Direct marketing spending grew by 7.8% annually between 1995 and 2000, according to the DMA’s latest economic impact study conducted by The WEFA Group.

Non-direct response expenditures grew by almost the same rate. As a result, DM, which at $131.8 billion made up 56.4% of all advertising expenditures in 1995, amounted to $191.6 billion, or 56.5% of projected 2000 advertising spending. During the past five years, direct response radio led all channels with an annual growth rate of 11.8%, and a total of $7.7 billion. It was followed by DR television, which grew 9.4% to $21.9 billion. The

DIRECT MARKETING SPENDING grew by 7.8% annually between 1995 and 2000, according to the DMA’s latest economic impact study conducted by The WEFA Group.

Non-direct response expenditures grew by almost the same rate. As a result, DM, which at $131.8 billion made up 56.4% of all advertising expenditures in 1995, amounted to $191.6 billion, or 56.5% of projected 2000 advertising spending. During the past five years, direct response radio led all channels with an annual growth rate of 11.8%, and a total of $7.7 billion. It was followed by DR television, which grew 9.4% to $21.9 billion. The “other” category, which includes electronic marketing, rose by 8.8% to $16 billion.

Part of direct response radio’s rapid growth can be attributed to its small size compared with other media.

Direct mail – at $44.6 billion in 2000, second among channels – grew at an annual rate of 6.3%. Telemarketing, the largest channel, showed growth on par with that of the entire medium. Increasing at 7.8% annually since 1995, its projected level this year is $73.2 billion.

Direct response television, up 9.4% this year, will amount to $21.9 billion, followed by the relatively sluggish growth in DR newspaper ads (7%, lifting it to $18.4 billion). DR magazine ads grew 7.9% annually, increasing from $6.7 billion in 1995 to $9.8 billion.