THE DMA FORECASTS INTERACTIVE/ELECTRONIC COMMERCE SALES TO REACH $36 BILLION IN 2002
NEW YORK, July 24, 2002 – Although interactive/e-commerce is still a relatively new direct marketing channel, a report from the Direct Marketing Association (The DMA) found that it is quickly becoming an important piece of the overall commerce pie. According to The DMA’s Economic Impact: U.S. Direct & Interactive Marketing Today study, interactive/e-commerce sales rose 12.1 percent last year to $31.4 billion from $28.0 billion in 2000.
"These figures reflect how e-commerce has revolutionized the way consumers shop," said H. Robert Wientzen, president & CEO, The DMA. "For most people, tasks that were once considered impossible, such as booking a vacation with just the click of a button, have become as mundane as a trip to the mall."
According to the study, interactive/e-commerce can expect to see continued economic growth. Online sales are forecast to exceeded $36.0 billion in 2002 and grow annually by 20.9 percent to reach $81.1 billion in 2006.
The financial services industry (security/commodity brokers and depository institutions) and transportation services (airline industry) experienced the most interactive/e-commerce sales growth and ad spending over the past five years in both the consumer and business-to-business categories. Over the next five years, they are also poised to generate double-digit interactive/e-commerce sales revenue in both the consumer and business-to-business categories.
Consumer Interactive/E-Commerce Sales ($ in Millions)
Compound Ann. Growth
Industry 1996 2001 2002 2006 96-01 01-06
|
Security/Commodity Brokers |
$4.9 |
$496.6 |
$647.0 |
$2,083.3 |
151.5% |
33.2% |
|
Health Services |
$6.2 |
$563.7 |
$720.8 |
$2,166.4 |
146.8% |
30.9% |
|
Depository Institutions |
$18.8 |
$1,651.8 |
$2,071.3 |
$5,892.6 |
144.8% |
29.0% |
|
Transportation Services, ex. Airlines |
$3.4 |
$247.8 |
$306.2 |
$827.5 |
135.7% |
27.3% |
|
Other Retailers |
$7.5 |
$504.5 |
$608.6 |
$1,535.0 |
131.8% |
24.9% |
Business-to-Business Interactive/E-Commerce Sales ($ in Millions)
Compound Ann. Growth
Industry 1996 2001 2002 2006 96-01 01-06
|
Security/Commodity Brokers |
$6.0 |
$512.7 |
$955.1 |
$2,087.7 |
143.7% |
32.4% |
|
Insurance Carriers/Agents |
$9.8 |
$777.2 |
$976.6 |
$3,033.9 |
140.0% |
31.3% |
|
Depository Institutions |
$8.8 |
$609.2 |
$740.6 |
$2,033.3 |
133.5% |
27.3% |
|
Transportation Services, ex. Airlines |
$5.0 |
$343.1 |
$417.4 |
$1,149.3 |
133.4% |
27.4% |
|
Nondepository Institutions |
$14.0 |
$951.5 |
$1,152.9 |
$3,031.8 |
132.5% |
26.1% |
The study also reported that spending on interactive media rose nine percent to $3.5 billion in 2001 from $3.2 billion in 2000. According to the latest findings, sales are forecast to reach $4.0 billion in 2002.
Consumer Interactive/E-Commerce Advertising Spending ($ in Millions)
Compound Ann. Growth
Industry 1996 2001 2002 2006 96-01 01-06
|
Security/Commodity Brokers |
$1.1 |
$57.2 |
$73.4 |
$203.9 |
120% |
28.9% |
|
Health Services |
$1.3 |
$65.2 |
$82.4 |
$217.8 |
117.1% |
27.3% |
|
Depository Institutions |
$3.1 |
$147.1 |
$183.8 |
$469.3 |
116.5% |
26.1% |
|
Transportation Services, ex. Airlines |
$0.7 |
$30.0 |
$37.1 |
$90.9 |
109.7% |
24.8% |
|
Other Retailers |
$1.6 |
$61.7 |
$74.6 |
$172.7 |
107% |
22.9% |
Business-to-Business Interactive/E-Commerce Advertising Spending ($ in Millions)
Compound Ann. Growth
Industry 1996 2001 2002 2006 96-01 01-06
|
Security/Commodity Brokers |
$1.4 |
$65.6 |
$80.6 |
$212.0 |
115.1% |
26.4% |
|
Insurance Carriers/Agents |
$2.1 |
$92.1 |
$112.5 |
$298.3 |
113.7% |
26.5% |
|
Transportation Services, ex. Airlines |
$1.1 |
$42.2 |
$49.9 |
$118.2 |
108.6% |
22.9% |
|
Nondepository Institutions |
$2.6 |
$101.7 |
$120.3 |
$277.3 |
108.3% |
22.2% |
|
Depository Institutions |
$1.4 |
$55.0 |
$64.8 |
$151.5 |
107.3% |
22.5% |
Each year, The DMA commissions The Wharton Economic Forecasting Associates (DRI-WEFA) to analyze the scope of direct marketing in the United States and develop an economic model for historical analysis and forecasting purposes. The recently updated 2002 DRI-WEFA model provides an accurate view of the impact that changes in economic conditions, government policies (including postal rates), industry structure (including the impact of the Internet), and key pricing strategies will have on the direct and interactive marketing industry.
The 2001-2002 DMA Economic Impact report is the fifth annual survey of data relating to interactive/electronic commerce. The DMA defines interactive/electronic commerce as any direct communication to consumer or business recipients that is designed to generate a response in the form of a direct order; a request for further information that may eventually lead to a direct order (lead generation); and/or a visit to a store, Web site, or other place of business for purchase of a specific product or service (traffic generation).
The full report, available in early August, is priced at $495 for DMA members ($995 for non-members) and can be obtained by calling The DMA Book Distribution Center at 301.604.0187 or online at http://www.the-dma.org/cgi/offer?uid=000197.
The DMA is the leading trade association for businesses interested in interactive and database marketing, with nearly 4,700 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 nonprofit 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 manufacturers and a host of other vertical segments, including the service industries that support them. According to a DMA-commissioned study, direct and interactive marketing sales in the United States exceeded $1.86 trillion in 2001, including $118 billion in catalog sales and $30 billion in sales generated by the Internet. The DMA's Web site is
www.the-dma.org, and its consumer Web site is www.shopthenet.org.Media Contact: Christina Duffney
212.790.1532
cduffney@the-dma.org
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[Editor’s Note: Charts from The DMA’s Economic Impact: U.S. Direct & Interactive Marketing Today -- broken out by medium, market, state, and 52 industries -- are available to members of the press by contacting Christina Duffney at cduffney@the-dma.org.]