The impact of direct marketing on the UK economy

The significance of the direct marketing industry to the UK’s economy is revealed in a new report from the Future Foundation. The Economic Impact of the UK Direct Marketing Industry report, produced for the Direct Marketing Association, shows that the overall value of direct marketing to the UK economy stands at £43.7 billion and that total employment accounted for by the direct marketing industry has grown by 8.8% since 2004 to 886,000 – representing 3.1 per cent of total UK employment.

A separate Future Foundation report which looks solely at the direct mail industry, the largest element of the direct marketing mix, paints a similar picture of growth with direct mail expenditure in the UK standing at £8.6billion and employment accounted for by direct mail at 182,000. The report shows that over 75,600 companies with a turnover greater than £1m undertake direct mail, spending an average of £35,000 per annum.

Robert Keitch, director of Media Channel Development, DMA, says: 'The continued growth of the industry highlights its resilience and adaptability to changing conditions. However, to sustain such growth, it is vital that the industry continues to adapt and takes a responsible approach by balancing consumer and business needs with environmental and social responsibility.'

Findings from the study put the total value of consumer and business sales generated by direct marketing at £125 billion with consumer sales estimated to be £72 billion, just over 9 per cent of total UK consumer spending. Emphasising the size and maturity of the market, this puts expenditure as a result of direct marketing above other significant sectors such as the clothing and footwear industry (£45 billion) and alcoholic drinks industry (£42 billion).

For more information and to obtain a full report, visit www.dma.org.uk.

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