Why 82% of Marketers Are Increasing Direct Mail Investment in 2025

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Introduction

# Ryan Ferrier, CEO of Lob, reveals how direct mail is experiencing a renaissance as marketers seek alternatives to saturated digital cha els. With 82% of marketers pla ing to increase direct mail investment despite rising postal costs, Ferrier explains how modern direct mail operates like email—with AI-powered triggers, personalized content, and measurable ROI. His insights demonstrate why brands like L'Occitane and SimpliSafe are turning to automated direct mail to cut through digital fatigue and achieve conversion rates that outperform traditional digital cha els.#n#n1

The Digital Fatigue Driving Direct Mail's Comeback

# The resurgence of direct mail stems from overwhelming digital saturation. Ferrier notes that email inboxes have become "graveyards" while digital ad costs increase with each incremental impression. The physical mailbox, by contrast, remains relatively uncrowded. Most surprisingly, Gen Z and Mille ials are leading this shift—53% report that direct mail feels more special or valuable than digital communications, while 58% feel overwhelmed by digital brand messages.#n#n1 This demographic shift challenges conventional wisdom about cha el preferences. Ferrier explains: "There's actually kind of a wow, surprise and delight factor that comes with receiving something tactile and physical that you can touch." The data backs this up—85% of Gen Z consumers read or respond to mail, with 67% taking action as a result. For marketers targeting younger audiences, direct mail offers an unexpected competitive advantage.#n#n1

API-Driven Direct Mail: Speed and Personalization at Scale

# Modern direct mail operates nothing like traditional batch-and-blast campaigns. Lob's API approach enables brands to trigger personalized mail pieces based on real-time events—cart abandonment, website visits, or customer milestones. The platform treats each mail piece "more like a web page" using HTML and merge variables for infinite personalization possibilities.#n#n1 The operational efficiency is striking. API calls generate instant proofs, queue pieces at printers within minutes, and deliver to mailboxes in 3-5 days. This speed enables marketers to respond to customer behaviors almost as quickly as email, while maintaining the impact of physical mail. Ferrier emphasizes that successful brands use direct mail as part of an omnicha el strategy, not as a standalone cha el.#n#n1

Solving the Attribution and ROI Challenge

# Attribution has historically plagued direct mail campaigns, but modern solutions are closing this gap. Lob encourages every mail piece to include personalized QR codes linking to customized landing pages. This approach enables direct attribution while creating seamless online-to-offline experiences. Branch, a home and auto insurer, achieved 25-30% conversion rates by pre-populating compliance documents on personalized URLs accessed through QR codes.#n#n1 Beyond direct attribution, Ferrier recommends holdout campaigns to measure true incremental impact. While email typically sees 1-3% click-through rates, direct mail achieves 4% conversion rates with general lists and 9% with curated house lists. These metrics, combined with proper attribution methods, allow marketers to speak the CMO's language about customer acquisition costs and cha el ROI.#n#n1

AI Optimization: Balancing Speed and Cost

# Artificial intelligence touches every aspect of modern direct mail campaigns. On the creative side, AI generates copy variations for A/B testing and helps brands without agency resources create compelling visuals. But the real power lies in operational optimization. Lob's AI analyzes delivery patterns to recommend when standard mail will arrive as quickly as first-class mail, saving "several cents on every mailer" for high-volume senders.#n#n1 The platform's routing algorithms leverage nationwide printer networks to minimize costs through intelligent batching and geographic optimization. AI also prevents waste by identifying likely undeliverable addresses beyond USPS database checks, potentially saving "millions of dollars a year on u ecessary mail sends." As Ferrier summarizes: "We aim to match speed and cost better than any other provider in the world."#n#n1

The Future of Physical-Digital Marketing Integration

# Direct mail's evolution from legacy cha el to precision marketing weapon reflects broader shifts in marketing strategy. As digital cha els become increasingly expensive and ineffective, physical touchpoints gain value through scarcity. The key insight isn't choosing between digital and physical, but orchestrating both cha els to maximize impact. Modern direct mail succeeds by combining the targeting and measurement capabilities of digital marketing with the attention-grabbing power of physical mail.#n#n1 For marketers evaluating cha els for 2025, direct mail offers a compelling value proposition: higher conversion rates, less competition for attention, and surprising appeal to younger demographics. The cha el's transformation from "Mailhouse Melvin" to "ROI rock star" demonstrates how legacy cha els can reinvent themselves through technology integration. As postal costs rise and digital fatigue deepens, the brands wi ing with direct mail are those treating it as a data-driven, measurable cha el that complements their digital efforts.#n#n1