How BIG is Direct Marketing?

Most people are surprised when they find out how big Direct Marketing really is.

Between 1988 and 2004, various studies show direct marketing expenditures account for between 48% to 57% of total annual adveritsing expenditures. To see for yourself, use a leading Internet search engine and search for "DM Advertising Expenditures".

Back in 1992, The DMA commissioned the WEFA Group (now known as Global Insight) to develop an econometric model for the U.S. macro economic, industry and regional economic activity. 

In 1999, The Direct Marketing Association's (DMA) forecast of Economic Impact: U.S. Direct Marketing was released.  The DMA used to make this information freely available, but since 1999, not any more.

Many people are surprised to learn that Direct Marketing, at almost 60 percent of all U.S. Marketing and Advertising expenditures, was then the predominant form of marketing.  

Below is information The Direct Marketing Association displayed on its website throughout 1999.  This page is now part of a printed report available to DMA members only.

Economic Impact: 
U.S. Direct Marketing Today

DM MEDIA EXPENDITURES COMPARED TO TOTAL 
U.S. ADVERTISING EXPENDITURES (Billions of Dollars, Percent Share)*

Overall media spending for direct marketing initiatives will reach $176.5 billion in 1999 -- up 7.2 percent over 1998's expenditures.

Direct marketing advertising expenditures represent 57.1 percent of total U.S. advertising expenditures, which are projected to be $308.9 billion in 1999.

* These numbers have not been inflation adjusted -they represent current (nominal) dollars.  Rounding error may cause the sum of each column to disagree.  Since 1999, other tudies have shown a variety of % of total summaries.

1999

DM Advertising Expenditures

Total Advertising Expenditures DM Percent of Total
Direct Mail 42.2 42.2 100.0
Telephone Marketing 66.9 110.5 60.5
Newspaper 17.4 47.0 37.1
Magazine 8.9 15.9 56.3
Television 20.4 51.4 39.6
Radio 6.5 15.5 42.0
Other 14.2 26.4 53.7
Total $176.5 $308.9 57.1%
1994

DM Advertising Expenditures

Total Advertising Expenditures DM Percent of Total
Direct Mail 29.6 29.6 100.0
Telephone Marketing 46.8 76.8 60.9
Newspaper 12.2 34.4 35.6
Magazine 6.2 11.5 53.7
Television 12.9 35.4 36.5
Radio 3.8 10.5 36.5
Other 9.7 20.4 47.5
Total $121.3 $218.7 55.5% 
Source:
Direct Marketing Association

1120 Avenue of the Americas
New York, NY 10036-6700
Phone: 212-768-7277
Fax: 212-302-6714

The information above has since been removed from the DMA website. It used to be freely available, but now it's available by subscribing to a paid membership newsletter. 
DMA membership costs thousands.

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