Snail mail: Despite rising corporate profit, intensifying competition will inhibit revenue growth

Direct mail advertising has historically provided a less-expensive alternative to traditional advertising outlets like television, radio and magazines. However, a proliferation of computers, smartphones and tablets helped to foster other affordable marketing alternatives like email, website and mobile advertising, presenting a serious challenge to the industry. Due to heightened external competition, revenue for the Direct Mail Advertising industry is expected to decrease slowly over the five years to 2017. Moving forward, technology will likely play a key role in the industry. Unfortunately, it will also create channels for greater external competition...purchase to read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 12-17
-1.8%
Forecast Growth 17-22
Profit
Employment
43,588
Businesses
2,321
Market Share of Companies

Industry Threats & Opportunities

  • Revenue is expected to decline as external competition continues to inhibit sales
  • 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 Report - Industry Locations Chapter

    Companies in the Direct Mail Advertising industry are heavily concentrated in the Southeast (23.1% of industry revenue), Mid-Atlantic (18.5%), West (16.5%) and Great Lakes (15.3%). Together, these provinces account for more than 73.0% of all industry establishments. The distribution of industry companies largely follows the geographic distribution of the population. The Southeast also represents a large portion of establishments and revenue because the region accounts for more than a quarter of the national population.The industry is also densely concentrated in the Mid-Atlantic and West regions because they are home to a large number of major advertising agencies and PR companies. Man...purchase to read more.

    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..

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    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    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 competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Direct Mail Advertising Industry

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

  • 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
    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
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Direct Mail Advertising provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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.

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