“The business-to-business story is hot,” DMA president H. Robert Wientzen told a crowd at yesterday’s opening session at The 12th National Direct to Marketing Business Conference in Miami.
Wientzen said the area of B-to-B e-commerce is particularly hot with estimated online sales last year ranging from $110 billion to $155 billion, about five times what consumers spent online. Those numbers are expected to surpass $7 trillion by 2004.
And while sales continue to rise, marketers face new challenges including customers that are more in control, technology that continues to change rapidly and aggressive competition, Wientzen said.”
As the sun rises over the 21st century, there will be little room for error because your customers–business as well as consumer–are more demanding,” he said. “They want good prices, even better service, and dare I say, perfection. And if you can’t provide it they’ll take a hike.”
Wientzen outlined the following statistics as evidence of the industry’s overall success:
* US sales among businesses are expected to hit $13.3 trillion this year, a number projected to grow 6% annually between now and 2004 when sales are predicted to be close to $17 trillion.
* Last year Web sites drove $7 billion of online sales, an 85% increase over 1998. This year that number will hit $12 billion and reach $53 billion by 2004.
* Direct and online marketing B-to-B sales are growing at a annual compounded growth rate of 10.3%. Ten years ago B-to-B sales were $337 billion, projected to be $764 billion this year and $1.1 trillion by 2004.
* Direct response B-to-B spending in expected to hit $96 billion this year and to increase 7.4% annually over the next four years.
* Ten years ago every dollar spent generated $6.50 in B-to-B sales, compared to a predicted $8 this year. In 2004 that number is expected to reach $8.75.
* B-to-B sales are growing in all tracked areas of major media including direct mail, print, telemarketing, TV and radio.
Wientzen said the industry’s success is born of marketer’s knowledge and ability to “move the goods from the mouse to the house.”
Network
