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, Harland Clarke, Harte-Hanks, Merkle, and Wunderman (all based in the US).
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.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are letter shop services (preparing and sorting mail pieces); printing; mailing list services; concept development; and full direct mail services, which include all of the above. Full direct mail services account for about half of industry revenue; letter shop, print services, and fulfillment services each account for about 10%. Other offerings include sales promotion and mailing list support services.
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