October 2009 -- Direct marketing spending makes up 54.3% of all total ad expenditures, up from 52.7% last year, and is expected to remain above the 53% mark for the next five years, reports the Direct Marketing Association (DMA) in their report The Power of Direct Marketing, an annual forecast of the direct market’s economic impact on the US  economy.  The year 2009 marks the fifth year in which direct marketing has captured more than half of all advertising spend nationwide.

Additional key findings:

• For 2009, an investment of $1 in direct marketing advertising expenditures is predicted to return, on average, $11.65 in incremental revenue across all industries.  This exceeds the $11.61 achieved in 2008 and is expected to improve further to $11.73 in 2010.

• In 2009, direct marketing advertising across all economic sectors is expected to add more than $1.2 trillion of incremental final demand nationwide, making up almost 8.3% of the total US GDP.

• Although the share of overall marketing increased, direct marketing numbers were still down and predicted to reach only $149.3 billion total in 2009, a decline of 11.2% from 2008. However, general advertising fell to $125.7 billion, down 14.2% from 2008.

• In 2010, total direct marketing ad spending is expected to increase 2.7%.

• While offline channels will continue to account for the bulk of advertising dollars in 2009, the most significant developments for the 2009–2010 period are the continued shift of dollars towards online media.  Non-email Internet advertising will account for over 15% of all direct marketing advertising dollars in 2009, and nearly 17% in 2010.

About:  DMA’s The Power of Direct Marketing Report was prepared in August 2009 using the economic model of US direct marketing activity and development updated annually for DMA by Global Insight. The report is available for purchase from DMA’s online bookstore. 

Sources:  Response Magazine, Direct Marketing Increases Share of Ad Spend, October 21, 2009 and DMA news release, DMA's Power of Direct Marketing Report Finds DM Ad Expenditures Climb to Over 54% of All Advertising Expenditures, October 19, 2009.