The USPS Must Roll Back its Recent Postage Increases (mytotalretail.com)

Just as U.S. consumer price inflation appears to be flattening out following a period of protracted increases, media price inflation paid by advertisers has moved in the opposite direction, according to a new quarterly update from ECI Media Management. The U.S. data estimates ad-supported media prices in the U.S. dropped sharply throughout 2023 -- from +6.6% in the first quarter to -5.1% in the second quarter. The analysis attributes U.S. ad-price deflation mainly to the impact of the Hollywood strikes, which have been settled, but won't impact the ad marketplace until the first quarter of 2024.

As digital avenues have become more popular among today’s consumers (and as a result among marketers and advertisers), an interesting trend has emerged over the last few years. Direct mail – flyers, coupons, postcards, catalogs, etc. – has seen a resurgence in its effectiveness and its ability to connect brands with consumers, grab their attention, and drive purchases and engagements. Recent research has shown that consumers are engaging with direct mail marketing materials at much higher rates than with digital marketing assets, and that those engagements are leading to higher response rates and purchases. Mail catalogs in particular have seen a huge boost in their overall response rate, reportedly increasing by 170% from 2004 to 2018 according to the Association of National Advertisers. And rather surprisingly, mail catalogs seem to be popular with Millennials despite their digital upbringings. Perhaps it’s because there were nearly 294 billion emails sent per day in 2019, with that number projected to steadily grow over the next several years. Or maybe it’s because consumers are starting to feel a little creeped out by the hyper-personalized digital ads they’re receiving as they visit their favorite websites and social media platforms. Regardless of why consumers continue to embrace physical catalogs, (digital fatigue, privacy concerns, nostalgia, or something else entirely), an increasing number of retailers are taking notice and taking action.

Direct mail is experiencing a long overdue resurgence for retailers, hastened by the pandemic. Increasingly crowded ads on social media and Google, full email inboxes, SMS dings all day long ... while the much-maligned mailbox remained emptier as credit card offers dwindled and in-store postcard coupons were recycled. It’s not surprising that many e-commerce brands decided to communicate in a new “old” way and test direct mail. We had the pleasure of assisting several launches in 2020 — some planned before the lockdowns, others as a new COVID strategy. Two of the biggest surprises for folks new to mail are: 1. the amount of time it takes to properly put together an effective mailing; and 2. how expensive mailing can be. One of our print partners and I assisted a pure-play that mailed within three weeks of our first discussion … this is NOT typical and we don’t recommend it. Haste makes waste.