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Meet the Broker: Linda Callahan, Leon Henry Inc

his week, Meet the Broker features Linda Callahan, a specialist in insert media. Callahan chronicles how economic downturns and Internet media affect this sector

Today we meet Linda Callahan, senior vice president at Leon Henry Inc. Callahan latched on to what she thought would be a temporary job 32 years ago. She stayed and became an insert media guru.

"I thought I'd do it just for six months until I could find a real job," says Callahan.

She subsequently became a big time promoter of insert media through various industry groups. She was voted broker of the year in 2003 by the Direct Marketing Association's Insert Media Council.

"I am still hands-on working day to day on some accounts, with some of the same clients from 30 years ago," says Callahan.

Her clients include American Stationery Co., Zoysia Farm Nurseries and Stratford Career Institute. One of her largest clients for many years, Citibank has pulled out of the insert media market because of the credit crisis.

Conventional wisdom says demand for insert media increases whenever companies are looking to cut costs, whether it's due to postage increases or economic recessions.

Insert media is in state of flux. "This year was the perfect storm with the state of economy and the election, which has made it more challenging for insert media brokers and advertisers," Callahan says.

Besides her brokerage work, Callahan enjoys boating, bicycling and playing tennis with her husband. They have an adult son and daughter.

How can economic downturns hurt insert media?

During a recession, circulation for some package insert programs and catalog blow-ins may shrink or programs can vanish if mailers switch to slim Jim formats to save money on postage and paper.

Increased use of co-mingled mail, adjustments in mailing schedules and combining of catalog editions can make it more challenging for insert media planning.

On the plus side, other companies looking to generate revenue will launch new programs. And mailers seeking to cut costs often turn to insert media for new customer acquisition.

So is insert media business expanding or contracting?

"It's been a rough year, but insert media is growing. I think the rest of this year and next year will be better," says Callahan.

Advertisers from new categories are entering the market—fundraisers, for example. The use of FSIs is expanding, as marketers offer cost-conscious consumers more coupons and place more direct response advertising in FSIs.

The long-term outlook for mailing statement stuffers isn't rosy. More consumers are receiving and paying bills electronically. "I don't think statements are going away any time soon, but these programs will be shrinking," Callahan says.

In the business-to-business sector especially, card pack advertising has declined sharply in recent years, as more advertising shifts to the Internet.

Even so, e-commerce also generates print insert media business and creates new online opportunities. Brokers can get involved with Web site co-registration, advertising on Web sites and Web landing pages, insert ads in e-mail order confirmations, etc.

"These companies still have to find ways to generate Web site traffic and they do ship packages," adds Callahan.

Know someone you'd like to suggest for Meet the Broker? E-mailJim.Emerson@Penton.com

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