Insert Media is the Bridge Between Above the Line and Below the Line Marketing Spend
My peers reading this article will be happy to hear that I am not going to talk about the functions of insert media, postal or operational knowledge, nor will I discuss the creative aspects of pieces. Instead, the reason for my writing is based on the changing voice of insert media and its historical significance in today's marketing landscape. If you are unfamiliar with insert media and only know this medium as a form of low-end advertisements, I am here to tell you that inserts have been tapped by a new form of client, and this shift is because marketers are transferring away from above the line marketing spend to below the line - quantifiable dollars. Insert media, once only referred to as a mass marketing channel, has now matured to become a more sophisticated and segmented high-end creative execution. The mass art of inserts bridges the make-up of both above and below the line requirements.
According to a Winterberry Group research report that was announced this week, “Tracking the Trends: A Comparison of Above the Line & Below the Line Expenditures,” historical and forecasted marketing spend from 2003 to 2007 represents below the line marketing spending growing 7.8 percent versus above the line at only a 5.5 percent increase. When defining above the line, think of brand campaigns, broadcast, print and blimp ads. Below the line is defined as data driven, quantifiable marketing programs that include areas such as database marketing, direct mail, email marketing, interactive services, affinity marketing, as well as its new family member: insert media.
Why are we seeing dollars moving below the line? Above the line spending is needed, no doubt. However, if you research the post-Internet boom transformation of the marketing executive's role to one of an operational title, as well as the agency dynamic (which is now a multi-disciplined organization compared to the old solo brand emphasis), we find the answer. The customer is always right, and if you can't effectively talk with your customer in a way that is highly targeted and based on his/her self-expressed interests, then you are missing the boat.
With insert media, there are factors that are as broad as placement and customer reach - both mass marketing attributes. However, with insert media being more than 10 times less expensive than traditional direct mail with an added level of targeting and segmentation, it's a hot channel for marketers to test out. You could be sitting on a gold mine, one that is a mass distribution but with the uniqueness of speaking directly to your customer. Forrester Research's statement - “When you treat your customers with dignity, respect and a bit of humor, they buy more” - is true for the added layer of relevancy applied to a medium which once was coined, “Alternative Media.” It's now entering the mainstream.
From my experiences, below the line marketing and insert media spending changes are derived from both market influences, as well a direct business change reflected within our client make-up. First of all, let's talk market. As part of this week's Winterberry Group research paper, there are a list of statistics as well as consumer responses that have impacted the shift in above to below the line spending and focus. These changes have greatly impacted the attitudes around our insert media practice. Examples of below the line market impacts highlighted in this study include:
- Changing consumer demographics decrease the influence of traditional mass media (one-size-fits-all) marketing messages
- Growing consumer sophistication heightens the demand for channel-agnostics communications
- Widespread marketing clutter diminishes the impact of commercial messages that don't address specific and individually relevant consumer needs
- Heightened client pressure to deliver quantifiable value forces marketing services providers - especially agencies - to re-evaluate services platforms
With the inundation of marketing messages and the challenges of building stronger customer acquisition and loyalty programs via exhausted mediums, we have seen a client profile change in our insert media group. Historically, insert media has been bypassed by many of the bigger brands (as discussed in an earlier DM News article, October 17th, “Instatement Channel - At An Inflection Point”) and was skewed towards lower-end consumer packaged goods. The reality is that many people “open-and-buy,” therefore, there is a high percentage of consumers who purchase the blue porcelain bunny from an insert ad.
Ten years ago, 95 percent of our insert clients were selling products like the porcelain bunny. Today, big brands, which represent less than half of our clients, are jumping on the insert media wagon. Why? Well, apply the logic of the below the line shift, one that is striving to achieve the holy grail of true, one-to-one marketing. Beyond the level of data segmentation that can be applied to inserts, and the endless placement opportunities from instatements to catalog bind-ins, the level of creative is more sophisticated to represent the change of the insert customer. There is a relatively untapped way to reach new customers and to increase the lifetime valuation of your loyalty programs.
In looking at the future of below the line marketing and insert media's dual role both will continue to change. First, as marketing dollars continue to be scrutinized, even above the line marketing will have to have a better answer to assigning a number against a brand campaign impact. With below the line growing 7.8 percent annually versus above the line at only 5.5 percent, I predict the below the line number to double in size by 2010. Insert media will continue to evolve into a higher-end position within a marketer's customer acquisition and loyalty strategy, accompanied by an integrated program of other below the line services.
Insert media has been something of a sleeping giant in the marketing world. Well, the giant has awakened.
About the Author:
Paul Chachko is the Chief Executive Officer of V12 Group, the complete provider of below the line (BTL) marketing services, using proprietary databases and a multi-channel delivery model to provide measurable results for customer acquisition campaigns. The company has been delivering insert media services for the past 28 years. Mr. Chachko has over 20 years of experience in marketing services, with leadership speaking roles at DMA, NARM, iMedia and several technology councils. Mr. Chachko can be reached at pchachko@V12Group.com.
