Direct Mail Advertising Market Size In Canada
Many people perform direct mail marketing in Canada to boost their sales and gain the trust of clients. The best part is that this advertising is still highly effective and can allow the customers to remember your brand better.
Some people also benefit from the best direct mail API in Canada for seamless operations. If you want to know more about the market size of this advertising method, you’re in the right place. Here is all the information you need.
What Is The Market Size Of Direct Mail Marketing In Canada?
The market size of direct mail marketing is mainly determined based on the revenue generated by this sector. In 2023, the market size in Canada for this advertising method is $1.3 billion. Many people use this marketing option to boost their healthcare and insurance businesses.
It is also expected that this market size will increase by 1.9% in the following months of 2023. This growth rate has been determined using the demand for direct mail marketing in Canada. Whether the market size will continue increasing after 2023 is yet to be known.
Did The Market Size Of Direct Mail Marketing Grow In Canada Over The Years?
You may believe that direct mail marketing has grown over the years in Canada due to the expected growth rate in 2023. However, that is not the case. The market size for this advertising method is decreasing steadily with time.
As per a report by Statist, the market size was $2.78 billion in the country in 2020. This has significantly dropped to $1.3 billion over the last three years. Of course, fluctuations occur due to economic changes and other reasons.
Why Is The Direct Mail Marketing Size Declining In Canada?
Here are some reasons to help you understand the position of direct mail marketing in Canada:
1. High Competition
There is high marketing competition in the country due to various direct mail companies. Some also integrate their services with the best direct mail API in Canada. Such companies are doing better than other marketing agencies.
Direct mail marketing is also receiving tough competition from digital advertising methods. This is because many people prefer to use social media and online channels for marketing. So the revenue generated by direct mail is less than other newer advertising methods.
2. Low Entry Barrier
Another reason behind the declining market size is that there is a low barrier to entry in Canada. New businesses can enter the direct mail marketing sector without much hassle. This is due to low startup costs, fewer restrictions by the government, and much more.
Since competitors can enter the industry easily, the competition for new projects has increased. It also leads to overcrowding in the sector. These things affect the market size negatively.
Is The Direct Mail Marketing Sector In Canada Performing Better Than Other Industries?
The direct mail marketing sector is declining faster than other industries in Canada. This has been the trend for the last five years. The country’s economy is declining less slowly than the market size for direct mail marketing.
This is why it is essential for regulatory agencies to take steps to decrease overcrowding in the direct mail market. New innovations, such as the best direct mail API in Canada, may help some companies enjoy better sales.
This is everything you need to know about the direct mail advertising market size in Canada. The sector has been generating less revenue leading to a decline in the market size.
In 2023, the market size will increase by 1.9%, but whether this upward trend will continue for the upcoming years is not known yet.