Commentary

Direct Marketing to Outpace All Sales Growth

Direct Marketing to Outpace All Sales Growth

More than half (55.2 percent) of total U.S. traditional advertising expenditures are on direct and interactive marketing according to the latest findings of the DMA. Despite a year marred by economic uncertainty and public concern over anthrax-in-the-mail, a new report from the Direct Marketing Association (The DMA) found that U.S. sales revenue from direct and interactive marketing rose nine percent last year to $1.86 trillion from $1.71 trillion in 2000. According to The DMA's Economic Impact: U.S. Direct & Interactive Marketing Today study, direct marketing sales growth, over the next five years, will outpace overall sales growth in the U.S. by 3.5 percentage points.

"In an industry that accounts for nearly 8.6 percent of the U.S. economy, it is no surprise that direct and interactive marketing is still growing at a healthy pace," said H. Robert Wientzen, president & CEO, The DMA.

According to the study, sales are projected to reach more than $2 trillion in 2002. Overall direct marketing sales growth is forecast at 8.3 percent annually through 2006, while total U.S. sales growth is estimated at a significantly lower growth rate of 4.8 percent per year.

Industries that contributed to direct and interactive marketing sales growth in 2001 included:

  • business services ($176.9 billion)
  • non-store retailers such as catalogers ($152.2 billion)
  • real estate ($63 billion)
  • insurance carriers/agents ($61.4 billion)
  • health services (15.8%)
  • electrical machinery/equipment (12.6%)
  • security/commodity brokers (12.4%)
  • social services (11.6%)
  • insurance carriers/agents (11.2%)

    "As companies slashed their traditional advertising budgets last year, the trend was to shift more dollars and resources into direct marketing practices as a cost effective, measurable way to boost sales," said Wientzen. From 2001 to 2006, direct marketing is forecast to become an increasingly efficient advertising tool with sales projected to grow steadily, compared with continued slower growth in both ad spending and employment. While direct marketing sales growth between 2001 and 2006 are expected to grow by 8.3 percent, ad spending is projected to grow at a slower annual rate of 6.5 percent per year.

    Find out more here.

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    About the Author

    Jack Loechner is the Editor of The Center for Media Research's daily Research Brief. You can reach him at jack@mediapost.com.