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Q: Direct Mail spend by Industry Sector ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: Direct Mail spend by Industry Sector
Category: Business and Money
Asked by: joseph77b-ga
List Price: $15.00
Posted: 23 Jul 2002 23:37 PDT
Expires: 22 Aug 2002 23:37 PDT
Question ID: 44456
I am looking for a list of the industries (apparel, financial
services, travel etc.) that spend the most money on direct mail in
particular and direct marketing in general.  I would ideally like a
list of at least the top ten and a source to support it if possible. 
I wonder if the DMA has such info available for members?

If there is any breakdown on money spent on DM internationally by
industry, that would be awesome too, but not required.
Answer  
Subject: Re: Direct Mail spend by Industry Sector
Answered By: umiat-ga on 24 Jul 2002 01:30 PDT
Rated:5 out of 5 stars
 
Hello, joseph77b-ga,

The Direct Mail Information Service (DMIS), which is based in the UK,
keeps excellent statistics on the direct mail industry. A 2001 chart
depicting volume of direct mail sent to consumers by industry shows
the top ten, in order, are
1. Banks & Mail Order companies (tied for first),
2. Insurance companies 
3. Retail companies 
4. Other financial institutions 
5. Media
6.“Other”
7.Charities
8. Utilities 
9.Travel companies 
10.Manufacturing companies
The complete list can be found under the heading “Key Statistics –
Senders of Consumer Direct Mail” on the following page at the DMIS
website: http://www.dmis.co.uk/keystats/keystats.html

Another chart by the DMIS depicting “Direct mail Eexpenditures” from
1990-2001, and Total Advertising Expenditure by type from 1980-2001
can be found under Key Statistics – Expenditure at 
http://www.dmis.co.uk/keystats/keystats.html

On the same site, under Key Statistics, is a good “Direct Mail
Summary.” http://www.dmis.co.uk/keystats/keystats.html

Another chart has a breakdown of direct mail expenditures by European
country under Key Statistics – Direct Mail Volumes.
http://www.dmis.co.uk/keystats/keystats.html

The DMIS website also has a number of statistical charts under
Consumer Marketing http://www.dmis.co.uk/consumer/consumerfr.html
and Business Marketing http://www.dmis.co.uk/business/businessfr.html
 
They also have several publications free for order
http://www.dmis.co.uk/publications/publicationsfr.html
and a healthy number of press releases available for reading online.
http://www.dmis.co.uk/pressreleases/pressreleases.html

The Direct Marketing Association also has numerous publications and
white papers, but you must obtain a user name and password. (I
couldn’t tell if this was free or not, since I didn’t go though the
whole process, but it appeared to be) Their website is at
http://www.the-dma.org/

Another source you may want to search is the DMNews at:
http://advertising.about.com/gi/dynamic/offsite.htm?site=http%3A%2F%2Fwww.dmnews.com%2F

Hope this helps. You should be able to find all you need from the
above sites.

umiat-ga

Google Search Strategy
Direct mail by industry
Direct mail
Direct mail statistics

Request for Answer Clarification by joseph77b-ga on 24 Jul 2002 10:35 PDT
Hi Umiat,

This is just the kind of info i am looking for.  Any chance you could
find similar data for the US?  If you look a bit and still can't find
it, just say so and i will gie you a good rating!

Thanks,
Joe

Clarification of Answer by umiat-ga on 24 Jul 2002 15:01 PDT
Hi, Joseph77b-ga, 

  Oh boy, I wish I could help you!!! The problem, which I almost
stated in my first answer, is that the UK is willing to give away
information for free, whereas the U.S. wants to charge for everything.
I have been all over the net, searching for anything that might help
you, but every statistical report(from all the different research
organizations I have perused) has a large fee attached.

  The Direct Marketing Association, as referenced in the above answer
at http://www.the-dma.org/ seems to have the information you need for
the United States statistics, in a paper titled "Economic Impact: U.S.
Direct Marketing Today." "A study that analyzes direct marketing in
the United States and develops an econometric model for historical
analysis and forecasting purposes."
Other papers are also available under the Research and White papers
links. Unfortunately, I called them this morning to see how much a
subscriber fee is to access all their research papers. The
answer.....$650 for a corporation of 3 employees or less, and $900 for
larger corporations. Individuals cannot get any access. They then
suggested I transfer to the library, where a librarian might give me
some references to websites that have U.S. statistics. I sat on hold
for over 5 minutes and gave up. However, it would be worth a try for
you. Actually, you can go into their library in New York city and look
at all the materials for free ( but where do you live and is it worth
the trip?)

  Right now it is after hours in New York, or else I would try the
library one more time. If I were you, I would beg the librarian for
any references he/she can point you to. The phone number for the DMA
is 212-769-7277. Ask the receptionist to transfer you to the library,
and then beg, beg, beg!

  Whoa.....wait a minute here! I think I actually found a free report
from the DMA which, although somewhat cursory, has some very real
statistics you can use. In particular, scroll down to the Statistical
Chart at the bottom of the report for some general numbers on direct
mail spending (under Indicators) and some general numbers under
Telemarketing. The report, titled "The United States, Land of
Opportunity, Direct Marketing, An Overview" can be found at
http://www.the-dma.org/library/landofopportunity.shtml

  Here is some general information regarding Direct Mail that is worth
reading, though not specifically what you are asking for:

  "Cost-conscious businesses increasingly are turning to the Internet
in lieu of traditional direct mail campaigns, according to findings
from research firm Gartner Inc.'s GartnerG2 unit."...That's still a
drop in the bucket for traditional direct marketing -- which is poised
to take in close to $200 billion this year. But the growth should
worry firms that make their money from offline direct marketing
services, since Gartner predicts the trend will coincide with an
overall decrease in offline direct spending as advertisers move to the
Internet."..."Direct mail has reached its peak and will account for
less than 50 percent of mail received by U.S. households by 2005, down
from 65 percent in 2001," said GartnerG2 media industry research
director Denise Garcia. "As e-mail use, familiarity and trust
increases, consumers will become more comfortable with accepting
advertisements through their computer."... "Additionally, several
recent and pending U.S. Postal Service rate hikes don't make offline
direct mail any more attractive."
"Study: E-mail to Hurt Offline Direct Marketers" by Christopher
Saunders. (3/19/2002) http://www.atnewyork.com/news/article.php/994711

  Well, I hope this offers a bit more help. Please try the DMA and see
if you can "gently persuade" the librarian to point you in a worthy
direction. You never know!!

  Thanks for letting me be of service!

  umiat-ga
joseph77b-ga rated this answer:5 out of 5 stars
excellent answer, thanks for your help!

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