AND NOW FOR SOMETHING DIFFERENT Mar 1, 2008 12:00 PM
, BY JEFF MARSH AND KAREN MAYO
JobZone
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If you're a niche marketer looking for prospects, sometimes you just don't know where to turn.
Big lists and mass media aren't a viable option. They're too expensive, and don't generate enough replies to create any kind of workable ROI. You need an alternative. Alternative media, that is.
While mainstream media consists of tried-and-true marketing vehicles such as catalogs, space ads, and stand-alone direct mail, as well as newer media like e-mail and Web ads, alternative media is a little more under the radar. Typical alt media tools include inserts in statements, catalogs, and newspapers, as well as online venues like affiliate marketing.
Alternative media offers the chance to target specific consumers. Want to reach men who've bought cigars in the past 20 days? Or what about gardeners buying flower seeds in preparation for spring planting? Alt media lets you reach targeted audiences who are typically proven direct response buyers. Plus, alt media universes are vast, with huge opportunity to roll-out.
What do you need to know about the different alternative media choices available? Here's a primer on several options:
Statement inserts
Often known as statement or bill stuffers, these small, single-sheet or multifold ads are inserted into billing statements for major credit cards, retail store cards, utilities, subscriptions and the like. These typically have a high response rate since there is minimal competition, plus the envelope must be opened.
Minimum tests are in the 500,000 to 1 million circulation range. You pay for printing plus insertion rates, which both depend on numerous factors, including format, paper, program and negotiation. Insertion can run $13/M-$20/M for a single-panel; $20/M-$30/M for a multipanel; and $22/M-$34/M for a bangtail remittance envelope. Printing costs can range from $8/M - $18/M. Always try to maximize the implied endorsement whenever possible, especially if you can use the program's logo on your piece. Expect to get your first test within three to four months. Know, however, that the legal and branding approval processes by the banks can be long and tedious.
Catalog blow-ins
These inserts are a bit smaller than statement inserts, and are literally “blown” into catalogs just before they are dropped in the mail. Their special gift is that they really stand out — in fact, they fall out as a customer flips through the catalog. Response rates tend to be lower than statement inserts, but costs are often more favorable.
Tests can be much smaller here — generally around 50,000 per file. Rates are often negotiable, especially for tests. Again, you pay for printing the inserts and the insertion rates. Insertion rates can vary widely, but generally will fall in the $20/M-$35/M range. Expect printing to be approximately $8/M-$15/M, depending on format.
The approval process is less arduous than with statement inserts, but you need to submit an actual sample to be tested in the insertion machines, and if you are new to this media, you likely won't have a sample. One solution is to ask your printer to produce samples for you prior to your print run.
Freestanding inserts
These multipage coupon bonanzas are pored over by millions of newspaper readers each week, and direct marketers can capitalize on this media for steady results. Having one ad designed with as many as four different coupon positions can gain you significantly more circulation. Creating one-third, one-half, and full-page sizes is also a plus. Space is somewhat limited, although circulation is large and available every week.
Rates work along the lines of a bid system: The more you are willing to pay, the more circ you are likely to get. But if you aren't looking for tons of circ, you can snap up some great deals. You can also save by letting your ads sit and run only when space opens up. For a half- page ad and mid-range circulation, a range of $2/M-$3/M is a reasonable expectation. Lead time is generally four to eight weeks.
Card decks
These cello-wrapped decks typically target enthusiasts of hobbies like gardening, home improvement, fishing, farming, and woodworking. You usually must buy a run in the entire deck; most have several mailings available throughout the year. Costs vary, and are negotiable. You pay one price, which includes printing, insertion, and mailing (the deck publisher does it all for you). For typical single card rates, expect to pay in the range of $10/M-$18/M; jumbo cards can run $12/M-$20/M. This is a great place for A/B split tests.
