 8,219,622

Total Operating Expenses $ 37,282,024 $ 35,239,563

Excess of Revenues, Gains, and Other Support Over Operating Expenses Before Items Below $ 2,455,865 $ 578,510Effect of Adoption of FASB Statement No. 158 160,731 – Image and Branding Campaign Expense – (999,750)Reduction of Additional Minimum Pension Liability – 320,792Reduction of Government Affairs Reserve (500,000) –Net Assets, Beginning of Year $ 9,690,397 $ 9,790,845

Net Assets, End of Year $ 11,806,993 $ 9,690,397

Notes to Consolidated Financial Statements

The Direct Marketing Association, Inc. (“the Association”) is a not-for-profit trade association engaged in serving its members and advancing the interests of those involved in multichannel direct marketing to the government, the media, and consumers. Its mission is to encourage the growth of and effective ethical use of multichannel direct marketing through advocacy, education, networking, research, market intelligence, and consumer affairs and corporate responsibility programs that strenghten consumer/donor trust and ethical business practices.

The consolidated financial statements include the accounts of the Association and its subsidiaries. Significant inter-company accounts and transactions have been eliminated in consolidation.

The Association and its subsidiaries are tax-exempt under Internal Revenue Code Section 501(c)(6).

Independent Auditor’s Report to DMA Board of Directors

McGladrey & Pullen, LLP has audited the Association’s complete financial statements, which include the Association’s consoli-dated statements of financial position as of June 30, 2007, and 2006, and the related consolidated statements of activities and cash flows for the years then ended, and have expressed an unqualified opinion on them. A copy of such statement is available from the Direct Marketing Association, Finance Department, upon request.

Membership Statement

At the close of FY 2007 on June 30, 2007, DMA had 3,587 corporate members, including members of the Internet Alliance (IA), a DMA subsidiary. Since the close of FY 2006, this was a net increase of 10 corporate members. Names and addresses of current company members are available at the Direct Marketing Association, Membership Department, upon request.

FINA

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John A. Greco, Jr.President & CEO

Ramesh A. Lakshmi-Ratan, Ph.D.Executive Vice President and Chief Operating Officer

Steven K. Berry, J.D.Executive Vice President, Government Affairs and Corporate Responsibility

Terri L. BartlettPresident, Direct Marketing Educational Foundation

Jerry Cerasale, J.D.Senior Vice President, Government Affairs

Sue R.E. GeramianSenior Vice President, Communications, Public and Media Relations

Patricia KachuraSenior Vice President, Corporate Responsibility

Alan P. KuritskySenior Vice President, Sales and Marketing

Marie A. Adolphe Vice President, Programming, Direct Marketing Educational Foundation

Ron BarnesVice President, State Affairs

Xenia (Senny) Boone, J.D.Vice President, Special Counsel and Executive Director, Nonprofit Federation

James F. Conway, J.D.Vice President and Counsel, Corporate Responsibility

Kenneth P. EbelingVice President, Member Loyalty Services

Thomas FoulkesVice President, Government Affairs

Julie A. HoganVice President, Conferences and Events

Peter A. Johnson, Ph.D.Research Strategy and Platforms Vice President

Edward T. Manzitti, Ph.D.Vice President, Research and Market Intelligence

Mark MicaliVice President, Government Affairs

Stephen J. MichaeleVice President, Information Technology and Chief Information Officer

Charles A. Prescott, J.D.Vice President, Global Knowledge Network Services

Emily T. HackettExecutive Director, Internet Alliance

Gerald F. LongoExecutive Director, Conference and Exhibition Operations

Theresa R. Bartlett, J.D.Director, Special Interest Councils

Leslie J. BenjaminDirector, Education and Event Marketing

Douglas Berger, J.D.Director, Member Communications

Serenity EdwardsDirector, Corporate Responsibility

Kevin FoxDirector, Exhibit and Sponsorship Sales

Karina Peña GarciaMarketing Director, Digital and Database

Marsha Goldberger Director, Corporate Responsibility

Robert A. GrecoController

Helen LeeDirector, Member Programs and Education, Nonprofit Federation

Barbara LewersDirector, Advertising Services

Rachael MarkGroup Show Director

George W. MarkhamDirector, Education Services Business Development

Paul McDonnoughGroup Show Director

Lisa Merizio SmithDirector, Segment Services

Barbara J. ParkerDirector, Award Programs

Melissa K. RuffDirector, Education Services

Marci SilvermanDirector, Membership and Research Marketing

Jennifer StevensGroup Show Director

John E. StoneProject Management Director

Alain P. TaylorDirector, Membership Sales

Curtis J. WilsonDirector, Executive Communications

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DMA Leadership Team: Seated from left: Alan P. Kuritsky, Kenneth P. Ebeling, Terri L. Bartlett, Marie A. Adolphe, Peter A. Johnson, Edward T. Manzitti. Standing from left: Stephen J. Michaele, Thomas Foulkes, Julie A. Hogan, Ron Barnes, Charles A. Prescott, Sue R.E. Geramian, Ramesh A. Lakshmi-Ratan, John A. Greco, Jr., Steven K. Berry, Jerry Cerasale, Patricia Kachura, Mark Micali, Senny Boone, and James F. Conway.

Eugene R. Raitt* Executive Vice President

& Chief Direct Marketing Officer

AIG

Robert Stagno*General Manager, Central

Marketing GroupMicrosoft Corporation

David Williams*President & CEO

Merkle Inc.

Christine AguileraPresident

SkyMall, Inc.

Chris CleghornExecutive Vice President,

Direct & Interactive Marketing

Easter Seals

George IttnerPresident

The Territory Ahead

Yuchun LeeChairman/Chief Executive Officer

Unica Corporation

Linda MacMasterSenior Managing Director

of Member ExperienceAARP

Catherine McIntyrePresident

ICOM Information & Communications L.P.

E. Donald McKenziePresident & CEO

Direct Group

Markus Wilhelm*Chairman

Donn Rappaport*Vice Chairman

President/ChairmanAmerican List Counsel, Inc.

Kelly B. Browning*Treasurer

Executive Vice President & Chief Operating OfficerAmerican Institute for

Cancer Research

Arun Sinha*Secretary

Chief Marketing & Communications OfficerZurich Financial Services

John A. Greco, Jr.*President & CEODirect Marketing

Association

28

David ShepardPresident

David Shepard Associates, Inc.

Debra TaeschlerPresident & CEO

Grafica Group Inc.

Brian WolfePresident

Time Consumer MarketingTime Inc.

Ronald L. Bliwas2005 ChairmanPresident/CEO

A. Eicoff & Company

Rebecca L. Jewett2004 Chair

Managing PartnerWindward Group20

07 DM

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* DMA Executive Committee Member

Patrick J. ConnollyExecutive Vice President &

Chief Marketing OfficerWilliams-Sonoma, Inc.

Arthur W. ConwayPresident & CEO

DialAmerica Marketing, Inc.

Allen W. DyonChief Marketing Officer

DMRAChairman, Board of Trustees

Direct Marketing Educational Foundation

Susan GoodmanChairman & CEO

Goodman&Company

John HealyPresident & CEO

PRIMIS Marketing Group, Inc.

Kathleen Olvany-RiordanVice President, Global CRM

Kraft Foods

Gerry PikeManaging Director

DMSA, Inc.

Wesley D. ProtheroePresident & CEO

Gerber Life Insurance Company

Joel QuadracciPresident & CEO

Quad/Graphics, Inc.

Robert A. QuigleyExecutive Vice President &

Chief Marketing OfficerCharter Communications

Stephen M. Lacy*Immediate Past Chairman

President and Chief Executive OfficerMeredith Corporation

G. Steven Dapper*Chairman & Founder

hawkeye

Andrew Goldberg*President/CEO

Publishers Clearing House

Carla Hendra*Co-Chief Executive Officer

Ogilvy North America

Daniel Morel*Chairman & CEO

Wunderman

29

Michael P. Sherman2002 ChairmanSenior Advisor

Peter J. Solomon Company

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HeadquartersDirect Marketing Association1120 Avenue of the AmericasNew York, NY 10036-6700212.768.7277

www.the-dma.org

Washington, DC OfficeDirect Marketing Association1615 L Street, NWSuite 1100Washington, DC 20036-5624 202.955.5030

The Power of Direct: Relevance. Responsibility. Results.

30%

Cert no. 110644

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