The U.S. Postal Service has delivered mail since 1863, and regular price adjustments have long been part of the process. But what used to be occasional one-cent increases have evolved into significant hikes twice a year. With another USPS price increase in July 2025, many marketers are wondering: Is direct mail still a viable advertising channel? The answer is yes, especially when you take strategic steps to manage costs and maximize performance.
This last summer, the USPS rolled out its latest rate changes, impacting Marketing Mail Letters and Flats:
Marketing Mail Letters (Commercial Rates):
Marketing Mail Flats (4.0 oz or less):
Another transformative change that took effect in July 2025 is the elimination of the NDC (Network Distribution Center) postage discounts and a 30% reduction in SCF (Sectional Center Facility) postage discounts. While these changes may feel like a setback, there are innovative ways to keep your campaigns cost-effective and ROI-positive by optimizing every aspect of the logistics to maintain in-home performance.
Explore Postal Optimization & Logistics →
USPS offers valuable postage discounts for mailers who integrate advanced technologies. Adding features like QR codes, augmented reality, or "Hey Alexa" voice prompts can qualify you for the Emerging & Advanced Technology Promotion, which offers a discount between 3–4%. Another program offered by USPS is the Continuous Contact Promotion. In this program, mailers can receive a 3% discount for sending follow-up mailings repeatedly to the same qualified USPS Marketing Mail®.
These design enhancements not only save money but also drive engagement.
Contact Century Direct today to explore how you can take advantage of these USPS promotions to optimize your postal discounts and savings.
With postage rates climbing, sending fewer but more targeted mailings is a cost-efficient move. Data modeling enables you to focus your campaign on recipients most likely to convert, improving ROI while keeping your volume manageable.
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Don’t miss out on valuable 2025 USPS promotions:
Century Direct can help you enroll in USPS promotions and volume incentives to boost savings and campaign impact. Contact us to get started.
Addressing & Inserting Solutions →
Outdated addresses can quickly waste postage. Clean up your mailing lists using tools like NCOA and automated address validation. This not only improves deliverability but also protects your campaign ROI.
Get Help With Mailing List Hygiene →
Even with the new rate increases, direct mail remains one of the highest-performing marketing channels:
By tapping into USPS promotions and working with a knowledgeable partner, you can continue to outperform digital-only approaches.
Explore Omnichannel Marketing Services →
Century Direct helps you:
We’ve been helping brands create effective, cost-efficient direct mail campaigns since 1932. With our blend of experience, technology, and strategic insight, you can keep your campaigns profitable and scalable—even during a postal rate hike.
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Contact Century Direct today to reduce your direct mail costs and unlock the full power of USPS promotions and smart targeting.
Is direct mail still viable after the July 2025 USPS changes?
Yes—when you leverage USPS promotions, predictive targeting, and rigorous list hygiene, direct mail remains a top-ROI channel even post-increase.
What changed in July 2025 that impacts cost and delivery?
Marketing Mail Letter/Flat rates increased, NDC entry discounts were eliminated, and SCF entry discounts were reduced ~30%—making precise destination entry/logistics planning essential.
Which USPS promotions are available now to offset postage?
Emerging & Advanced Technology (3–4%), Continuous Contact (3%), Informed Delivery (1%, stackable where allowed), Retargeting Technology (5%), and Reply Mail IMbA (up to 6%)—confirm eligibility and registration windows per mailing.
How do we reduce mailed volume without sacrificing performance?
Use modeled propensity scoring to prioritize high-likelihood households, suppress chronic non-responders, and re-mail qualified segments to lift conversions with fewer pieces.
What design and logistics choices cut costs today?
Stay within letter specs when feasible, use automation-friendly formats, add tech elements to qualify for promos, and plan destination entry/consolidation—paired with NCOA and address validation to prevent waste.
The U.S. Postal Service has delivered mail since 1863, so it’s natural that they’ve needed to do periodic price adjustments. What used to be fair upgrades, including raising their rates by one cent from 1995 to 1999, have now segued into changes twice a year. [1] Is it even still profitable to keep sending direct mail? It is, as you’ll soon find out!
When it comes to advertising, you’ve known for a long time that direct mail is where the money is. After all, 59% of marketing survey respondents indicated that direct mail—when added into a multichannel approach—resulted in a positive ROI. [2] However, as the cost of direct mail advertising prepares for yet another postal price increase, how can you keep your costs in line?
According to the USPS rates table, the average mail advertising cost will shoot up by 7.8% in July 2024. If you send out a smaller batch of direct mail (less than 500), you may utilize First Class rates, which are increasing by .05. [3] Either way, you’re going to feel the pinch in your budget.
Although there is nothing that can be done to convince USPS not to increase their rates, there are ways you can reduce your associated expenses.
Using current trends can offer you great benefits. For example, if you place a QR code on your direct mailers, you’ll be eligible for the Emerging and Advanced Technology promotion. You can also place the “Hey Alexa” prompt on your mailers to help minimize the blow of the USPS rate increase.
Utilizing postal optimization and logistics is one of your best overall choices. Let’s say that the latest USPS rate changes will make you send out fewer mailers. This doesn’t have to be a bad thing, as long as you incorporate data modeling into your approach. Essentially, you’ll be able to choose who should be dropped from your mailing list by letting data modeling indicate who is most likely to respond. In other words, you can reduce the total number of mailers you send out without sacrificing your response rate.
Taking advantage of various USPS promotions and discounts can save you a lot of money! For instance, if you sent out more than 1 million pieces of mail last year, you may qualify for a 30% discount. We’ll go over these USPS incentives and promotions in greater detail later in this article.
Are you relying on a mailing list that is more than a year old? It’s time to double check that your data is still correct. In fact, a visit to the National Change of Address (NCOA) website can help ensure postage savings by eliminating your outdated information. [4]
Even with the latest price increase, direct mail is still your best option to achieve a positive ROI. In fact, 67% of marketers claim it provides the best ROI out of their advertising options. [5] You can increase your ROI by up to 60% by sending direct mail to the same recipients. By taking similar multichannel steps, you should be able to boost your ROI enough to counter the new USPS rates. This is in addition to the helpful tips listed below.
We promised more info on incentives that would provide postage discounts, so let’s dig into this very helpful topic! As previously mentioned, you may be eligible to receive 30% off future mailings. There are three pieces of criteria you must meet to enroll in this program.
If you qualify for this program, you’ll receive postage credits at three points throughout 2024.
Make sure you go to your USPS Business Customer Gateway account to register for USPS promotions. Failure to do so can cause a significant delay in getting approved. Next, look into each of the following programs. [6]
Each individual promotion lasts between three and six months. Therefore, you should be able to utilize at least two promotions per year.
The best way to take advantage of each tip listed above is by partnering with an experienced direct mail marketing company. At Century Direct, we’ve been providing cost-effective, high-quality campaigns since 1932. We use state-of-the-art equipment to produce your direct mail, and we utilize any savings you have coming to you such as nonprofit bulk mail rates.
Between our omnichannel marketing, postal optimization and logistics, addressing and inserting services, and our digital printing, bindery, and data management, we’ve got the skills and experience to take your direct mail to the next level. Plus, we remain up to date on any USPS incentives and promotions to ensure you get the best possible rate! Trust our experience, and you’ll receive great results every single time.
Are you ready to send out direct mail that’s been optimized to provide you with a better ROI? Turn to Century Direct today, and let us show you how much of a difference spending almost 100 years in business can make!
SOURCES:
1 https://about.usps.com/who/profile/history/domestic-letter-rates-since-1863.htm
2 https://www.businessnewsdaily.com/15776-direct-mail-marketing-guide-for-small-businesses.html
3 https://faq.usps.com/s/article/2024-Postage-Price-Change#july_2024_price_change
4 https://postalpro.usps.com/mailing-and-shipping-services/NCOALink
