Insert Media Buying Guide: Know Today’s Insert Media Terrain

A look at the trends and challenges influencing the insert media industry

September 2006 By Barbara Henry

multipage

Marketers always are looking for ways to partner with other marketers. This entrepreneurial streak has generated a number of new insert media opportunities of late. One example is the marriage of the traditional package insert and the statement stuffer, joining to form on-the-pack invoice statement programs and their variants. As well, traditional welcome kits to continuity offers have led to the opening of prospect (co-op) mailings and reactivation mailings.

Other nontraditional offerings, such as co-op style mini-catalog mailings, also are popping up. Here, rather than have the advertisers send their preprinted inserts, program owners have these firms send them the artwork and then produce a co-op insert to include in outgoing packages. Costs are much lower for the advertisers, and the program owner is able to control its costs, placement, package weight, etc. These mailings generally are placed in packages that don’t contain collated insert envelopes.

We’re also seeing the introduction of many nontraditional/nondirect response-generated insert media programs. Increasing numbers of financial institutions and utilities are opening up mailings to noncompetitive advertiser inserts.

Challenge: Information Flow

Insert media insiders are notorious for playing things close to the vest. There are only so many slots available in any one program, so there is a sense of limited availability and the tendency to keep program details private. Because of this, it’s difficult for newcomers to find their way. A good broker and/or manager can help, but if the major users and program owners are more forthcoming about their successes, and to a certain extent their failures, it will encourage the entry of new users and programs.

After all, insert media users and programs can benefit from new players in the mix. New users provide new income sources for program owners and lessen their dependency on the usual cast of players. New players also provide the impetus for new program development. Many advertisers will test any new program to the market that meets their demographic and program requirements for size and source.

Trend: Industry Consolidation

With all-too-alarming frequency, our industry is consolidating. Many insert media institutions have been bought by noninsert media corporations looking to gain a foothold in the industry. On the upside, this development may serve to bring new users and applications to the industry.

Challenge: Projections and Reporting

Providing an accurate forecast of its projected packages shipped, statements mailed, catalogs mailed, samples distributed, etc., is a challenge for any program—and its manager. Some programs shy away from committing to projections, as these may fluctuate and fall short of expectations. However, this information is imperative to the advertiser for accurate planning, printing and response estimation. It’s also important for the manager to allow the advertiser to properly market the program and to provide realistically attainable revenue projections to the program owner.

Timely reporting of status to the advertisers by the program managers/owners also is important for a number of reasons. Advertisers use status reports to verify and read results, plan for the future, and make printing adjustments to a particular program. Although program projections are just that—projections—you should strive to make these as accurate as possible.

Keep the Momentum Going

This is both an exciting and demanding time for the insert media industry. We have many new advertising partners, programs and ideas to embrace, and we must work together to build on the momentum this industry has achieved. After all, today’s challenges also represent opportunities, and may very well be tomorrow’s trends.

Barbara Henry is executive vice president for Hartsdale, N.Y.-based insert media and list management company Leon Henry Inc. She can be reached at (954) 255-9717.

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