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

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...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 12-17
-1.5%
Forecast Growth 17-22
Profit
Employment
42,597
Businesses
2,519
Market Share of Companies
What Our Customers Say

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 Report - Industry Products Chapter

    The industry generates the majority of its revenue from mail-out services, including printing of advertising materials. The remainder is generated from value-added and associated services such as commercial art and graphic design, market research, photography services, commissions and merchandise sales.Full direct mail servicesMany clients use full-service programs, which include everything from concept development and graphic design to lettershop services and printing. Full direct mail services are estimated to account for 51.3% of industry revenue in 2017. Increases in business sentiment largely drive this segment; as corporate profit increases, more companies are willing to spend for the industry's full-service offerings. The...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 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
  • 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
    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
    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.
  • Why buy this report?

    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.

    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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