Overview

Snail mail: Despite rising overall ad spending, online competition will limit industry growth

IBISWorld’s industry research report on Direct Mail Advertising can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Higher levels of consumer spending and rising corporate profit will benefit the industry
  • More players are extending their services and investing in technology to improve targeting
  • Technology will likely play a key role in boosting revenue for the industry
  • Industry Analysis & Industry Trends

    After the recession, an increase in corporate profit margins led to a rise in spending on all forms of advertising. As a result, revenue for the Direct Mail Advertising industry is expected to increase over the five years to 2017. However, much of this gain represents a recovery from recessionary lows and industry revenue is expected to remain below prerecessionary levels. Over the five years to 2022, industry revenue is expected to remain nearly stagnant. Higher expected levels of consumer spending and rising corporate profit margins are anticipated to increase advertising expenditures, but outside competition should continue to hinder significant revenue growth and profit improvement.

    Industry Report - Industry Investment Chapter

    IBISWorld estimates that for every dollar spent on labor in 2017, roughly $0.06 will be spent on the use and replacement of buildings and equipment. Therefore, IBISWorld estimates that this industry has a low level of capital intensity.

    The industry is information- and knowledge-intensive, with a requirement to collect, collate, analyze, store and retrieve data. Operators must then print and organize mail-outs of the contracted promotional material. For these reasons, IBISWorld estimates that wage costs comprise 21.4% of industry revenue in 2017. While computing and related technology assists in this process, operators require specialist labor input in the areas of sales, client meetings and graphic design. Ind

    Additional Insights for the Direct Mail Advertising Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Direct Mail Advertising Industry are

  • Having contracts that are favorable to the purchaser
  • Ability to pass on cost increases
  • Prompt delivery to market
  • IBISWorld analysts also discuss how external factors such as Total advertising expenditure and Demand from postal service in the Direct Mail Advertising industry impact industry performance..

    shopping_cartVIEW PURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Industry Products

    What is the Direct Mail Advertising Industry?

    Direct mail advertisers distribute advertising materials (e.g. coupons, flyers and samples) or specialty items (e.g. key chains, magnets and pens with custom printed messages) by mail or other methods of direct distribution. Industry participants may also prepare advertising materials or specialties for mailing or other direct distribution. They may also compile, maintain, sell and rent mailing lists.

    Industry Products
    Full direct mail services
    Lettershop services
    Printing and fulfillment services
    Mailing list support services
    Other services
    Industry Activities
    Advertising material preparation services for mailing or direct distribution
    Direct mail advertising services
    Direct mail or direct distribution advertising campaign services

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Total advertising expenditure
  • Demand from postal service
  • Demand from retail trade
  • Corporate profit

  • Current Performance
  • Increased competition
  • Integrated marketing
  • A strong ally
  • Chart: Revenue Growth

  • Industry Outlook
  • Digital competition
  • Table: Direct Mail Advertising Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Direct Mail Advertising Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Retail Trade
  • Credit Card Issuing
  • Advertising Agencies
  • Public Relations Firms

  • Key Selling Industries
  • Database & Directory Publishing
  • IT Consulting
  • Paper Wholesaling
  • Postal Service

  • Products & Services
  • Full direct mail services
  • Printing and fulfillment services
  • Other services
  • Lettershop services
  • Mailing list support services
  • Chart: Direct Mail Advertising Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail stores
  • Other
  • Restaurants and travel companies
  • Finance, banking and insurance institutions
  • Business-to-business market
  • Chart: Major Market Segmentation for the Direct Mail Advertising Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Direct Mail Advertising

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Direct Mail Advertising Industry

  • Industry Globalization
    Major Companies
    Valassis Communications Inc.
  • Table: Valassis Communications Inc. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Direct Mail Advertising Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Direct Mail Advertising Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total US advertising expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Lettershop
  • An independent agency that manages mailings for clients and performs tasks such as poly wrapping, inserts, addressing and labeling.
  • Main Media
  • Advertising in the traditional media areas of TV, radio, newspapers and magazines.
  • Quick Response (Qr) Codes
  • Matrix bar codes, which store data and are printed on direct mail. When these codes are scanned with mobile devices, users can access more complex online advertisements.
  • Shopper
  • A usually free paper carrying advertising and sometimes local news.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Direct Mail Advertising:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Direct Mail Advertising market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Direct Mail Advertising, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Join IBISWorld today

    Contact Us

    Want to speak to a representative? Call us.

    clear