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How to Kickstart Your Marketing Success in 2025

by DataDigital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline Strategy

It’s incredible to think 2025 is ‘here.’ Looking back on this past year, it’s been a whirlwind! From many changes in the digital landscape such as AI, SEO opportunities, new video content and the further rise of influencer marketing to happenings on the print front – such as the USPS not increasing rates in January, the EUDR delaying one year and uncoated freesheet mills across the country increasing prices, our omnichannel landscape continues to transform by the day. 


Looking ahead to 2025, we’re excited to tackle the challenges that print and digital bring us – and we want you to feel that thrill as well. With budgets and priorities constantly changing, we understand that there are many marketing obstacles out there. To jump start the New Year, we thought it would be helpful to share our recommendations for next year.


Continue to Integrate Your Online & Offline Marketing Strategy

You must continue to prioritize the synergy of your media channels. Whether you’re in the mail, solely executing digital campaigns, or doing both (highly recommend!), it’s essential that your channels are speaking to each other… and your internal teams are as well! Messaging to the customer must be consistent. Additionally, stay on top of results so you can more easily shift spend and budget to different channels as performance adjusts and shopping behavior changes.


Prioritize High-Quality Content

It’s more important than ever to produce authentic and valuable content. In fact, it’s essential for capturing and retaining your customers’ attention. This will not only impact conversion but build loyalty as well. Keep content relatable and real, always, but especially in 2025!

 

Customer Experience (UX) is Key

“Seventy-five percent of consumers will spend more with brands that prioritize customer experience;” 50%+ consumers report switching to a competing brand after just one negative experience, or if the shopping experience doesn’t feel personal. Here’s how to keep experience positive: consistent messaging and offers across channels, creative that complements each other (channel-to-channel), loyalty programs, personalized direct mail and email, and more.


Spotlight is on First-Party Data

Since 2023, brands have been re-evaluating their reliance on cookies. In 2024, Google updated its Privacy Sandbox Strategy, which has greatly impacted marketers trying to track customer journeys and buying behavior. Therefore, marketers are forced to rely on first-party data collection, making it the most reputable and accurate source of information for their businesses. By focusing on the value of first-party data, brands are seeing improved customer insights; they’re privacy compliant; and they’re setting themselves up for future success in the digital landscape.


Gen Z Buying Power Continues to Increase

Gen Zers are tech-savvy, opinionated, value-focused and highly influential. We recommend incorporating social causes in marketing strategies; point to sustainability initiatives; and leverage influencers. By appealing to Gen Zers, brands will grow their business.  

 

We’re always interested in discussing our content! Please don’t hesitate to reach out to chat about your print marketing strategy (and how it’s working with your digital strategy) In the meantime, we’ll see you in 2025!

 

Sources: Media Tool, Chat GPT (Personal communication, December 2024)

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Hot Take: Direct Mail is Just as Sustainable as Digital Marketing

by Digital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline Strategy

With our focus being print marketing, brands can be hesitant to test into direct mail. Why, might you ask? Sometimes it’s perceived to be less efficient and environmentally friendly than digital marketing. However, we’re here to debunk that myth.

It’s commonly perceived that digital marketing is sustainable because there is less labor involved in marketing online than the manual labor of creating paper and print to launch a campaign. However, both channels have their benefits and drawbacks – with print having just a few less drawbacks when it comes to the environment.

Key Stats about Paper & Print:

  • – Paper can be recycled up to seven times.
  • – The paper, pulp and print sector is one of the lowest industrial emitters of greenhouse gases, accounting for 0.9% of European emissions in 2021
  • – Since the 1990s, the average water intake per ton of paper produced has decreased by 42%.
  • In 2021, around 90% of the water used in the European paper industry was returned to its source.

 Key Stats about Digital:

  • – The world generates more than 68MM tons of e-waste every year (source: UN via Bloomberg) and of that, only 22% is collected and recycled.
  • – Businesses and individuals are increasingly using ‘cloud’ services. These mega data centers store almost everything we do online, including our web searches, our social media posts and our online statements.
  • – The ICT industry accounted for 4-6% of global electricity use in 2020, which is more than 2% of global greenhouse gas emissions.
    • The electronic waste problem is also colossal and growing. In 2019, the industry was responsible for a gigantic 53.6 million metric tons of e-waste across the world.
      • That’s equivalent to the weight of 350 cruise ships.
      • E-waste is expected to increase to 74.7 Mt by 2030 and reach as much as 110 Mt by 2050, unless we change our practices.[2]
  • – In 2019, just 17% of global e-waste was collected for recycling. In fact, recycling activities are not keeping pace with the global growth of e-waste. Non-environmentally sound disposal and treatment of this waste stream poses significant risks to the environment and to human health.

Often, marketers think digital is a better investment from a sustainability perspective. However, this is a common misconception. In fact, the channels are pretty similar when it comes to environmental friendliness – with Print arguably being more sustainable. There are an abundance of factors that impact the carbon footprint for digital – energy consumption of Data Centers, end-user devices, internet infrastructure, lifetime of digital devices, email server efficiency, transmission networks, and more. In turn, the carbon footprint of a printed piece consists of paper production, printing process, distribution, end-of-life (how a piece is recycled), design, and size. Good news: there are solutions and best practices in place for all of these.

So, what should you do?

We wholeheartedly believe in the power of an omnichannel strategy – but it does begin with Print. Last month, we talked about complementing your Direct Mail touch points with Digital. It’s a must in today’s digital age! This month, we are recommending you complement your digital with direct mail while making the world a better place.

Sources: Twosides.info, Device42, Chat GPT (Personal communication, January 2024)

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Second Half of 2024 Will Give Marketers A Run for Their Money! (Conclusion)

by Digital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline StrategyUSPS

Key Event #2: Shortened Holiday Season 2024

Thanks for following along in our series of key events in the second half of 2024. It’s hard to believe it’s already mid-October! Today, we’re going to discuss the impacts of the shortened holiday season, how to combat them, and what you may do afterwards to kick 2025 off on a good note.

As you know, the holiday season is the most important time of year for most marketers. However, did you know there will only be 27 days between Thanksgiving and Christmas this year? This is the fewest possible number of shopping days for the traditional holiday season. Therefore, marketers need to be extra prepared for the shortened shopping season to ensure you get the sales you need.  

This summer, we talked about the election. It’s important to note that consumers will be fresh off the election (which, as a reminder, they are preoccupied about the economy, macro effects, and more).   

So What? 

This shortened season really will have an impact on both consumers, and you as marketers. However, history is on your side! 2019 was the last time consumers had a 27-day holiday shopping season, which was also pre-Covid. By having a pre-Covid time to look back, it’s likely that shoppers will follow similar shopping trends as they did then.

What You Need to Know:

When there is less time to shop, consumers have historically started their holiday shopping earlier. In fact, Epsilon reported that higher revenue was generated two to three weeks leading up to Thanksgiving and the two weeks afterwards (when comparing 2019 to 2023).

Our Recommendations: 

Be strategic with this shortened shopping time frame. Manage shipping deadlines; stay vigilant about inventory; execute campaign launch dates; and optimize circulation plans.

Begin marketing communications earlier than usual. This will be key to sustaining and/ or growing revenue. Aim to get customer shopping with your post-election and pre-Thanksgiving.

Be prepared for evolving shopping behavior. Recognize that younger consumers tend to wait longer to shop during the shortened holiday season while older generations plan ahead. Personalize your marketing efforts accordingly.  

Focus on the weeks leading up to Thanksgiving and immediately afterwards. As noted above, this was a key period in 2019.

Leverage postage offers. This will help with spend and add efficiency to your direct marketing efforts (we can help sort through this with you!).

Complement your Direct Mail touch points with Digital. Enhance conversion rates with increased frequency of messaging and the speed of digital. Perhaps go deeper in your models, both house and prospect, with digital-only communications that include countdown messaging. Offer free priority shipping with a purchase over a specific value to capture share from those last minutes shoppers, create gift guides and bundles for the holiday shopping challenged…increase the value of that basket or order size! 

As fellow marketers, we are your partners. Please reach out to discuss your direct marketing strategy for the next few months. 

As always, we’re wishing you all the success this holiday season.

Source: Epsilon

 

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Second Half of 2024 Will Give Marketers A Run for Their Money! (Continued)

by Digital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline Strategy

Key Event #2: Presidential Election 2024

Thanks for following along in our series of key events in the second half of 2024! Today, we’re going to discuss how to market during the 2024 Presidential Election, which is right around the corner on November 5th. While there are large political and worldwide implications, there are also huge impacts to marketers.  

So What?  

Historically, consumer behavior is highly influenced by presidential elections. Several factors influence consumers during this time such as political events, economic conditions, and social issues.

There is a shift in consumer spending and the way in which people are consuming media both offline and online changes. For example, while Connected TV may be a usual channel that drives conversion for a brand throughout the calendar year, it may not be during an election year; if you’re a mailer, you may think about testing different formats and in-home dates. 

Most notably, presidential elections fall at the beginning of the all-important holiday shopping season (more on holiday later!). Therefore, it is important to be aware of when and how to spend your valuable marketing dollars.

 Our Recommendation: 

  • Stay top of mind. Get in front of your best customers and prospects with relevant messaging in the channels, where they’re most engaged. 
  • Get prepared for the short holiday season. Launch holiday campaigns earlier than usual to capture consumer attention. Reinforce with holiday offers after the election hype subsides but before shoppers gear up for their holiday shopping. 
  • Create a post-election marketing plan. Reinforce your campaigns prior to the election with holiday offers to hype up customers for the upcoming season. Create motivation and urgency for shopping early.
  • Remain positive. While consumer spending may dip during the election, it typically rebounds quickly afterward. 

Insider Tip for Catalogers / DM:

If you are planning to be in the mail around the election, get in touch with one of our experts to analyze your circulation plan: info@mediahorizons.com. Based on our position in the marketplace, we have specific recommendations with timing as it relates to your brand and product assortment.

Stay tuned for our recommendations for marketing for the shortened holiday season! We’re here to help drive your omnichannel strategy forward.  

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Second Half of 2024 Will Give Marketers A Run for Their Money!

by Digital MarketingMarketing StrategyMarketing TrendsNews

Key Event #1: Summer Olympics 2024

Beginning next month, there is tons going on for the remainder of 2024. From the Summer Olympics; to the upcoming presidential election; followed by a shortened holiday season, 2024 is keeping marketers on their toes.

This is the first of a three-part series highlighting how marketers can prepare for these three big events.

First up: Summer Olympics. The 2024 Summer Olympic Games begin in Paris on July 26 and will last through August 11. The Tokyo Games set a record for NBC’s US TV sales: $2.25B, which was up 20% from the Rio de Janeiro Games in 2016 ($1.5B in spend, for reference). With more devices available than ever before, this year’s Paris Games will take over every screen possible on every platform – that means Connected TV (CTV), cable, websites, apps, games, and social media.

So what?

With the Olympics taking over so many devices, we don’t recommend trying to compete. Based on past Olympic events, consumers will not spend much in these two weeks (July 26-August 11). However, we have good news! Spending will be up the two weeks prior (June 22-July 6) (Psst! Just in time to move the needle for July 4th sales and promotions) and resume the week after the Olympics are completed.

Our Recommendation:

Seize the opportunity presented by the captive audience during the Olympics by maintaining consistent messaging before and after the games. Post-Olympics, leverage the potential for increased spending as consumers re-engage with the market. Here are some specific digital tactics to explore:

  • – Programmatic Display & CTV
  • – Paid Social Media
  • – Influencers
  • – Content marketing
  • – Native Advertising
  • – Partnerships
  • – Experiential Marketing

Most importantly, this doesn’t just go for digital media. Get your catalog in-home by June 21; send your Direct Mail piece by June 24. Then, get your next pieces in the mail by August 12, tying these drops to your digital marketing efforts in Search and Social Media.

Stay tuned for our recommendations for marketing during the Presidential Election! We’re here to help drive your omnichannel strategy forward.

Sources: Epsilon, eMarketer, LinkedIn

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Tom Says… Here’s What You Need to Know About the January 2024 Postage Increase

by Digital MarketingDirect MailMarketing StrategyMarketing TrendsNewsUSPS

It’s hard to believe that we’re already wrapping up the calendar year, and looking ahead to 2024! As the New Year rolls around, we thought it would be helpful to remind everyone about increases effective January 21, 2024.

In speaking with Tom, we were reminded about the Postal Service’s proposed postal rates that were filed back in October. Before you continue… we want to warn you, the increases are detailed! There are many! But, Tom and our team are here to work through them with you. Together we will optimize your direct mail investment with the end goal of growing your business.

Here’s a preview of what’s included in this update:

  • – Modest postage increases, 1.37% for letters, 5% – 6% for flats (catalogs) effective 1/21/2024
  • – Flats are seeing larger increases because they are not meeting their costs within the USPS
  • – Heavier flats (10 – 16 ounces) will see lower increases, just under 4% on average
  • – USPS is increasing discounts offered on 5-Digit scheme and SCF pallets to offset increases
  • – Similar increases with first class mail, 3% for a 1-ounce letter & postcards are less than 1%
  • – USPS promotions are a must for Direct Mailers to help keep costs in check
  • – All Direct Mailers should sign up for the 2024 Mail Volume Incentive Program
  • – Anticipate much larger increases in the range of 7% – 9.5% with the next increase expected in early July 2024

If you got what you need from our summary, great! If we didn’t scare you off, read on! 

What you need to know about the January 2024 postage increases

The USPS has put into place the following increases in their postal categories. Keep in mind that while these percentages are overall changes, specific sortation increases will be larger in some areas than others creating fluctuations from these announced increases.

USPS Published Rate Increases by Class

First Class Mail                                             1.969%

Marketing Mail                                              1.961%

Periodicals                                                     1.959%

Package Services                                          1.960%

Marketing Mail Increases

Letters                                                           1.333%

Flats (catalogs)                                             3.966%

Parcels                                                         20.029%

High Density/Saturation Letters                 1.073%

High Density/Saturation Flats                    2.144%

Carrier Route                                               3.963%

Every Door Direct (EDDM)                          2.525%

The January 2024 increase seems to be a consistent increase across all sortation levels within a given class of mail.  The reason why Flats & Carrier-Route Marketing Mail in increasing at a larger rate than other classes is because these are considered non-compensatory or under water products and are impacted with additional increases. For Flats, direct mailers can expect to see slightly higher increases at the high density, basic carrier route and 5-digit rates.

Letter Mail

Most letters mail optimally at a 5-Digit/SCF entry mail.  The 5D/SCF for-profit rate is increasing a modest 1.37% to $0.295/pc with non-profit rates increasing 1.47% to $0.138/pc. Drop Ship discounts offered to mailers who entering mail at the destination, are not changing from current rates. 

For-Profit Letter Rates

Flats – Four Ounces & Under

Basic Carrier Route mail will see the above average increases (4.792% at the SCF entry-level), and High Density/SCF entered mail will also see an above average increase of 6.04%. High Density rates did not increase with the last July 2023 USPS change. Good news – drop ship discounts are not changing from current rates. Non-profit rates, four ounces and under, will see lower increases than for-profit mail after experiencing higher percentages increases than for-profit mail in the last few years.

For-Profit Rates 4 Ounces & Under

To better understand the comparison of before and after rates, here are a few for-profit sortation scenarios calculated at different piece weights:

Heavier catalogs will see lower percentage increases that books closer to four ounces.

Flats Postal Discounts

The USPS is again offering higher discounts for Mailers creating SCF and Five-Digit pallets

First Class Mail

  • – A stamped one-ounce letter has increased to $0.68/pc from $0.66/pc (3.03% increase)
  • – First class flats have increased 1.44%
  • – First class postcards have increased to $0.357/pc from $0.355/pc (<1% increase)

USPS Promotions

At Media Horizons, we believe strongly in strategically using the USPS discount promotions to your advantage. As your partners, we can help you identify the promotions and determine how best to use them to ultimately achieve your goals. Here’s the latest:

  • – Tactile, Sensory & Interactive – 5% USPS incentive for Marketing Mail & First-Class Mail – 2/1/2024 – 7/31/2024
  • – Personalized Color Transpromo – 3% or 4% USPS incentive for First Class Mail – February 1st – July 31st
  • – Emerging & Advanced Technology – 3% to 4% USPS incentive for Marketing Mail & First-Class Mail

          NEW – Direct Mailer can pick the 6-month window they would like to use this promotion

  • – Reply Mail IMbA – 3% USPS incentive for First Class Mail – July 1st – December 31st
  • – Informed Delivery – 4% USPS incentive for Marketing Mail & First-Class – August 1st – December 31st

The mail preparer also receives a 0.5% incentive from the USPS

  • – Retargeting Mail – 5% USPS incentive for First-Class Mail – September 1st – November 30th

We’d love to have a conversation about your direct mail campaign, but if you want to quickly scan through the latest details, here they are! Most important takeaways: Beginning in 2025, the mobile shopping incentive will no longer be available and the gloss paper qualification will no longer be available.

Dates to mark on your calendar!

December 2024 – Mobile Shipping Advanced Technology Promotion

Did you know that there are no USPS promotions going to be offered for this coming January? On December 15th, customers should sign up for the Emerging & Advanced Technology Promotion, which can be taken during any consecutive six-month period next year. Included in this promotion is the Mobile Shopping application. By placing a mobile optimized QR code within the mail piece, the USPS is offering a 3% postage incentive during a month that does not have incentives available. The Mobile Shopping incentive offers a no-cost solution to save postage dollars. More information on this promotion is available here.

February 2024 – July 2024 – Coated Paper for the Tactile Promotion

We recommend that customers mailing on coated paper sign up for the Tactile, Sensory & Interactive promotion. The USPS offers a 5% postage incentive for simply using gloss coated paper. All opportunities will be approved in advance by the USPS through their Mailing Promotions Portal (MPP). Many customers are already using gloss coated paper, so this incentive offers a potential no cost solution. Who doesn’t love a no cost solution?! If gloss coated paper is not being used or other interactive marketing elements are desired, the USPS is offering the incentive for the use of specialty inks, sensory treatments, or interactive elements. Pro tip: registration for this promotion also begins December 15th. More information on this promotion is available here.

August 2024 – December 2024 – Informed Delivery Promotion

Filling out the year, another no cost solution that offers a 4% postage incentive is Informed Delivery. Customers can sign up for this promotion starting June 15th. There is a little preparation work required to set up each campaign, but a 4% incentive is nice reward for a little amount of additional work that is required. More information on this promotion is available here.

Overall 2024 USPS Mail Volume Incentive

Lastly, we recommend that everyone sign up for the 2024 USPS Volume Incentive Program. The USPS will be offering a volume growth incentive rewarding customers for 2024 growth in pieces mailed compared with their 2023 volume baseline. The minimum baseline volume will be set at the Mail Owners actual volume or a minimum one million pieces and they are offering up to a 30% rebate on the growth to be used on future mailings after exceeding their volume threshold.

Another date to mark on your calendar! Registration will begin in November 2023, including a verification and approval process by the Mail Owner to the USPS agreeing on the designated baseline volume. The baseline period is marketing mail and first-class pieces mailed from October 2022 through September 2023. Marketing mail and first-class mail volume will be measured separately from one another and will not be combined. 

Postage rebates will be applied towards future mailing through December 2025 with potential credits becoming available in July 2024, October 2024 or February 2025.

These are the newer promotions that stuck out to us. There are others available, such as reply mail, retargeting, etc., which are just as important! 

Whew! You made it through. Thanks for sticking with us. As you know, there are so many details out there when it comes to the USPS. Our goal is to keep you informed while drilling down to the most important information that can benefit your business. As always, we’re here to chat and look forward to solving postage challenges now and in 2024! 

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How GA4 can optimize your holiday marketing strategy

by DataDigital MarketingMarketing StrategyMarketing TrendsNews

It’s hard to believe that the holiday season is right around the corner. In fact, there are only 9 weeks until Christmas! As a direct response agency, we’re towards the end of planning for our offline clients. However, there’s still time for digital!

Whether you’re thinking about launching a test or sticking with tried & true channels that you know work for your brand, we’re excited that it’ll be the first holiday season with GA4. In fact, GA4 may be your secret weapon. Here are four benefits of GA4 that may help your holiday season be the most successful one yet.

More insights into the funnel

As we all know, a well-executed and focused marketing funnel helps brands serve relevant, meaningful, and actionable content at the right time – using the right channel. With GA4, brands have even more insights into the funnel.

A new aspect of GA4, Explorations, allow you to build custom funnel visualizations of the steps in your user’s journey on your website. The funnel exploration gives you insight into what paths are leading to abandonments in the conversion process, how to enhance your user experience and improve your conversion rate.

To put it into simpler terms, you can see when a customer viewed a product, added it to the cart and then made a purchase. It’s clearer than ever before! Inside scoop: In many cases, Universal Analytics (UA) relied on sampled data due to restrictions around hit limits. GA4 doesn’t have those same limitations and therefore, it is more reliable in terms of 100% real data.

Easier, stronger integrations

GA4 plays nice with other Google products! In fact, you can set up audiences in GA4 and then leverage them in Google Ads. Guess what? It’s even more simple to use Google Ads. By creating a link between GA4 and Google Ads, you can use your conversions from GA4 in your Google Ads account. Today, Google Ads can help drive qualified traffic to your site, augment engagement and increase in-store visits.

What’s more – GA4 offers free linking to BigQuery, which is raw GA data that’s used to run SQL queries. By having access to Big Query, you can build any logic in there. The truth is: the API from GA4 has its limitations like any complex system, so this is a feature that many GA users have been clamoring for. Additionally, GA4 users can also download historical data (UA), so they can look at YoY comparisons (keep in mind that UA will be shut down in a few months!).

Build audiences for better targeting

With GA4, the conditions and criteria that you can set up for audiences are limitless! Brands and marketers alike can get creative. By building audiences in this manner, your targeting can be much more powerful and effective.

By default, you will automatically have two audiences linked: all users and purchasers.  You can make additional audiences based on actions captured in GA4.  For example, users who have not converted, users with multiple purchases, high-value purchasers, users who abandoned at checkout, etc.  You have the power to set up audiences based on criteria that is important to your business.

Pro tip! Using the new predictive capabilities to build audiences is also an effective tool to refine your targeting strategy. You can create an audience of users with a high probability to convert by using a remarketing campaign. Or, you can focus on users who are likely to churn and target them with re-engagement campaigns that have personalized offers.

Consistency among devices

Now you can combine website and mobile app usage data in one GA4 property, allowing for more robust cross-device and cross-platform tracking. For example, marketers now have visibility into how many users start their experience on your mobile app and then switch to your website to complete their purchase. You can measure how your marketing channels perform across different platforms all on one platform: GA4.

We realize that the shift to GA4 was a big change. But do you remember when Google rolled out Universal Analytics in 2005? We do – it was stressful, and it took time for everyone to adapt. Change is difficult for all of us, whether there’s a lack of trust or time, the transition takes time. However, UA has officially stopped processing data. This is important: if you’re still connected to UA, the data is no longer accurate, and you’re measuring results incorrectly. Additionally, there are so many more insights to glean from GA4! Just ask us. Not only are we happy to share more benefits, but we can help organize your GA4 account, or transition you to the platform if you haven’t done so yet (we won’t tell anyone!).

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Tom Says… Here’s What You Need to Know About the July USPS Increase

by Direct MailMarketing StrategyMarketing TrendsNewsOffline StrategyUSPS

Thanks for bearing with us this month with this two-part post! We thought it would be helpful to refresh everyone about how postage rates are charged. Now, we can get to the super important details: this month’s USPS rate increase.

Effective July 9, 2023, the USPS has put into place the following increases in their postal categories. Keep in mind that while these percentages are overall changes, specific sortation increases will be larger in some areas than others creating fluctuations from these announced increases.

– First Class mail has increased on average of 5.38%

– Flats (catalog) mail is increasing 7.38%

– High Density / Saturation Flats is increasing 3.07%

– Carrier-Route mail is increasing 7.39%

– Letters is increasing 5.20%

– High Density / Saturation Letters is increasing 5.06%

– Periodicals (Magazines) is increasing 8.12%

– EDDM (Every Door Direct Mail) is increasing 4.76%

Letter Mail

Most letters mail optimally at a 5-Digit/SCF entry mail. The 5D/SCF for-profit rate has increased 5.82% to $0.291/pc. With non-profit rates increasing 6.25% to $.136/pc. Saturation & high-density mail offers lower rate possibilities, but they are very difficult to achieve in national demographic programs.  Commingling offers cooperative solutions to help minimize postage costs and should always be considered for pieces that do not qualify for 5-Digit/SCF entered rates.

Drop Ship SCF discounts for letters is increasing to $0.035/pc vs $0.030/pc & NDC discounts are now $0.027/pc vs $0.023/pc. Non-profit rates are increasing at a higher percentage than for-profit rates.

NEW: Effective with the July changes, the USPS is now offering a SCF entry Discount for 5-Digit & 3-Digit sorted mail. A similar discount was introduced for Flat Mail in July 2022, and it will offer some postage relieve for SCF pallets. Each qualified piece can earn $0.003/pc discount.

Flats – Four Ounces & Under

Basic Carrier Route mail will see average increases (6.82% at the SCF entry level), and High Density Plus and Saturation entry mail will see below average increases. High Density/SCF mail will see no increase after seeing much larger than average increases in the last several postal changes. Origin entered mail will see larger increases. 

As with letter mail, drop ship discounts are growing, $0.091/pc for SCF entry and $0.071/pc, over all sortation levels.

Non-profit rates four ounces and under will also see larger increases that for-profit mail. We have seen this common occurrence with non-profit rates happen over the past several postal changes as they are trying to narrow the gap difference.

The USPS is also increasing their 5-Digit Scheme Pallet and SCF Pallet Discounts to help minimize increases. The discounts are the same regardless of for-profit or non-profit qualified mail.

Flats – Over Four Ounces

There are significant changes taking place with flats mail over four ounces. Previously, postage for pieces in this rate category received a piece postage charge PLUS a pound postage charge applied on each fraction of a pound mailed. The new rates continue to apply a piece rate, but the pound rate will only be applied for each fraction of a pound over 4 ounces (0.25#). Comparing rates from January 2023 to July 2023 will look odd (see chart below) because the new rate structure is pushing more postage in the piece portion and less in the pound portion, it is comparing apples to oranges. Drop ship discounts for pieces over 4 ounces used to be discounted from the pound portion of postage, but it will now be discounted from the piece portion of postage. You can see the differences in the chart below.

To better understand the comparison of before and after rates, here are a few for-profit sortation scenarios calculated at different piece weights:

There are three scenarios above, High Density, Basic Carrier Route & 5-Digit flat postage. As the piece weight grows, the impact of the increase also grows at a substantial rate.  Heavier pieces are seeing much higher than average postal increases.

The same Pallet Discounts as outlined for Flats four ounces and under apply to pieces over four ounces giving some relief.

First Class Mail

– A stamped 1-ounce letter has increased to $0.66/pc from $0.63/pc (4.76% increase)

– First class flats have increased 7.15%

– First class postcards have increased to $0.355/pc from $0.352/pc (<1% increase)

USPS Promotions

As a general best practice, we advocate that all direct mail customers take advantage of the discount promotions that the USPS offers. The USPS has made the approval process much easier and more responsive with the addition of the Mailing Promotions Portal (MPP) on the USPS Gateway. The USPS is managing all inquiries and approvals through the portal, so it is imperative to sign up for the service.

2024 USPS Promotions

– Tactile, Sensory & Interactive – 5% USPS incentive for Marketing Mail & First-Class Mail – 2/1/2024 – 7/31/2024

– Personalized Color Transpromo – 3% or 4% USPS incentive for First Class Mail – February 1st – July 31st

– Emerging & Advanced Technology – 3% to 4% USPS incentive for Marketing Mail & First-Class Mail

*NEW – Direct Mailer can pick the 6-month window they would like to use this promotion

– Reply Mail IMbA – 3% USPS incentive for First Class Mail – July 1st – December 31st

– Informed Delivery – 4% USPS incentive for Marketing Mail & First-Class Mail – August 1st – December 31st. The mail preparer also receives a 0.5% incentive from the USPS

– Retargeting Mail – 5% USPS incentive for First-Class Mail – September 1st – November 30th

Not only can we help you take advantage of these USPS promotions, but together we can add strategy and innovation to your print marketing efforts. Additionally, with our network of printers & suppliers, we’re bound to solve challenges together that you may not have known you even had! We look forward to helping you navigate these updates and most importantly, use them strategically to ultimately grow your brand. 

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Tom Says… Here’s How Postage Rates Are Charged

by Direct MailMarketing StrategyMarketing TrendsNewsOffline StrategyUSPS

We know you’ve been waiting for Tom’s latest update! So much has happened with the USPS in the last 1+ years, but we’re here to help you navigate this unchartered territory. Before we get into the actual updates that occurred this month, Tom wanted to be sure you understand the structure on how postage rates are charged.

A basic knowledge of sortation and destination entry will help with an understanding of the current rate structure.

Postal Sortation Qualification Requirements

The USPS offers discounted pricing for brands to sort the mail rather than having the USPS manage the sortation process. The higher the sortation level achieved by the brand, the lower the overall postage costs that are charged.  Achieving sortation levels to minimize postage costs are totally reliant upon where pieces are going and what volumes are going to those destinations. Common sortation qualifications include:

From top to bottom, the deeper sortation requires less USPS processing results in lower postal rates to the customer. For mailers to achieve high density & saturation postal rates, there either must be a significant volume of mail, or it must be a very regional mailing. 

Letter mail is sorted to the 5-Digit scheme rather than to the Basic Carrier Route level. The reason for this is because the USPS automation equipment will sort mail at the 5-Digit level, and they do not want mail in carrier-route bundles. The higher postage costs for Carrier-Route Letters discourage Carrier Route mail. There is an advantage for letter mail to sort to the HD, HD Plus or Saturation levels. However, it is very difficult to achieve without significant volumes. Sortation to more efficient levels is why cooperative mailing programs such as co-mail (flats & periodicals) or commingle (letters) exist and should be part of every mailing program.

Destination Entry

The USPS also offers discounts from the base rates if the mailer coordinates dropping the mail into the USPS at the destination rather than dropping at the mailer’s location. This is called destination or drop ship entry.  For this to make sense, the mailer will determine where pieces are mailing to and calculating if the USPS postal discounts exceed the additional freight costs, that the customers will be responsible for paying, in transporting and dropping to USPS facilities at the destination.

From top to bottom entry levels, origin mail is simple, but offers no discounts because the USPS must take responsibility to ship pieces to their destination while progressively larger discounts are offered for NDC, CSF & DDU entry.  DDU entry is difficult unless there is significant mail going into a specific (regional) area.  Most larger mailers will enter mail at the SCF level.

This is just a quick snapshot of how postage rates are charged. However, we felt it was important to reiterate some of these details. We all read headlines about “rate increases” and industry-wide postage changes, so we thought it would be helpful to set the stage. Stay tuned for part two highlighting the actual increases from the USPS this month!

Next up: The July 2023 USPS Increase – what it is and how you can combat it.

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Tom Says… Here’s What You Need to Know About the Latest USPS News

by DataDigital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline StrategyUSPS

Recently we sat down with our colleague, Tom VanWestrienen, also known as our resident USPS expert. We thought it would be helpful to share that latest USPS news with you – and what this means for your direct marketing efforts.

On January 22, postal rates for all classes of mail were increased. Average increases by class were +4.20% (First Class), +6.25% (Marketing Mail Flats), +3.29% (Marketing Mail Letters), +4.20% (Periodicals), and +20.49% (Parcels).

While we know this news is less than ideal, we’re here to help you optimize your direct marketing strategies in the most efficient way possible. In fact, we are excited to share several incentives that would help offset some of your clients’ new costs. Check out our recommendations here: 

  • The USPS is offering a 5% postage discount for their Tactile, Sensory and Interactive promotion from February 1 – July 31, 2023 on First Class and Marketing Mail products. The USPS has approved this promotion for mailing direct mail on coated paper stocks (coated gloss, matte, soft gloss, SCA, etc). 

Our recommendation: All direct mailers should consider applying for the promotion to mitigate the recent January 2023 postal increases.

  • Adding to the Tactile, Sensory and Interactive promotion to maximize postal savings, direct mail marketers should plan on seeking the 2023 Informed Delivery promotion running from August 1 – December 31, 2023. As with 2022, the USPS is offering a 4% postage discount for using Informed Delivery. This provides direct mailers with an effective USPS promotion strategy spanning all of 2023.

Our recommendation: With USPS increases happening twice a year for the foreseeable future, it is critical for customers to come up with an effective strategy that provides savings opportunities throughout the year. Many direct mailers embraced the Informed Delivery promotion in 2022 and this promotion should be mandatory in 2023.

  • The USPS is again offering the Emerging Technology from May 1 – November 30, 2023 (3% or 4% incentive). If customers opt for this promotion, the USPS is offering a new promotion called Retargeting, which provides a 5% incentive from September 1 – November 30, 2023 for Direct Mailers sending out First Class postcards to recent visitors to their website or mobile apps that did not convert.

Our recommendation: There has never been a better time to explore retargeting as an acquisition tactic. If you are not currently retargeting your website visitors, get in touch with us to implement a solution. 

It is important to note that registration for these promotions needs to take place in the Business Customer Gateway (BCG).  Many of these promotions require advanced USPS approval to ensure the mail pieces meet the requirements of the promotions. Located within the BCG is a Mailing Promotions Portal (MPP), brands can seek approval for individual mail pieces. Refer to the guide here.

Insider Tip: The USPS encourages all approval requested to be entered through the MPP. All samples being sent for USPS approval must be shipped through USPS products, UPS and Federal Express packages will not be accepted.

Unfortunately, Tom says to expect another postal increase in early July. At this point, the impact of this increase is unknown, but changes in the 3-6% range should be expected.

Considering this news (and anticipating more changes!), there’s never been a better time to explore relevant digital channels to help maximize your offline investment. We can help support with various audits to provide valuable insights and recommendations. Diversifying your media mix will propel your business forward.

As always, we asked Tom to describe today’s print marketing environment in one word. For the beginning of Q1 2023, he said “defensive.” Specifically, Tom shared, “It feels like one on one basketball right now. We’re all trying to react effectively while not knowing what challenges the USPS is going to drop on mailers’ laps these days.” Let the teamwork continue so we’re all shooting nothing but net with our marketing campaigns!