PostcardMania Reports 20% Surge in Mailing Despite Postage Hikes
PostcardMania, the $104.6 million marketing technology firm with 385 staff serving over 120,000 small- and medium-sized business clients, has seen a 20% year-over-year surge in first class mailings in the third quarter (Q3) despite a same-quarter increase in first class postage prices by the United States Postal Service (USPS).
On July 14, 2024, the USPS raised the cost of postage by 3 cents on first class postcards and 5 cents on first class letters. First class postage is a highly selected postage class, because it guarantees the mail is delivered in 1–5 business days, usually closer to 1–2 days.
Comparatively, standard or second class mail, the mail class just below first class, has a delivery rate of 2–5 days locally and up to 1–4 weeks nationally. When marketers and business owners need their mail delivered in a timely manner, first class postage is the optimal choice. Historically, first class postage has been PostcardMania's most popular mail class among clientele for its expedited delivery.
Click to enlarge.
When the USPS announced its 2024 price increase, many marketers expected to see a reduction in first class mail volume. However, PostcardMania witnessed an upswing in clients' first class mailings, which it attributes to a decline in digital advertising confidence and an increase in consumers craving physical brand experiences. Internal client mailing data shows that, compared to Q3 mailings in 2023, PostcardMania saw a 20% increase in first class mailings in Q3 2024.
July 2024 showed a 28% increase over last year, then up 19% in August, and 14% up in September. These increases are based on tens of millions of mail pieces sent between July 1st and September 30th.
With consumer trust in digital marketing on the decline (61% of consumers report feeling overwhelmed by digital brand communications on social media), and skyrocketing digital ads costs, the trend back towards traditional media is not surprising. Meta reported the cost of its digital ads increased an average of 11% in Q3 2024. (By comparison, the price of first class postage rose 5-7% depending on mail type.) Meta's outsized price increase comes despite shrinking user numbers.
That said, direct mail offers a welcome change with tangible advertising. Research shows that 74% of marketers agree that direct mail offers the best return on investment (ROI) of all marketing channels; another study demonstrated that direct mail averages a 161% ROI compared to 21% for social media.
PostcardMania is projected to finish 2024 breaking annual revenue records due to the increasing success of direct mail marketing and its newest automated marketing product, responsive trigger-based mailers. The latter have outpaced PostcardMania's overall growth as 2024 Q3 revenues topped those of 2023 by 135%.
"Postage prices have risen modestly compared to other sectors, and I think marketers and business owners have started to take notice as they look for ways to make every marketing dollar stretch farther," said PostcardMania Founder and CEO Joy Gendusa. "Despite these increases, we continue to achieve incredible growth among all of our products and services. Even the most recent first class postage rate hike hasn't diminished demand for our products. To me, this shows that marketers and business owners are discovering direct mail anew and the important role it plays in the overall strategy. It's the Millennial and Gen Z marketers that are now discovering direct mail as the brilliant tool it is — and they'll be back again and again."
PostcardMania's marketing solutions support its mission to help small and medium-sized businesses across the nation flourish by increasing their revenue and providing new job opportunities within their local area. In turn, these postcard campaigns will help strengthen the backbone of the American economy one business at a time.
The preceding press release was provided by a company unaffiliated with Printing Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Printing Impressions.
