MDC Corporation of Toronto has added a direct marketing firm to its stable of 11 communications and marketing companies.

MDC has bought Graphics Exchange and integrated its operations into a new company called the Interactive Response Group.

Interactive Response Group will be headed by Patrick McGoey, president and chief executive officer of Graphics Exchange and the new Interactive Response Group.

McGoey is also an equity partner in the venture with mdc.

Interactive Response is expected to contribute $5 million to mdc’s 1994 consolidated revenues.

The new firm will continue to work with Graphics Exchange clients and provide direct marketing services to other mdc companies.

mdc has ventured into the direct marketing arena because it is the fastest-growing segment of the marketing industry.

Miles Nadal, mdc president and chief executive officer, says it is ‘more targetted, more measurable, more immediate and more cost-effective than the mass media.’

Direct marketing in Canada is an $8-billion industry with historic growth rate, estimated by the Canadian Direct Marketing Association, of 8% to 10%.

The database marketing segment is projected to grow by 17% this year.