LONDON: Despite the gloomy outlook painted by this week's IPA Bellwether Report, the UK direct marketing industry has declared itself to be in robust health – in 2007 at least.
According to the Direct Marketing Association's Economic Impact of the Direct Marketing Industry 2008 published Wednesday, spend on direct marketing campaigns increased by 9.8% to £18 billion ($36.07bn; €22.65bn) in 2007.
The research, compiled by the Future Foundation, shows that direct mail continues to be the industry's bulwark, representing just over a quarter of all DM budgets in 2007 at £4.8 bn.
- Within the digital sector, email marketing continued to thrive – growing by 19% to £1.1 billion in 2007, the largest jump in the entire sector.
- The internet maintained its position as the second most popular form of DM accounting for 17% of expenditure or £3.1billion.
- Elsewhere, mobile messaging rose by 8% on the previous year and whilst this represents just 1% of total expenditure it is yet another indication of the growing importance of digital dm.
- The magazine sector is the third most popular medium accounting 10% of all expenditure or £1.8 billion.
- This is followed closely by door-drops at 9% and then inserts at just over 7%.
- Growth in customer magazines, field marketing and telemarketing expenditure also rose on average by 10%.
- Other traditional advertising such as national and regional newspapers accounted for 3% of total expenditure each, while radio and TV combined accounted for just over 3% of direct marketing budgets.
- Outdoor/transport remained one of the smallest methods, making up 1% of direct marketing budgets.
"We are however keeping a very close eye on how the industry performs throughout 2008/09 in what is predicted to be its biggest economic test for many years."
Data sourced from DMA (UK); additional content by WARC staff