Snail mail: Revenue will increase only marginally as digital advertising impedes industry growth

Over the past five years, increasing consumer confidence and spending led to a slight rise in corporate expenditures on all forms of advertising. As a result, revenue for the Direct Mail Advertising industry is expected to increase modestly, especially due to shifting ad preferences and a projected downturn in Canadian corporate profit margins. Additionally, technological advancements have paved the way for other cost-effective methods of product promotion, such as daily-deals websites, email marketing campaigns and mobile advertising. The Direct Mail Advertising industry will remain viable and is expected to achieve gradual growth over the next five years...read more.

Industry Statistics & Market Size
Revenue
$389m
Annual Growth 12-17
2.2%
Forecast Growth 17-22
Profit
Employment
3,544
Businesses
237
Market Share of Companies

Industry Threats & Opportunities

  • Increasing consumer confidence and spending led to a slight rise in corporate expenditures on all forms of advertising
  • Mobile advertising is the fastest-growing segment in the digital advertising market
  • Digital advertising is quickly gaining ground
  • Industry Report - Industry Key Buyers Chapter

    The industry exhibits low market share concentration. The top four companies command no more than 10.0% of market share, over half of which is generated by the top player Direct Response Media Group (DRMG). In fact, the industry is mostly composed of small- to medium-sized companies operating within confined localities and catering to local businesses looking to outsource their advertising operations; the majority of operators employ less than 20 people. Although the largest operator, DRMG is dedicated almost solely to direct mail marketing; the few other large companies in the industry operate within the broader marketing-service sector. ...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 which are favorable to purchaser
  • Ability to pass on cost increases
  • Prompt delivery to market
  • IBISWorld analysts also discuss how external factors such as Total advertising expenditure and Corporate profit 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?

    This industry distributes advertising materials (e.g. coupons, fliers 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 Products
  • Full direct mail services
  • Printing and fulfillment services
  • Lettershop services
  • Mailing list 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
  • Corporate profit
  • Total retail sales
  • Number of businesses

  • Current Performance
  • Intense competition challenges industry
  • Industry presses its advantages
  • Chart: Revenue Growth

  • Industry Outlook
  • Continued competitive pressure
  • Technological advancements
  • Improving economic conditions to buoy industry
  • 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 In Canada
  • Credit Card Issuing in Canada
  • Advertising Agencies in Canada
  • Public Relations Firms in Canada

  • Key Selling Industries
  • Database & Directory Publishing in Canada
  • IT Consulting in Canada
  • Office Stationery Wholesaling in Canada

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

  • Demand Determinants
    Major Markets
  • Retail stores
  • Finance, banking and insurance institutions
  • Restaurants and travel companies
  • Business-to-business
  • Sales to governments, nonprofits and public Institutions
  • Sales to consumers
  • 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
    Direct Response Media Group,
  • Table: Direct Response Media Group - 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 advertising expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Integrated Marketing
  • advertising a product, service or consistent brand message across bot traditional and noon-traditional marketing channels.
  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Direct Mail Advertising market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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