DMA study predicts healthy growth

Medical Marketing and Media, Jun 2008 by Comer, Ben

THE DIRECT Marketing Association (DMA) released a study indicating significant growth and efficacy in the direct marketing industry through 2012.

The study, titled Direct Marketing Facts and Figures in the Pharmaceutical Industry, found that $1 spent on direct marketing in 2008 equates to $10.27 in direct marketing-driven sales.

"Within direct marketing, the return on marketing investment is expected to continue to increase," said Michelle tiletnick, DMA research manager and author of the report. "In 2012, the return on marketing investment is expected to be $11.01 for every $1 spent."

Direct marketing-driven pharmaceutical and medical sales are expected to grow annually at a rate of 9.4% from 2007 to 2012, with total direct marketing-driven sales reaching $15.2 billion in 2012, according to the report. "Direct marketing-driven employment is also expected to be growing at an annualized rate of 4.7%," noted Tiletnick.

Broadcast media in the business market will also see an increase in available jobs, employing almost double the number of employees (5,807) than will the consumer market (2,985) in 2012, the study said.

"These results are indicative of a very healthy and robust industry," said tiletnick. "Another interesting trend is the increased investment and use of interactive channels such as commercial email and internet marketing. Commercial email will see the largest jump in advertising expenditures with a compound rate of 21.9% from 2007 to 2012. Web-driven sales will total $1.9 billion in 2008, with that doubling to $3.8 billion in 2012."

Direct mail advertising expenditures are expected to grow at an annualized rate of 7.1% between 2007 and 2012.

That growth is expected to boost employment in the industry at a compound annual rate of 2.9%, the report found. Internet marketing advertising expenditures are anticipated to grow by 17.2% each year, topping almost $173 million by 2012, according to the study.

Additionally, telephone marketing advertising expenditures are anticipated to have a compounded annual growth of 4.7% between 2007 and 2012, according to the study.-Ben Comer