## [How to Cut USPS Costs: Direct Mail Insights From the 2025 National Postal Forum](/insights/how-cut-usps-costs-direct-mail-insights-2025-national-postal-forum) ## NEWS & INSIGHTS Marketing Execution Management Direct Mail Automotive Consumer Brands Entertainment, Media & Publishing Financial Services Healthcare Pharmacy Quick Service Restaurants Real Estate Retail Travel & Hospitality Educational Publishing How to Cut USPS Costs: Direct Mail Insights From the 2025 National Postal Forum Brad Duncan June 4, 2025 Image ![National Postal Forum 2025 - Leading Forward Display at Event Entrance](/sites/default/files/2026-07/national-postal-forum-2025-leading-forward-sign_1_new.png) ## Table of contents 1. [Key Learnings:](#toc-6354026) 2. [Promotions = Savings: But 70% of You Are Missing Out](#toc-6374028) 3. [Use AI to Slash Costs—and It’s Almost “Too Easy Not To”](#toc-6384029) 4. [Why This Matters for SEO and Future-Ready Brands](#toc-6394030) 5. [Disappearing Discounts & Rate Hikes: What’s Changing in July](#toc-6404031) 6. [What You Can Do:](#toc-6414032) 7. [The Future is Uncertain—but That Doesn’t Mean You Have to Be](#toc-6424033) 8. [Omnichannel & Tactile Mail: Better Together](#toc-6434034) 9. [Continuum’s POV: Plan Smarter, Spend Less](#toc-6444035) #### Key Learnings: - USPS promotions and incentives are critical to offset rising postage rates, but most marketers are missing out on these cost-saving opportunities. - The new AI-powered USPS Integrated Technology Promotion makes it easier than ever to cut direct mail costs by using AI-generated content. - USPS is eliminating discounts and raising rates in July 2025, so direct mail campaigns must adapt now to avoid major cost increases. - Combining direct mail with omnichannel strategies boosts brand performance and ROI, making it essential for modern marketers to integrate physical and digital channels. The 2025 [National Postal Forum](https://www.npf.org/) (NPF) in Nashville brought together over 5,615 mailing and shipping professionals—its largest turnout in over a decade—and it was clear: the direct mail industry is evolving fast. From AI-powered incentives to omnichannel integration, the landscape is full of opportunity, if you know where to look. At Continuum, our goal is to make complex USPS programs easier to navigate so marketers can unlock powerful cost-saving opportunities. Below are the biggest takeaways from NPF 2025—and exactly what your team can do now to save on your direct mail budget. #### Promotions = Savings: But 70% of You Are Missing Out One of the most surprising data points shared at NPF was that only **30% of marketers participate in USPS promotions**. That means **70% are effectively subsidizing discounts for others.** With postage rate hikes on the horizon, promotions are one of the easiest ways to offset costs. Take the [**Mail Growth Incentive**](https://postalpro.usps.com/msi)—Continuum helped one of our clients earn a **$2.4 million rebate** through this program alone. But deadlines matter: **May 30 is your last chance to enroll this year**. **Quick Wins:** - Enroll in USPS programs like [**Informed Delivery**](https://www.usps.com/manage/informed-delivery.htm), [**Mobile Shopping**](https://postalpro.usps.com/promotions/2022-mobile-shopping), and the [**Integrated Technology Promotion**](https://postalpro.usps.com/promotions/25-it/enroll) - Build a proactive **promotions calendar** for your brand for 2025–2026 - Prepare now for the [**October 2025 Catalog Incentive**](https://postalpro.usps.com/catalog-incentive/fact-sheet), which offers **up to 10% savings** for eligible catalog mailers #### Use AI to Slash Costs—and It’s Almost “Too Easy Not To” If you’re not already taking advantage of the **USPS Integrated Technology Promotion**, now is the time to act. In 2025, this program includes a new AI-driven incentive that rewards marketers for incorporating **AI-generated content** into their mailpieces—with **up to 5% in postage savings (with add-ons)**. Here’s how it works: You can select any **six-month window in 2025** to run your promotion—giving you full flexibility to align it with key campaigns or seasonal pushes. And the **approval process? Surprisingly simple.** In fact, one industry executive described it as “**too easy not to do it.**” That’s because qualifying for the **AI promotions for USPS mail** doesn’t require complex technical integration. If your campaign uses AI to generate content like personalized offers, images, or copy for print—you're likely eligible. This makes it one of the lowest-effort, highest-return USPS promotions on the table. #### Why This Matters for SEO and Future-Ready Brands Beyond the cost savings, this incentive aligns with how marketing teams are evolving: embracing AI to drive personalization and scale creative output. For brands optimizing content for AI search engines or preparing for the rise of AI content indexing, this is an ideal opportunity to **blend physical and digital innovation**. #### Disappearing Discounts & Rate Hikes: What’s Changing in July Come July 2025, USPS is eliminating or reducing several critical discounts: - The **DNDC discount** will be eliminated - **DSCF entry discount** drops from $27 to $17 per thousand - **Marketing Mail rates** to increase by **>10.4%** - **First-Class® rates** to increase by **>8.1%** The reason? USPS increases its rates based on several factors: Inflation (CPI at 2.8%), a density adder (2.2%), and retirement costs (2.3%), totaling a base increase of 7.3%. However, to try and recover $534 million paid out through the Mail Growth Incentive, additional class-specific surcharges are being applied—raising Marketing Mail by 10.4% and First-Class Mail by 8.1%. **This means if you're not using promotions and incentives you are paying for those who are.** #### What You Can Do: - Audit your current direct mail strategy—especially if you rely on **dropship** or **commingled mail** - Work with a vendor (like Continuum) to evaluate the **true cost implications** - Enroll in incentives *now* to mitigate July’s increase #### The Future is Uncertain—but That Doesn’t Mean You Have to Be Industry sentiment at NPF was clear: the USPS is in flux. A [new Postmaster General](https://about.usps.com/newsroom/national-releases/2025/0509-usps-bog-appoints-david-steiner-to-be-76th-pmg-and-ceo-of-usps.htm#:~:text=WASHINGTON%2C%20DC%20%E2%80%94%20The%20U.S.%20Postal%20Service,be%20America's%2076th%20Postmaster%20General%20and%20CEO.), David Steiner (former Waste Management CEO and current FedEx board member), is stepping in with a focus on operational efficiency and likely a emphasis on the parcel business. USPS is moving aggressively into **parcel shipping**, aiming to compete with Amazon, UPS, and FedEx. This means fewer resources may go to marketing mail, and rate structures could continue to evolve unpredictably. This also plays into the USPS infrastructure optimizations as they may lean more towards affordable shipping channels than mail efficiency. While these shifts can feel daunting, **they also present opportunities**—especially for strategic contract buyers. If you have contracted rates with a major parcel shipper its a great time to review the USPS new parcel shipment options and their Negotiated Service Agreements. #### Omnichannel & Tactile Mail: Better Together Multiple sessions emphasized the power of **cohesive omnichannel strategies**. Offline and online channels are no longer siloed—and should not be treated that way. In fact, a study from Colorado State University (to be released in Q3) will show that **physical mail outperforms digital** across metrics like: - Brand awareness - Purchase intent - Average Order Value (AOV) This reaffirms what we already know: [**direct mail isn’t just surviving—it’s thriving**](https://www.continuummarketing.com/insights/2025-direct-mail-trends-and-strategies-every-marketer-needs-know) when executed strategically. #### Continuum’s POV: Plan Smarter, Spend Less If there’s one message you should take from NPF 2025, it’s this: The USPS is complex, but that complexity shouldn’t cost you money. Let us help you simplify it. Continuum Marketing Services helps brands **plan smarter**, **unlock discounts**, and **deliver omnichannel experiences that perform.** From redesigning formats to unlocking USPS incentives to delivering fully managed, performance-based campaigns that work, we take the complexity out of direct mail. ## [Brad Duncan](/author/brad-duncan) ![Brad Duncan](/sites/default/files/styles/media_library/public/2026-07/brad-duncan_0.png.webp?itok=YGH7ztNt) Brad Duncan ## AUTHOR BIO **Account Director, Continuum Marketing Services** Brad Duncan is an experienced marketing and print professional with over 13 years in graphic communications, procurement, and account leadership. As an Account Director at Continuum, he specializes in executing strategic initiatives that ensure brand consistency and drive operational efficiency. With deep expertise in postal and logistics strategies, Brad helps Continuum clients maximize cost savings and enhance campaign performance. 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