Commentary

DRTV Growth Set to Surge

DRTV Growth Set to Surge

According to DRTV Quarterly, while most consumer spending trends are declining, ranging from minor corrections to catastrophies, DRTV continues to surge forward as the medium of choice because consumers respond to DRTV to the tune of $2 Trillion US worldwide, outperforming the global motion picture industry by wide margins.

On a global scale, the movie industry is predicted to grow to $450 billion (US) by the end of 2005. Compare that to the DRTV industry, which is predicted to grow to $2 Trillion.

Another striking contrast arose in 2002 when marketers predicted an 18% increase in their media budgets for DRTV, which was expected to out-pace the hallmarks of the direct response industry (direct mail and telemarketing), by a wide margin. In fact, these areas would see a 7% drop in revenues. Marketers also predicted that conventional advertising budgets, such as TV, radio and print, would decline slightly due to shrinking ad budgets.

In the US, consumers spent 7% more of their money buying product they saw on TV than the previous year. This is a substantial growth considering it was a year in which the economy lagged behind 2001.

US DRTV sales growth continues

2001$126 Billion100 (Index)
2002$135 Billion107%

(All figures in US Dollars, Source: Direct Marketing Association

Global DRTV Industry vs. Motion Picture Industry

DRTV INDUSTRY$2 Trillion US (by 2004)
MOTION PICTURE INDUSTRY$450 Billion US (by 2005)
Sources: DRTV Industry: Broadcast Direct Marketing Board Motion Picture Industry: Screen Digest

Projected growth in advertising sectors

DRTV18%
EMAIL17
ONLINE9
CONVENTIONAL TV-1
PRINT-1
RADIO--2
DIRECTMAIL-7
TELEMARKETING-7

Source: Direct Marketing News, DoubleClick Poll, 2002

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