Why ‘inserts,’ aka the ads slipped into packages, are having a moment

Ever opened a package and found—tucked away with the new clothes you definitely don’t need—a flier for yet another product you probably don’t need? That’s known as insert media.

The channel is not exactly new, but it’s experienced something of a “renaissance” over the past two or three years, according to Eric Smith, VP of emerging media at offline marketing company Incremental Media.

The firm has been in the game for more than 15 years and claims to buy more inserts than anyone in the US, which amounts to hundreds of millions of pieces a year, per Smith. Inserts aren’t the only channel that Incremental Media specializes in, but they’re one of its biggest revenue drivers.

Interest in inserts has been “pretty steady for a long time,” Smith told us, but a few factors can help explain its recent resurgence. “Search is more expensive than it used to be, and social isn’t converting as well,” he said. “Brands are looking for new [channels], and so what’s old is new again.” In addition to inserts, tactics like product sampling and direct mail have also experienced growth as of late.

Plus, amid concern that consumers might tighten their purse strings over recession fears, inserts—most commonly used in packages, Smith said—can help advertisers reach consumers who are still shopping.

Something for everyone

Generally speaking, there are two types of brands trying to reach two types of audiences through inserts, according to Smith: There’s the “emerging brand” targeting the “affluent, educated consumer” between 25 and 45, and there’s the brand targeting shoppers who skew a bit older, selling everything from medical devices to beauty products.

Brands in the first category typically leverage the insert programs offered by companies like HelloFresh, Fanatics, and Wine Insiders, according to Smith, while brands in the latter category tend to opt for inserts in publications like Reader’s Digest.

Some, like Magic Spoon, fall into both categories. The cereal company targets 25- to 45-year-olds and sometimes markets to an older crowd, the brand’s senior growth marketing manager, Anne Wang, said. Magic Spoon started testing inserts about a year ago, she explained, and has kept its spend on the channel “relatively steady” ever since.

“Our ultimate goal with inserts is the same goal we have for the majority of our media channels: Acquiring incremental customers for Magic Spoon in a cost-effective way,” Wang wrote.

CPMs for inserts range from about $15 to $80, for an average of about 5 or 6 cents per piece, Smith said. By comparison, direct mail can often cost about 50 cents per piece, or $500 CPM, according to Smith. Insert media does, however, often mean that brands share space in a package with about two to as many as eight other advertisers, he added.

Over the past couple of years, Incremental Media has seen dozens of new brands start using inserts, Smith told us.

“I think a lot of brands today are very concerned about a recession or an impending recession, and people who are buying products and services still have that buying power,” he said. “Even during more of a down economic time, they still have disposable income to buy whatever they’re buying, so you know [inserts are]...reaching people that clearly still have money to spend.”

Track your package

The channel is also fairly attributable. “We’ve seen encouraging direct attribution from certain campaigns, so we’re continuing to test and codify our learnings regarding what types of programs and prices work for us,” Wang told us. Magic Spoon uses a promo code to track its inserts, she added.

Older consumers are still picking up the phone and calling the companies they shop with, according to Smith, especially if they’re purchasing something like a medical device or an expensive product that might require more consideration. Brands targeting that audience can include custom phone numbers on their inserts and track campaigns.

Between that, promo codes, and vanity URLs, “they get enough attribution to hit their performance targets with the understanding that you’ll still lose some people who just search the brand,” Smith said.

The “more emerging brands” targeting younger consumers sometimes opt to pair those with post-purchase surveys to help measure the success of their campaigns, Smith said. Post-purchase surveys help to account for the share of people who saw the insert campaign but didn’t use the custom URL or code.

Of course, consumers might get annoyed with too many ads in a package. In an effort to avoid this, brands that offer insert programs tend to have a “thorough review process,” Smith said, which can also help ensure they aren’t inadvertently mailing out ads for competitors.

“Some package programs are pickier than others,” he told us. “Ultimately, they’re making sure that they’re not putting too many inserts in there, and if they are putting a brand in there, that it’s somebody they feel matches their level of quality or something that their audience would be interested in receiving.”