sg360°, a leading direct mail provider in the U.S., has released its fifth annual Future of Direct Mail report—delivering critical insights into the evolving role of direct mail in today’s omnichannel marketing landscape. Presented at the 2025 National Postal Forum, the report underscores how audience understanding and advanced data targeting are essential to maximizing performance and ROI from direct mail strategies.

The findings make a compelling case for a renewed focus on direct mail, even in an era dominated by digital and AI-driven marketing. Based on responses from 490 marketers and 1,037 consumers, the report surfaces surprising engagement trends and points to where brands should prioritize investment in H2 2025.

Findings from the 2025 Report

1. Direct Mail Dominates in Conversion Performance

• Direct mail boasts the highest conversion rate of any marketing channel, 10% higher than all other formats.

• Performance continues to improve year-over-year due to better targeting and personalization strategies.

2. Gen Z is Highly Engaged with Mail

• 18–24-year-olds engage with 31% of the direct mail they receive—significantly above the 24% cross-generational average.

• This dispels the myth that younger consumers only respond to digital content.

3. Clear Calls to Action Drive Results

• 76% of consumers took action after receiving direct mail—such as visiting a website or saving the piece for future reference.

• Marketers are using functional CTAs more effectively, making mail a strong demand-generation tool.

4. Direct Mail Leads to Monetary Transactions

• 72% of recipients completed a transaction after receiving direct mail, including purchases, donations, or loan applications.

• These results validate mail as not just an awareness tactic but a bottom-funnel channel.

5. Consumers View Mail Favorably

• 70% of consumers feel positively about receiving direct mail—highlighting its perceived value and trust factor.

• This contrasts sharply with digital fatigue and ad blocking trends online.

6. Marketers Are Increasing Investment

• 84% of marketers increased their direct mail budgets, often reallocating from underperforming channels like social media or CTV.

• Brands are recognizing the longer shelf life and higher engagement potential of physical mailers.

Best Practices for Direct Mail Success

• Use Advanced Data Targeting: Going beyond basic demographics to behavioral insights and predictive modeling.

• Personalize Beyond the Name: Custom offers, QR codes, and variable imagery can drastically increase relevance.

• Design for Impact: Strong creative, tactile materials, and unique formats help grab attention instantly.

• Integrate with Digital: Connect direct mail to digital journeys for a seamless omnichannel experience.

sg360°'s 2025 Future of Direct Mail report reaffirms that in a noisy, fragmented marketing environment, direct mail stands tall. With unmatched conversion rates, rising Gen Z engagement, and growing marketer investment, it's clear that this traditional channel is evolving into a modern performance powerhouse. For brands seeking measurable impact and consumer trust, direct mail is no longer an option—it’s a strategic imperative.

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