According to the Direct Marketing Association’s yearly report, The Power of Direct Marketing, direct marketing is anticipated to grow in all areas, including expenditures, return on investment (ROI), sales and employment for 2008. This is despite an economy that is lagging in most areas.
“For the first time ever, direct marketing represents more than 50 percent of total advertising expenditures in the US, growing faster than total advertising spending and the US economy as a whole,” said Dr. Peter Johnson, the Direct Marketing Association’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.”, as noted on the DMA website. “Overall,” said Johnson, “business performance in 2007 is likely to be measurably brighter than it would otherwise be, thanks to the effectiveness of direct marketing.”
“For the first time ever, direct marketing represents more than 50 percent of total advertising expenditures in the US, growing faster than total advertising spending and the US economy as a whole,” said Dr. Peter Johnson, the Direct Marketing Association’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.”, as noted on the DMA website. “Overall,” said Johnson, “business performance in 2007 is likely to be measurably brighter than it would otherwise be, thanks to the effectiveness of direct marketing.”
The direct mail market predicts $173.2 billion in advertising expenditures’ by the end of this year, showing a 4.4% increase over last year. The ROI for these expenditures is $11.69/dollar spent, when taking into consideration the two trillion dollars in subsequent sales this year. The final numbers for 2006 were affected by the steep decline in the housing market, increases in energy costs as well as a decrease in auto sales. Up to a 5.5% increase in response rates is expected in commercial email, Internet marketing and direct mail.
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