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News Release from: Direct Marketing Association | Subject: Direct marketing spending
Edited by the Marketingservicestalk Editorial
Team on 16 July 2008
Advertisers continue to support direct
marketing
Spend on direct marketing campaigns increased by 9.8 per cent to GBP18 billion in 2007 according to the DMA's Economic Impact of the Direct Marketing Industry 2008.
Employment generated by the direct marketing industry in the UK has also grown by 14 per cent since 2006 to represent 3.4 per cent of total employment and 1,009,000 people The growth (11.3 per cent) in employment is influenced by an increase in expenditure on internal activities with that spent on outsourcing remaining relatively flat
This article was originally published on Marketingservicestalk on 9 Jul 2008 at 8.00am (UK)
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The research, which has been compiled by the Future Foundation, showed that direct mail continues to be the stronghold of the industry representing just over a quarter of all dm budgets in 2007 at GBP4.8 billion.
Within the digital sector, email marketing continued to thrive - growing by 19 per cent to GBP1.1 billion in 2007, the largest jump in the entire sector.
The internet maintained its position as the second most popular form of DM accounting for 17 per cent of expenditure or GBP3.1billion.
Elsewhere, mobile messaging rose by 8 per cent on the previous year and whilst this represents just 1 per cent of total expenditure it is yet another indication of the growing importance of digital DM.
The magazine sector is the third most popular medium accounting 10 per cent of all expenditure or GBP1.8 billion.
This is followed closely by door drops at 9 per cent and then inserts at just over 7 per cent.
Growth in customer magazines, field marketing and telemarketing expenditure also rose on average by 10 per cent.
Other traditional advertising such as national and regional newspapers accounted for 3 per cent of total expenditure each, while radio and TV combined accounted for just over 3 per cent of direct marketing budgets.
Outdoor/transport remained one of the smallest methods, making up 1 per cent of direct marketing budgets.
Victoria Bytel, Head of Membership and Research at the DMA commented: "It is fantastic to see such a healthy growth in direct marketing expenditure in 2007.
"Even when the economy begins to slow, and industry starts to get nervous, direct marketing continues to hold its own.
"As a measurable and accountable medium direct marketing is designed to measure and track, and as well as highlighting return on investment, it enables companies to plan and invest wisely.
"We are however keeping a very close eye on how the industry performs throughout 2008/09 in what is predicted to be its biggest economic test for many years".
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