• by Jack Loechner , Staff Writer @mp_research, August 5, 2002

Direct Interactive Media Spending

According to the 2002 Economic Impact US Direct & Interactive Marketing Today Forecast from the Direct Marketing Association (DMA), consumer and business-to-business spending on direct marketing with interactive media in 2002 will total $4.04 billion -- a number that should rise to $8.4 billion by 2006. The DMA also estimates that interactive media marketing sales will rise from $36 billion in 2002 to over $81 billion by 2006.

Ad Spending for Direct Marketing Interactive Media (Million $)

	1996	2000	2001	2002	2006
Consumer	$43.4	1,212.4	1,355.6	1,593.5	3,331.9
B2B	$81.4	2,003.6	2,165.4	2,450.6	5,047.2

Source: Direct Marketing Association, July, 2002

DRI-WEFA conducted interviews, surveyed companies, collected and analyzed data for the 2002 study. The study explains that "interactive marketing" can include any non-interactive commerce dollars spent as a result of interactive advertising communication (ie: if a car manufacturer's website leads to a sale at a dealership). Looking at particular industries in the consumer sector, the DMA estimates that depository institutions will spend $183 million on interactive marketing in 2002 (and will therefore be the consumer industry spending the most on interactive marketing). Other big spenders include the transportation equipment industry ($103.7 million) and the real estate industry ($88 million).

Consumer Interactive Media Advertising By Industry, 2002 (Million $)

Depository Institutions 183.3

Transportation Equipment 103.7

Real Estate 88.0

Communications 74.8

Health Services 82.4

Other Retailers 74.6

Security Brokers 73.4

Insurance Carriers/Agents 64.6

Auto Dealers/Service Stations 59.6

Industrial Machinery/Equipment 53.9

Entertainment 53.4

Educational Services 48.8

Personal Repair Services 46.5

Restaurants 45.6

Business Services 39.2

Airlines 37.0

General Merchandise Stores 36.2

Transport Services 37.1

Social Services 30.9

Food/Kindred Products 28.9
Source: Direct Marketing Association, July 2002

The DMA notes that the internet is still a relatively new format for direct marketing in 2002. A June 2002 study from DoubleClick determined, however, that US marketers are spending 17% more on e-mail marketing than they did in 2001 and 9% more on online marketing in 2002.

US Marketer Budget Allocation By Channel, 2002 (% change vs. prior year)

Direct Response TV 18.0%

Email 17.0

Channel Marketing 14.9

Online Marketing 9.0

Out-of-Home 4.9

Display Marketing 3.8

TV -1.0

Print -1.4

Radio -2.3

Promotions/Coupons -3.0

Public Relations -4.2

Trade Shows -4.9

Telemarketing -6.8

Direct Mail -6.9

Catalogs -13.4
Source: DoubleClick, June 2002

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