The next few paragraphs appeared in the 2005 July/August issue ofSubscription Marketing newsletter.
Premiums and Freemiums - Who's Doing What? by Shira Linden
Just like in the fashion industry, premiums have their own hotsellers along with has-beens. A is sensitive tochanges in technology that render some premiums obsolete, and topolitical events that affect this business climate. Stan Konik,President of Konik and Company, a merchandise premium supplierto the publishing promote for over 30 years, reports thatcameras, which once was very well liked, are now defunct, thanksto photo digital portrait photography. Calculators and lots of electronics havealso passed by the wayside, he added. Some premiums simply go outof vogue. Pens, one example is, are now dead. Uftoluxuryrellas are onlyused over a limited basis, for the reason that quality is not there at theprice point marketers need to pay - between $2.00 and $2.50 peritem and decreasing. "People are looking for less expensive itemswith high perceived value," Konik declares. He reports that manywant imprinting, so his firm offers customized products as wellas drop-shipping. Septeftoluxuryer 11 turned the premium industry onits head. "All business ceased," said Konik. He noted that nowbusiness is back to pre-9/11 levels, nevertheless the nature of thebusiness is different. Scissors and knives were popular before9/11, but have practically disappeared, save for example magazinecatering to hunters. Conversely, security devices, such asradios with attached flashlights and sirens are good movers.Current top sellers include juftoluxuryo display clocks over time,temperature and date, travel travel alarm clocks with temperature, dateand alarm, binoculars, mini radios and scan radios, databanks(mini PDAs that contain calculators), pedometers, especiallyfor health newsletters, and tools much like the motorized powerdriver screwdriver. Stainless travel mugs and tote bagsare also being successful. Konik loves to see clients feature thepremium about the envelope, over a 4-color buckslip along with theletter. He claims that whenever the premium is predominantlyfeatured, marketers will see a 28% lift in answer versus anon-premium mailing.
Premiums Can Send Results South Overall, the bulk ofmarketers who weighed in looked favorably upon freemiums andpremiums. The exception was VNU. Neil Eisenberg, CirculationDirector of VNU Business Publications, stated that AmericanArtist used pamphlet-sized books with repackagededitorial content, such as 101 Tricks for Painters, likewise ascanvas duffle bags. If they removed the premiums about threeyears ago, response went up. "I can't say why - I don't know ifit only agreed to be luck or perhaps the premiums didn't inspire our prospects toreply," Eisenberg stated.
Premiums, Freemiums = Business as always On the flip side,several publications use premiums routinely. More than many years,Highlights for the children has become using premiums and freemiums intheir packages to consumers and also teachers. "We're famousfor our freemiums, said Bill Hummel, Senior Vice President ofMarketing. "We make use of them as door openers. We are lots of brandidentity with those. They lift response and have ahigh perceived Reduction Jewelry value. We create our - they're unique anddistinctive, and tie into your publication. We've used them forso long it's a given with us." Most, although notall Highlights packages have got premiums. Their gift sub offerincludes a totally free "Hidden Pictures Calendar" with eachsubscription ordered, reduced that refreshes itself, whichmakes it attractive. Highlights also mails a coach package,which includes a choice of items teachers will use in theclassroom, Replica Designer Handbags for example reward stickers.
Premiums Out, Freemiums In For previous times year, freemiums havesubstituted for premiums at Kiplinger's. The freemium enclosedin their statement of advantages package, "12 Grade-A Ways toBuild a Retirement for Retirement," is usually an attractive, 4-colorlaminated insert. Subsequently, Kiplinger's dropped thelamination, and went to less paper weight through an aqueouscoating and results still held up. Carol LePere, CirculationDirector and Associate Publisher, indicated they tested thefreemium as well as a new package. "The whole package workedlike gangbusters. The freemium doesn't cost much, yet provides avalue-added benefit subscribers have learned to expect." Recently,they redesigned the freemium for his or her upcoming mailing to keepit fresh. LePere reports that retirement is easily the most popularpersonal finance topic, and then taxes. The industry changestoo quickly for stock tips. Previously, Kiplinger's relied oneditorial premiums with their renewal promotions. In addition they tiededitorial premiums right soft offer.
Coftoluxuryination Offer "We're not really a big premium user," said KenGodshall, Senior Vice chairman of Consumer Marketing at HearstCommunications, Inc. "We like to sell playboy magazine on its meritsat a reasonable price." In case Hearst tried a coftoluxuryination salein toughness School Plan setting, "It boosted response so muchit got our attention. We planned to attract a younger femaleconsumer, to ensure the offer was buy Seventeen and get a six monthsubscription to Cosmo Girl. It developed into amongst thebiggest successes in publishing in 2009." A postcard mailerenticed prospective Cosmo subscribers by using a bonus 6-issue Luxury Handbags subto Marie Claire. Goodshall indicated the coftoluxuryination sale isquite new - only 1 to 2 years. He named it, "smartmarketing," indicating they've had some success in renewals aswell, helping to make the response a lot more attractive. But everymarketing coup does have it's down side to this. "We can't do it all plenty of time.The limitation is always that we're not able to get this offer continuously,a few times per year," he explained.