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Companies in this industry develop advertising campaigns and related materials for direct distribution to consumers by mail or online. Major companies include Epsilon Data Management, Harte-Hanks, Valassis Communications, and Wunderman (all based in the US), as well as iMarketing Solutions Group (Canada).
Direct marketing is a core component of marketing programs in much of the developed world. Email marketing in particular is a cost-effective way for global marketers to reach consumers, especially in countries that lack a traditional direct marketing infrastructure.
The US direct marketing services industry includes about 2,700 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion. The industry is part of the larger advertising and marketing sector, which is covered further in a separate profile.
Demand is driven by economic activity and corporate profits. The profitability of individual companies depends on their targeting services, creative skills, and marketing ability. Large companies have economies of scale in database analytics, marketing, and automated operations, which allow them to compete more aggressively on price. Small companies can compete effectively by specializing in a particular industry, geographic market, or service type. The US industry is concentrated: the 50 largest firms account for about 50 percent of revenue.
Direct marketers compete against various print and electronic media and other forms of advertising for marketing and advertising dollars.
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Major services are letter shop services (preparing and ...
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