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

Direct marketing in the United States will generate $1.85 trillion in 2005, 7% of the country’s $26 trillion total sales, according to a new study released by the Direct Marketing Association.

The DMA’s U.S. Direct Marketing Today: Economic Impact 2005 study notes that DM expenditures will top $161.3 billion this year, and that DM will account for 10.3% of the U.S. gross domestic product.

Sales driven by DM are forecast to increase by 6.4% through 2009, compared to 5.3% growth in the 1999 to 2004 period. Overall U.S. sales are growing more slowly, according to the forecast: 4.8% for 2005-2009, versus 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 at $402.6 billion, Internet marketing at $284 billion, DR newspaper at $213.6 billion and DRTV at $150.1 billion.

The greatest sales growth—12.6%—over the next five years is projected for Internet and commercial e-mail marketing. DRTV 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 over 10.5 million jobs, or 7.7% of the total U.S. workforce.

DM advertising employment—those directly employed in producing and delivering DM communications—is projected to grow at an annual rate of 2% annually through 2009, up from an annual growth rate of 0.8% for the previous five-year period. The growth of employment for DM sellers, representing incremental jobs in industries that use direct marketing, is also expected to grow 2% annually, over the 1.4% growth seen in 1999-2004.

Four New England states—New Hampshire, Rhode Island, Massachusetts and Connecticut—each attributed over 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.

The complete report will be for sale at the DMA05 conference Oct. 14-19 in Atlanta.