Report: Direct Marketing Accounts Tops 50% of Total Advertising24 Oct, 2007 Response This Week
CHICAGO – Despite a slowing U.S. economy, growth has been predicted in direct response sales, expenditures and return on investment (ROI). The Direct Marketing Association’s (DMA) annual forecast, The Power of Direct Marketing, has reported that direct marketing expenditures account for better than 50 percent of total advertising expenditures.
“For the first time ever, direct marketing represents more than 50 percent of total advertising expenditures in the U.S., growing faster than total advertising spending and the U.S. economy as a whole,” said Dr. Peter Johnson, DMA’s research strategy and platforms vice president, and lead author of the report. “Marketers are moving dollars into direct marketing because of its higher ROI relative to other forms of advertising. This makes ‘direct’ a more reliable engine for sustaining sales, incomes and jobs at a time when the mortgage and energy markets are heightening economic uncertainty.”
Direct marketing advertising expenditures will see moderate growth in 2007 and are anticipated to see strong growth in 2008. DR advertising expenditures saw an increase of 4.4 percent to $173.2 billion, significantly higher than the $166 billion spent in 2006.
Sales for direct marketing in 2007 are predicted to grow 5.2 percent, just slightly under the numbers reported for 2006. Growth for 2008 is projected to surpass $2.158 trillion, or 6.6 percent.