For catalogers, the potential for blow-ins in terms of incremental revenue gains is significant, while the downside risks are minimal. So why don't more catalogers take advantage of them?
Blow-ins are third-party ads loosely inserted into a catalog. The insert specifications for blow-ins vary, but primarily max out at five-by-six inches with a minimum size of three-by-five inches. Catalogers make money by charging the advertiser an insertion fee. The larger the mailing or circulation, the more they can make.
There are three primary reasons catalogers remain hesitant to pursue blow-ins:
· They fear blow-ins can dilute brand equity by taking the focus off the cataloger.
· The presence of third-party advertising can negatively affect customer response rates to the catalog offerings.
· Implementing a blow-in program will cause more operational and logistical issues than it is worth.
If catalogers want to assuage their fears, all they need to do is test the format. For instance, if they plan a total mailing of 1 million pieces, they can start with a test mailing of 100,000 to gauge the impact of blow-ins.
As far as operational concerns, blow-in programs are fairly simple to oversee and administer. Most catalogers accept one to two blow-ins per catalog, and the inserts themselves are delivered directly to their printer who handles the insertion process.
Blow-in programs are clearly a boon to advertisers. Some of the benefits include:
· They can match their target market. Advertisers can select catalogs whose demographics and/or lifestyles most closely match their customer profile, leading to increased response rates to their offers.
· Blow-ins carry an implied endorsement. By virtue of appearing in the catalog, endorsement of the offer is implied, giving it a much better chance of a positive reception—and response—by the readership.
· Catalog recipients are proven direct mail buyers. Blow-ins are distributed in catalogs that are being mailed predominantly to the cataloger's house file. These are unique names of proven mail order buyers who are creditworthy.
Blow-ins represent a valuable, highly scalable medium with income potential that far outweighs any downside risks. The increasing volume of blow-ins year-on-year is an indication that more are realizing the many benefits. From an advertiser's perspective, like all other insert media, blow-ins provide a viable, proven alternative to other media channels that deliver results.
Alan Kraft (akraft@mediahorizons.com) is president of Media Horizons Management.
