U.S. sales revenue from direct and interactive marketing rose 9% last year to $1.86 trillion from $1.71 trillion in 2000.
The growth outpaced overall U.S. sales growth by 3.5%, according to the Direct Marketing Association’s Economic Impact study.
“In an industry that accounts for nearly 8.6% of the U.S. economy, it is no surprise that direct and interactive marketing is still growing at a healthy pace,” DMA CEO H. Robert Wientzen said in a statement. “The rise during 2001 is particularly noteworthy considering that the year’s direct mail growth for the second half of the year was marred by public concerns over the possibility of anthrax being sent through the mail.”
Growth is expected to continue for the direct and online industries.
Sales are projected to reach more than $2 trillion this year. A forecast of 8.3% sales growth is predicted annually through 2006, while total U.S. sales growth is estimated at 4.8% per year.
Industries that contributed to the 2001 sales growth included: Business services ($179.9 billion), non-store retailers such as catalogers ($152.2 billion), real estate ($63 billion), and insurance carriers/agents ($61.4 billion). Key growth industries that are poised to generate direct and interactive sales revenue during the next five years include: Health services (15.8%), electrical machinery/equipment (12.6%), security/commodity brokers (12.4%) social services (11.6%), and insurance carriers/agents (11.2%).
The study also found that spending on direct and interactive marketing rose 3.6% to $196.8 billion in 2001 from $189.9 billion the year prior. Ad spending is expected to grow 6.5% annually.
Direct and interactive marketing represents more than 55.2% of total U.S. traditional advertising expenditures.
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