January 15, 2025
Direct Mail Revival
By Paul Bobnak
Direct mail has been having a moment (or two) in the past year or so, as major media outlets and providers rediscover its worth to brands, companies, and organizations. In an election cycle of record political ad spending, a GroupM study estimated that $1.2 billion would be spent on mail to drive voter turnout. And CBS News, NBC’s Today Show, and The Wall Street Journal all took note of the return of the J. Crew catalog to customers’ mailboxes this fall after a seven-year absence.
Like a lot of mail, though, get-out-the-vote mailers and catalogs are using updated tactics and technologies to appeal to today’s consumers, who have become more dissociated from standalone digital messages.
What are the storylines shaping the marketplace? With the right planning, direct mail printers can take advantage of these trends to make smart investments in the equipment and processes that will drive success for their customers in 2025 and beyond.
Investments in Tech for Mail
Recent surveys by SeQuel Response, Winterberry Group, and Lob reveal that marketers are raising spending on mail. “We are definitely seeing both an increased spend with our existing clients as well as a large number of new clients that are either returning or new to direct mail,” says Keith Goodman, vice president, corporate sales and marketing at Modern Postcard, based in Carlsbad, California. “There has definitely been a shift to more targeted programs versus the ‘spray and pray’ mailings in the past.”
These expenditures show the level of confidence they have in the viability of mail as a channel. Judith Maloy, director and CEO of Hookett, New Hampshire’s Polaris Direct, echoes this sentiment.
“Direct mail has come in and out of favor among marketers, especially with the onset of online marketing,” she says. “Today, mail is stronger than ever, given all the innovative ways we can enhance mail and integrate digital channels into a direct mail campaign.
“VDP technology has transformed the marketer’s ability to get their brand message out in response to the latest consumer trends and needs,” she says. “It can be as responsive as an online campaign at identifying interest and targeting consumers with advertising messages. High-speed roll-to-roll inkjet presses offer speed to market, flexibility, and variability. … Investments in automated insertion equipment and AI are supporting the trend for faster turnarounds. Digital print workflows help to create efficiencies and get the mail printed and in homes faster.”
USPS Increases & Concerns
Another trend continuing to impact mail activity has been concerns over the U.S. Postal Service’s (USPS’s) substantial price hikes. The July 2024 jump alone averaged 7.8%, tied for the highest ever increase. In September, the post office announced that the annual January increase would be skipped because of cooling inflation and progress in rolling out Postmaster General Louis DeJoy’s Delivering for America plan. With this pause, print service providers can help customers adopt strategies to keep costs affordable.
Troy Shatus, CEO of Capital Mailing Equipment, points out that there are different strategies to address the increasing costs.
“One of the common strategies is to encourage clients to shift their mailings to lower-cost mail classes, such as presorted standard mail, which can provide significant savings compared to first-class mail,” he says. “[They] may also work with them to optimize their mailings by improving data quality, reducing waste, and increasing response rates.”
He also suggests exploring “alternative delivery options,” such as dropshipping or co-mailing.
Another issue for many direct mail printers has been service and delivery delays as USPS reshapes its processing and delivery network to achieve greater efficiencies.
“[Be] sure to use a mail tracking tool to keep the USPS accountable for their SLAs,” Maloy advises. “Also, it helps to use mail tracking when you are integrating email and digital advertising with the mailing to ensure you are getting the enhanced impact of these digital touchpoints timed before and after the mail drop.”
Growth in Optimizing Data
Data — the most crucial part of any direct mail campaign — is driving how clients work with printers to create mail that is more relevant to the recipient, and results in greater conversions. And its use is evolving, according to Maloy.
“While third-party data suppliers are a great resource for prospecting data, I believe marketers today are relying more heavily on their own data, whether it is first- [or] zero-party data, to target their best prospects and communicate more effectively with their valued customers,” she says. “First-party data is the data that brands collect based on response and buying activity. Zero-party data is the gold standard of data collection in that the customer willingly gives the brand [information], sometimes in exchange for a special offer. This data collection means that there is more opportunity for using additional data points beyond name and geography to personalize the messaging.”
Third-party data still has an important role, as Goodman notes. “We are also seeing an increase in additional third-party data areas using lifestyle, transactional, and modeled data, which have been highly effective,” he says. “We have seen a significant increase in data append and enhancement opportunities that allow our customers to better target using their CRM/house list by better segmenting their programs with unique offers, messaging, and imagery.”
The important thing, as Maloy says, is leveraging data and drawing insights from it to drive engagement with messaging in a mail campaign that offers value to the recipient.
“We often work with our clients to create data modeling look-alike audiences that give us more data to create more relevant messaging,” she explains. “For instance, for nonprofits, it is about past donor history; for B2B recruiting, it may be about volume of sales. I always say to our marketing clients, as much data as you can provide, we can create messaging that resonates with the recipient. As more marketers build direct marketing campaigns that allow for the collection of zero-party data, the stronger the personalization and messaging will become. The future looks bright as more data is accessible and customers are more apt to share their information to a trusted brand.”
Embellishments Get Noticed
Newer options for inks, finishes, papers, and scents add value to a mail piece, allowing marketers to differentiate themselves.
“With the advances in digital printing, we have much better access [to] and lower pricing [for] specialty coatings as well as the ability to print on paper stocks that might not have worked on digital presses in the past,” Goodman says. “This gives us lots of options to allow the customer to better stand out in the mail.”
Maloy explains there are many possibilities these techniques open up for marketers.
“Nothing says ‘impressive’ like a foil-stamped envelope,” she says. “It gets people to open your mailing, yet it has to make sense for the brand and the message. Unless you are one of the banks or credit card companies promoting a high-end credit card or banking relationship targeted to an affluent audience, large-volume mailers don’t typically use embellishments because of the cost to produce. Yet, in today’s marketplace where we see smarter, more targeted mailings, volumes are decreasing, which opens up the opportunity to utilize embellishments to drive ROI.”
Other Trends to Keep An Eye On
If you don’t already have a lot on your plate from that rundown, here are some additional trends to be aware of in 2025.
1. USPS Reform Measures
Two measures proposed in 2024 are likely to be reintroduced in the 119th Congress. One would require Senate approval of the Postmaster General, who is currently appointed by the USPS Board of Governors. The other bill — the USPS SERVES US Act — would provide the Postal Regulatory Commission with more oversight powers on postal operations.
2. California Consumer Notice
This past summer, California joined the ranks of states requiring clear labeling on direct mail solicitations. Under SB 1096, a disclosure statement must be printed in at least 16-pt. bold type on the envelope’s front stating that it is an advertisement and that no response is required. This and other measures are intended to protect consumers, especially seniors, from deceptive practices.
To get ready for the new year, Maloy has one last piece of advice: “Take full advantage of the USPS promotions slated for 2025,” she says. “USPS has added some new promotions that are worth the effort.”
As Goodman notes, “Marketers are constantly introduced to new marketing choices as well as tools that help them better gauge the profitability of each marketing medium.”
Direct mail is a vibrant channel that is constantly evolving. It offers many possibilities and solutions to match customer demands for personalized, targeted, and relevant communications.
“Ultimately, the key to success for print providers in today’s market is to remain flexible, innovative, and responsive to the needs of their clients,” Shatus notes. “By doing so, they can continue to provide value to their clients and stay competitive in an ever-changing landscape.”