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2026 REPORT

State of Local Advertising 2026

An annual benchmark of response rate, cost-per-lead, attention, and delivery reliability across the channels local businesses actually choose between: direct mail, Google Ads, email, social, and SMS. Compiled from the ANA Response Rate Report (DMA), Constant Contact industry averages, and USPS Service Performance data. Every number traces to a published source.

Key findings

4.4%

Oversized postcard response rate (house lists)

Source: ANA Response Rate Report (DMA), latest published edition

0.12%

Email marketing click-to-site average

Source: Constant Contact 2024 industry averages

61%

Advertising mail read or set aside for later

Source: USPS Household Mail Survey, FY 2025, Figure 5.7

92.4%

USPS marketing mail on-time delivery

Source: USPS Service Performance Measurement, Q1 2026

The benchmark in four charts

Households considering a response

Stated intent, not measured response. USPS Household Mail Survey, FY 2025, Table 5.6

Strangers, no offer on the card2%
Strangers, with an offer5%
Past customers25%

Cost per lead, Google Local Services Ads

SearchLight Home Services LSA Benchmark, February 2026: observed spend across 888 contractors, not a published rate card. We assert no cost per lead of our own until our drops have produced one.

Google LSA, per lead$53
Google LSA, per paying customer$233

What households do with advertising mail

USPS Household Mail Survey, FY 2025, Figure 5.7

Read by a household member51%
Set aside for reading later10%
Discarded without being read39%

What the data actually says

Direct mail is not a low-response channel. Email is. The reported response rate of an oversized postcard to a house list runs materially higher than permission-based email click-through and orders of magnitude higher than the implied impression-to-lead rate of Google Search. What has changed in 2026 is the normalization: USPS now reports that 61% of advertising mail is read or set aside and only 39% is binned unread, the best attention split in a decade of the survey.

The chart above prices the channels that publish a cost per lead. LocalAd is deliberately absent from it. Quoting our own cost per lead would mean asserting a response rate, and the saturation-mail response figures in circulation do not appear in the reports they are attributed to. We will publish ours from QR scan data once enough drops have shipped to make the number mean something, with the sample size printed next to it.

Read our trade-specific breakdowns for the underlying playbooks: plumbing, roofing, house cleaning, and HVAC.

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We send the full benchmark tables, with every source cited, to any business email. No form, just email us and we reply.

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Once a year, we compile the benchmark with updated ANA and USPS data. Email us to get the 2027 report first.

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