(Direct Newsline)—The growth of direct marketing spending and DM-driven sales are expected to slow a bit in 2007, according to the DMA.
However, total sales in the U.S. are expected to grow at a slower clip than DM driven sales, the DMA said. As a result, while the overall economy is showing signs of a possible cool-off, direct marketing-related activity is cushioning a possible fall.
“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.
Direct marketing spending is expected to be $175.2 billion in 2007, up 5.2% from $166.5 billion in 2006, the DMA said. Also, direct marketing related sales are expected to grow 6.5% in 2007 to $2.064 trillion, according to the DMA.
While direct marketing driven sales are expected to grow 6.5% in 2007, total U.S. sales are expected to grow 3.9%, he said.
“So with direct marketing’s superior growth rate into 2007, direct marketing will help bolster the economy,” he said.
However, though the forecast is relatively good for direct marketing overall, some sectors, such as housing and automotive, are showing some troubling signs, he said.
“The 2006 economy was probably close to an A+,” he said. “Two thousand and seven will be an A-, but some verticals will hear A- when they should be hearing C-.”
Direct marketing is expected to account for 10.3% of U.S. GDP in 2007, according to the DMA.
The organization presented the findings yesterday to press at the DMA06 convention to tout this year’s The Power of Direct economic-impact study.
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