Direct Mail Advertising in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: March 2024
NAICS 54186Revenue
$10.3bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
32,024
Businesses
1,567
Wages
$X.Xbn
Direct Mail Advertising in the US industry analysis
Direct Mail Advertisers commonly provide a less expensive alternative to traditional advertising outlets, such as TV, radio and magazines, by delivering customized marketing materials and coupons straight to consumers' doorsteps via post. Even so, increasing competition from digital advertising threatens the industry. Recent declines in advertising expenditure caused by the 2020 pandemic darkened the industry's prospects. These economic woes have exacerbated an ongoing decline in print advertising that has plagued the industry. These factors caused revenue to fall at a CAGR of 2.7% to $10.3 billion over the past five years, dropping 5.4% in 2024 alone as profit slides to 6.7%.
Trends and Insights
- Rapidly growing competition from digital advertisement forces direct mailers to innovate. By implementing integrated marketing campaigns, direct mail advertisers can partly insulate themselves against external competition.
- The pandemic resulted in losses from most major markets. The travel industry was particularly affected by travel regulations, limiting marketing spending.
- Companies located in California and New York have more access to PR and marketing agencies. This allows for improved relationships and more efficient integrated marketing campaigns.
- The emergence of digital advertising threatens direct mail companies. Digital media is better at targeting and reaching users, negatively affecting demand for direct mail.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.7 % over the past five years, to reach an estimated $10.3bn in 2024.
Trends and Insights
Emerging trends suppress demand for direct mail advertising
- The popularity of computers, smartphones and tablets offers highly personalized marketing alternatives, such as e-mail, website and social media advertising. Digital marketing saps demand away from direct mail advertisers.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Print advertising continues to waver
- Direct mail advertising cannot target an audience as accurately as digital advertisements. With the rise of artificial intelligence and social media algorithms, digital advertisers can target multiple variations of specific audiences at a very granular level. Collecting personalized information, such as engagement levels and clicks, enables customized advertisements.
Biggest companies in the Direct Mail Advertising in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Valassis Communications Inc. | 861.5 | 66.9 | 7.8 | |
Dentsu Group Inc. | 375.4 | 21.8 | 5.8 | |
Publicis Groupe SA | 231.7 | 13.4 | 5.8 |
To view the market share and analysis for all 8 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Full direct mail services, Lettershop services and Printing and fulfillment services. Full direct mail services is the largest segment of the Direct Mail Advertising in the US.
Trends and Insights
Full direct mail services are popular during booming economies
- Full direct mail service programs include concept development, graphic design, letter shop services and printing. Business performance determines the sales of full-service programs. When businesses are optimistic about the economic outlook, marketing budgets expand, allowing for more extensive advertisement campaigns and driving demand.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Database & Directory Publishing in the US
- Advertising Agencies in the US
- Print Advertising Distribution in the US
- Promotional Products in the US
- Market Research in the US
International industries
- Global Advertising Agencies
- Direct Mail Advertising in Canada
- Advertising Agencies in Australia
- Advertising and Market Research Services in New Zealand
- Advertising Agencies in the UK
Table of Contents
About this industry
Industry definition
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 direct distribution methods. Direct mail advertisers may also prepare advertising materials or specialties for mailing or other direct distribution. They may also compile, maintain, sell and rent mailing lists.
What's included in this industry?
Advertising material preparation services for mailing or direct distributionDirect mail advertising servicesDirect mail or direct distribution advertising campaign servicesCompanies
Valassis Communications Inc.Dentsu Group Inc.Publicis Groupe SAPurchase this report to view all 8 major companies in this industry.
Related Terms
MAIN MEDIALETTERSHOPSHOPPERQUICK RESPONSE (QR) CODESIndustry Code
NAICS 54186 - Direct Mail Advertising in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Rapidly growing competition from digital advertisement forces direct mailers to innovate. By implementing integrated marketing campaigns, direct mail advertisers can partly i...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The pandemic resulted in losses from most major markets. The travel industry was particularly affected by travel regulations, limiting marketing spending.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Companies located in California and New York have more access to PR and marketing agencies. This allows for improved relationships and more efficient integrated marketing cam...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The emergence of digital advertising threatens direct mail companies. Digital media is better at targeting and reaching users, negatively affecting demand for direct mail.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies continue to engage in mergers and acquisitions. Falling revenue pushes major players towards acquiring other companies to maintain market share and operations...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Valassis Communications Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Dentsu Group Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Publicis Groupe SA's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 5 additional companies
Detailed analysis
- Description and key data for Valassis Communications Inc., and factors influencing its performance in the industry
- Description and key data for Dentsu Group Inc., and factors influencing its performance in the industry
- Description and key data for Publicis Groupe SA, and factors influencing its performance in the industry
- Description, key data and performance trends for 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Increases in total advertising expenditure show the fall in direct mail advertisers. The falling revenue of direct mail demonstrated the increasing dominance of social media ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Companies look to reduce expenses amid falling revenue. Advertisers aim to reduce wage costs by increasing efficiency through automation and technology integration.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Direct Mail Advertising in the US industry in United States in 2024?
The market size of the Direct Mail Advertising in the US industry in United States is $10.3bn in 2024.
How many businesses are there in the Direct Mail Advertising in the US industry in 2024?
There are 1,567 businesses in the Direct Mail Advertising in the US industry in United States, which has declined at a CAGR of 4.6 % between 2019 and 2024.
Has the Direct Mail Advertising in the US industry in United States grown or declined over the past 5 years?
The market size of the Direct Mail Advertising in the US industry in United States has been declining at a CAGR of 2.7 % between 2019 and 2024.
What is the forecast growth of the Direct Mail Advertising in the US industry in United States over the next 5 years?
Over the next five years, the Direct Mail Advertising in the US industry in United States is expected to decline.
What are the biggest companies in the Direct Mail Advertising in the US market in United States?
The biggest companies operating in the Direct Mail Advertising market in United States are Valassis Communications Inc., Dentsu Group Inc. and Publicis Groupe SA
What does the Direct Mail Advertising in the US in United States include?
Advertising material preparation services for mailing or direct distribution and Direct mail advertising services are part of the Direct Mail Advertising in the US industry.
Which companies have the highest market share in the Direct Mail Advertising in the US in United States?
The company holding the most market share in United States is Valassis Communications Inc..
How competitive is the Direct Mail Advertising in the US industry in United States?
The level of competition is high and increasing in the Direct Mail Advertising in the US industry in United States.
