Direct Mail Advertising in the US Industry Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) September 12, 2013 -- Direct mail advertisers distribute marketing materials, such as coupons, flyers or samples by mail through the US Postal Service (USPS) and less often through other commercial delivery services. A reduction in corporate profit margins led to cuts in spending on all forms of advertising during the recession. Increased competition from other promotional tools, including the internet, email and text messaging, also hurt the industry. According to IBISWorld Industry Analyst Stephen Morea, “These factors caused demand for the Direct Mail Advertising industry to decline at an estimated annualized rate of 1.2% to $11.7 billion over the five years to 2013.”
The industry regularly competes with print and electronic advertising in up and down markets and in all stages of the business cycle. “When the economy slowed and consumers curtailed their discretionary spending, businesses responded by trimming their expenditures on all forms of advertising,” says Morea. Direct mail is a low-cost substitute for traditional media advertising; however, technological advancements have paved the way for other cost-effective methods of product promotion such as daily-deals websites and email marketing campaigns. Despite these negative factors, the industry is poised for marginal growth. Operators will benefit from higher corporate spending and programs implemented by the US Postal Service, which are designed to encourage commercial mailers.
During the five years to 2018, higher expected levels of consumer spending and rising corporate profit margins are anticipated to increase advertising expenditures, aiding industry revenue. However, significant revenue growth and profit improvement will continue to be hindered by outside competition. Consolidation among direct mail advertisers is expected, as the USPS will likely continue its high density mailing discounts, providing an incentive for the industry's largest players. Additionally, as consumers increasingly turn to the internet to find bargains and coupons, a greater number of direct mail advertisers will offer services online.
For more information, visit IBISWorld’s Direct Mail Advertising in the US industry report page.
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IBISWorld industry Report Key Topics
The Direct Mailing Advertising Industry distributes 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 direct distributions. 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 Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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