DIRECT MARKETING IN THE United States will generate $1.85 trillion in 2005, 7% of the country's $26 trillion in total sales, according to a new report from the Direct Marketing Association.
The DMA's “U.S. Direct Marketing Today: Economic Impact 2005” study notes that DM spending will top $161.3 billion this year, and that DM will account for 10.3% of the U.S. gross domestic product.
DM-driven sales are forecast to increase by 6.4% through 2009, compared with 5.3% growth between 1999 and 2004. Total U.S. sales are edging up more slowly, according to the forecast: 4.8% for 2005-2009, vs. 4.5% for 1999-2004.
Telemarketing topped the list of DM ad expenditures by medium for 2005, at $47 billion, followed by non-catalog direct mail ($31 billion), DRTV ($21.5 billion), catalogs ($18.8 billion) and Internet marketing ($12.6 billion).
For sales, non-catalog direct mail was the number-one medium at $483.8 billion. Next was telephone marketing ($402.6 billion), Internet marketing ($284 billion), DR newspapers ($213.6 billion) and DRTV ($150.1 billion).
The greatest sales growth over the next five years — 12.6% — is projected for Internet and commercial e-mail marketing. DR radio is expected to have the next highest growth rate at 7.5%, trailed by DRTV and DR magazine advertising at 6.4% each.
On average, the study found that for every $1 spent on DM advertising, the return on marketing investment was $11.49.
Direct marketing employment currently accounts for 10.6 million jobs, or 7.9% of the entire U.S. work force.
DM advertising employment — those directly employed in producing and delivering DM communications — is projected to grow at an annual rate of 1.8% through 2009, up from a decrease of 2% for the previous five-year period. The boost in employment for DM sellers, representing incremental jobs in industries that use direct marketing, is expected to grow 2% a year, over the 1.4% growth seen between 1999 and 2004.
Four New England states — New Hampshire, Rhode Island, Massachusetts and Connecticut — each attributed more than 8% of their total employment numbers to direct marketing. Other states in the top 10 for DM employment impact were Delaware, Michigan, Nevada, Indiana and Illinois, as well as the District of Columbia.
