Covenant Media

Insert Media Buying Guide: Know Today’s Insert Media Terrain
A look at the trends and challenges influencing the insert media industry

It’s the start of fall, and many of us have just returned home from vacation. The demands of our industry may be far from center stage. However, this is a time when many companies are solidifying their plans for the coming year, and understanding the issues that are shaping the insert media landscape is a crucial part of this planning process. Here are a few trends and challenges to think about as you prepare to tackle the holiday season and beyond.

Trend: Catalog Blow-ins
Increasingly, catalogers are opening up their mailings to include insert blow-ins. Catalogers are learning that accepting one or two noncompetitive advertiser inserts doesn’t hurt their response rates. Furthermore, it adds an important revenue stream without commensurate costs.

Meanwhile, advertisers are finding the response rates and ROI from inserting into appropriate catalogs are more than acceptable, especially when considering the lower costs associated with these programs in comparison with traditional package insert programs.

Many of us have fallen into the mind-set that there is a finite number of players out there. As a result, insert media brokers and managers often go after the easy sale: other brokers’ advertisers and other managers’ properties. In the short run, this may help their individual sales and revenue streams; in the long run, this activity brings nothing to the industry. The challenge is to get the message out to all potential advertisers and program owners about the benefits of insert media.

This is just one challenge, however, that needs to be met on an ongoing basis. While this is a hard road, the result is a bigger pie for all.

Trend: New Insert Media Categories

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.

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. 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.

New users provide new income sources for program owners and lessen their dependency on the usual cast of players. 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.

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