Direct marketing in the United States will generate $1.85 trillion in 2005, seven percent of the country’s $26 trillion total sales, according to a new study released by the Direct Marketing Association.
The DMA’s “U.S. Direct Marketing Today: Economic Impact 2005” study notes that DM expenditures will top $161.3 billion this year, and that DM will account for 10.3% of the U.S. gross domestic product.
Sales driven by DM are forecast to increase by 6.4% through 2009, compared to 5.3% growth in the 1999 to 2004 period. Overall U.S. sales are growing more slowly, according to the forecast: 4.8% for 2005-2009, versus 4.5% for 1999-2004.
Telemarketing topped the list of DM ad expenditures by medium for 2005, at $47 billion, followed by non-catalog direct mail ($31 billion), DRTV ($21.5 billion), catalogs ($18.8 billion) and Internet marketing ($12.6 billion).
For sales, non-catalog direct mail was the number one medium, at $483.8 billion. Next was telephone marketing at $402.6 billion, Internet marketing at $284 billion, DR newspaper at $213.6 billion and DRTV at $150.1 billion.
The greatest sales growth