Direct Marketing Out Performs Its Advertising Counterparts In 2001

The DMA’s Annual Census of the Direct Marketing Industry 2001-2002 shows the industry was worth over £11.41 billion in 2001. The more traditional direct marketing sectors of telemarketing (£2.9b) and direct mail (£2.4b) continued to dominate the spend, accounting for nearly half the total despite predictions of their decline, due to the introduction of new electronic marketing tools such as email and SMS.

Expenditure on new media rose by 185% to be conservatively valued at £450m, with 60% of direct marketers already using email as part of an integrated campaign strategy and 87% indicating a greater use of the medium in the future.

Mike Barnes, DMA Director of Marketing, said: “To see a growth in dm at a time when total advertising expenditure is showing a decline is an amazing coup for the industry. It really is proof that when times are tough, direct marketing is the most effective and accountable way of communicating with consumers. It has also influenced a change amongst agencies. Many used to talk about being integrated, but now they realise that they have to act on this or miss out on some very valuable business.”

Whilst the Census shows a rise in direct marketing spend overall, there were some areas that suffered with direct response ads in print and broadcast media experiencing a drop in expenditure. However, a downturn in these areas was expected as television and print advertising in general has been hit hard in the past year.

The positive findings of the DMA Census have reinforced the need for ensuring there are enough experienced and skilled practitioners working within the industry to keep up with demand. To help, the DMA’s Training and Development Committee has identified a number of key projects and activities on which to focus its efforts over the coming 12 months.