DMA Releases New 'Power of Direct' Report; DM-Driven Sales Growth Outpace Overall Economic Growth
The Direct Marketing Association (DMA) today released The Power of Direct Marketing, a biennial forecast of direct marketing’s economic impact on the US economy. First published in 1995, the report is released every other year in conjunction with DMA’s Annual Conference and delivers historic trends, current year estimates, and one-year and five-year projections for direct marketing expenditures, sales, ROI and employment. No other publication covers the economic impact of direct marketing channels with the same level of detail.
Direct Marketing continues to grow at a quicker pace than the overall US economy. DM-driven sales will grow 7.1 percent this year to nearly $2 trillion, compared with sales overall in the US, which will grow 5.1 percent. Overall, 8.7 percent of US GDP comes from direct marketing. “It’s fair to say that direct marketing is one of the current engines of economic growth for the US,” says Yory Wurmser, DMA’s director of marketing & media insights.
Direct Marketing Advertising Expenditures: A Larger Share of Total Advertising
Spending in direct marketing grew at a 5.6 percent clip to $163 billion in 2011 and now accounts for 52.1 percent of total advertising spending in the US. This share has increased steadily over the past five years, a trend expected to continue through 2016.
A parallel trend may explain this. ROI for direct marketing in 2011 is projected at $12.03 of sales per dollar of expenditures, compared with $5.24 for general advertising.
Growth Led by Digital Channels
Much of this growth is driven by online media, which continue to outpace other channels in expenditure growth. DMA expects digital channels to continue to increase their share of the marketing budget from 19 percent in 2011 to 21 percent in 2012. The total spend on digital marketing has grown by $14.5 billion since 2006.