Direct Mail Advertising Cost: Strategies to Navigate USPS Rate Increases

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 arriving 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.

USPS 2025 Rate Increases: What’s Changing This July

This summer, the USPS will roll out its latest rate changes, impacting Marketing Mail Letters and Flats:

Marketing Mail Letters (Commercial Rates):

• Carrier Route Saturation: $0.244 → $0.259
• High-Density Plus: $0.275 → $0.293
• Automation 5-Digit: $0.372 → $0.396

Marketing Mail Flats (4.0 oz or less):

• Carrier Route Saturation: $0.290 → $0.308
• High-Density Plus: $0.351 → $0.373
• 5-Digit Automation: $0.770 → $0.814

Another transformative change taking 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.

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4 Smart Strategies to Reduce Costs and Maximize Impact in 2025

1. Refine Mail Design to Take Advantage of USPS Promotions

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.

2. Use Data Modeling to Target the Right Recipients

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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3. Enroll in USPS Promotions and Volume Incentives

Don’t miss out on valuable 2025 USPS promotions:

• Informed Delivery (1% discount, which can be combined with other eligible discounts for a total of up to 4%)
• Retargeting Technology (5%)
• Reply Mail IMbA (up to 6%)

Century Direct can help you enroll in USPS promotions and volume incentives to boost savings and campaign impact. Contact us to get started.

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4. Ensure Clean Data to Increase Deliverability

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.

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Why Direct Mail Still Delivers the Best ROI in 2025

Even with the new rate increases, direct mail remains one of the highest-performing marketing channels:

• 67% of marketers say it delivers their best ROI
• Multichannel campaigns with mail can see up to 50% better performance
• Mailing the same recipients multiple times can increase ROI by up to 60%

By tapping into USPS promotions and working with a knowledgeable partner, you can continue to outperform digital-only approaches.

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Partner With Century Direct to Stay Ahead of USPS Rate Increases

Century Direct helps you:

• Implement USPS-compliant design features to unlock discounts
• Use predictive analytics to reduce volume without losing impact
• Navigate USPS registration and incentive programs
• Optimize data, design, and delivery under one roof

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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Ready to Maximize ROI With Your Next Mailing Campaign?

Contact Century Direct today to reduce your direct mail costs and unlock the full power of USPS promotions and smart targeting.

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