By Andre Plessis
bet you've been looking for such an opportunity, but you neverthought about it. Here it is, you can finally advertise forLESS."
Why Should You Consider Shared Direct Mail?
Shared Direct Mail Advertising provides the same benefits ofsolo direct mail advertising for a fraction of the cost. SharedDirect mail advertising is a proven and cost effective way toadvertise your offer to consumers and businesses. Smartadvertisers are sharing the costs of postage, mail processing,mailing service, ad design, mailing lists and printing bycombining their ads with several other advertisers into acombined mailing package which reaches a targeted audience. Ifyou are a smart advertise and want to advertise for less thenyou need to consider shared direct mail advertising. SharedDirect mail advertising successfully reaches more than 98% ofhouseholds, thus over 120 million households throughout theUnited States.
First-class mailers are still absorbing the harsh realities ofthe recent postal increase and a variety of advertisers areexamining economic efficiencies of their methods ofdistribution. Every mailer should seriously consider their"options" and one such option is using shared direct mail.
In the last 30-plus years, the number of shared direct mailadvertising programs also called inserts has risen dramatically,along with a variety of options being offered to the mailer.Let’s examine the maze of insert opportunities in today'smarketplace.
Package Inserts: These are free standing promotional piecesdelivered to mail order customers via their fulfillment package;i.e. the insert is delivered to you in a box containing a shirtyou ordered from a catalog. Naturally the product shipment typesvary dramatically: catalog generated vs. space-generated,television or internet, continuity or club oriented,business-to-business vs. consumer. Correspondingly, theresponses to the outside insert will also vary. The going ratefor package inserts is still an average of $70/M. The number ofoutside inserts varies from four to eight. Generally, onlynon-competitive pieces are included together.
If one goes heavily into a club or continuity oriented program,the rate of duplication needs to be monitored. The responserates also vary significantly depending on a number of othervariables: whether the insert is generating a lead or producingan order, the average ticket price of the items being sold, thesize of the insert, etc. A large ticket item may be satisfiedwith two responses per thousand, whereas lead-generating deviceshaving a strong affinity between the insert and the productsbeing delivered would produce responses ranging from 1-3%.
The current universe exceeds seven billion and includes programslike Shopper's Advantage, America Online and Current. There arealso scores of smaller programs and specialty companies likeZoysia Grass Plugs, Amazon.com Tools & Hardware and WizardEntertainment.
Ride-Alongs: In this instance, a company mails a catalog,circular or announcement to its customer base and allows outsideadvertising to ride along. An advertiser can count on thismethod of distribution since the company doing the mailing has avested interest in getting out their own promotional pieces.Companies like Columbia House dominate this category and offerregular mailings in blocks of 2MM-6MM to their club members.
Advertiser's response from this category is strong--comparableto package inserts. Average prices range from $50/M-$75/M.Outside inserts range from one to four per mailing. Responsecurves are similar to direct mail. These programs may be dyingas they reduce their numbers of negative option mailings.
Co-op Mailings: This category, by definition, presents a groupof non-competitive advertisers mailing to a common market.Co-ops represent large numbers (up to 40MM) in a single drop,can usually provide good geographic selectivity and oftenprovide demographic selectivity as well i.e. new mothers, newmovers, prenatal. Although responses are not as high as thosegenerally received from packages, co-ops are priced morecompetitively, at an average of $25/M. Other co-op mailingsinclude coupons from local merchants (i.e. dry cleaner, icecream shop, oil change). These programs are usually sold on alocal level by neighborhood franchises. Well known examplesinclude Super Coups, Money Mailer and Mr. Coupon. Most of themare available in a #10 envelope format, but some mail in a 6 x9” envelope. Circulation exceeds 100MM/quarter.
Statement Stuffers: These mailings include invoices andstatements generated by cable TV companies, utilities, creditcards, magazines, book clubs, continuity programs, retailers,businesses and so on. They are usually distributed in smallenvelopes so your insert needs to be no larger than 3-1/2 x 6”to fit. Outside inserts are generally limited to one or twosince statements get mailed first class (high percentage ofdeliverability) and additional outside advertising would bumpthem into the next postal class. Response tends to be strongwith average prices running at $60/M.
Sampling: This method of insertion offers a variety of “goodybags” distributed free to specific markets, i.e. collegestudents, new mothers, buyers at retail and other specialinterest groups. Inserts accompany product samples and coupons.Some vendors are trying to qualify the recipients by requiringthem to spend a certain amount, or purchase multiple products,or fill out a direct response vehicle before receiving thesampling bags or boxes. Packages are sometimes given out “free”in high traffic situations. Frequently, geographic targeting isalso available. Pricing ranges from $35/M-$50/M.
Card Deck Mailings: This vehicle usually consists of 20 or more3-1/2 x 5-1/2” business reply cards delivered in poly packs.Rate card prices average from $35/M to $45/M and includeprinting; still mostly business-to-business, a growing number ofconsumer card decks have come onto the market. Approximately 500decks are available in circulations of 50M-1MM each. Most deckswill accept pre-printed inserts at a higher cost per thousand.Many are also mailing in the larger 5-1/2 x 7-1/2” format thatis more pre-print friendly.
Catalog Bind-Ins/Blow-Ins: This distribution has been used inbig numbers for years by the horticultural set (i.e. a magazinesubscription offer or a lead generator for a lawn tool productis bound into a catalog). Many gift and apparel catalogs are nowbeginning to offer blow-in space as well as bind-ins to furtherserve the direct response advertiser. Blow-ins can run as littleas half the price of package inserts to the same customers. Theygenerally represent larger volumes and more predictable maildates.
Other Alternatives: Newspaper FSI’s have become more directmail/direct response friendly as they are challenged withselling more pages while coupon distribution decreases. A greattesting vehicle, they represent at least 100MM circulationweekly and can frequently be bought as remnant for under $4/Mfor a half page. Solo and blow-in opportunities are alsoavailable here.
Shared Advertising such as Inserts have been included insupermarket take-one racks, have ridden along with Pennysavers,order acknowledgements, retail circulars and the list goes on.As direct marketers look for increasingly creative methods tobetter their bottom line and find less expensive ways togenerate new leads, and qualified inquiries, more will bedeveloped. As direct marketing companies continue to bechallenged by the cost of finding new customers, the pool ofmail order sources will continue to shrink. Options like ridingalong with newspapers and/or retailer circulars delivered inmail boxes and selectable by county size and type of householdscould spawn a brand new generation of customers.
Advertise For Less, Get More. For all the success stories, thepackage insert field is just like the other forms of directmarketing response. It is a numbers game. If you watch the costof printing and the cost of distribution, your response shouldbe sufficient to provide you with a satisfactory cost perinquiry or cost per order. But for steady production of ordersat reasonable and competitive costs, shared direct mail is hardto beat. And for ease of entry, low visibility, low cost, whatcould be better? The cost of heavy postage and four-colorenvelopes aren’t here. Inserts are inexpensive and for mostproducts, there is an extensive universe. Many magazines,catalogs and continuity clubs distribute millions of insertsannually. They are making the investment in inserts. Isn’t ittime to consider this medium.
You Can Target The Following Audiences
• Consumers • Homeowners • Businesses • New Businesses • NewMovers
Why Pay More When You Can Pay Less? Be Smart, Advertise For Less!
Andre Plessis
Author & Marketing Consultant Savings4Merchantshttp://savings4Merchants.com Big Marketing Ideas Without The BigSpending! Copyright 2005©
Article Source: www.ArticlesBase.com
