Direct Marketing Services

Direct Marketing Services

Brief Excerpt from Industry Overview Chapter:

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).

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.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include direct mail advertising (about 75% of industry revenue), letter shop services (10%), and direct mail advertising printing (10%). Other offerings account for about 5% of the industry revenue.