First Research US Industry Profile

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Direct Marketing Services
SIC Codes: 7331
NAICS Codes: 541860
Last Quarterly Update: 5/9/2022
Companies in this industry develop advertising campaigns and related materials for direct distribution to customers by mail or online. Major companies include Epsilon Data Management, Harland Clarke, Harte Hanks, Merkle, and Wunderman Thompson (all based in the US).
The global direct marketing services market is forecast to reach about $6.7 billion by 2027, at a 2.4% compound annual growth rate (CAGR) during the 2021-2027 forecast period, according to Precision Reports. Direct marketing operates independently and relies on direct communication to individual consumers through various delivery systems, such as mail, email, social medial, texting campaigns, and more. 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 include direct mail services (about 80%); letter shop (about 10%); fulfillment services (about 2%); and printing services (about 1%). Other ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

02/28/2022
12/13/2021
09/20/2021
11/30/2020
10/26/2020
10/07/2019
04/01/2019
12/24/2018
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03/26/2018
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05/16/2016
02/08/2016
10/26/2015
07/27/2015
04/27/2015
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11/17/2014
08/25/2014
06/02/2014
03/10/2014
12/09/2013
09/16/2013
06/24/2013
04/01/2013
01/07/2013
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04/23/2012
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10/10/2011
07/11/2011
03/28/2011
12/13/2010
09/20/2010
06/07/2010
03/15/2010