The business-to-business market generated 45 percent of all insurance and financial services direct marketing sales in 1998 and is projected to surpass spending on the consumer market by 2007, according to the Direct Marketing Association's 1999 study of the sector.
BTB increased its share from 42 percent in 1993 and is expected to command a 47 percent share by 2003. Total direct marketing sales for the sector were $239.7 billion in 1998, or 17.5 percent of all direct response sales. Total DM advertising expenditures reached $24.8 billion, or 15.2 percent of all spending.
The study, part of an annual report compiled by the WEFA Group, also found that 55.5 percent of financial services advertising is used for lead generation. Telephone sales contributed to 41 percent of all DM sales, followed by direct mail (28 percent), and newspaper ads (17 percent).
In the consumer market, DM sales by depository institutions are expected to grow at the highest rate (7.3 percent) in the next five years while insurance carriers and agents should lead the BTB market with 12.2 percent annual growth. Depository institutions also saw the most sales from interactive media with a total of $175 million.