Business-to-business is the strongest growth area for the insurance and financial services sector, according to a recent Direct Marketing Association study.
In 1993, B-to-B represented 42% of all insurance and financial services DM sales, jumped to 45% by last year and is projected to grow to 47% by 2003. By 2006-2007, B-to-B sales are expected to exceed consumer in the sector, according to the study, conducted primarily by The WEFA Group, and sponsored by The DMA Insurance & Financial Services Council.
The study noted that most DM advertising in the sector was for lead generation and that the telephone is the most popular medium used, contributing 41% of all DM insurance and financial services sales. Direct mail was second with 28%, followed by newspaper space advertising with 17%.
In the B-to-B markets, insurance carriers and agents lead all industries with 12.2% in DM sales growth through 2003. The next fastest growing industry is professional services at 10.7 percent. Depository institutions lead all industries in interactive media sales in the consumer market with $175 million. Total 1998 DM sales for the insurance and financial services sector were $239.7 billion, 17.5% of total DM sales.
