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Of all the different direct marketing channels, inserts are often the least considered. Furthermore, the public tends to group the medium at the same end of the spectrum as direct mail and outbound telephone marketing in terms of its nuisance factor.

The perception that magazines and newspapers need to be shaken free of their excess baggage is a popular one. However, what the public says about inserts and what they actually do with them are very different.

Last month, the DMA's Insert Council revealed that in 2004 more than 23.4 bn items were printed as inserts. This represents spend of £1.17bn, up 0.3 per cent on 2003. Saturday supplements and magazines showed an impressive 19.11 per cent rise in insert volumes, and even the saturated Sunday newspaper and magazine market saw growth of 0.5 per cent.

Could it be that inserts are going through a prolonged and silent revolution that more media planners ought to know about? And is there a flaw in this success that has already been seen in mail - more inserts can only actually be detrimental to its sustained success? This initial suggestion threw the assembled panel of inserts experts into instant defence of the channel.

"Everyone has their own perceptions of different mediums, and people respond to different types of media," says Lucy Stafford, director at Tri-Direct and chair of the DMA Inserts Council. "Inserts are just part of the mix, and if they weren't working, they wouldn't be enjoying such growth."

Stafford mentions response rates of 0.1 per cent - a figure that might appear woefully low. However, she is keen to point out this is still higher than radio and press ads.

What many of the panel agrees on is that if the public thinks it has a problem with inserts, this is because it still doesn't fully appreciate what they are. "Research we've done in focus groups has put the more typical loose inserts alongside catalogues," says Stafford. "Both are inserts, but the public consistently does not consider the latter to be a problem, seeing them instead as useful brochures."

The DMA's definition of an insert is anything that comes with a paid for item - be it a newspaper, magazine - or included with a parcel of goods ordered by mail order or online. It is this crucial fact that makes the items that drop out of free papers not inserts - these are classified as door drops. However the creative for both can be exactly the same, agree Peter Worster, managing and planning director at Presky Maves and Shaun Moran, creative director at Partners Andrews Aldridge. It's therefore not difficult to see why consumers can get a magnified impression of the number of inserts they receive.

When is an insert not an insert?

"There's also a slight muddy area when it comes to customer magazines," argues Bryan Hunter from catalogue firm, The White Company. "People don't really think they pay for them, but these are the fastest growing place to put inserts, which could test consumer acceptance of them."

But magazines like Sky's customer magazine (which has a circulation of seven million) and the AA's own similar magazine represent a sector that is fuelling the growth of inserts. The entire panel was in agreement that the capacity is out there for even more inserts, especially as many publishers polybag their editions, which prevents inserts from falling out.

"What we've got to remember is that creatively, inserts are a fantastic medium," argues Moran. "Extra space means you have a larger canvas to convey more complex messages."

Moran was behind Andrews Aldridge's award-winning Art Fund work. The mailer used the image of an empty wallpapered wall to show what it would be like in art galleries if works of national importance weren't saved. This was followed through with the insert being printed on real wallpaper. "There's no way we could have done this with a press ad," says Moran. "It was the insert that really jumped out."

Previous criticisms of inserts have tended to focus on their lack of targeting. A big inserter like Alliance & Leicester will use millions of inserts across all the leading titles each week to hit as many people who may be right for the offer at that moment as possible. This approach has always made it high volume, and high waste.

Stafford argues this is now changing with Trinity Mirror, Associated Press and News International all looking at offering inserts only in certain regions. "They are even looking at distributing within drive-times of specific stores for clients because they are realising this is where the next level of targeting can get to," she says.

James Johnson-Ferguson, founder The Book People, a catalogue which is carried in the major Saturday and Sunday papers, points to other innovations including being able to spread smaller runs of inserts across a range of a publisher's titles. Not only does this allow testing, but it means that a prohibitively large minimum order doesn't need to be raised by one magazine.

"It is annoying when you place an insert in a title but you also see a competing catalogue in the same place as well," concedes Johnson-Ferguson. "That will instantly take 30 per cent off your response."

The rest of the panel didn't think it was a huge issue that media carriers seem reluctant to self police by setting either a limit on how many inserts they carry or by not offering exclusivity.

"There's the same problem in mail. You never know if you're going to stand out on the doormat, so why should inserts be any different?" says Moran.

"If you're up against a financial mailer and you've got something good to say, you will always stand out anyway," adds Presky Maves' Worster. "If you could get exclusivity, that would be fine, and it would help the planning process, but to me, it's just another reason why the creative has to be second-to-none."

Exclusively yours

But shouldn't insert producers have better bargaining power with magazine and newspaper carriers and at least secure what the door drop industry has managed? "Exclusivity can be achieved," says Stafford. "Unfortunately, the market is such that some larger players are able to say 'you can either come with us or not'. Gamble, and if you don't, it will be your loss."

Just whether larger operators could be forced to be more reactive was a moot point at this month's Think Tank. According to Andrew Wilson, of The Catalogue Consultancy, niche magazines might hold the upper hand. "What my clients are saying, is that the growth is in niche publications, and that the national press is overcrowded," he says. "With a niche title you're bang on the profile of people you want."

Moran says that these readers also behave more predictably. Yet, as Wilson points out, sometimes niche is too niche. "The readership is actually too stable," he admits. "We've found that you get excellent response the first time, and nothing the month after as you've already hit those likely to respond. You end up having to rest that title for a year to wait for new subscribers or buyers to come on board."

Variety works

The White Company's Hunter, which sends out more than one million catalogues a year to magazines including niche titles, says there is a way to get round this. "We try to ensure we have different catalogues showing different ranges rather than one giant one," he says. "That way, people have a sense that they are receiving something different from us, rather than seeing exactly the same brochure month in, month out."

Panelists say it is the need to maximise reach rather than any idea that it is easier to insert than mail because there are no data protection issues, that means inserts need larger distributors. According to Wilson, inserts are often the only way for clients to reach the customers of its competitors. And, as Worster is keen to point out, inserts are remarkably effective as hand-raisers and for database building purposes.

"This is an area that is often ignored, but one which is incredibly powerful," he says. Presky Maves produced a data-capturing insert for Glenfiddich, which wanted to target heavy whisky drinkers who may not have tried its brand. An insert was produced with a prize draw to win a bottle of an, at that stage, un-named whisky. "Response was an amazing 5.6 per cent," says Worster. "But not only this, it tended to self select people more than just casually interested. All in all, about 80 per cent of the database we produced were heavy drinkers. We had feared that any drinker would just enter the competition, but this didn't turn out to be true."

Two very real threats to inserts though were raised. "I'm unsure how the growth of data pools, like the Abacus Alliance, will affect inserts," remarks Wilson. "This is now allowing catalogues to be posted to actual mail-order customers rather than using them scatter-gun like as inserts, where the eventual reader is less known."

Such is the threat he argues that postage costs could now be worth paying, turning the insert into a mailer. However, not all agree with this.

"I don't think this will be a true threat," argues The White Company's Hunter. "People are always at different buying stages, and depending on that and who the client is, it is still cheaper using inserts than renting lists."

A second threat raised by Wilson, is that of size-based pricing by Royal Mail. "When you get the combination of lower postage costs with bigger books, this means greater conversion rates, which makes something like Abacus all the more viable."

The panel accepted this point, with a 'wait and see' attitude. "I'm getting clients, including Scotts of Stow, to test larger catalogues before it comes into effect next year," he adds.

Relevant channel

In the final analysis, the panel was proud of the contribution inserts make, and which believes they deliver.

"There can be few out and out objectors to this channel," argues Moran. "All we're trying to do is bring the relevance people may have to a product or service to a channel they interact with. The fact we do shows it works."

According to Wilson inserts are even helping drive people to websites. Who would have thought a few years ago that these old and new channels could be so complementary? "All media is fragmenting," concludes Stafford. "This is just the way inserts are reacting."

THE PANELLIST LINE UP

Shaun Moran, creative director, Partners Andrews Aldridge

Shaun has been at Partners Andrews Aldridge virtually from the beginning and has played a part in it becoming a leading creative agency. Previous agencies include Saatchi Direct, TBWA/GGT Direct, CDP and Wundermans.

Bryan Hunter, marketing executive, The White Company

Initially looking after customer recruitment two years ago, Bryan handles insert, list and off-the-page activity. He worked closely with Tri-Direct reviewing media mix, creative and format and oversaw a review of insert activity in 2004.

Lucy Stafford, media and account services director, Tri-Direct

Lucy has been at Tri-Direct 11 years and is currently media director across all media including inserts, press, TV, radio and ambient. She is chair of the DMA Inserts Council.

James Johnson-Ferguson, founder, The Book People

James specialises in increasing profit via detailed analysis, planning and project management for direct marketing clients. He has an MBA from London Business School.

Peter Worster, managing and planning director, Presky Maves

Peter joined Presky Maves in 1999. The agency won the 2004 Precision Marketing Responsive Insert Award and the DMA Gold for its work on Glenfiddich.

Andrew Wilson, founder, The Catalogue Consultancy

Andrew's consultancy specialises in mail order and e-commerce, working for clients ranging from software to shoes, as well as Royal Mail, advertising agencies and VCs. He also carries out training for the University if Bristol, Royal Mail and Synergy.

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