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Growth predicted for UK direct marketing

News | Industry | Trends | marketing

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The UK direct marketing industry is expected to grow by 7.0 per cent during 2012, the Direct Marketing Association (DMA) has claimed.

UK businesses reportedly spent £14.2 billion on direct marketing in 2011 and this figure is predicted to rise to nearly £15.2 billion.

Growth is expected to be driven primarily by increased expenditure on digital channels, the DMA stated.

Companies predict their investment in email marketing will grow by 11.9 per cent to £2.5 billion, social media marketing expenditure will rise by 8.1 per cent to £2.2 billion and total internet search advertising spend will increase by 6.3 per cent to £516 million.

The study offered an insight into the importance of direct marketing as companies look to boost their bottom lines.

On average, UK businesses attribute 23 per cent of their total sales to direct marketing, rising to 32 per cent for the travel and leisure sector, 30 per cent for the retail and wholesale sectors and 28 per cent for the financial services sector.

The DMA has also predicted a rise in the number of people employed by the direct marketing industry.

Total industry headcount in 2011 topped 530,000 workers last year, but this is expected to rise by the end of 2012.

Chris Combemale, executive director of the DMA, said that while the UK remains mired in a protracted recession, the creative industries are among the few that are performing strongly, with "direct marketing in particular making an outstanding contribution to the UK economy".

“The industry is bucking the prevailing trend with increases in overall expenditure and employment figures forecast for 2012," he stated.

“As [our research] demonstrates, the government must make every effort to ensure the industry can continue to play its part in dragging the UK out of recession."


Posted by Jon Aspinell on 6th August 2012

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