Slow growth ahead for direct marketing, report says

Share this content:

Direct marketing spending and revenue will experience slower growth than other communications sectors, according to projections released August 10 by private equity firm Veronis Suhler Stevenson.

The VSS Communications Industry Forecast examined six sectors, grouping direct marketing in its “targeted media” category. While targeted media is projected to become the second-fastest-growing industry of the six analyzed – with a compound annual growth rate (CAGR) of 6.1% from 2009 to 2014 -- direct marketing and business-to-business media will grow about half as fast (3.1%), the report said.

Otherwise, pure-play consumer Internet and mobile services are expected to bolster the targeted media industry's growth.

Revenue generated by marketing services is expected to experience a 3.7% CAGR over the next five years to $227.82 billion, slower than the other industries considered in the report.

VSS forecasts that direct marketing will post modest gains because it will be hampered by the Do Not Call list, the expected reduction in Postal Service delivery and increased postal rates. VSS' definition of direct marketing includes direct mail, telesales, catalog, e-mail and DRTV.

Overall, VSS projected that communications spending would increase 3.5% in 2010 and have a 6.1% CAGR from 2009 to 2014. Gradual economic recovery, advances in digital technology and secular trends impacting the entire industry landscape were factored into the growth, the firm said.

Other industries analyzed included marketing; education and training; traditional consumer ads; entertainment and leisure; and business and professional information.


Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above