DMA Reveals Economic Impact Of Direct Marketing

Direct marketing is responsible for £107 billion worth of sales in the UK, according to research by the Direct Marketing Association (DMA), which has launched the first major study into the effect of the industry and its value to advertisers.

The DMA’s figures follow the launch of its research into consumer perceptions of direct marketing in February. The new research analyses the impact of direct marketing on the UK economy, carried out by the Future Foundation on behalf of the DMA, and is the first ever research project of this nature to be commissioned by the trade body.

Key findings from the Research show direct marketing to be generating £107 billion worth of sales in the UK every year, with consumers spending £67 billion annually because of the medium. That total represents just under 9% of total consumer spending in the UK and is more than is spent on clothes (£43 billion), alcohol (£27 billion) and furniture (£40 billion). The figure comes just behind that of Britons’ expenditure on eating out (£71 billion).

£20 billion of sales generated by direct marketing come from mail order and home shopping services, while £14 billion is generated by internet sales and £73 billion through other channels. Business-to-business direct marketing sales generate £40 billion, according to the research.

Over £14 billion was spent on direct marketing activities by companies last year, with the DMA’s director of marketing and business development, Mike Barnes, explaining: “The direct marketing industry has seen significant growth over recent decades yet we have never been able to prove the importance our industry plays within the UK economy. These findings show the impact and success of direct marketing within the UK and will allow the DMA to highlight to Government and the business community at large, what an influential and immense industry we represent.”

Over 800,000 people are employed, both directly and indirectly, by the direct marketing industry in Britain, representing nearly 2.9% of the UK’s total employment – more than are employed by the postal, hotel and telecoms industries.

Earlier this year saw the DMA announce the appointment of Charles Ping, head of CRM at Guardian Newspapers, as its new chairman, replacing David Coupe, managing director of Experian’s marketing services division, who stepped down from the position following the completion of his two year term as chair (see Direct Marketing Association Appoints New Chairman).

Direct Marketing Association: 020 7291 3300 www.dma.org.uk