Going Direct - That's Where The Growth Is

Sydney Morning Herald

Thursday June 25, 1998

By ANDREW HORNERY

The direct marketing industry is booming. Marketers spent more than $7.2 billion last year sending out catalogues, setting up Internet sites, telemarketing and using databases to sell.

According to figures released yesterday by the Commercial Economic Advisory Service of Australia, direct marketing now represents 49 per cent of all media spending and is growing at a rate of 14 per cent a year.

Advertising in mainstream media, such as television, newspapers and magazines, grew by just 8 per cent during the same period to more than $6 billion.

CEASA managing director Mr Bernard Holt said that in 1996 the total figure for media and marketing spending in Australia was $17.8 billion.

In 1997 this increased to more than $20 billion of which direct marketing made up the second largest share, behind mainstream media, at more than 30 per cent.

"Clearly direct marketing has come into its own as a significant force in the media mix," Mr Holt said.

"Indications are that this trend will continue."

The direct marketing industry employed 523,000 people in 1997, an increase of 7 per cent over 1996.

"These figures prove that direct marketing is truly the marketing sector of the future," said Mr Rob Edwards, chief executive officer of industry group the Australian Direct Marketing Association.

"This phenomenal growth is forecast to continue at the current rate and, with the emergence of new media technologies such as digital television and the Internet, there will be even more distribution channels available to direct marketers."