Direct Mail Budgets Are Growing -- Logistics Is Now the Differentiator

Lob Report Finds Marketers Increasing Investment as Logistics Visibility, AI Strategy and Operational Ownership Separate High-ROI Teams

SAN FRANCISCO, Feb. 12, 2026 /PRNewswire/ -- Lob, the direct mail automation and logistics platform that brings the power of digital to direct mail, today released its fourth annual report, State of Direct Mail: Business Insights 2026, examining how execution and operational maturity are shaping direct mail performance.

The report found that direct mail is earning a larger share of the marketing mix, with 25% of budgets now dedicated to the channel and nine in ten marketing teams increasing

investment year over year.

"As direct mail spend increases, it becomes critical for marketers and operations leaders to optimize for cost, speed and quality," said Ryan Ferrier, CEO of Lob. "The teams seeing the strongest returns are the ones applying the same rigor to logistics, data and delivery that they expect from digital."

Logistics blind spots and unclear operational ownership diminish ROI
Despite a greater share of budgets flowing to direct mail, logistics is not keeping pace. 87% of marketing leaders say printing, shipping and delivery remain blind spots, and 82% report unexpected costs or missed delivery windows, often tied to a lack of clear internal ownership. Only 39% of marketing leaders report complete, real-time visibility into mail delivery status.

As marketers lean into direct mail for trust, attention and performance, many are discovering that the operational infrastructure behind their programs isn't designed for scale, speed or visibility. These gaps limit visibility and control at a time when precision matters more than ever to the bottom line.

"Without clear ownership or end-to-end visibility, teams struggle to plan confidently or connect spend to outcomes, undermining the very ROI gains driving increased investment," Ferrier added.

Operational maturity is now the deciding factor in direct mail performance
As direct mail investment grows, performance is increasingly shaped by how well teams manage logistics, not just strategy or creative. The report shows that operational ownership, data-driven decision-making and relevance at scale are now the clearest indicators of success.

This shift shows up in three core areas:

• USPS changes are forcing teams into reactive mode: 84% of leaders struggle to track updates or anticipate what's next, and 51% say USPS changes significantly disrupt campaign planning and forecasting.
  
  
• High-ROI teams use AI where it actually matters: AI and automation are now table stakes, but results depend on how they are applied. 74% of high-ROI teams use AI for personalized messaging, compared to 23% of lower-ROI teams, across personalization, delivery optimization and attribution.
  
  
• Personalization works when it's relevant: 96% of leaders say personalization improves results, but the strongest programs rely on real customer signals, behavior, preferences and life or account milestones to deliver timely, relevant mail.

What the findings mean for marketers and operations leaders
Together, the findings show that direct mail performance in 2026 is increasingly shaped by how effectively programs are optimized for cost and speed. High-performing organizations are more likely to assign clear ownership of mail logistics and delivery operations, build logistics intelligence and plan proactively for USPS changes. These patterns correlate with fewer surprises and greater confidence as budgets grow.

While automation is now widespread, top teams distinguish themselves by how they apply AI, using it to improve delivery accuracy, personalize based on real customer behavior and strengthen attribution. In practice, this allows direct mail to operate as a more connected, data-driven channel rather than a standalone tactic.

This focus on personalization and accuracy mirrors consumer expectations. Lob's State of Direct Mail: Consumer Insights Edition 2025 found that consumers are far more likely to engage with mail that is relevant and well-timed.

For more information on Lob or to access the full report, visit lob.com.

About Lob
Lob is a direct mail automation and logistics platform founded in 2013 that brings the power of digital to direct mail. With its nationwide Print Delivery Network (PDN), intelligent routing and end-to-end automated platform, Lob enables businesses to build personalized, high-quality direct mail programs at scale. Marketing, product and operations teams can automate campaigns, connect direct and digital channels and optimize performance through real-time measurement. Named Mail Service Provider of the Year in 2024 by the National Postal Forum and winner of Postman's Best API award of 2024, Lob is trusted by more than 12,000 brands, including L'Occitane, Ro and SimpliSafe.

Learn more at lob.com and connect with us on LinkedIn.

Media Contact
Delia Mendoza
Lob
[email protected]
(310) 500-9273

SOURCE Lob