Direct marketing generates 9% of consumer spend claims DMA
LONDON - The DMA is set to combat what it calls a widespread myth in the media that direct marketing is extremely unpopular with consumers, with a new survey indicating that direct marketing generates 9% of all consumer sales.
The annual value of consumer sales generated by direct marketing is £67bn, while the value of business-to-business sales generated is £40bn.
The Economic Impact Analysis Study 2005 is the result of DMA research aimed at estimating the contribution that direct marketing makes to the UK economy. The research was carried out by the Future Foundation.
Mike Barnes, DMA director of marketing and business development said: "These findings show the impact and success of direct marketing within the UK and will allow the DMA to highlight to Government and the business community at large, what an influential and immense industry we represent."
UK companies are spending £37.1bn annually on direct marketing. The figure includes direct marketing budgets, calculated at £14.1bn, employment costs at £13.2bn and overhead costs at £9.8bn.
Of the £14.1bn spent on direct marketing budgets, consumer marketing accounts for £9bn and business-to-business marketing for £5.1bn.
The survey also estimates that 814,000 jobs are created directly and indirectly by the direct marketing industry, not including an estimated 5,000 to 10,000 jobs at direct marketing suppliers.
The survey included all forms of direct marketing except inbound contact centres. A 2003 Direct Mail Information Service study into direct mail only estimated that it generated £27bn in consumer sales.
The DMA is now planning another study, which will look at current and future expenditure trends in direct marketing, and intends to repeat the Economic Impact study in future years.
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