Direct Mail Advertising Looks to Rebound
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Increased competition from other below-the-line promotional tools, including the Internet and text messaging, has also hurt the industry. Revenue declines have caused profit margins to fall.
Industry players attempted to control their costs, causing them to enter a period of consolidation. In the five years to 2012, the number of direct mail enterprises is expected to fall at an average annual rate of 1.3 percent to 3,035, Culbert said. Despite these negative factors, the decline in revenue was relatively mild in the context of the broader advertising services sector, and the industry is poised for further growth in 2012.
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