Using Insert Media to Stretch Direct Mail Dollars

The recent increase in postage rates and looming U.S. Postal Service cutbacks mean marketers who rely on direct mail must find more cost efficient ways to use the medium.

Insert media can be one viable option. Inserts ride along with a variety of distribution partners in everything from fulfillment packages and catalogs to billing statements and sample packs.

Some insert media fast facts:

• There are approximately 2,000 insert program distributors.
• Over 1,500 companies accept package inserts.
• In the past 10 years, more than 20 billion inserts have been placed.
• On a per thousand basis, more than $300 million worth of inserts are placed annually.

Despite the postage rate increases, the USPS is offering large volume mailers an extra free ounce which will encourage them to accept outside inserts. http://about.usps.com/news/national-releases/2012/pr12_016.htmAdvertisers ranging from high-volume mailers like credit card companies and cable televisions systems to smaller specialty marketers like cosmetics firms and nonprofits can effectively use inserts.

Some pointers about using insert media programs:

*Mailers should test large insert programs because they can get results more quickly.  For example, a large volume program of 100,000 pieces per month will distribute a test cell of 15,000 in less than a week, while a program with 10,000 per month would take five weeks to reach 15, 000.

*Each test cell should be coded separately because the only way to ascertain specific results is to key each program. 

*A total of 10 to 15 tests are necessary to determine whether an insert program is working in terms of how well different demographic groups are responding to an offer.  Once you have this number, you can proceed to negotiate your prices per thousand distribution.

*Most tests result in continuations.  It’s important to have the patience to work through the testing procedure but staying with it can show the benefits of using inserts.

*When rolling out programs, watch out for a high percentage of duplicate customers. The number of duplicate customers is a function of the customer base of the distributing program.  A book club could have a high duplication rate. A credit card mailing would likely have duplicates. Single shot merchandise offers would not have as many.