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RSS| Direct Marketing Ad Expenditures vs. Total US Ad Expenditures, 2008 (Billions of dollars, Percent share) | |||
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| DM Ad Expenditures | Total Ad Expenditures | DM % of Total |
| Direct mail (catalog & non-catalog) | $56.5 | $61.7 | 91.5% |
| Telephone marketing | 42.5 | 86.6 | 49.1 |
| DR newspaper | 13.0 | 38.8 | 33.5 |
| DR television | 22.8 | 75.9 | 30.1 |
| DR magazine | 8.9 | 18.2 | 49.0 |
| DR radio | 4.6 | 18.7 | 24.6 |
| New media & other | 28.6 | 39.4 | 72.5 |
| Total | $176.9 | $339.3 | 52.1% |
| Source: Direct Marketing Association, 2008 | |||
The $176.9 billion in direct marketing advertising expenditures that marketers are predicted to make by the end of 2008 represents a modest three percent increase over 2007. Looking forward to 2009, says the report, total direct marketing advertising expenditures are expected to increase 3.5 percent yielding $183.1 billion. Above average, double-digit spending growth will occur in commercial email and Internet marketing.
Direct marketers should expect a 3.7 percent revenue growth by the end of 2008, reaching $2,058 from an actual $1,985 billion in 2007. Continuing to rise in 2009, sales generated from direct marketing are forecast to grow by 4.5 percent to $2,150 billion. Several broad sectors are expected to realize above-average direct marketing sales growth in 2009 including Financial Services, Information, Transportation, Services, and Wholesale Trade.
| Top Ten Industries by DM Ad Expenditures | ||
| Industry | 2008 (billion $) | 2007-2008 % Change (billion $) |
| Financial, Banks & Credit | $13.3 | 0.2% |
| Services, Professional, Technical & Management | 10.6 | 1.1 |
| Retail, Non-store & other Retailers | 10.2 | 2.3 |
| Information, Communications | 9.9 | 6.4 |
| Wholesale Trade | 9.7 | 4.3 |
| Retail Trade, Motor Vehicle Dealers & Service Stations | 7.5 | -1.9 |
| Manufacturing, Motor Vehicles | 7.5 | -11.4 |
| Financial, Insurance Carriers & Agents | 7.0 | 5.8 |
| Financial, Security & Comm Brokers, Hldg Cos. | 6.9 | 6.1 |
| Retail Trade, General Mdse Stores | 6.7 | 1.2 |
| Source: Direct Marketing Association, 2008 | ||
Peter A. Johnson, PhD, DMA's VP, strategy, analysis, and planning, and lead author of the report, concludes that "... the overall US Gross Domestic Product in 2008 will benefit from the growth generated by direct marketing. In 2008, direct marketing advertising across all economic sectors is expected to add over $1.43 trillion of incremental final demand nation-wide, accounting for almost 10 percent of total US GDP."
Key economic impacts from direct marketing:
- The total US employment will receive a net boost from total direct marketing driven employment, whose net growth of 0.3 percent in 2008 and 0.2 percent in 2009 will help compensate for job losses elsewhere in the national economy.
- For 2008, an investment of $1 in direct marketing advertising expenditures is predicted to return, on average, $11.63 in incremental revenue across all industries. This exceeds 2007 and is expected to improve further to $11.74 in 2009.
- Expenditures in the newer online media will maintain significant growth in the coming year. Commercial email will continue to claim the top growth ranking for 2009, while Internet advertising will claim over 15 percent of all direct marketing advertising dollars in 2009.
For additional information about this study, and to learn of the availability of the report, please visit the DMA here.
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