INSERT MEDIA GLOSSARY

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Collation Envelope

Generally used with package inserts, a collation envelope is typically a 6 by 9 inch envelope with a variety of loose inserts. When a direct retailer is sending product to their customer, the envelope is dropped into the package. Using a collation envelope allows a greater number of participants ? anywhere from 6 to 12 ? without slowing down the fulfillment process.

An insert manager will often be responsible for the preparation of the envelope and its delivery to the warehouse.

The envelopes and collation are expenses that are deducted from the program owner?s revenue. However, the additional advertisers that the envelope allows easily covers these expenses and provides greater revenue.

Most package insert programs can be started without the use of a collation envelope because early advertiser participation will be light. With program start-up, inserts can be placed by hand. Collation envelopes are usually needed by the end of the programs first year.

Hand Insertion

Commonly associated with package insert programs, inserts are placed in a customer order package loosely. In most cases, only two or three inserts can be placed in packages by hand while still retaining fulfillment efficiencies.

Hand insertion is common in package insert programs that are new to the market because the number of testing advertisers will not warrant the cost of collation envelopes and production expenses.

Exchanges

An exchange is a partnership between two companies that are program owners and mailers (advertisers). They will agree to use each other?s insert program to distribute their advertising insert.

An exchange fee is collected by each of the advertiser?s brokers and split with the program manager to cover the coordination of the exchange. The fee amount reflects the commission amount that the broker and manager would have earned on paid placement, but is much less of an expense to the advertiser.