The economic impact of the direct marketing industry continues to be very substantial in absolute terms, and its impact is growing over time and relative to other economic activity reports U.S. Direct Marketing Today in its economic impact study of 2005.  Source: The DMA Bookstore

 Direct Marketing (DM) impact on U.S. Economic Output measured against total U.S. Sales, total DM advertising expenditures of US$ 161.3 billion are expected to generate US$ 1, (1.85 trillion) in increased sales in 2005, or 7% of the US$ 26 trillion in total sales in the U.S. economy.  Measured against U.S. Gross Domestic Product (GDP), direct marketing will account for 10.3% of GDP in 2005.

 DM impact on U.S. Economic Growth outpaces overall economic growth:  Sales driven by direct marketing are forecasted to grow by 6.4% through 2009, up from 5.3% in the period from 1999 to 2004.  By comparison, overall U.S. sales are growing more slowly (4.8% for 2004 – 2009, as compared to 4.5% for 1999 and 2004).

 DM by Intended Purpose of the Offer:  DM continues to move steadily towards greater reliance on lead generation, which accounts for US$ 77bn of DM advertising expenditures.  Lead generation is expected to account for 50% of all DM advertising by 2009 due to its impressive annual growth rate of 6.7%.

 Value Generation Ratio of DM:  On average every US$ 1.00 spent on consumer DM marketing will yield US$ 12.66, and every US$ 1.00 spent on b2b DM marketing will yield US$ 10.10.  Through a dollar spent on DM advertising, for all purposes except fundraising, has the potential to yield double-digit returns.

BIIA Newsletter May – 2006 Issue