DMA: Over half of ad spending on direct marketing

Do marketers still think direct is best? According to a new report from the Direct Marketing Association it is, with over half of advertising expenditures in the direct realm. Researchers found that, in the US, 54% of advertising is direct to the consumer; this is the fifth year in which direct marketing efforts have seen an increase.

by Kristina Knight

In 2008 direct marketing accounted for just over 52% of marketing efforts, so although this is a small increase it remains significant.

Added to that, next year, forecasters predict that direct marketing efforts will increase by another 3% to reach more than $150 billion.

DMA research manager, Yoram Wurmser, PhD said, "As digital media continue to take up a bigger role the direct marketing world, we are seeing a permanent shift in spending from offline to online, with a significant increase in email and mobile. These tough times have acted as a catalyst for the marketing community, as businesses have shifted marketing spending to mobile, Internet, and email for their greater efficiencies and ROI. Now that the economy is picking up, and there are signs that we are bottoming out, these channels will continue to benefit most."

Perhaps more important than the overall spend, though, is that this report finds direct marketing has a higher ROI than many other forms of advertising. According to the report every $1 spent in direct marketing returns more than $11 in incremental revenue.

Tags: advertising, direct advertising, direct marketing, Direct Marketing Association, online advertising