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Direct Mail Advertising Global Market Report 2020-30: COVID-19 Growth And Change

·4-min read

Major players in the direct mail advertising market are RR Donnelley, Valassis, Dai Nippon, Harte Hanks, Quad/ Graphics, Cenveo, Hibbert, Gunderson Direct, Greetabl and SaasMQL. The global direct mail advertising market is expected to grow from $66.

New York, Jan. 04, 2021 (GLOBE NEWSWIRE) -- announces the release of the report "Direct Mail Advertising Global Market Report 2020-30: COVID-19 Growth And Change" -
84 billion in 2019 to $67.34 billion in 2020 at a compound annual growth rate (CAGR) of 0.75%. The direct mail volume was down in the first quarter, however, the COVID-19 outbreak favored this market as some of the biggest brands have adopted direct mail advertising during the lockdown period. The pandemic has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities. With consumers staying at home over the past few months due to the pandemic, direct mail has become a marketing strategy to reach the consumers at home. The market is then expected to reach $70.66 billion in 2023 at a CAGR of 1.62%.

The direct mail advertising market consists of the sales of direct mail advertising services and related goods by entities (organizations, sole traders and partnerships) that create and manage advertisement and promotional activities by mail. The content and mode of advertisement can be customized according to the target audience. Only goods and services traded between entities or sold to end consumers are included.

The Asia-Pacific was the largest region in the direct mail advertising market in 2019. It is expected to remain as the largest region in the forecast period.

Direct mail advertisers are using augmented reality to modernize direct mail advertising. Augmented reality is a huge engaging medium and it creates more opportunities that can make direct mails interactive. For instance, EE, a mobile network operator, used Blippar technology augmented reality to enhance its paper bills so that customers can scan inserts with the Blippar’s app to know more about the services provided by EE, and also watch exclusive videos in augmented reality. Augmented reality-enabled bills captured an average of 3 minutes of dwell time per customer and awareness of EE’s product range.

The direct mail advertising market covered in this report is segmented by type into postcards; self-mailers; letters and envelop; dimensional mailers; catalogs.

The high cost of direct mail advertising is expected to limit the growth of the direct mail advertising market. For instance, for a small business operating on a small marketing budget, a direct mail advertising campaign can result in high costs. Direct mailing costs include the price of the postage, professional printing, design cost, and costs for hiring services of a professional copywriter to create a persuasive message. In addition to this constraint, direct mail is considered junk mail by the consumers. According to a study, more than 90 percent of direct mails are tossed away without opening or reading. Therefore, to reach the customer with mail, the mail sent should be creative and to create such mail, the cost increases. The high cost of direct mail advertising hinders the direct mail advertising market.

The benefits associated with direct mail advertising contributed to the growth of the direct mail advertising market. The major benefits associated with direct mail advertising include high read rate, response rate, and personalization. The tangible benefits that direct mail offers along with the facility that personal and special messages can be delivered to the target customers, builds trust in customers. Also, direct mail tends to have a longer shelf life than email or digital marketing. According to the Postary (Postcard Marketing & Direct Mail Platform), the average response rate of the direct mail is around 2.7% - 4.4%, while the email has around 0.6%, which is comparatively very low. The average open rate varies between 57.5% – 85%, and the average return on investment is $4.09 (£3.22) for $1.27 (£1) spent on direct mail. Such benefits from direct mail advertising drive the direct mail advertising market.
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