Package Inserts: What are they?
You’ve seen it before. You open a package and wonder how those little ads from other brands got in the box. Well… there’s a good chance it came from my company: Incremental Media.
Incremental Media’s (IM) 18+ years of data and history in insert media has helped us choose the right insert programs for brands targeting any audience.
By inserting ads into vehicles like packages and billing statements, IM is bringing a new-school approach to a time-tested tactic… and the best part: You drive clearly measurable sales… thanks to Fairing.
How we pick the right insert programs for our clients
There are essentially two main types of insert programs:
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The ones that hit people in their 30s - 40s, typically more female consumers in programs like HelloFresh, Gilt, and Carter’s.
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The ones that target 55+ who like brands such as Hammacher Schlemmer, Dr. Leonard’s, and HSN.
Depending on the brand’s target audience, we curate a list of insert programs that makes sense for their audience.
The problem (and solution) for DTC brands and inserts
In 2019, Incremental Media began working with various direct-to-consumer (DTC) brands in package inserts. Historically, package inserts were a channel aimed at an older demographic—the 55 and up group outlined above. These campaigns often drove customers to call a 1-800 number, resulting in surprisingly high direct attribution.
But then, DTC brands, ever-hungry for new channels, started exploring the world of inserts.
As the largest buyer of package inserts in the U.S., we thought we had it all figured out. But something wasn't adding up. Our core programs weren't delivering the results we expected. For digital-first brands, we were struggling with proving the value of inserts unless the company had an extremely high CPA that we could typically hit based on the direct attribution alone.
Then, after much brainstorming, it clicked. We knew that many people ignored our promo codes, URLs, and/or QR codes that we put on the piece but still came through and converted. But without a matchback capability like direct mail, how could we capture the halo effect? How could we prove that our inserts were driving more conversions than just those people using the promo codes?
Calculating attribution for package inserts
Direct Attribution
With people ignoring our promo codes, URLs, and QR codes, we couldn’t see the full picture.
We use basic methods of promo code and vanity URL attribution, similar to channels like podcasts, to get an understanding of which programs are seeing the most code redemptions. However, they don’t capture anywhere close to the full number of conversions.
The solution: Using a multiplier
If a brand has 100 direct conversions from the promo code, QR code, and/or vanity URLs, using Fairing’s “How did you hear about us” question and adding in an option for “Flyer In Package”, we typically find that they have 300 conversions attributed in the PPS. That’s a 3x (AKA 3.0) multiplier because we’re dividing the 300 PPS conversions by the 100 direct conversions. Each brand’s multiplier will be different depending on the brand and the offers they run on their site. For example, if our offer is 25% off and the brand runs 30% off deals on their site regularly, there isn’t much incentive to use our promo code, and the multiplier will be higher than our benchmarks.
Let's look at an anonymous example of a subscription brand we've worked with. Without the multiplier effect from Fairing's post-purchase survey, the campaign missed its CPA goal. But with it, the campaign exceeded goals in some cases by nearly 50%.
The evidence is irrefutable. If you're engaged in offline marketing and aren't leveraging post-purchase surveys, you would essentially be flying blind. You risk misjudging potentially successful campaigns as failures.
The achilles' heel of package inserts has always been attribution, but those days are over.
Now, we make it a point to ask brands if they have a post-purchase survey in place. Without it, we're back to square one, struggling to prove the value of package inserts.
The resurgence in the popularity of inserts, a topic I discussed with Marketing Brew, is no coincidence. As the digital landscape becomes increasingly competitive and privacy updates make social channels less reliable, brands are on the hunt for new channels.
And with the surge in eCommerce, the opportunities for package inserts have never been greater.
Inserts: Direct Mail at 10% of the cost
Let's talk numbers. Sending a piece of direct mail can cost a staggering $500-600 CPM, sometimes even more depending on the format. And with postal increases, that’s only getting more expensive.
Meanwhile, inserts typically are in the $0.05 to $0.06 per piece range, equating to a $50 to $60 CPM. That's a monumental cost-saving, and you still have the flexibility to target your audience contextually based on specific insert programs.
In other words, inserts are WAY cheaper than direct mail. It’s obviously not as targeted as direct mail can be, but as long as the brand is in a category that’s applicable to a wide audience (dog food, wine subscription, cookware, etc.) it works extremely well.
The Uncharted Territory
While we've made significant strides, there's still work to be done. We believe that many responses categorized under "Other" and "Mail" in post-purchase surveys actually relate to inserts.
We're collaborating with Fairing and our brand partners to include secondary questions that can offer more nuanced data. While no survey can capture every format perfectly, having concrete data that shows people chose "Flyer In Package" is a monumental step forward.
In summary, if you're running offline marketing campaigns without the ability to do a matchback, post-purchase surveys are your lifeline. They provide the data you need to prove that your channel isn't just driving conversions—it's driving incremental conversions. You're reaching new audiences, not just the same people you've hit 30 times on Meta, and now you can measure it properly too…
