Benefits Of Direct Mail Advertising Industry Essay

Benefits Of Direct Mail Advertising Industry Essay

Length: 1000 words (2.9 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Direct mail advertisers distribute marketing materials, such as coupons, flyers or samples, primarily through the US Postal Service (USPS) and occasionally through other commercial delivery services. Direct mail has historically provided a less-expensive alternative to traditional advertising outlets like television, radio and magazines. However, for decades, increased completion from digital advertising has threatened the industry. Consequently, the Direct Mail Advertising industry is expected to increase marginally at an annualized rate of 0.1% to $11.9 billion over the five years to 2016; which includes 1.1% projected growth in 2016 alone.
The Webmail Providers industry has fared well over the five years to 2014 in line with the rising prominence and accessibility of internet-based services. Despite challenges during the recession, including the 1.6% drop in consumer spending in 2009, businesses continued to experience mounting demand for establishing internet presence via advertising. Meanwhile, a skyrocketing number of broadband connections continued to drive individuals ' use of webmail accounts and related services. Since 2009, the percentage of services conducted online has climbed from 7.9% in 2009 to 10.1% in 2014. Consequently, businesses ' need for online presence has continuously strengthened, helping push up industry revenue at an annualized rate of 2.6% to $1.0 billion over the five years to 2014, including 5.5% in 2014.

Industry Life Cycle of Direct-Mail Marketing
The direct mail marketing industry is in the decline phase of its life cycle. According to IBISWorld report of Direct Mail Advertising, there are three reasons of declining. First, the industry is expected to grow more slowly than the econom...

... middle of paper ...

...e years to 2014, firms are aggressively competing to build webmail platforms that attract users and advertisers” (Kahn, 2014).

Current Performance of E-mail Marketing
IBISWorld expects industry revenue to grow at an average annual rate of 2.6% to $1.0 billion over the five-year period. In 2014, webmail providers ' revenue is anticipated to grow another 5.5%, supported by the continuously growing share of services conducted online (as in Figure 3). Moreover, the industry shows heavy concentration level and mounting competition (as in Figure 4). The four largest industry operators are Google, Yahoo, Microsoft and AOL. “In 2014, they are expected to generate an estimated 79.4% of industry revenue with brands like Gmail, Yahoo! Mail, Microsoft Outlook and AOL leading the pack” (Kahn, 2014). Therefore, its barriers to entry in this industry are high and are increasing.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Advantages of Direct Marketing Essays

- Reasons for moving to direct marketing and the objectives of the marketer. There are a lot of benefits the T-Mobile can get from using direct marketing and its techniques. If the direct marketing programme is in place then the opportunities of the business progressing are very high. The first objective of using direct marketing is to have customer retention and activation as well as recognising that the best way for a company to improve is by keeping its existing customers. This objective is very important....   [tags: Business and Management Studies]

Free Essays
1758 words (5 pages)

Direct Mail and Email Marketing Essay

- Direct mail marketing is also referred to as direct response advertising. This is because it allows businesses and other organizations to communicate straight to customers using techniques like text messaging, interactive websites, display ads online, email campaigns, flyers, catalogs, letters, television commercials, outdoor ads, and newspaper and magazine ads that normally generate response. There are quite a few characteristics that determine direct marketing. First, generating a database that often contains other information that may be relevant from business to business is used in developing the database of target-marketed businesses....   [tags: Direct Response Advertising, Firm Strategy]

Better Essays
2192 words (6.3 pages)

Essay on Benefits of a Flow Map

- The healthcare industry is a very complex business, regulated by federal and state agencies. Hospitals must balance financial goals, utilization of resources with the application of best practice and positive outcomes for patients and families. The hospital Case Management is department is comprised of Registered Nurses and Social Workers with very specialized and demanding job responsibilities; managing the care of patients and families from admission through discharge. The Case Management department I work in is a very large department....   [tags: Productivity, Satisfaction, Business Goals]

Better Essays
1284 words (3.7 pages)

Marketing Plan For A Target Store Essay

- Target is friendly, neighborhood store for many people. Because of this store’s long hours of operation, wade range of products and polite customer service it became my super store too. The first Target store was opened in 1962 in Minnesota (“History”). Since then, Target grew and became the second largest discount retailer in the United States, trailing only Wal-Mart Stores, Inc. (“History”). Target has distinguished itself from its competitors by offering fashionable, modish products at affordable prices....   [tags: Target Corporation, Wal-Mart, E-mail]

Better Essays
1453 words (4.2 pages)

Essay on Foreign Direct Investment ( Fdi )

- Concept: Foreign Direct Investment (FDI) Flow of money for the purpose of investments from one country to another country is called as Foreign Direct Investments. It is an investment made by a company based in one country for long lasting interest or controlling stake into a company in a foreign country. The nature of FDI could be either be inward or outward. Inward FDI refers to direct investments flowing into the home country from foreign land, and outward FDI refers to home country making direct investments in foreign land....   [tags: Foreign direct investment, Investment]

Better Essays
1785 words (5.1 pages)

Direct Mail Essay

- Direct Mail "Advertising may be described as the science of arresting the human intelligence long enough to get money from it." Stephen Leacock Philosopher extraordinaire "Really good direct mail works like picking your prospect up by the ankles and shaking him until all the money falls out of his pockets." Matthew Samp Direct Mail Copy & Graphic Design As consumers, we are often bombarded by different types of advertisements each day. Whether it’s by television, newspaper, or billboards, advertising has reached us one way or another....   [tags: GCSE Business Marketing Coursework]

Better Essays
3088 words (8.8 pages)

Foreign Direct Investment ( Fdi ) Essay examples

- Foreign direct investment (FDI) has played a considerable role in the development of South Africa’s economy, although in more recent years FDI has remained at relatively low levels compared with other emerging market countries. Most research papers on FDI in South African deal with FDI flows and do not take into consideration the main determinants. The theoretical foundation on the location pattern of FDI is rather fragmented. Several theories have been put forward to explain FDI based on corporate strategies and investment decisions of firms facing worldwide competition and in the context of choosing to operate in a foreign location instead of exporting or entering into a licensing agreemen...   [tags: Investment, Foreign direct investment]

Better Essays
838 words (2.4 pages)

Foreign Direct Investment ( Fdi ) Essay

- Foreign Direct Investment ( FDI) is a source that a country obtain from other countries in order to add value for it’s own economy. These sources can be various: Economic or technological. Foreign Investors may establish a new facility or open their branch or establish a partnership with a local company in host country. Nowadays, there is more demand of FDI’s than the world trade and world output. This drastic rise in FDI is due to the help of changing potentials and economic policies that are happening in the developing countries worldwide (Alesina and Dollar, 2000).Investors are more likely to invest their money on more profitable places,it would not be reasonable for companies to inve...   [tags: Investment, Foreign direct investment]

Better Essays
1689 words (4.8 pages)

Foreign Direct Investment Essay

- ... MNEs also are able to diversify such as Johnson & Johnson whose products reach from health care, skin care to baby toiletries, etc. operating from 230 companies within 57 nations (Shenkar and Luo, 2007 pp 63, 93). 2. “Improving performance from structural discrepancies” – MNEs are able to operate in various countries; having a home countries and others operating (host) countries which generate different opportunities and challenges; MNEs invest in areas which will where it will seize its competitive advantages (Shenkar and Luo, 2007 pp 64)....   [tags: benefits, efficiency, performance]

Free Essays
540 words (1.5 pages)

Marketing Strategies For E Mail Marketing Essay

- Business owners or entrepreneurs do want to grow their business. The primary goal is to get more leads and have better conversion rate. In this digital age you can easily reach customers located in any part of the globe. This is possible because of digital marketing which promotes your products & services on various platforms. As these days there are various marketing methods are available such as Search engine optimization, Mobile marketing and Social media etc. But e-mail marketing has made its own unique place and is one of the cost-effective methods of marketing....   [tags: Marketing, Search engine optimization, E-mail]

Better Essays
710 words (2 pages)