PUBLISHER: The Business Research Company | PRODUCT CODE: 1478541
PUBLISHER: The Business Research Company | PRODUCT CODE: 1478541
Direct mail advertising is a type of direct marketing in which the mail is delivered physically to a prospect's mailbox through postal services or other delivery services, as opposed to indirect marketing which uses broader messaging styles and targets a larger customer base.
The direct mail advertising market includes revenues earned by entities (organizations, sole traders or partnerships) by providing services such as creating and designing advertisement and promotional activities campaigns for the purpose of distributing advertising materials (for example, coupons, flyers, samples) or specialties (for example, keychains, magnets, pens with customized messages imprinted) by mail or other direct distribution.
The global direct mail advertising market was valued at $55,840.5 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 0.5%.
Rise Of Traditional Advertising
The rise of traditional advertising drove the growth of the direct mail advertising market during historic period. Traditional advertising encompasses marketing methods that have been widely utilized for decades, including television commercials, radio ads, print ads in newspapers and magazines, and outdoor billboards. Direct mail enables advertisers to tailor messages to specific demographics, geographic areas, or even individual households, enhancing the campaign's relevance and effectiveness. While direct mail advertising is a longstanding approach, it retains significance in the marketing mix, especially when strategically integrated with other advertising channels. According to the CMO Survey (objective source of marketing information and a non-commercial service dedicated to the field of marketing) conducted by the American Marketing Association (AMA), a US-based marketing professional association, between August 2021 and February 2022, marketers foresaw a rise in traditional advertising spending by 1.4% and 2.9%, respectively. Consumer-facing firms, particularly B2C (business-to-consumer) service companies, anticipated the highest surge at 10.2%, followed by business to consumer (B2C) product companies at 4.9%. Surprisingly, companies entirely reliant on online sales projected an 11.7% increase in traditional advertising spending over the next year. Therefore, the rise of traditional advertising supported the growth of the direct mail advertising market.
Focus On Personalization Through Automation Platforms
Companies in the direct mail advertising market are focusing on developing more personalized tools, such as direct mail automation platforms, to enhance targeting and customization. These platforms leverage data analytics and customer insights to create highly personalized direct mail campaigns tailored to individual preferences, behaviors, and demographics. For instance, in May 2022, Lob, a US-based automated direct mail platform provider, launched a new direct mail automation platform. The platform has features such as customer data automation, web hooks to activate campaigns, and tools to closely track reactivations. Because of the positive response from millennials and marketing automation technologies, direct mail marketing is making a comeback. A direct mail automation platform is less expensive, has less of an impact on the environment, and causes less overall annoyance. Similarly, in January 2022, Postalytics, a US-based software company that automates direct mail marketing, launched the first free direct mail automation marketing software in Canada. The ground-breaking software for automating direct mail includes interfaces with HubSpot, Salesforce, and Zapier and is completely integrated with Canada Post Personalized Mail. As another first for Canada, it incorporates free direct mail personalization and response tracking capabilities like changeable data, dynamic content, personalized QR (quick response) codes, and URLs (Uniform Resource Locator).
The global direct mail advertising market is fragmented, with many small players operating in the market. The top ten competitors in the market made up 8.39% of the total market in 2022.
Direct Mail Advertising Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global direct mail advertising market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for direct mail advertising? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The direct mail advertising market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider direct mail advertising market; and compares it with other markets.
Market Segmentation - Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by type, by end-user and by enterprise size in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.