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Direct Mail Advertising in the US - Market Research Report (2015-2030)

Alex Petridis Alex Petridis New York, United States Last Updated: January 2025 NAICS 54186

Revenue

$11.3bn

2025

$11.3bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

31,666

Businesses

1,460

Wages

$X.Xbn

Direct Mail Advertising in the US industry analysis

Direct Mail Advertisers commonly provide a cheaper alternative to traditional advertising outlets, such as TV, radio and magazines, by delivering customized marketing materials and coupons straight to consumers' doorsteps via post. Even so, increasing competition from digital advertising threatens the industry. Digital advertising has ushered in highly personalized marketing strategies that lean heavily on digital platforms such as e-mail, websites and social media. This pivot toward digital channels has siphoned demand from traditional direct mail methods, a shift that's echoed in plunging print advertising expenditures and eroding revenue potential for the industry. These factors caused revenue to drop at a CAGR of 0.3% to $11.3 billion over the past five years, dropping 4.4% in 2025 alone as profit slides to 4.1%. 

Trends and Insights

  • Rapidly growing competition from digital advertisement forces direct mailers to innovate. By implementing integrated marketing campaigns, direct mail advertisers can partly insulate themselves against external competition.
  • Retailers and financial sectors are seeing a resurgence in direct mail’s effectiveness. As digital fatigue sets in, tangible marketing materials foster deeper customer connections and trust, especially for offering personalized deals.
  • California and New York companies have more access to PR and marketing agencies. This allows for improved relationships and more efficient integrated marketing campaigns.
  • Direct mail advertising thrives in fragmented markets with a regional focus. Smaller companies cater to niche needs, allowing them to maintain control locally, even as larger firms attempt broader reach.

Access hundreds of data points and trends

  • Market estimates from 2015-2030
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 0.3 % over the past five years, to reach an estimated $11.3bn in 2025.

Trends and Insights

Emerging trends suppress demand for direct mail advertising

  • The advent of computers, smartphones and tablets has given rise to highly personalized marketing strategies that favor digital platforms like e-mail, websites and social media. As digital marketing gains traction, it increasingly siphons demand from direct mail advertisers. This technological shift has led businesses eager to align with consumer trends to pivot predominantly toward digital marketing. Consequently, print advertising expenditures have plummeted, eroding the industry's revenue potential.
  • Additional trends and insights available with purchase
Direct Mail Advertising in the US
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to decline over the next five years.

Trends and Insights

Print advertising continues to waver

  • Direct mail advertising struggles to match the precision of digital ad targeting. Today's digital advertisers leverage artificial intelligence and sophisticated social media algorithms to dissect audiences into highly specific segments. With capabilities to track individualized data, such as user engagement and click-through rates, digital platforms offer tailored advertising experiences that direct mail cannot.

Biggest companies in the Direct Mail Advertising in the US

Company
Market Share (%)
2025
Revenue ($m)
2025
Profit ($m)
2025
Profit Margin (%)
2025
Valassis Communications Inc.
1,221.1
264.1
21.6
Dentsu Group Inc.
1,122.4
4.4
0.4
Publicis Groupe SA
231.7
13.4
5.8

To view the market share and analysis for all 8 top companies in this industry, view purchase options.

Products & Services Segmentation

Direct Mail Advertising in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Full direct mail services, Lettershop services and Printing and fulfillment services. Full direct mail services is the largest segment of the Direct Mail Advertising in the US.

Trends and Insights

Full direct mail services are popular during booming economies

  • Full direct mail services provide a cradle-to-grave approach, encompassing the design, production, and distribution of targeted marketing materials. These all-in-one solutions eradicate the hassle of coordinating multiple vendors, offering businesses a seamless experience that fosters higher client satisfaction and retention rates.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Direct mail advertisers distribute advertising materials (e.g., coupons, flyers and samples) or specialty items (e.g., key chains, magnets and pens with custom-printed messages) by mail or other direct distribution methods. Direct mail advertisers may also prepare advertising materials or specialties for mailing or other direct distribution. They may also compile, maintain, sell and rent mailing lists.

What's included in this industry?

Advertising material preparation services for mailing or direct distributionDirect mail advertising servicesDirect mail or direct distribution advertising campaign services

Companies

Valassis Communications Inc.Dentsu Group Inc.Publicis Groupe SA

Purchase this report to view all 8 major companies in this industry.

Related Terms

MAIN MEDIALETTERSHOPSHOPPERQUICK RESPONSE (QR) CODES

Industry Code

NAICS 2017

NAICS 54186 - Direct Mail Advertising in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Rapidly growing competition from digital advertisement forces direct mailers to innovate. By implementing integrated marketing campaigns, direct mail advertisers can partly i...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Retailers and financial sectors are seeing a resurgence in direct mail’s effectiveness. As digital fatigue sets in, tangible marketing materials foster deeper customer connec...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

California and New York companies have more access to PR and marketing agencies. This allows for improved relationships and more efficient integrated marketing campaigns.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each state in 2025
  • Number and share of revenue each state accounts for in 2025
  • Number and share of wages each state accounts for in 2025
  • Number and share of employees in each state in 2025

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Direct mail advertising thrives in fragmented markets with a regional focus. Smaller companies cater to niche needs, allowing them to maintain control locally, even as larger...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Valassis is navigating the digital shift while juggling print advertising challenges. With declining demand for traditional print ads, Valassis is blending print and digital ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Valassis Communications Inc.'s performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Dentsu Group Inc.'s performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Publicis Groupe SA's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 5 additional companies

Detailed analysis

  • Description and key data for Valassis Communications Inc., and factors influencing its performance in the industry
  • Description and key data for Dentsu Group Inc., and factors influencing its performance in the industry
  • Description and key data for Publicis Groupe SA, and factors influencing its performance in the industry
  • Description, key data and performance trends for 5 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Increases in total advertising expenditure misrepresent the current state of direct mail advertising. Advertising expenditures have largely occurred on digital platforms whil...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Direct mail advertising is losing ground as digital marketing takes the spotlight. The cost-effectiveness and precise targeting capabilities of digital platforms like social ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2018-2023)
  • Industry Tax Structure (2018-2023)
  • Income Statement (2018-2023)
  • Balance Sheet (2018-2023)
  • Liquidity Ratios (2018-2023)
  • Coverage Ratios (2018-2023)
  • Leverage Ratios  (2018-2023)
  • Operating Ratios (2018-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Direct Mail Advertising in the US industry in United States in 2025?

The market size of the Direct Mail Advertising in the US industry in United States is $11.3bn in 2025.

How many businesses are there in the Direct Mail Advertising in the US industry in 2025?

There are 1,460 businesses in the Direct Mail Advertising in the US industry in United States, which has declined at a CAGR of 4.6 % between 2020 and 2025.

Has the Direct Mail Advertising in the US industry in United States grown or declined over the past 5 years?

The market size of the Direct Mail Advertising in the US industry in United States has been declining at a CAGR of 0.3 % between 2020 and 2025.

What is the forecast growth of the Direct Mail Advertising in the US industry in United States over the next 5 years?

Over the next five years, the Direct Mail Advertising in the US industry in United States is expected to decline.

What are the biggest companies in the Direct Mail Advertising in the US market in United States?

The biggest companies operating in the Direct Mail Advertising market in United States are Valassis Communications Inc., Dentsu Group Inc. and Publicis Groupe SA

What does the Direct Mail Advertising in the US in United States include?

Advertising material preparation services for mailing or direct distribution and Direct mail advertising services are part of the Direct Mail Advertising in the US industry.

Which companies have the highest market share in the Direct Mail Advertising in the US in United States?

The company holding the most market share in United States is Valassis Communications Inc..

How competitive is the Direct Mail Advertising in the US industry in United States?

The level of competition is high and increasing in the Direct Mail Advertising in the US industry in United States.

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Competitors

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Methodology

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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