Direct Mail Brings Five Percent Increase in Sales

According to the Direct Marketing Association’s yearly report, The Power of Direct Marketing, direct marketers could realize up to a 5.2% increase in sales, which is 1.5% lower than the growth realized in 2006, due to the continuing economic slowdown. Direct sales could hit $2.025 trillion in 2008.

To what is this continued growth in direct mail attributed? It’s felt that marketers continue to source money in to direct marketing due to its ROI when compared to other forms of advertising. With an economy that is continuing to lag, direct mail marketing allows companies to see hard results for their advertising dollar. While many industries continue to see an increase in their direct mail marketing investment, there are still some that are cutting back their direct mail advertising.

According to the direct marketing report, manufacturing, financial banks, and education services are among many industries that continue to put significant money into direct marketing advertising. Lags are seen in areas like petroleum, real estate and furniture industries.

Dr. Peter Johnson, the Direct Marketing Association’s research strategy and platforms vice president, and lead author of the report notes that direct mail marketing will “continue to help sustain the overall US economy.” This estimation is based on the fact that as much as 10.2% of the US GDP, or $1.41 trillion of demand is represented by direct marketing.

Employment in direct marketing in 2007 is responsible for 10.6 million jobs. A prediction of a 2.2% increase is expected for next year. Internet marketing has predicted expenditures of $23.6 billion in 2008, which is almost a $4 billion increase from 2007.

Despite this growth, many company’s marketing departments are concerned about the state of the economy. If the housing market continues to stagnate and fuel costs keep climbing, it is possible that overall marketing expenditures could be adversely affected. Considering direct marketing’s effect on our GDP this year, a decrease in its economic viability is something to be concerned about.