Telemarketing Bureaus

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 2,600 telemarketing bureaus in the US operate call centers that initiate and receive communications via telephone, email, fax, or other medium on behalf of their clients. Services provided include promoting or selling a client’s products or services, taking orders, soliciting donations, and handling customer service inquiries.

Privacy Regulations

In response to concerns about telephone scams and consumer complaints about unwanted telemarketing calls, Congress has enacted regulations governing the activities of telemarketing bureaus.

Competition From Offshore Centers

US telemarketing bureaus compete with lower cost services in the Philippines, India, and other low-wage countries.

Industry size & Structure

The average telemarketing bureau operates a single location, has 163 employees, and generates $7-8 million in annual revenue.

    • The telemarketing bureau industry in the US consists of about 2,600 firms operating about 4,000 centers with 436,200 employees and $20 billion in annual revenue.
    • The industry is concentrated, as the largest 50 firms account for 55% of industry revenue.
    • Large US telemarketing firms include The Results Companies and USA800, DialAmerica, VXI Global Solutions, and American Customer Care.
    • The states with the largest number of telemarketing bureaus are Florida, California, Texas, New York, Ohio, and Arizona.
                                    Industry Forecast
                                    Telemarketing Bureaus Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Feb 28, 2023 - Robocalls Rise
                                    • In January 2023, the number of robocalls in the US rose by 5.7% to 4.5 billion, according to YouMail. On average, US consumers received more than 145 million robocalls per day in January. The top five cities for robocalls in January were Atlanta, Dallas, Chicago, Houston, and New York. In January, 30% of robocalls were for telemarketing, and 25% were scams.
                                    • In December, Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel sent a letter to a group of US senators requesting additional authority from Congress to fight robotexts. Because robotexts are neither artificial voice nor prerecorded calls, the 1991 Telephone Consumer Protection Act (TCPA) can only protect consumers from robotexts sent from autodialers. Rosenworcel also noted that a Supreme Court ruling on Facebook v. Duguid further narrowed the definition of “autodialer” under the TCPA, so now it only affects equipment that generates numbers randomly and sequentially. As a result, robotexts sent from equipment using lists may lead to fewer robotexts being subject to protections under TCPA. The FCC is also seeking authority and resources from Congress to expand court enforcement of fines.
                                    • Net media owner advertising revenues are expected to grow 4.8% to $833 billion in 2023 compared to 2022, according to a December forecast by advertising firm MAGNA. However, MAGNA’s latest outlook represents a slight downgrade from the one in June when the firm projected that 2023 media owner advertising revenues would grow 6.3% over 2022. Aside from political ad spending, most types of ad spending growth slowed substantially in the second half of 2022 amid mounting global economic uncertainty. In terms of verticals, consumer packaged goods and financial services marketers are likely to see flat ad spending growth in 2023, while entertainment, travel, and betting will continue to rebound from the pandemic.
                                    • In December, New York state enacted a new law that requires telemarketers to disclose at the beginning of the call that recipients can be placed on the telemarketer’s do-not-call list. The new law tweaks an existing one that required disclosing the option for being on the telemarketer’s internal do-not-call list but did not specify when the disclosure must be made. The new law requires disclosures at the beginning of the call, including the telemarketer’s name and on whose behalf the call is being made, the option to the added to the company’s do-not-call list, the purpose of the call, and the identities of goods or services for which fees will be charged.
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