The Economics of Everyday Things

38. Junk Mail

8 snips
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.
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INSIGHT

Junk Mail Growth

  • The volume of junk mail increased significantly after the Postal Reorganization Act of 1970.
  • The USPS shifted to a self-funding model, incentivizing higher mail volume, including junk mail.
INSIGHT

Junk Mail Economics

  • The USPS needed to increase revenue after losing government funding.
  • Delivering more mail, even junk mail, became a financially viable solution due to the low marginal cost per piece.
ANECDOTE

The Taco

  • The "taco" is a cheap, untargeted form of junk mail often containing coupons.
  • Small businesses use it to reach local customers by blanketing an area with ads.
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