Testing Strategies

Insert Media Testing
Testing is the first step in getting started with Insert Media and is necessary to determine which programs will have the strongest ROI when purchasing more circulation. It will also provide the basis for determining success of the offer and how the creative solution supports the offer. Testing also identifies the most suitable program types for expanding a campaign's reach.

In testing, small quantities are used. This keeps initial costs reasonable while limiting risk. However, when looking at the ROI, first-phase test results may not be viewed as overwhelmingly successful. Testing is the most expensive part of the process, but it is vital for learning the next steps. The medium's ROI is maximized to its full potential in the subsequent continuation phase by lowered unit costs associated with larger print runs and circulation commitments.

Creative and offer development
Stanton Direct Marketing can be a resource for developing an offer that is effective for this medium. Since advertising inserts need to capture the attention of the receipt immediately, it will be important to develop the offer/creative accordingly.

Insert Printing
Printing will vary depending on the quantity ordered. The cost of printing a test quantity of 100,000 to 200,000 inserts may cost $12 to $20 per thousand. However, large runs produced for continuations can cut those costs in half.

Insert Freight
Once the inserts are printed they will need to be shipped to a letter shop or warehouse where the distribution will take place. Freight costs will also vary depending on distance, but typically the cost is about $2-$4 per thousand.

Insertion Fee
The insertion rate is the Cost Per Thousand (CPM) value that the Program Owners want to receive from third-party advertisers. This rate can be negotiable, but is dependent on multiple factors including: program type, order quantity, frequency of placement, insert weight, space availability and competitiveness of the product or service.

After review of your offer, we provide a first round of recommendations. These choices represent a cross-section of opportunities that we singled-out based on the least amount of risk.

There may be many more Insert Media programs on the market that provide a potential opportunity. However, to minimize risk for the testing phase, we are only recommending the programs that we expect to have the most promising rate of return.

Because there can be a number of variables in the testing process, SDM has established some general guidelines for consideration to help reduce these variables and mitigate risk.

• Allocate a budget.
• Test the same insert size and creative during the initial test phase to keep production costs to a minimum.
• Test a quantity that is commensurate with the program size. The larger the program, the larger the test quantity needs to be for an accurate reading of results. Very small test quantities in large programs can skew results (positively or negatively).
• Test a variety of program types and choose those programs that most meet your target market.
• The most important result of a test is to confirm that you have a direct mail product that can reap a profit with the right design and advertising placements. Therefore, a method of tracking response such as a key code or URL, is necessary for analyzing your incoming orders.

There is a great deal of time spent developing a new client to bring into the insert media industry. We look for long-term relationships and realize that being there for the client in the testing phase is the only way to achieve that goal.