Facts and Figures

The information below provides an insight into the size of the direct marketing industry.

Industry facts and figures*

£43.7bn: the overall value of the direct marketing industry to the UK economy
886,000: the total employment accounted for by the direct marketing industry in the UK
3.1%: the percentage of total UK employment of those working in the direct marketing industry
£125bn: the value of sales attributed to the direct marketing industry
9%: the percentage of total UK consumer spending accounted for by direct marketing

Putting this into context, sales generated as a result of direct marketing stand well above significant UK industries such as clothing and footwear (£45bn) and alcoholic drinks (£42bn)

Sector specific facts and figures*

£8.6bn: the overall value of direct mail industry to the UK economy
182,000: the total employment accounted for by the direct mail industry in the UK
£14bn: sales accounted for by the internet and email
£17bn: sales accounted for by direct mail
* Future Foundation study: Economic Impact of Direct Marketing 2006

Social and environmental facts and figures

2%: the percentage, in volume terms, of household waste accounted for by direct mail – equivalent to about a third of a Sunday newspaper per week
4%: percentage of the UK’s total paper usage used in direct mail**
95%: percentage of paper used in direct mail coming from recycled or managed sources**
** Confederation of Paper Industries

DMA environmental and social Initiatives

Green going out: The DMA has partnered with Envirowise and Friends of the Earth to develop a series of sector specific ‘Enviro-guides’ which will enable members to work to environmental best practice guidelines, significantly reducing their environmental impact.

Green coming back: In July 2003 the DMA signed a landmark voluntary agreement with the Government. The Producer Responsibility Agreement with DEFRA commits the industry to increase the proportion of direct marketing material (specifically addressed and unaddressed mail, and loose inserts in newspapers and magazines) going to recycling. At the time of signing the agreement research showed that approximately 13% of direct mail material was going to recycling. Research carried out at the end of 2005 by CACI for the DMA indicated that this had risen to nearly 30% and that the industry was on track to meet its commitment to DEFRA of 55% by 2009 and 70% by 2013.

The DMA has partnered with WRAP so that DMA members can use a variety of logos from the Recycle Now campaign to continue to encourage and improve recycling levels of direct mail.

Addressing consumer concerns: The Mailing, Telephone, Fax and Baby Preference services already provide consumers with the choice as to whether they want to receive direct marketing. The DMA continues to promote these services through local authorities and media relations. It is also currently developing a new consumer facing website which addresses other concerns about marketing in general such as data protection, legislation and scams as well as providing a forum where consumers can voice their concerns to which the industry will respond.

Ridding the industry of ‘junk’: The DMA continues to promote improved targeting based on best practice and its Code of Conduct. Due to better targeting, the quantity of direct mail being sent is 88% of the level three years ago. This trend is set to continue. No company wants their mailing to be perceived as ‘junk’ therefore they will want to continue with a targeted approach.

The industry faces does face a challenge. When used responsibly, direct mail is a very effective business tool. Irrelevant ‘junk’ obviously still exists and the DMA is rising to the challenge to guide and change the industry and rid it of the ‘junk’ label.

Recognising industry achievement: The DMA has introduced the ‘Green Initiative’ Award which will recognise campaigns which provide clear evidence of strategic and creative thinking to minimise environmental impact.

Direct marketing as a vital business tool

Direct marketing is often a favoured advertising medium as it can be tailored and personalised to make it relevant to the audience. It is a key medium in acquiring new customers, retaining current customers as well as building customer relationships.

- Nearly three quarters of all UK companies use some form of direct marketing
- For every £1 spent on direct mail, £14 is generated***
- Direct mail is the most responsive advertising medium with 60% of consumers responding to it***

*** DMIS: Consumer Advertising Trends 2004