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    Direct Marketing Services Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 11/30/2020
    SIC Codes: 7331
    NAICS Codes: 541860
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Direct Marketing Services Industry Profile

    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, Harland Clarke, Harte-Hanks, Merkle, and Wunderman (all based in the US).

    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 2,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $9.5 billion. The industry is part of the larger advertising and marketing sector, which is covered further in a separate profile.

    COMPETITIVE LANDSCAPE

    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% of revenue.

    Direct marketers compete against various print and electronic media and other forms of advertising for marketing and advertising dollars.

    PRODUCTS, OPERATIONS & TECHNOLOGY

    Major services are letter shop services (preparing and sorting mail pieces); printing; mailing list services; ...

     
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