Packages carry a high rate of awareness since the package contains purchased product and is guaranteed to be opened. Riding along in these packages carries an implied endorsement by the host company. These are hotline buyers and known direct mail purchasers. Due to these positive aspects, base rate run higher than other insert media with pricing anywhere from $40/M to $80/M.(most commonly $50/M to $60/M).
Statements are also an implied endorsement program. They can be hosted by a bank, utility, cable TV, cellular provider, and other services. They are usually mailed first class and in a #10 envelope or smaller. Statement programs have a strict weight limit and also do not want to detract from their “invoice”; thus programs will accept 1, 2 or a maximum of 3 inserts. The customer is not necessarily a mail order buyer. Rate card pricing is $25/M to $40/M.
By definition, this is a mailing to an existing customer offering them additional products or services or perhaps a thank you or welcome. This customer has proven to have purchased via the mail at least once from this company. Most commonly, this is in a 6x9 or 9x12 format for mailing. This mailing also carries an implied endorsement from the host company. Rate card pricing is $40/M to $60/M.
This mailing combines inserts from a group of non-competitive advertisers riding together in typically a 6x9 envelope. Mailing volume is usually high and can mail as a mass mailing in zip code saturation or can be targeted via a theme such as New Parents, Senior Citizens, New Homeowner, etc. Names for the mailing are acquired via list rental and are not proven direct mail buyers. Pricing can be very negotiable and rate card pricing can range anywhere from $10/M to $40/M.
These are zip code, SCF or geographic designed mailings to a mass market. They can provide opportunities for on page advertising on slightly better than newspaper quality paper as well as provide opportunities for inserts. These mailings do well for geographic selections including the more rural (less direct mailed) C & D counties of the country. These are not proven mail order buyers and usually do not provide offer exclusivity. Pricing varies greatly from secure space to remnant space available just prior to printing and distributing. (Examples are: Val Pak, Mail South, Cap Media, Metro Mail, etc.)
Inserts are accepted into a Sunday paper or Wednesday coupon section. These inserts can be placed solo into the newspaper or run in an FSI which is then placed into the newspaper. An FSI (free standing insert), is a cooperative, full-color, multi-page flyer offering local, regional and national advertising with coupons, 800 #‘s, etc. Available circulation is very high and costs range from $4/M to $8/M for the FSI. Costs can be much higher if placed directly with the paper to ride solo.
Catalogs offer a high volume distribution to a proven audience of buyers since the catalog is only mailed to the house file. A Blow In is an insert "blown" into the catalog during printing and a Bind In is stitched into the binding (or slid between staples). Although Bind Ins have more of a chance of staying inside the catalog by the time it reaches the customer, blow in’s tend to have better response. Bind in’s also require additional design to allow for a binding edge. Rate card pricing is usually $30/M to $35/M.
Sample packs are usually hand delivered for free to specific groups or markets. The packs contain samples, inserts, coupons and other items targeting this group. Rate card pricing is usually $20/M to $40/M. Statements are also an implied endorsement program. They can be hosted by a bank, utility, cable TV, cellular provider, and other service providers. They are usually mailed first class and in a #10 envelope or smaller. Statement programs have a strict weight limit and also do not want to detract from their "invoice"; thus programs will accept 1, 2 or a maximum of 3 inserts. The customer is not necessarily a mail order buyer. Rate card pricing is $25/M to $40/M.
Take Ones are slots holding a stack of inserts at a heavy traffic consumer area such as a supermarket. Note the board at the entrance of the supermarket or on the check out counter at certain stores or information centers. Costs can vary from $2.50/M to $1.00/M.
Space advertising is usually meant to cover magazine or similar publications allowing on page advertising. Pricing can be expensive and some magazines insist on full circulation to be taken. Not all offer exclusivity and the customer is not a proven mail order buyer. Magazines have expanded to include magazines designed purely for advertising (Clipper Magazine, Reach Magazine). These magazines have lower pricing since the audience is not subscribers and the content is not editorial; however, they do mail in specific areas and have selections available.
As the name implies, this "deck" carries similarly sized cards, usually 3"x 5" printed by the host and enclosed in a closed wrapping for shipment to a targeted audience. The cards are mostly business reply cards but the deck can also contain some direct mail insert pieces that were folded small enough to fit the deck sizing and inserted prior to wrapping. Also popular are the larger "double" decks that allow for two rows of 3.5 x 5.5 cards with larger cards taking the full size providing a platform and mailing label area. A card deck usually mails via bulk rate and does not guarantee a mail order buyer. This is a low cost medium often chosen by b-to-b mailers for lead generation. Pricing of $20/M to $35/M usually includes printing.
Don’t miss the opportunity to get top visibility by running your ad on the back of a statement’s payment envelope or a Package Insert Program’s/Ride Along/Co-op’s collated envelope. This puts your ad in the eye of the consumer prior to any of the ads inside and for less money as you only have to supply artwork. Costs vary greatly between the statements (known as bangtails) and the collated envelopes.
Other Common Industry Terms.An insert broker works in the interest of a particular advertiser or mailer. A good broker will research and find insert programs in the marketplace that reach the specific demographic targets that the advertiser desires. Beyond finding specific media opportunities, a broker will usually coordination all aspects of that media placement on behalf of their client, including: rate negotiation, order placement, insert freight arrangements, and distribution monitoring. Most insert brokers can also assist with insert printing coordination.
Since the inserts media is unlike most other marketing channels, a good insert broker can help develop a good test strategy. A broker’s relationships and experience in the industry will help an advertiser steer clear of unresponsive program managers and owners.
As an industry standard, are rebated a commission of 20% from the program owner as payment for placing advertising into the media.
An insert manager works in the interest of the program owner. They are responsible for locating quality advertisers that are interested in placing advertising inserts into the mailings that the program owner sends to their customer base. Managers are not only responsible for promoting the insert program, but also negotiate rates, and coordinate with the mail production facility or distribution warehouse. Most insert media managers also bill the advertiser, pay the appropriate commissions to recognized brokers and forward due revenue to the owner.
Insert managers will look for the most suitable and best quality advertisers for their client. Their main goal is to provide the owner with advertising offers that are relevant to their customer base, thus giving the advertiser the best chance of a good return and building a lasting partnership between the advertiser and program owner.
As an industry standard, an insert media manager will retain a 10% commission on all order placed into the program. Generally, any program promotion or related management expense are covered by commission and not an additional expense to the owner. However, expenses related to the program’s operation, such as the creation of a collation envelope and production expenses associated with including inserts is an expense to the owner. Many times, these expenses are offset directly by incoming program revenue.
The company that uses insert media as an advertising channel (advertisers) is also commonly referred to as a mailer. Most mailers work with insert media brokers to find appropriate advertising opportunities.
A program owner is the entity that sends mail or packages to a specific group – usually customers. Program owners include, banks, utilities, web retailers, catalogers, and newspaper. Anyone that has an existing distribution channel of any type could potentially be a program owner.
As an industry standard, program owners receive 70% of advertising revenue generated by the program – minus related expenses (if any).
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.
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.
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.