The Economics of Everyday Things
38. Junk Mail
Feb 26, 2024
Exploring the history and impact of junk mail, the podcast discusses how the postal service relies on it for revenue. It delves into personalized direct mail marketing strategies and the effectiveness of physical advertisements in the digital age.
18:09
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Quick takeaways
- The evolution of junk mail is tied to USPS revenue strategies post-1970, with data analytics driving targeted marketing.
- Direct mail marketers use tactics like stealth envelopes and personalized content to engage recipients and increase response rates.
Deep dives
Evolution of Junk Mail
Junk mail, although often considered a nuisance, has its roots in the evolution of the postal service and marketing strategies. Following the Postal Reorganization Act of 1970, the USPS looked to increase revenues by incentivizing direct mailers through cheaper pre-sorted rates, leading to a significant rise in junk mail quantities over the years. With marketers targeting specific demographics using data analytics, the USPS relies on junk mail for revenue, with around 59 billion pieces delivered in a year.
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