There's No Such Thing as a Free Envelope

I found an interesting article about a group of innovators in Holland who are offering free postage-paid envelopes to the public. The envelopes and postage are free because there are advertisements printed on the back—a unique way for advertisers to reach a variety of different consumers through direct mail. With the rising cost of direct mail this is a highly attractive offer for consumers to partake in, and distribute ads within the consumers’ own network of family, friends, and other contacts.

I think that this is a great concept because it allows advertisers to send messages in a way that is otherwise unbranded. By branding the envelopes, advertisers are able to attach a cost to each direct mail message sent (i.e. the cost of printing the envelope plus the cost of postage).

Adversely, by using this method, advertisers have no control over to whom their advertisements are being served (and therefore not knowing the overall impact of advertising dollars spent) and consequently turning over distribution of the brand to consumers. Thusly, advertisements are not targeted to specific audiences, but instead to the broad category of consumers who receive mail.

Will this concept catch on in the US? Well, it has in a way with credit card companies which include an addressed envelope with advertisement on the back flap--however, these envelopes do not contain free postage. We'll see if this trend of pre-paid envelopes crosses the Atlantic.

References:

http://www.brandfreak.com/2009/06/holland-experiments-with-envelope-ads-that-pay-for-the-postage.html