Direct Mail Advertising NAICS 541860
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Industry Summary
The 1,800 direct mail advertisers in the US distribute coupons, flyers, and other marketing materials through the mail on behalf of customers. Primary sources of revenue include full direct mail services, letter shop services, printing services, and fulfillment services. Direct mail includes letters, postcards, brochures, catalogs, and free samples. Large companies may offer integrated marketing services and also offer digital marketing, traditional media, or public relations services.
Industry Contraction
Direct mail volume fell dramatically during the 2008/2009 recession, and the industry has struggled to generate growth ever since due to the rise of digital communication.
Competition from Alternative Sources of Advertising
Direct mail competes with other advertising vehicles, including digital advertising (social media, email, internet ads) and traditional advertising (newspapers, TV, radio, print).
Recent Developments
Mar 4, 2025 - Service Changes Coming to USPS
- The United States Postal Service (USPS) announced new service standards that will affect the delivery of certain types of mail as the federal mail carrier looks to save $36 billion over the next ten years. The USPS lost $9.5 billion in 2024 and close to $100 billion since 2017. Beginning on April 1, 2025, first class mail will still be delivered within one to five business days, but will be delivered at 75% of its current rate, 14% at a faster rate, and 11% at a slower rate, depending on the length of travel. Deliveries of marketing and direct mail, packages, and periodicals will be shortened. In addition to the delivery changes, the Trump administration has floated firing the USPS board of governors and folding the Post Office into the Commerce Department. Such a move would cause a political firestorm and would be potentially illegal without Congressional approval.
- US net media owner advertising revenues rose by 12.4% to $380.2 billion in 2024 as cyclical events, including the Summer Olympics and the presidential election, pushed ad spending higher, according to advertising firm MAGNA. Direct mail ad spending in 2024 rose 1.2% and is forecast to grow 4.5% in 2025. For all 2025 ad spending, the top-performing verticals are projected to be food, beverage, personal care, household goods, technology, and finance.
- According to a recent report by direct mail marketing automation firm Lob, the direct mail market remains robust. Of 250 North American marketing professionals surveyed, 84% said direct mail has the highest return on investment (ROI) of any marketing channel. Direct mail also has the highest response rate (84%) and the highest conversion rate (85%). Over 80% of survey respondents said they increased their direct mail investments in 2024. On average, a relevant direct mail piece stays in the recipient’s home for up to two weeks, making direct mail much more effective than email, according to programmatic direct mail firm PebblePost.
- Lead generation marketing firm PostcardMania notched $104.6 million in sales in the third quarter of 2024, up 18.6% compared to Q3 2023. The company said the large leap in quarter-over-quarter revenue suggests more business owners and marketers are choosing direct mail for their marketing strategies. PostcardMania’s third-quarter results were driven by the company’s partnership-driven PCM Integrations (PCMi) arm, as revenue in the division jumped 58% compared to the same period a year earlier. PCMi partners with providers of customer relationship management (CRM) and marketing software, allowing the partners’ users to launch direct mail campaigns with scalable, programmatic targeting and delivery.
Industry Revenue
Direct Mail Advertising
Industry Structure
Industry size & Structure
The average direct mail advertiser works out of a single location employs fewer than 20 workers and generates about $6.5 million annually.
- The direct mail advertising industry consists of about 1,800 firms that employ about 34,000 workers and generate almost $11.7 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for 50% of industry revenue.
- Large firms with direct mail operations include Valpak (Platinum Equity), Valassis (Vericast), and Mspark (PennantPark Investment Corporation).
- In 2023, the US Postal Service delivered more than 57 billion pieces of advertising mail, which accounted for more than half of all US mail volume.
Industry Forecast
Industry Forecast
Direct Mail Advertising Industry Growth
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