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Direct Mail Advertising in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Direct Mail Advertising Market Research Report | NAICS 54186 | Feb 2017

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

IBISWorld’s Direct Mail Advertising market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 12-17
-1.5%
Annual Growth 17-22
Annual Growth
Profit
Profit
Employment
42,597
Businesses
2,519
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
  • ... purchase to read more

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... ... purchase to read more

Industry Report - Industry SWOT Analysis Chapter

The Direct Mail Advertising industry is in the decline phase of its life cycle. Although the recession did not impact the industry as severely as other advertising industries, its growth has recently slowed due to high client penetration and increasing competition from other forms of advertising. Over the 10 years to 2022, the industry's value added, which measures the industry's contribution to GDP, is forecast to decline at an annualized rate of 1.5%, while annualized GDP growth will reach 2.0% over the period.

Direct mail is still a very cost-effective method of promotion, and operators are now able to offer highly targeted mailing lists. However, the industry is facing increasing competition from other forms of direct response marketing, including e-mail and the internet. Thi.. ... 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... purchase to read more

     


    Industry ProductsRelated Reports

    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 servicesLettershop servicesPrinting and fulfillment servicesMailing list support servicesOther services
     
    Industry Activities
    Advertising material preparation services for mailing or direct distributionDirect mail advertising servicesDirect 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
    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 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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