Industry News and Roberts Updates

Postage Rate Increases in January 2024 and How You Can Still Save Money on Direct Mail

As you may have come to expect, the USPS is rolling out another wave of postage rate increases on January 21st, 2024. While change is inevitable, it’s essential to navigate these adjustments with a positive mindset and a dash of savvy planning. Because Roberts wants to see our clients grow, we’ve also taken the time to put together a list of ways that you can actually save on postage rates throughout this upcoming year. Continue reading to see how your direct mail campaigns may be effected and what you can do to help offset the costs.

January 2024 postal rates, postage rate increases

What postage rates are increasing?

Beginning January 21st, 2024 many postage rates that direct mail campaigns utilize will be increasing in size. Here are how some of the most common postage rates are being effected:

First Class Regular

  • 1 ounce stamped letter size pieces will increase to $0.68 each
  • 1 ounce metered letter size will increase to $0.64 each
  • 1 ounce postcard will increase to $0.53 each
  • 1 ounce Flats size pieces will increase to $1.39 each

First Class Presorted

  • Mixed AADC letters will increase to $0.571 each
  • Mixed AADC cards will increase to $0.398 each
  • Mixed ADC Presorted flats will increase to $1.244 each

Standard Mail

  • Mixed AADC Letters will increase to $0.385 each
  • Mixed ADC Flats will increase to $1.006 each

Nonprofit Mail

  • Mixed AADC Letters will increase to $0.228 each
  • Mixed ADC Flats will increase to $0.767 each

For a more comprehensive chart, check out our downloadable PDF!

Is Direct Mail Still Worth It?

Despite the incremental rise in postage rates slated for January 2024, clients should maintain a steadfast focus on direct mail, a marketing powerhouse that consistently delivers impressive results. According to historical data, direct mail campaigns boast an average response rate of 4.4%, significantly outperforming the 0.12% response rate seen in email marketing. The tangible and personalized nature of direct mail contributes to its effectiveness in engaging recipients, fostering a connection that digital channels often struggle to replicate. Notably, the Direct Marketing Association (DMA) reported in 2020 that the cost per acquisition (CPA) for direct mail was $19, demonstrating its cost-effectiveness compared to several digital channels. In an era saturated with digital content, direct mail continues to stand out, offering a refreshing alternative that captures attention and drives meaningful engagement with the audience.

How Can I Save Money on Direct Mail Campaign Costs?

As postage costs increase, strategic planning becomes paramount. Leveraging bulk mailing discounts and optimizing mailing lists can help maintain the cost-effectiveness of direct mail campaigns. In addition, the USPS is offering 6 special programs that can save you up to 6% on postage! Not only can these programs help you save on postage costs, they can also increase response rates on your direct mail pieces, making them even more effective.

  1. Tactile, Sensory & Interactive Promotion: Valid from February 1 to July 31, this program offers a 5% discount. Employ this initiative to showcase special finishing technologies that captivate the senses, including unique visual effects, sound, scent, texture/tactile coatings, and even taste. Furthermore, leverage the program to craft interactive mail pieces such as pop-ups, infinite folds, or other dimensional elements—providing an engaging and exclusive experience achievable only through print marketing.
  2. Personalized Color Transpromo Promotion: Running from February 1 to July 31, this year’s discount is raised to 4%. Leverage this program to infuse color into marketing messages on bills and statements, effectively transforming transactional mail into promotional material.
  3. Emerging Technology Promotion: Effective from March 1 to September 30, this initiative encourages innovative ways to integrate technology into direct mail. Gain a 3% discount for utilizing augmented reality, basic voice assistants, or QR codes for mobile shopping. Elevate the discount to 4% by incorporating advanced voice assistants, video, NFC, mixed reality, or virtual reality.
  4. Reply Mail IMbA Promotion: Available from July 1 to December 31, this promotion streamlines the process of reply mail. Earn a 3% discount by using a static barcode and enrolling in IMbA, or achieve a 6% discount by employing a serialized barcode and enrolling in IMbA.
  5. Informed Delivery Promotion: Active from August 1 to December 31, this initiative encourages the integration of direct mail with digital marketing channels. By leveraging Informed Delivery, business mailers can seamlessly engage users through a unified mail and digital marketing campaign, resulting in additional consumer impressions, interactions, and insights, while enjoying a 4% discount.
  6. Retargeting Promotion: Running from September 1 to November 30, this promotion focuses on matching a visitor’s IP address to a website or app to a customer’s physical address. Triggered by digital interactions, retargeted direct mail delivers dynamically printed, targeted messages in a timely manner to a customer’s home via a First-Class Mail Postcard, earning you a 5% discount.

 

While postage rates may be increasing, don’t let this scare you away from the amazing marketing tool of direct mail. On average, the postage rates will increase by less than a penny per piece, so your overall budget won’t be drastically effected. However, now is the perfect time to take a look at your direct mail campaigns and make sure that you are being as effective as possible with your spend. Want a free assessment on your current direct mail strategy to see if there is anything you could be doing differently to save you money? Contact Roberts today! 

 

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