Package insert programs expand 9.1 percent in Q4 2006: ParadyszMatera index

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The active package insert program universe climbed to 348.1 million opportunities in the fourth quarter of 2006, up 9.1 percent from fourth quarter 2005, according to the recently released MarketTrends Report for Insert Media Package Insert Programs from direct marketing services provider ParadyszMatera.

The results, albeit positive, are less dramatic than the organization's previously released study on the medium that looked at bind-in/blow-in programs. That program universe climbed up 25 percent from third-quarter 2005 to 2.5 billion opportunities in the third quarter of 2006.

Both reports are part of a new MarketTrends series designed for marketers who use insert media for customer acquisition. Full reports are exclusive to clients of ParadyszMatera, New York.

Some of the growth of the PIP universe is due to new programs released in the second half of 2006, according to the report. The new programs include Staples (4.5 million), Super D Music and Video Package Insert (2.2. million), GT Media Masterfile Buyers Package Insert (1.4 million) and Universal Screen Arts Package Insert (715 million).

Overall the PIP universe is largely merchandising opportunities - 64 percent of programs come from this group. Continuity club opportunities make up 21 percent of the market and apparel marketers 15 percent.

Existing PIPs also experienced growth last quarter due to improved insertion capabilities, according to ParadyszMatera. The most significant growth was measured for the Christian Book Distributors, a religious book provider that saw more than 250 percent growth in its program from fourth-quarter 2005 to fourth-quarter 2006.

Other programs that saw significant growth during that period were the Columbia House New Member Package Insert (76.6 percent), Boardroom Book Buyers Package Insert (50 percent) and Musician's Friend Package Insert (44.9 percent).

While PIP opportunities are a smaller market than bind-in/blow-ins, they can offer a unique opportunity to marketers.

The report notes that many big brand-name companies do not rent or exchange their customer mailing lists but do offer PIPs. Among these are some of the programs with the largest universes: Amazon.com Package Insert (60 million), BarnesandNoble.com Package Insert (6 million), Ticketmaster Ride Along (5.4 million) and Eastbay Package Insert (3 million).

Other large PIPs include Doubleday Entertainment General Interest Package (11.5 million), BMG CD Merchandise Shipments (11.3 million), Redcats Corporate Package Insert (7.5 million), Rodale Prevention Package Insert (3.9 million) and Disney Movie Club Package Insert (2.5 million).

The report also profiles specific programs for marketers. Prior to the MarketTrends Package Insert Program reports, ParadyszMatera published insert creative and new program articles in its client online newsletter.

See the full chart here.

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