Statistical Fact Book 2001
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STATISTICAL FACT BOOK 2001 23rd edition 1120 Avenue of the Americas New York, NY 10036-6700 212.768.7277 The Direct Marketing Association, Inc. (The DMA) is the leading and largest trade association for businesses interested in interactive and database marketing, with more than 4,600 member companies from the United States and 53 other nations. Founded in 1917, its members include direct marketers from every business segment as well as the non-profit and electronic marketing sectors. Included are catalogers, Internet retailers and service providers, financial services providers, book and magazine publishers, book and music clubs, retail stores, industrial manu- facturers and a host of other vertical segments including the service industries that support them. According to a DMA-commissioned study conducted by The WEFA Group, direct and interactive marketing sales in the United States exceeded $1.7 trillion in 2000, including $110.6 billion in catalog sales and $24.2 billion in sales generated by the Internet. The DMA Web site address is www.the-dma.org (no period). Copyright 2001 by The Direct Marketing Association, Inc. ISBN 1-931361-04-5 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright owner. Printed in the United States of America. PREFACE The Direct Marketing Association’s 2001 Statistical Fact Book offers a quantified view of the “state-of- the-industry” for virtually all aspects of direct marketing. Users of direct marketing today are experiencing an explosion of information. The tremendous impact of new technologies is opening up a whole new world of markets and media for direct marketers of any specialty. The Library & Resource Center, the information arm of The DMA, strives to broaden awareness and understanding of direct marketing, and to increase the effectiveness and efficiency of its techniques. The Fact Book is designed to provide statistical support to help marketers achieve this goal. The Library & Resource Center is uniquely positioned to develop, acquire, and compile direct marketing data that details the status and direction of the direct response industry. The book is divided according to broad areas of direct marketing that the staff has identified using their extensive working knowledge of the industry: n Direct Response Advertising n Market Applications n Media - including Interactive Media n Lists/Databases n Practical Management Information n International Direct Marketing n The Economic Impact of Direct & Interactive Marketing The purpose of the 2001 Statistical Fact Book is to provide direct marketers easy access to authoritative data that will be helpful in making informed marketing decisions and media choices, in supporting proposed business and marketing strategies, and in making the most cost-effective expenditure decisions. The near-500 charts that comprise this year’s edition: n Highlight important media and market growth and usage trends by specific media and markets n Pinpoint consumer and business attitudes and buying habits concerning direct marketing n Quantify and compare marketers’ outlooks and expectations on key issues n Provide valuable expenditure, production, and operating cost figures n Identify direct marketers’ attitudes, concerns, and policies regarding specific environmental issues The 2001 Statistical Fact Book is designed not only to provide the latest direct marketing statistics, but also to indicate how the numbers were derived. Most primary research studies used and their sources are listed by title, sample and respondent size and by type of methodology used. Other sources are recognized by citations within individual sections. In addition, indexes are included for easy access to specific data and sources. ACKNOWLEDGEMENTS Acknowledgment is very much deserved by the many individuals and organizations that provided the information and research data that make this book a comprehensive and important resource. On an individual basis, each research study, compilation, and projection in this book deserves merit. Collectively, they offer a valuable picture of the scope and direction of the direct marketing field. Richard Spector of the DMA’s Research Department played a key roles updating WEFA information, in making sure these materials were processed in an orderly fashion. In addition, Allison and Anthony Giacchetto also logged many hours helping to desktop publish and proofread the charts that comprise this edition. This massive compilation could not be completed every year without their continued and val- ued support. Ann Zeller Anna Chernis Vice President Publications Research Coordinator Information and Special Projects TABLE OF CONTENTS TABLE OF CONTENTS Table of Contents . i – xii Direct Response Advertising . 1 Total Population Ordering Specific Items by Mail or by Phone or by Internet in the Last 12 Months . 3, 4 Total Populations Ordering by Mail, Phone, or Internet: Spring 2000 vs. 1999 . 5 1999–2000 U.S. Ad Expenditures . 6 Average Salary by Marketing Specialty . 6 2001 Direct Response Advertising Salaries . 7, 8 Media Unit Cost Indexes: 1994 - 2000 . 9 Percentage of All Advertising Spending Going to Each Media: 2000 vs. 1990 . 9 Business Expansion Plans by Segment . 10 Direct Marketing Services Industry 15 Largest Transactions . 10 Estimated Annual U.S. Advertising Expenditures 1991–2000 . 11 Estimated Annual U.S. Advertising Expenditures 1982–1990 . 12 Estimated Annual U.S. Advertising Expenditures 1973–1981 . 13 Estimated Annual U.S. Advertising Expenditures 1964–1972 . 13 Estimated Annual U.S. Advertising Expenditures 1955–1963 . 14 Estimated Annual U.S. Advertising Expenditures 1946–1954 . 14 Direct Response Advertising Agency Ranking by Billings: 1998 vs. 1999 . 15 – 17 Direct Response Advertising Agency Ranking by Revenue: 1998 vs. 1999 . 18 – 20 Direct Response Advertising Agency Ranking: 1998 vs. 1999 . 21 Direct Response Advertising Agency Ranking: 1999 . 22 Top 10 U.S. Direct Marketing Agencies . 23 Percentage of Revenue Derived from Direct Marketing . 24 Percentage of Marketing Budget Spent on Direct Marketing . 24 Direct Marketing Methods Used by Marketers . 25 Average Response Rates from House List . 26 Growth of Specialty Media Advertising Spending, 1995-2004 . 26 DMA Members in the Fortune 500 Largest U.S. Corporations . 27, 28 Annual Internet Advertising Revenue . 29 U.S. Hispanic Advertising Expenditures . 29 Direct Response Mechanisms in Radio Advertising . 30 Most Frequent Users of Toll-Free Numbers in Radio Advertising . 30 Statistical Fact Book 2001 i TABLE OF CONTENTS Direct Mail . 31 Why Consumers Open Direct Mail . 33 Popular Types of Direct Mail . 33 How Consumers Respond to Direct Mail . 34 Household Electronic Mail Capability by Household Income . 34 Number of Mail Order Purchases . 35 Total Population Ordering by Mail (By Demographic Category) . 36, 37 Attitude Toward Advertising Mail . 38 Treatment of Advertising Mail . 38 Response to Standard Mail (A) Piece by Age of Head of Household . 39 Standard Mail (A) Response to Advertising by Shape . 39 Response to Mail Order Solicitations: First-Class vs. Standard Mail (A) . 40 Intended Response for Mail Order Solicitations from Major Industries by Enclosure of Reply Envelopes/Cards . 40 Standard Mail (A) Response to Advertising by Familiarity with Organization . 41 Receipt of First Class and Standard Mail (A) by Number of Mail Order Purchases Made in the Past Year . 41 Standard Mail (A) Reaction by Industry . 42 Consumer Treatment of Standard Mail (A) by Selected Industry . 43 Treatment of Standard Mail (A) Piece by Shape . 43 Response to Standard Mail (A) Advertising by Education of Head of Household . 43 Response to Standard Mail (A) Piece by Income . 44 Number of Mail Order Purchases within the Last Year by Income . 45 Advertising Expenditures on Direct Mail . 46 Shell Alpert’s Direct Mail Ballpark-Budget Costimator™ . 46 Litho Letters (Not Personalized) . 47 Laser Letters (Word Processed) . 47 Outer (or Carrier) Envelopes . 48 Reply Envelopes . 49 Reply Cards/Order Forms . 49 Self-Mailing Formats . 49 Brochures, Folders, etc. 50 Bind-in Reply Formats . 50 Lettershop Operations . 51 Miscellaneous Direct Mail Items . ..