Direct Marketing Services

First Research, Inc.
November 17, 2014
10 Pages - SKU: FRRS5388717
Countries covered: United States

Direct Marketing Services

Brief Excerpt from Industry Overview Chapter:

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 the UK's Direct Marketing Group.

Direct marketing is a core component of marketing programs in much of the developed world, and is growing most notably in emerging markets in Latin America and Central and Eastern Europe. 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 3,200 companies with combined annual revenue of about $11 billion. The industry is part of the larger advertising and marketing sector, which is covered further in a separate profile. Digital advertising and public relations services are also covered in separate industry profiles.

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 percent of revenue.

Direct marketers compete against print and electronic media and other forms of...



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