Don't underestimate insert cards

Folio: The Magazine for Magazine Management, July, 1986 by John Klingel

The only offer I feel is silly to test on insert cards is a first-issue-free offer. This offer is a sampling device that allows a person to examine an issue before subscribing. If readers have seen an insert card, they have seen an issue --so why send them another issue to examine? A variation of the free-issue idea that might make more sense is a newsstand offer that refunds the single-copy price if they subscribe.

Insert cards almost always have a high pay-up rate and a relatively high cash with order. The typical magazine gets 20 percent cash with order, and the pay-up rate on credit is usually 80 percent. I see a lot of publishers who make the big mistake of trying to increase cash with order by using envelopes instead of bind-in cards. In every test of envelopes versus bind-ins that I've seen, the bind-in card produced substantially more orders than the envelope --and at less cost.

Insert cards are usually very price-sensitive. This runs counter to intuition, but price testing on insert cards typically shows them to be more price-sensitive than direct mail, which is also very price-sensitive. In most cases, I don't want my insert card price to be lower than the prices in my conversion and renewal series. So I may be willing to sacrifice some potential volume from lower insert card prices to protect my renewal prices.

Maximizing newsstand response

Insert cards in newsstand copies usually have a response that is three to five times that of the subscriber copies. If my sub copies pull a I percent response (from all the cards combined), newsstand copies might pull 3 percent to 5 percent (of the draw). To maximize the newsstand response, we often use a lower price on the insert cards in these copies. Lower prices are also effective in public-place copies.

In most publications, a card in the front of the magazine will pull more orders than a card in the back. Because cards have to be between signatures and because of ad placement considerations, we usually can't run a card opposite the table of contents; but that's one of my favorite positions if I can get it. Another good spot is between the cover and first page, and the center of the magazine is also terrific. Rarely, however, will the ad director and publisher give these positions up.

Making comparisons

An interesting exercise is to compare the profit from a three-up insert card with the profit from an ad page. It might make the publisher think a little differently about the relative importance of advertising his own magazine versus a paid ad. I rarely fight for support ads for insert cards because I've never been convinced that support ads increase insert card response.

In fall issues, insert cards are often used for gift promotion. When gift insert cards replace regular insert cards, nongift insert card returns usually decline. You should watch this carefully and check your source economics to make sure that replacing new sub volume with gifts is a good idea. I'm not saying it's a bad idea, but check your numbers carefully because I have seen situations where gift insert cards shouldn't be used.