PE Boosts Direct Mail Resurgence

Direct mail marketing continues to draw private equity investment as more businesses integrate the time-tested channel into advertising strategies. In an interview with The Deal, Monomoy Partner, Jaime Forsyth, spoke about our interest in the industry and why we’re so excited about our recent investment in the 116-year-old direct mailing business Japs-Olson.

“There is this common misconception that direct mail is a dying channel and that it’s not as effective but that’s just not the case,” Monomoy partner and head of investment team Jaime Forsyth told The Deal. “Direct mail has the highest return on investment of any direct to consumer marketing channel and is very important in conjunction with digital marketing in an omnichannel approach.”

As consumer audiences moved into digital formats over the years, businesses naturally shifted their budgets toward online marketing. But specialized direct mail campaigns have a proven history of offering meaningful return on investment when used in conjunction with digital marketing tools. Direct mail marketing can range from a simple postcard with a QR code for discounted grocery delivery to a perfume catalog, with samples, that includes a discount code for online checkout.

Japs-Olson makes over one billion personalized direct mailers such as booklets and popups annually. The platform’s clients include Fortune 500 companies in industries including financial services, insurance, healthcare and large non- profits, among others. The company, which has over 600 employees and a 704,000 square-foot facility outside of Minneapolis, ships the mailers either to its clients or mails them directly to households.

Read the highlight on The Deal about our investment in Japs-Olson Company and the growing demand for the direct mail market here.