Growth Trends Continue For Direct Marketing.

This year, companies will spend more than $161 billion dollars on direct marketing in the United States, according to an independent study commissioned by The Direct Marketing Association. Measured against total U.S. sales, these advertising expenditures are expected to generate $1.85 trillion in increased sales in 2005, or 7% of the $26 trillion in total sales in the U.S. economy (which includes intermediate sales). All together, direct marketing will account for 10.3% of total U.S. GDP in 2005. And according to The Direct Marketing Association’s latest report on the economic contributions of direct marketing, there are many positive indications for continued future growth.

The DMA previewed findings from U.S. Direct Marketing Today: Economic Impact 2005. The study reports the top-line results from The DMA/Global Insight econometric model of U.S. direct marketing activity for the nation as a whole, the B-to-C and B-to-B markets, the major direct marketing media, and for the economy’s 52 industry groups.

Among the study’s findings:

Forecast for Continued Growth: Sales driven by direct marketing are forecasted to grow by 6.4% through 2009, up from 5.3% in the period from 1999 to 2004. By comparison, overall U.S. sales are growing more slowly (4.8% for 2004-2009, as compared to 4.5% between 1999-2004).

Strong Jobs Outlook: In 2005, direct marketing advertising expenditures will directly support 10.6 million jobs. These include not only direct marketers but also other workers whose employment is required to fulfill increased orders generated by direct marketing. DM-driven employment is expected to grow by 2% annually through 2009.

High Return on Investment: For 2005, an investment of $1 in DM ad expenditures will return, on average, $11.49 in incremental revenue across all industries.

Significant Part of the “Advertising Mix”: Direct marketing advertising expenditures accounted for 47.9% of total advertising in 2004, up from 46.9% in 1999.

Solid Performance for Traditional Channels: The most popular channels in 2005 continue to be direct mail ($49.8 billion in ad sales for catalog and non-catalog direct mail combined) and telephone marketing ($47 billion) or 31% and 29% of the total mix of DM advertising dollars respectively.

For more information at http://www.the-dma.org