The Economic Impact of Direct Marketing by Telephone

Results of the 1997 WEFA Study

Presented by Direct Marketing Association Telephone Marketing Council

Part I 

 DIRECT MARKETING SALES

The Value of Direct Marketing Driven Sales 
by Telephone Marketing  
(in Billions of Dollars)

									       Compound
									      Annual Growth
Market					1992		1997		2002	    1997-2002

Consumer				$134.8		$185.9		$272.7		8.0%

Business-to-Business			$158.3		$238.6		$393.6		10.5%	
			Total 		$293.0		$424.5		$666.3		9.4%	


Sales from telephone marketing represent 34.6% of the total U.S. sales attributed to direct marketing which is $1,266,200,000,000.

The media that is second in importance is direct mail at 30.8% of the total.

The sales growth of business-to-business telephone marketing at 10.5% is the fastest growing segment of all telephone marketing.



 


Value of U.S. Direct Marketing Driven Sales 
by Telephone Marketing and Intended Purpose
(in Billions of Dollars)

									               Compound
									            Annual Growth
Intended Purpose			1992		1997		2002	  1997-2002

Lead Generation			        $ 173.5		$259.0		$420.9	    10.2 %
Direct Order				$  95.0		$134.4		$199.5	     8.5 %
Traffic Generation			$  24.5		$ 33.1          $ 46.0	     6.9 %

          	        Total	   	$293.0		$426.5		$666.3	     9.4 %	

		

Consumer U.S. Driven Sales 
by Telephone Marketing by Intended Purpose
(in Billions of Dollars)

									               Compound
									            Annual Growth
Intended Purpose			1992		1997		2002	    1997-2002

Lead Generation		    		$  70.4		$100.0		$152.8		8.8 %
Direct Order				$  47.7		$  64.0		$  90.5		7.2 %
Traffic Generation			$  16.6		$  21.8		$  29.2		6.0 %

          	            Total	$134.8		$185.9		$272.7		8.0 %


Business-to-Business  U.S. Driven Sales 
by Telephone Marketing by Intended Purpose
(in Billions of Dollars)
									               Compound
									            Annual Growth
Intended Purpose			1992		1997		2002		1997-2002

Lead Generation			    	$103.1		$159.0		$268.0	        11.0 %
Direct Order				$ 47.3		$ 68.5		$109.0		9.7 %
Traffic Generation			$  7.8		$ 11.2		$ 16.8		8.4 %

                 	    Total	$158.2		$238.7		$393.6		10.5 %








Part II 
 DIRECT MARKETING ADVERTISING EXPENDITURES

Direct Marketing Advertising Expenditures 
by Telephone Marketing and Market
(in Billions of Dollars)

									       Compound
									      Annual Growth
Market		       		1992		1997		2002          1997-2002

Consumer		       	$  16.0		$ 21.7		$ 29.5		    6.3 %

Business-to-Business		$  24.8		$ 36.5		$ 55.8		    8.9 %

                      Total	$  40.8		$ 58.2		$ 85.3		    8.0 %



Telephone advertising expenditures - $58,100,000,000- account for 37.9% of the total U.S direct Marketing Advertising expenditures which are $153,000,000,000.

Lead generation by telephone accounts for the largest percentage of total U.S. advertising expenditures.  The telephone accounts for 41.1% of all direct marketing lead generation advertising expenditures or $35,000,000,000.  The next closest medium is direct mail at 20.1% or $17,000,000,000.

      
	  
	  
	  
Direct Marketing Advertising Expenditures 
by Telephone by Intended Purpose 
(in Billions of Dollars)

									               Compound
									            Annual Growth
Intended Purpose			1992		1997		2002	    1997-2002

Lead Generation		    		$ 24.0		$ 35.0		$ 53.1	          8.7 %

Direct Order				$ 14.1		$ 19.2		$ 26.8	          6.9 %

Traffic Generation			$  2.7		$  3.9		$  5.4	          6.7 %

              	   Total		$ 40.8		$ 51.8		$ 85.3	          8.0 %


Consumer Direct Marketing Advertising Expenditures 
by Telephone and Intended Purpose
(in Billions of Dollars)
									               Compound
									            Annual Growth
Intended Purpose		        1992		1997		2002	    1997-2002

Lead Generation		    		$  8.5		$ 11.7		$ 16.6	          7.2 %

Direct Order				$  5.9		$  7.8		$ 10.1	          5.3 %

Traffic Generation			$  1.6		$  2.2		$  2.8	          4.9 %

           	    Total		$ 16.1		$ 21.7		$ 29.5             6.3 %


Business-to-Business Direct Marketing Advertising Expenditures 
by Telephone and Intended Purpose
(in Billions of Dollars)
									               Compound
									            Annual Growth
Intended Purpose			1992		1997		2002	    1997-2002

Lead Generation		    		$ 15.5		$ 23.3		$ 36.5	          9.4 %

Direct Order				$  8.2		$ 11.4		$ 16.7	          7.9 %

Traffic Generation			$  1.1		$  1.7		$  2.6	          8.9 %

             		  Total		$ 24.8		$ 36.4		$ 55.8             8.9 %


PART III
DIRECT MARKETING EMPLOYMENT


Total Direct Marketing Employment
 by Telephone Marketing and Market
( in Thousands of Workers)

									       Compound
									      Annual Growth
Market			        	1992		1997		2002      1997-2002
 
Consumer		 	        3,177.4		3,758.1		4,636.6		4.3 %

Business-to-Business			3,588.3		4,568.9		 6,221.9	 6.4 %

                  		 Total	6,762.7		8,327,0		10,858.5	 5.5%


There are 22,889,300 workers employed in the U.S. as a result of direct marketing activity and 36.8% or 8,327,000 are employed as a result of telephone marketing activity.

There are over 1,600,000 more people employed in telephone marketing than the next largest segment which is direct mail.

 

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