INSERT MEDIA 101 | TEST STRATEGY

- page 3 -

We provide a first round of recommendations. These choices represent a cross-section of opportunities that we singled-out based on the least amount of risk.

There may be many more Insert Media programs on the market that provide a potential opportunity. However, to minimize risk for the testing phase, we are only recommending the programs that we expect to have the most promising rate of return.

Because there can be a number of variables in the testing process, SDMi has established some general guidelines for consideration to help reduce these variables and mitigate risk. Here are some of those considerations:

• Test the same insert size and creative, if possible, during the initial test phase to keep production costs to a minimum (this tact will change in the continuation phase where maximizing insert size to each program type is recommended).



• Test a quantity that is commensurate with the program size. The larger the program, the larger the test quantity needs to be for an accurate reading of results. Very small test quantities in large programs can skew results (positively or negatively). That may defeat the purpose of the test and waste advertising funds.



• It is generally prudent to test a variety of program types and to choose those programs that most meet your target market. The test market can be widened after reading the initial test results.



• It is important to remember that this is a test and analyzing it is critical. A test is designed to be a learning experience. The most important result of a test is to confirm that you have a direct mail product that can reap a profit with the right design and advertising placements. Therefore, a method of tracking response will be very important for moving to the next steps.