1

INNOVATING TODAY FOR TOMORROW’S MAIL

Gary Reblin Vice President, Product Innovation

United States Postal Service

2

THE WORLD IS CHANGING

Our increasingly digital and mobile-first world is driving huge growth in the digital advertising market.

$90.39

$107.30

$125.75

$142.23

$156.43

$170.48

43.6%

48.6%

53.3%56.8%

59.6%62.1%

25.00%

35.00%

45.00%

55.00%

65.00%

75.00%

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

2017 2018 2019 2020 2021 2022

US Digital Ad Spending, 2017-20221

Billions ($)

Digital Ad Spending % of Total Media Ad Spending

3

COMPETITIVE DIGITAL LANDSCAPE

Mobile – occupying 66% of users digital media time2 – is driving the expansion of digital ads and is generating competition.

Digital ad platforms:

4

THE DIGITAL MARKET HAS A CHINK IN ITS ARMOR

Digital ClutterAd Blocking /

Avoidance

Up to 37% of ad

clicks are from

bots, resulting in a

waste of $7.2B4

Americans see

an estimated

4,000 - 10,000ads per day

5

26 – 28% of online

ads are blocked

in the U.S.6

DIGITAL DOWNFALLS

Non-Human Traffic Digital ClutterAd Blocking /

Avoidance

5

USPS STRATEGY PART 1: HARDCOPY MAIL

Image

PaperDigital

Engagement

6

DIRECT MAIL IS GETTING MORE ATTENTION

Response rates have surged from 3.4% in 2012…

Better targeting

Personalized Mailpieces

Printing Techniques

Linking to Digital Content

DMA 2017 Response Rate by Selected Mediums9

7

MAIL CONTINUES TO EVOLVE

New technologies are enabling better engagement.

CREATING ENGAGING MAILPIECES

INKS SCENT TEXTURE FORMATS VIDEONFCAUGMENTED

REALITY

DRIVING A RESPONSE

SMS TEXTTYPED URLs

VOICEQR CODES

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BARCODE USAGE CONTINUES TO RISE

QR CODES

56.7

63.868.6

72.074.7

30.8%

32.7%

33.7%34.2%

34.8%

30.00%

31.00%

32.00%

33.00%

34.00%

35.00%

36.00%

37.00%

38.00%

39.00%

40.00%

0

10

20

30

40

50

60

70

80

2016 2017 2018 2019 2020

Adult Smartphone Barcode ScannersUS, 2016-2020

Millions % of Smartphone Users

Source: eMarketer, April 2018.Note: ages 18+, smartphone users who scan a barcode or QR code at least once during calendar year. Includes in-store, print publication, or features like Snapchat’s Snapcode, Instagram’s Nametags, and Amazon SmileCodes.

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INCREASING RESPONSE THROUGH MULTIPLE CHANNELS

USPS is exploring the impact of multiple calls to actions and multiple channels on response rates.

Baseline

53% Lift

58% Lift

70% Lift

Typed

URLs

SMS

Text

QR

Codes

Voice

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FIRST-CLASS MAIL®

First-Class Mail also delivers results

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FIRST-CLASS MAIL HITS HARDER THAN DIGITAL

How consumers engage with digital versus hardcopy billing statements:

Impact of ColorRecall Testing

First-Class MailEye Movement

Methodology Topics

12

THE BENTLEY STUDY

Did digital or hardcopy billing statements increase recall and

brand sentiment?

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HEAT MAP RESULTS

DigitalHardcopy

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WHAT DID WE DISCOVER?

*Print had a 10% Lift

• Brand sentiment and purchase probability

• Brand recall:

• Immediately after the eye tracking

• Survey given a week later

*45 sampled respondents

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With Informed Delivery, the image of a mailpiece further enhances digital engagement.

Image

PaperDigital

Engagement

USPS STRATEGY PART 2: INFORMED DELIVERY

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MAIL AS PART OF THE DAILY DIGITAL ROUTINE

Informed Delivery maintains the relevance of mail in an increasingly digital society.

User

Density

Consumer and

Mailer Data

Approximate user number as of July 30, 2018.

Number of participating brands and campaigns created as of July 30, 2018

User Density Map as of July 30, 2018

11.6M

Users

700+

Participating Brands

3,183

Campaigns Created

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CASE STUDY: US CENSUS BUREAU

As a result, the U.S. Census Bureau achieved a high click-to-open rate and an increase

in their number of completed questionnaires.

The U.S. Census Bureau partnered with USPS to provide Providence County, R.I., with an easy, safe way to respond to the 2018 Census Test—anytime, anywhere.

7,445

Emails Sent

5,273

Emails Opened

317

Click-throughs

71%

Email Open Rate

Click-to-Open Rate

6%

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INFORMED DELIVERY USER SURVEY RESULTS

“It lets me know when to expect

something and gives me peace of

mind that important mail

will be delivered.”10

95%

are satisfied or very

satisfied with

Informed Delivery.10

“Informed Delivery is essential – you

need to know what's arriving when

you are traveling.”10

would recommend

Informed Delivery to

friends, family, or

colleagues.10

90%

Consumer:

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IMPRESSIONS IN THE DIGITAL AGE

Mailers conducting Informed Delivery interactive campaigns have experienced:

72.5%

Average

Email Open Rate

4.92%

Average Click-through Rate Potential

43% of users typically are not the ones who pick up the mail10

1111

Mailer:

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Getting Started with

Informed Delivery®

Campaigns

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A campaign is the combination of mailpiece image (or Representative Image) and Supplemental Content

INFORMED DELIVERY DEFINITIONS

The Informed Delivery for Business Mailers website is the one-stop-shop for information on interactive campaigns.

Resources on the website such as the Interactive Campaign Guide can help mailers get started.

Interactive Campaign AppliedNo Interactive Campaign

Well-designed

Physical Mailpiece

Supplemental

Content

Representative

Image

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WHAT MAILPIECE TYPES ARE ELIGIBLE?

FLATSLarge Envelopes / Catalogs / Periodicals

LETTERS / POSTCARDS

“Automation compatible” letters and postcards

are eligible for Informed Delivery as they are

scanned through USPS equipment.

Images not captured on USPS automation

equipment. Interactive Campaign, featuring

Representative Image, is required.

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1. Target the right customer: Determine Campaign Breakdown

2. Determine Submission Method

3. Determine MID and IMb

4. Determine Supplemental Content

5. Determine Campaign Timeline

6. Enter/Submit the Campaign

7. Monitor Progress and Analyze Results

7 STEPS FOR CREATING A SUCCESSFUL CAMPAIGN

Get Noticed

Have a Compelling Offer

Have a Call to Action

Have a Simple Execution

of Call to Action

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UPCOMING FEATURES

Notification

of Mail

Delivery

Pilot

Package

Campaigns

Personalized

Campaigns

Mobile

Wallet

Coupon

Saturation

and

Newspaper

Mailers

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THANK YOU

THE FUTURE IS BRIGHT!!

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A PPEN D IX

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1. “US Ad Spending: eMarketer Forecast for 2017.” eMarketer, March 2017.

2. "The 2017 U.S. Mobile App Report." ComScore, Inc. https://www.comscore.com/Insights/Presentations-

and-Whitepapers/2017/The-2017-US-Mobile-App-Report.

3. “The State of the U.S. Mobile Market.” ComScore. 2016.

4. “How Much of your Audience is Fake?” Bloomberg Business. 2015.

5. “In the name of free speech, Adblock serves up ads, just for a day.” Arstechnica. 2016.

6. Email Marketing Reports, “How much email do people really get?”, 2011.

7. “US Social Trends for 2018.” eMarketer. January 2018.

8. Scott, Mark. "Use of Ad-Blocking Software Rises by 30% Worldwide." The New York Times. February 01,

2017. https://www.nytimes.com/2017/01/31/technology/ad-blocking-internet.html.

9. "Direct Media Response Rate, CPA & ROI Benchmarks in 2017." Marketing Charts. December 27, 2017.

Accessed April 16, 2018. https://www.marketingcharts.com/digital-78422.

10. “User Survey”, July 2017.

11. “USPS-generated reports”; 6-month average of aggregate email open rate as of December 2017.

CITATIONS