INSERT MEDIA DEFINITIONS

Insert Media vehicles can take many forms. Here are the most typical types.

Package Insert Programs

Packages carry a high rate of awareness since the package contains purchased product and is guaranteed to be opened. read more

Statement Insert Programs

Statements are also an implied endorsement program. They can be hosted by a bank, utility, cable TV, cellular provider, and other services.read more

Customer Mailings/Ride Alongs

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. read more

Co-ops

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 read more

Mass Market Mailings

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 read more

Newspaper - FSIs (Free Standing Inserts)

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 read more

Catalog Blow Ins/Bind Ins

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 read more

Sample Pack

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 read more

Take Ones

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

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 read more

Card Decks

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 read more

Envelope Advertising

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 read more

Testing Insert Media

Testing is the first step in getting started with Insert Media and is necessary to determine which programs will have the strongest ROI when purchasing more circulation. It will also provide the basis for determining success of the offer and how the creative solution supports the offer. It will also identify the most suitable program types for future test strategies.

In testing, small quantities are used, that keep initial costs reasonable. However, when the investment is compared to the return, the results may not be overwhelming. There is no doubt that the testing phase is the most expensive part of the process. The medium's ROI is maximized to its full potential in the subsequent continuation phase, which calls for larger print runs and circulation buys.

The diagram below shows the different components of a test budget.

Creative and offer development

Stanton Direct can be a resource for developing an offer and creative that is effective for this medium. We can provide samples of competitive or relevant inserts that represent successful controls from other insert media users. Since advertising inserts need to capture the attention of the receipt immediately, it will be important to develop the offer/creative accordingly. Most of our clients will work with their creative agency or in-house group to produce insert creative, but Stanton Direct can provide this service as well.

Insert Printing

Printing will vary depending on the quantity ordered. The cost of printing a test quantity of 100,000 to 200,000 inserts may cost $12 to $20 per thousand. However, large runs produced for continuations can cut those costs in half.

Insert Freight

Once the inserts are printed they will need to be shipped to a letter shop or warehouse where the distribution will take place. Freight costs will also vary depending on distance, but typically the cost is about $2-$4 per thousand (M).

Insertion Fee

Insertion cost will also vary depending on the type of program. Statement Programs, Package Insert Programs, etc. The list of programs with definition for each program type is included in this proposal. Testing a package insert program - which tends to be the most responsive (and expensive) - can run about $40/M for insertion, but may drop to a significantly lower price for a continuation. Other strategies ­ such as arranging for stand-by placement and searching for remnant rate can be used to. However, the most important aspect is the return of an insert program, not the cost for insertion.



Test Strategy

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, Stanton Direct Marketing 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.


    • Planning Steps

    In addition to making a final decision on the product, the most critical planning step is allocating a budget. Without some firm numbers in mind, there is the potential of "wheel spinning" with the result of no traction to move the product forward. We have included a proposed test budget and analysis in this proposal.

    Considerations:

  • Picking the types of programs to be tested (On-Page, Co-ops, FSIs etc.) For each type of program, a creative will have to be available. (Some may be just size modifications; others may need to be more extensive.)

  • For Co-ops and Package Insert Programs, not only will creative be needed, but offers or inserts will need to be printed. Small quantities will have a higher unit cost, than larger quantities.

  • The inserts will have to be freighted from the printer to the collation house for Co-ops and Package Insert Programs. In some case, small test quantities can be sent by ground service via a commercial carrier. Stanton Direct Marketing can obtain very competitive pricing on "less than truckload" (LTL) shipments.

  • Some new advertisers to the industry may be asked, by the program owners, for pre-payment on the distribution space. However when working with a known and reputable broker, the program owner may ask the broker to guarantee payment rather than seeking pre-payment.


    • Timelines:

  • For On-Page Programs such as the FSIs and shared mail, insertion orders (arrangements for placement) usually are done six weeks before the issue date. Creative must be available at the time of placement.

  • For Co-ops and Package Insert Programs, the printed inserts must delivered about a month ahead of the drop month so that they can be collated into an envelope for efficient insertion into the program.

  • It is prudent to allow for two to three weeks for printing of the inserts, once the creative is available.


    • How we can help you though the testing process.

    Discussing test budgets is usually a reality check: it means verbalizing what the product owner is willing to invest to drive future sales. Like any business venture, you have to know the risks and rewards.

    There are many areas with which we can assist you. That is our business.

    For example, besides consulting on the creative (the consulting is part of our service), we can assist you in the developing the creative itself (depending on what needs to be done copywriting, photography, etc.). The process can be started from conceiving the offer to the delivery of final artwork to the printer.

    Most importantly, we can help analyze the results, setting up the spreadsheets and all the elements for consideration. To do this effectively, we must have an understanding of your costs and margins. No meaningful analysis can be done without them.

    As you might guess, there is a great deal of time spent developing a new client to bring to the industry. We assist as much as you allow us: we look for long-term relationships and realize that being there for the client in the testing phase in the only way to achieve that.