US direct marketing expenditure reaches 53% of all advertising

On October 13 the Direct Marketing Association in the US unveiled important figures about direct marketing. These figures indicate that despite the generally bleak economic outlook, direct marketers should continue to do well.

“In 2008 and 2009, direct marketing spend will again outpace general advertising by a slight margin,” said the Association’s Vice President, Strategy, Analysis, and Planning, Peter Johnson PhD.

“In 2009, direct marketing will capture 53% of total advertising expenditures, continuing the long-term movement in advertising dollars to direct marketing and away from general advertising.”

Despite the desperate economic times in the US, direct marketing is expected to grow by 3.7% this year and 4.5% next year.

Sales through direct marketing reached $171 billion in 2007 and are expected to top $183 in 2009. Looking at spend by channel, the Association’s analysis reveals that the big winners will be commercial email and internet marketing. Both of these will enjoy double-digit spending growth as businesses take advantage of the continued move toward electronic purchasing.

Several broad sectors in the US are expected to achieve above-average direct marketing sales growth in 2009, including:

• Financial Services
• Information
• Transportation
• Services
• Wholesale Trade.

Higher Return on Investment: For 2008, an investment of $1 in direct marketing is predicted to return, on average, $11.63 in incremental revenue across all industries. This exceeds the $11.56 achieved in 2007. Further improvement, to $11.74, is expected in 2009.

Growth for Interactive Marketing: 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% of all direct marketing advertising dollars.

There is much more detail in The Power of Direct Marketing Report which you can purchase from the Association for a non-member price of $US595.