Direct marketing reports 9.8% rise in 2007

The Direct Marketing Association has revealed that spend in the sector rose by 9.8% to £18bn in the year to March 2008. Email marketing continued to be the fastest growing category, up 19% to £1.1bn.

The findings in the DMA’s annual Economic Impact of the Direct Marketing Industry 2008, compiled by the Future Foundation, also found that while direct mail continues to represent over a quarter of DM budgets at £4.8bn, the internet maintained its position as the second most popular, accounting for 17% of expenditure at £3.1bn.

Mobile messaging also enjoyed a rise, up 8%, although it represents just 1% of total expenditure.

Employment generated by the direct market industry rose 14% compared to the previous corresponding period.

Other findings in the report reveal that the magazine sector is the third most popular medium used for direct marketing, accounting for 10% of all expenditure or £1.8bn. This is followed closely by door drops at 9% and then inserts at just over 7%. Growth in customer magazines, field marketing and telemarketing expenditure also rose on average by 10%.

Other traditional advertising such as national and regional newspapers accounted for 3% of total spend respectively, while radio and TV combined accounted for just over 3% of DM budgets. Out-of-home remained one of the smallest methods, making up 1% of DM budgets.

Victoria Bytel, head of membership and research at the DMA says: “Even when the economy begins to slow and industry starts to get nervous, direct marketing continues to hold its own.

“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.”

The findings follow this week’s release of the Bellwether Report for Q2 (July 14), which revealed that DM budgets have been revised down to the greatest extent in the survey’s history.

Around 19% of companies reported a lowering of DM budgets, outnumbering those reporting an increase by nearly two-to-one.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here