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Media

Direct Marketing to Account for 53% of US Ad Spend in 2009

Source: December 5, 2008 MediaPost Publications

Facts And Trends

Ad Growth

Ad Expenditures Decline In First Nine Months of This Year

Total measured advertising expenditures in the first nine months of this year declined 1.7% compared with the same period in 2007.

  • Internet display advertising continued to grow, increasing 7% in the first nine months of this year, compared with the year earlier period. However, the growth rate has been getting smaller for five consecutive quarters.
  • Consumer magazine ad spending was down 3.8%.
  • Local media expenditures continued to deteriorate in the wake of cutbacks from automotive, retail and telecom advertisers.

Source: BtoB Magazine

According to the Direct Marketing Association's Power of Direct Marketing Report, in 2008 commercial and nonprofit marketers will spend $176.9 billion on direct marketing, accounting for 52.1 percent of all ad expenditures in the United States. These advertising expenditures will generate approximately $2.057 trillion in total incremental US sales.


Direct Marketing Ad Expenditures vs. Total US Ad
Expenditures, 2008 (Billions of dollars, Percent share)

 

DM Ad
Expenditures

Total Ad
Expenditures

DM % of
Total

Direct mail (catalog
& non-catalog)

$56.5

$61.7

91.5%

Telephone marketing

42.5

86.6

49.1%

DR newspaper

13.0

38.8

33.5%

DR television

22.8

75.9

30.1%

DR magazine

8.9

18.2

49.0%

DR radio

4.6

18.7

24.6%

New media & other

28.6

39.4

72.5%

Total

$176.9

$339.3

52.1%

Source: Direct Marketing Association, 2008

The $176.9 billion in direct marketing advertising expenditures that marketers are predicted to make by the end of 2008 represents a modest three percent increase over 2007. Looking forward to 2009, total direct marketing advertising expenditures are expected to increase 3.5 percent yielding $183.1 billion. Above average, double-digit spending growth will occur in commercial email and Internet marketing.

Continuing to rise in 2009, sales generated from direct marketing are forecast to grow by 4.5 percent to $2,150 billion.


Top Ten Industries by DM Ad Expenditures

Industry

2008 (billion $)

2007-2008 % Change (billion $)

Financial, Banks & Credit

$13.3

0.2%

Service, Professional, Technical & Management

10.6

1.1%

Retail, Non-store & Other Retailers

10.2

2.3%

Information, Communications

9.9

6.4%

Wholesale Trade

9.7

4.3%

Retail Trade, Motor Vehicle Dealers & Service Stations

7.5

-1.9%

Manufacturing, Motor Vehicles

7.5

-11.4%

Financial, Insurance Carriers & Agents

7.0

5.8%

Financial, Security & Comm. Brokers, Holding Companies

6.9

6.1%

Retail Trade, General Merchandise Stores

6.7

1.2%

Source: Direct Marketing Association, 2008

The above Top 10 industries represent 50% of total DM Ad Expenditures.

See the press room for the full article on “Direct Marketing to Account for 53% of US AdSpend in 2009” which includes keyeconomic impacts.  Also posted on the site are predictions from the 4A’s and IAB for 2009.