Welcome to Direct Marketing INSERT AND CO-OP MEDIA Chapter 13 Insert and Co-op Media • Co-op mailings allow marketers to share costs, thus attaining a much lower cost per thousand circulation • Participation in a co-op costs about one-fourth as much as a solo mailing, response rate from a co-op is also only one-fourth as much Insert and Co-op Media • To ensure readership, use a simple message clearly stated with effective graphics • More alternatives means less response. If the offer appears to be too much trouble, the home shopper goes to the next offer Direct Mail Consumer Co-ops • ADVO, Shop Wise, Money Mailer, ValPack, Valassis – National – Market (retail trade zones) – Zip code, SCF etc. – Sub Zip – Carrier route – Household Newspaper Inserts and FSI’s • • • • Valassis, Smart Source, etc. Distribution selection can be complicated Cost effective at $4-8 Takes advantage of the reputation of the distribution vehicle • Total Market Coverage Programs Statement Insert Programs • Implied endorsement from the billing organization • Bang tail envelope – Offer printed on the reply envelope • Cost $25 - $40 per thousand Customer Mailing Ride-Alongs • Are included in mailings already going to customers • Low distribution cost Insert and Co-op Media • Coupons are an excellent way to generate inquiries for a high-priced item or to sell a lower-priced product or service • They work well for offers requiring a minimum of information for a target audience Insert and Co-op Media • To test co-ops, know what your break-even point is and test a sample large enough so your result can be acted • Test a cross-section of the complete co-op list. If no "nth" sample is available, request distribution in several different markets—all widely dispersed • Don't let too much time elapse between your test and your continuation Online coupon activity • Three major promotional models – In-store redemption – Online redemption – Continuity/Affinity programs Key Points • Co-op mailings allow marketers to share costs, thus attaining a much lower cost per thousand circulation • But while participation in a co-op costs about one-fourth as much as a solo mailing, response rate from co-op is also only one-fourth as much. Key Points • To ensure readership, use a simple message clearly stated with effective graphics. • More alternatives means less response. • If the offer appears to be too much trouble, the home shopper goes to the next offer. Key Points • Coupons are an excellent way to generate inquires for a high-priced item or to sell a lower-priced product or service. They work well for offers requiring a minimum of information for a target audience. Key Points • To test co-ops, know what your break-even point is and test a sample large enough so your result can be acted on. • Test a cross-section of the complete co-op list. • If no nth sample is available, request distribution in several different markets-all widely dispersed. • Don’t let too much time elapse between your test and your continuation.