Direct Mail Advertising Services - Global Strategic Business Report

Global Industry Analysts, Inc, August 2010, Pages: 258

This report analyzes the Global market for Direct Mail Advertising Services in US$ Million. The US market is further analyzed by the following service segments: Concept Development for Advertising Campaigns, Print Services, Mail List Creation/Support Services, Letter Shop Services, Fulfillment Services, Full Direct Mail Services, and Others. Annual estimates and forecasts are provided for the period of 2007 through 2015. Also, a six-year historic analysis is provided for this market. The report profiles 208 companies including many key and niche players such as DealerLink Inc., Go Direct Mailing and Marketing Pvt Ltd., Harte-Hanks, Inc., Inktel Direct, IWCO Direct, Mailing Lists (India) Pvt. Ltd., MBI Direct Mail, Micro Mailing Canada, Rapp Collins Worldwide, Inc., Smart Media JSC, Transcontinental Printing, Valassis Communications, Inc., Valpak Direct Marketing Systems, Inc., Vertis Communications, Inc., and WPP PLC. Market data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select online sources.

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DIRECT MAIL ADVERTISING SERVICES

A GLOBAL MARKET REPORT

CONTENTS

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS
Study Reliability and Reporting Limitations I-1
Disclaimers I-2
Data Interpretation & Reporting Level I-2
Quantitative Techniques & Analytics I-3
Product Definitions and Scope of Study I-3

II. Executive Summary

1. INDUSTRY OVERVIEW II-1
A Prelude II-1
Impact of Recession: A Straight Talk II-2
Challenges Galore II-2
Growth of Digital Media: A Challenge to Reckon With II-3
Indiscriminate Use of Paper Fuels Negative Publicity II-3
Lack of a “Clean” Database: A Key Bottleneck II-4
Noteworthy Trends & Issues II-4
Shifting of Ad Budgets From Mass to Direct Advertising Spells
Opportunities II-4
Growth in the Adoption of Multichannel Direct Advertising
Augers Well II-4
Table 1: Advertising Models in the United States (2008):
Percentage Share Breakdown of Mass Advertising Models &
Multi-Channel Advertising Models II-5
Personalized URLs: A Potent Tool to Enhance Response Rates of
Online Mail II-5
Technological Advancements Trigger Growth II-5
Thinking Out of the Box Critical to Optimize Direct Mail II-6
Multidimensional Mailers/Creative Content Set to Energize
Direct Mail II-6
Accurate Targeting: A Talisman for the Success of Direct Mail
Adverting II-6
High Income, Educated & Urban Population: A Chief Target for
Direct Mail Ads II-7
Postal Infrastructure: Critical to the Success of Direct Mail II-7

2. REGIONAL MARKET OVERVIEW II-8

2a. THE UNITED STATES II-8
A.Market Analysis II-8
Outlook II-8
Market Overview II-8
Economic Downturn Hits Domestic Ad Revenues & Overall
Industry Growth II-8
Insurance Industry: A Lone Bright Spot II-9
Financial Services Industry Drags Down Opportunities in
Direct Mail II-10
Non-Catalog Direct Mail Grows in Popularity II-10
Key Statistical Findings II-10
Table 2: US Advertising Market (2008): Percentage
Breakdown of Ad Spending by Medium - Television, Direct
Mail, Newspaper, Internet, Magazines, and Others (includes
corresponding Graph/Chart) II-10

Table 3: Direct Marketing Advertising Expenditures in the
United States (2008): Breakdown of Ad Spends (in US$
Billion) by Industry Segment (includes corresponding
Graph/Chart) II-11
B.Market Analytics II-12
Table 4: US Recent Past, Current & Future Analysis for
Direct Mail Advertising Services by Service Segment -
Concept Development for Advertising Campaigns, Print
Services, Mail List Creation/Support Services, Letter Shop
Services, Fulfillment Services, Full Direct Mail Services,
and Other Services Independently Analyzed with Annual
Revenues in US$ Million for Years 2007 through 2015
(includes corresponding Graph/Chart) II-12

Table 5: US Historic Review for Direct Mail Advertising
Services by Service Segment - Concept Development for
Advertising Campaigns, Print Services, Mail List
Creation/Support Services, Letter Shop Services, Fulfillment
Services, Full Direct Mail Services, and Other Services
Independently Analyzed with Annual Revenues in US$ Million
for Years 2001 through 2006 (includes corresponding
Graph/Chart) II-13

Table 6: US 11-Year Perspective for Direct Mail Advertising
Services by Service Segment - Percentage Share Breakdown of
Revenues for Concept Development for Advertising Campaigns,
Print Services, Mail List Creation/Support Services, Letter
Shop Services, Fulfillment Services, Full Direct Mail
Services, and Other Services for Years 2005, 2010 and 2015
(includes corresponding Graph/Chart) II-14

2b. JAPAN II-15
A.Market Analysis II-15
Outlook II-15
B.Market Analytics II-15
Table 7: Japanese Recent Past, Current & Future Analysis for
Direct Mail Advertising Services with Annual Revenues in US$
Million for Years 2007 through 2015 (includes corresponding
Graph/Chart) II-15

Table 8: Japanese Historic Review for Direct Mail
Advertising Services with Annual Revenues in US$ Million for
Years 2001 through 2006 (includes corresponding Graph/Chart) II-16

2c. EUROPE II-17
A.Market Analysis II-17
Outlook II-17
Key Statistical Findings II-17
Table 9: UK Advertising Market (2008): Percentage Breakdown
of Ad Spending by Medium - Press, Television, Internet,
Direct Mail, Radio, and Others (includes corresponding
Graph/Chart) II-17

Table 10: Top Spenders on Direct Mail in the United Kingdom
(2007): Percentage Share Breakdown of Direct Mail Spending
by Select Company (includes corresponding Graph/Chart) II-17
B.Market Analytics II-18
Table 11: European Recent Past, Current & Future Analysis
for Direct Mail Advertising Services with Annual Revenues in
US$ Million for Years 2007 through 2015 (includes
corresponding Graph/Chart) II-18

Table 12: European Historic Review for Direct Mail
Advertising Services with Annual Revenues in US$ Million for
Years 2001 through 2006 (includes corresponding Graph/Chart) II-18

2d. REST OF WORLD II-19
A.Market Analysis II-19
Outlook II-19
Key Statistical Findings II-19
Table 13: Australian Direct Mail Advertising Market (2008):
Percentage Breakdown of Direct Mail Ad Spending by Major
Industries - Finance, Media, Community, Retail,
Communications, Insurance, and Others (includes
corresponding Graph/Chart) II-19
B.Market Analytics II-20
Table 14: Rest of World Recent Past, Current & Future
Analysis for Direct Mail Advertising Services with Annual
Revenues in US$ Million for Years 2007 through 2015
(includes corresponding Graph/Chart) II-20

Table 15: Rest of World Historic Review for Direct Mail
Advertising Services with Annual Revenues in US$ Million for
Years 2001 through 2006 (includes corresponding Graph/Chart) II-20

3. DIRECT MAIL ADVERTISING - AN OVERVIEW II-21
Direct Mail Advertising: A Definition II-21
Evolution of Direct Mail Advertising: A Review II-21
Participants/Service Providers in the Direct Mail Advertising
Industry II-22
Full Service Companies II-22
Concept Development Only Service Providers II-22
Mailing List Service Providers II-22
Printing Services for Direct Mail II-22
Letter Shop Service Providers II-22
Fulfillment Service Providers II-23
Other Miscellaneous Direct Mail Advertising Service Providers II-23
“Must-Have” Characteristics of Effective Direct Mailers II-23
Types of Direct Mail Advertisements: By Format & Design II-23
Bookalog II-23
Catalogs II-23
Blind mailing II-23
Self-mailers II-23
Clear bag packages II-23
Postcards II-24
Envelope mailers II-24
Snap mailers II-24
Dimensional mailer II-24
Intelligent Documents II-24
Types of Direct Mail Advertisements: By Strategy II-24
Basic Direct Mailing II-24
Advanced Direct Mailing II-24
Catalogue Direct Mailing II-24
Integrated Direct Mailing II-25
Direct Mail Value Chain II-25
Planning II-25
Production & Distribution II-26
Customer Service II-26
Types of Direct Mail Advertising Services II-26
Concept Development II-27
Print Services II-27
Mail List Creation II-27
Letter Shop Services II-27
Fulfillment Services II-27
Other Services II-27
Advantages of Direct Mail Advertising II-27
Facilitates Customized Marketing II-27
A Potent Tool to Attract New Customers II-28
An Important Test & Measurement Tool II-28
Facilitates Statistical Analysis II-28
Disadvantages of Direct Mail Advertising II-28
High Costs II-28
Perception as a ‘Junk Mail' II-28
Mailing List: Backbone of Direct Mail Advertising II-29
Direct response lists II-29
Compiled lists II-29

4. RECENT INDUSTRY ACTIVITY II-30
IWCO Direct Acquires the US Operations of Transcontinental Direct II-30
Royal Mail Unveils Mail Media Centre Website II-30
Carlson Marketing Sets Into Motion Direct Mail Campaign for
Hyundai II-30
R2C Group Launches Customer Connect II-30
Royal Mail Unveils New Resource For Direct Mail Industry II-31
The AJC Unveils AJC Media Solutions II-31
Tully-Wihr Partners with Redbeard Communications II-31
Premium Color Graphics Merges with Hand Pack II-32
Reynolds DeWalt Takes Over RiverView Marketing Consultants II-32
VerticalResponse Enters into Partnership with BigContacts II-32
Grupo Posadas Selects Neolanes Cross-Channel Marketing Solution II-32
Etrinsic and LV= Renew Contract II-33
RR Donnelley Enhances CustomPoint System with Direct Mail
Capabilities II-33
inContact Inks Agreement with Direct Response Marketing Companies II-33
Workflow Management Sells Freedom Graphic and United Envelope II-34
Royal Mail Partners with St. Ives to Introduce Mail-Tracking
Service II-34
VerticalResponse Forms Partnership With StartupNation II-34
PSA Launches Multiple-Channel Direct Marketing Platform II-34
QuantumDigital Launches New Direct Marketing Blog II-35
Media Post Introduces “One-Stop-Shop” Advertising Service II-35
VNPost and La Poste Group to Offer Direct Mail II-35
DMA Enters into Partnership with China Direct Mail Association II-35
Quebecor World Merges Divisions II-35
Jingwei International Signs Agreement with Best Buy China II-35
Quad/Graphics Invests in QuadDirect Division II-36
Union Street to Acquire Two Marketing Agencies II-36
Grove Acquires GI Solutions II-36
Vertis Communications Merges with American Color Graphics II-36
Allegro Offers FreshDM for Salesforce II-37
Dsicmm Group Acquires K2 Group II-37
Diversified Agency Services Completes Acquisition of The Kern
Organization II-37
China Inks Four Co-Operative Agreements with Taiwan II-38
Datateam Acquires Borcombe SP II-38
Haggin Marketing Acquires Coupons, Inc II-38
Myhubtv Takes Over Agent Mailing II-39
Lombardi Media Acquires Pronto Post II-39
Acxiom Plans to Acquire Direct Marketing Services II-39
Johnson & Quin Takes Over InteliMail II-39
Schmidt Takes Over Cooperative Direct Mail Line from Solar
Communications II-39
Mark Altman Acquires Dynamic Mail Solutions II-40
MailSouth Acquires Saving Source Direct II-40
Princeton Fulfillment Solutions Forms JV with Towne AllPoints
Communications II-40

5. FOCUS ON SELECT GLOBAL PLAYERS II-41
DealerLink Inc (USA) II-41
Go Direct Mailing and Marketing Pvt Ltd. (India) II-41
Harte-Hanks, Inc. (USA) II-41
Inktel Direct (USA) II-41
IWCO Direct (USA) II-42
Mailing Lists (India) Pvt. Ltd (India) II-42
MBI Direct Mail (USA) II-42
Micro Mailing Canada (Canada) II-43
Rapp Collins Worldwide, Inc (USA) II-43
Smart Media JSC (Vietnam) II-43
Transcontinental Printing (Canada) II-44
Valassis Communications, Inc (USA) II-44
Valpak Direct Marketing Systems, Inc (USA) II-44
Vertis Communications, Inc. (USA) II-44
WPP PLC (Ireland) II-45

6. GLOBAL MARKET PERSPECTIVE II-46
Table 16: World Recent Past, Current and Future Analysis for
Direct Mail Advertising Services by Geographic Region - US,
Japan, Europe, and Rest of World Markets Independently
Analyzed with Annual Revenue in US$ Million for Years 2007
through 2015 (includes corresponding Graph/Chart) II-46

Table 17: World Historic Review for Direct Mail Advertising
Services by Geographic Region - US, Japan, Europe, and Rest of
World Markets Independently Analyzed with Annual Revenues in
US$ Million for Years 2001 through 2006 (includes
corresponding Graph/Chart) II-47

Table 18: World 11-Year Perspective for Direct Mail
Advertising Services by Geographic Region - Percentage Share
Breakdown of Annual Revenue for US, Japan, Europe, and Rest of
World Markets for Years 2005, 2010 and 2015 (includes
corresponding Graph/Chart) II-48

III. COMPETITIVE LANDSCAPE

Total Companies Profiled: 208 (including Divisions/Subsidiaries - 209)

---------
Region/Country Players
---------
The United States 43
Canada 18
Europe 135

France 6
Germany 21
The United Kingdom 56
Italy 2
Spain 1
Rest of Europe 49
Asia-Pacific (Excluding Japan) 13
---------

Years of proven effectiveness has helped direct mail marketing emerge into a preferred mode of one-to-one interactive advertising thanks to the channel’s unrivalled levels of personalization and focused targeting benefits. The ability to wield an immediate impact on the reader’s perception by rendering a personalized marketing touch, greater reader confidence in the authenticity of the conveyed message, action orientation of these messages, are quite unlike any offered by other advertising mediums. This marketing strategy also gained popularity as an efficient and reliable mode of advertising that provides measurable and traceable results. The tendency of target customers to treat postal mail with more importance in comparison with electronic mail also helps direct mail predominantly snail mail (postal mail) to retain its sheen among marketers.

With advertising service providers innovating to fend off threats from substitutive alternatives, unimaginative, dull and ineffective mails are receiving a quick makeover, an additional factor instrumental in helping the market stay afloat. Innovation in promotional content, mailer designs and unbeatable product/service offers are all helping energize market prospects. For instance, multidimensional mailers, which are creative alternatives to traditional flat mail pieces, provide a compelling platform for delivering the marketing message and eliciting customer responses. The market for concept development services for direct mail advertising campaigns in the United States is forecast to reach US$201.8 million by the year 2012.

Despite challenges such as rise in popularity of alternate technology driven advertising platforms, negative publicity due to indiscriminate use of paper, lack of clean mailing addresses database, recession induced declines in customer response rates, optimism prevails over the effectiveness of direct mail advertising. For instance, although other alternate platforms of direct advertising such as, email, mobile ads are rising in competitive popularity to direct mail, the ability to synergistically integrate direct mail with other advertising media promises new and innovative application possibilities like never before. Innovative ideas, such as, addition of personalized URLs to direct mail ads, can help direct mail ads complement Internet advertising platforms, and reduce the hitherto witnessed cannibalization of business opportunities.

The recession presents a mixed bag of challenges and opportunities for the global direct mail advertising market. Crumbling consumer/business confidence and frugal spending patterns reduce the response rates of direct mail and send advertisers shifting towards cheaper and low cost advertising strategies such as e-mail, resulting in erosions in both volume of mails sent, and revenues generated by the industry. At the same time, the post recession evolution of investment wary companies with cold-eyed focus on returns bodes well for direct mail advertising, given this advertising technique’s more tangible and immediate sales impact. When companies tend to prioritize cost-effectiveness ads are expected to become more localized and micro-targeted. Under such a scenario, direct mail advertising is expected to benefit given its prowess in focused targeting of desired consumer clusters. Therefore, although sensitive to economic cycles, when designed and implemented thoughtfully and strategically, direct mail advertisements can stem the cannibalizing potential of the relatively low cost email advertising. In Europe, the market for direct mail advertising services is forecast to rise by over US$829 million between the period 2010 and 2015.

The direct mail advertising market will also stand to benefit from the growing importance of one-to-one interactive marketing and its role in effectively engaging thousands of prospective customers on a personal level. The industry therefore stands optimally positioned to benefit from the changing dynamics of modern-day advertising and marketing strategies. Growing adoption of multi channel direct advertising strategies by several companies, in an attempt to realize the benefits of both new generation online channels and traditional offline channels is also expected to generate considerable market opportunity for direct mail advertising services to be used in combination with other direct advertising platforms such as, Social Networking, Commercial Email, and Mobile Telephone Marketing, among others.

As stated by the new market research report on direct mail advertising services, in the US full suite direct mail services remains the largest service segment.

Key players in this marketplace include DealerLink Inc, Go Direct Mailing and Marketing Pvt Ltd., Harte-Hanks Inc., Inktel Direct, Mailing Lists (India) Pvt. Ltd., MBI Direct Mail, Micro Mailing Canada, Rapp Collins Worldwide Inc, Smart Media JSC, Transcontinental Printing, Valassis Communications Inc, Valpak Direct Marketing Systems Inc, Vertis Communications Inc., IWCO Direct and WPP PLC.

© Global Industry Analysts, Inc.

- DealerLink In
- Go Direct Mailing and Marketing Pvt Ltd.
- Harte-Hanks Inc.
- Inktel Direct
- Mailing Lists (India) Pvt. Ltd.
- MBI Direct Mail
- Micro Mailing Canada
- Rapp Collins Worldwide Inc
- Smart Media JSC
- Transcontinental Printing
- Valassis Communications Inc
- Valpak Direct Marketing Systems Inc
- Vertis Communications Inc.
- IWCO Direct and WPP PLC.

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