Direct Mail Advertising
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
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).
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 2022, the US Postal Service delivered more than 65 billion pieces of advertising mail, which accounted for more than half of all US mail volume.
Industry Forecast
Direct Mail Advertising Industry Growth
Recent Developments
Jul 10, 2024 - Direct Mail Industry Revenue Growth to Improve in 2025
- The direct mail industry is expected to experience a modest rebound after anticipated weak growth in 2024. The industry’s year-over-year growth is forecast to drop to 2.1% following a rise of 4.9% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Growth in the direct mail industry is expected to rebound in 2025 with a rise of 4.5% in 2024, then see flat but steady average annual growth of about 4.6% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- US net media owner advertising revenues, a demand driver for direct mail advertising, are expected to rise by 10.7% in 2024 over 2023, according to a recently revised forecast by advertising firm MAGNA. Direct mail ad spending was flat in the first quarter of 2024 compared to the same period in 2023. While direct mail ad spending is expected to contract by 2% in 2024, that is an improvement over a previous MAGNA forecast that projected direct mail spending to decline by 4%. Pure-play digital ad spending is forecast to grow by 13% in 2024, accounting for 71% of all ad dollars.
- Print and paper remain a key medium for projects, according to a recent survey of graphic designers by Graphic Design USA and paper and packaging firm Billerud. More than 95% of graphic designers surveyed said print projects are part of their work mix. Overall, graphic designers said print plays a role in nearly two-thirds of their projects. Just over 70% of respondents said they expect their level of print design work to remain the same in the future, 15% expect print work volume to increase, and 11% said print design would likely decline.
- Recent surveys suggest that direct mail continues to grow and be effective, even among younger millennial and Gen Z consumers, according to Printing Impressions. In a Lob and Comperemedia survey, 84% of marketers said that direct mail provides the best ROI of any marketing channel they use. Customization, including personalized URLs that can help measure direct mail conversions, is rising. According to a survey by direct marketing firm Sequel Response, 69% of consumers engage with direct mail every week, and a third do so daily. About 45% of consumers feel that direct mail is less overwhelming than other types of marketing.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.