Growth of DM Spending to Falter
Direct marketing spending and sales growth are going to slow a bit in 2007, according to new research from the Direct Marketing Association. But both will outpace general national numbers.
“Despite a moderating growth in DM expenditure and sales, direct marketing will still help to drive the economy as a whole,” said Peter Johnson, the DMA’s vice president of research and market intelligence, at the DMA06 conference last month in San Francisco.
Direct marketing spending is expected to hit $175.2 billion in 2007, up 5.2% from $166.5 billion this year. And direct-related sales are projected to rise by 6.5% to $2.065 trillion in 2007, according to the DMA.
But total U.S. sales will grow by 3.9%. “So with direct marketing’s superior growth rate into 2007, direct marketing will help bolster the economy,” Johnson said.
Despite this growth, some sectors, like housing and automotive, are showing some troubling signs, Johnson said. “The 2006 economy was probably close to an A+. 2007 will be an A-, but some verticals will hear A- when they should be hearing C-.”
Direct marketing should account for 10.3% of the U.S. gross domestic product in 2007, the DMA said.
INTO THE FUTURE
2007 PROJECTIONS
DM spending
$175.2 billion (up 5.2%)
DM-related sales
$2.064 trillion (up 6.5%)
Source: Direct Marketing Association
