Direct Marketing Increases Share of Ad Spend21 Oct, 2009 Response This Week
NEW YORK – Direct marketing spending makes up 54.3 percent of all total ad expenditures, up from 52.7 percent last year, and is expected to remain above the 53 percent mark for the next five years, reports the Direct Marketing Association (DMA).
The Power of Direct Marketing, an annual forecast of the direct market’s economic impact on the U.S. economy, was released at the organization’s annual business meeting in San Diego and showed that the annual spending for direct marketing ads will reach $153.3 billion in 2010.
Although the share of overall marketing increased, direct marketing numbers were still down and predicted to reach only $149.3 billion total in 2009, a decline of 11.2 percent from 2008. However, general advertising fell to $125.7 billion, down 14.2 percent from 2008.
“These tough times have acted as a catalyst for the marketing community, as businesses have shifted marketing spending to mobile, Internet and E-mail for their greater efficiencies and ROI,” says Yoram Wurmser, PhD, DMA research manager. “Now that the economy is picking up, and there are signs that we are bottoming out, these channels will continue to benefit most.”
In 2009, direct marketing advertising across all economic sectors is expected to add more than $1.2 trillion of incremental final demand nationwide, making up almost 8.3 percent of the country’s GDP.