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Innovation Emerges from Market Disruption – Valpak Leading the Charge

ST. PETERSBURG, Fla. (May 12, 2020) — The COVID-19 pandemic has had a wide-ranging impact across industries, including the media. Insolvency, supply chain interruption and soft consumer demand have caused companies to alter their advertising efforts. Newspapers and catalogs were hit particularly hard amidst high cost infrastructures and a reduction of advertising due to retail closures and consumer belt tightening. In this environment, many are wondering how consumer behavior and advertising approaches have changed, and what the future looks like for the industry. Valpak’s answer has been to develop industry-leading targeting technology to bring advertisers a powerful, affordable option for delivering unique offers into individual households.

Prior to the COVID-19 outbreak, brands were already gravitating towards shopper-specific offer targeting to leverage a relevant message aimed at a desired cohort. COVID-19 has accelerated that process, as brands look to eliminate wasteful spend and cost containment becomes top of mind for all advertisers in the new normal.

Valpak has dedicated significant resources during this period of market disruption to create a first-of-its-kind technology that leverages household-specific targeting in a shared mail environment. This technology helps brands significantly reduce cost while yielding the same benefits that catalogers or direct mailers have relied on for decades. It allows advertisers to exclusively mail the homes they desire while eliminating those they do not within the cost savings environment of cooperative mail. “We saw an opportunity to develop a demand-driven technology that affords brands the ability to target with spear-like precision for a fraction the cost of traditional direct mail – essentially using a shared mail environment to incorporate household-level targeting,” said Jay Loeffler, SVP of Sales for Valpak and SKULocal.

As consumer demand slowly rebounds, it is imperative that brands deliver offers to shoppers without ‘over-incentivizing,’ in order to keep cost containment top of mind. Valpak’s new technology will help brands target unique campaigns to new customers, existing customers, lapsed users and/or declining loyal customers in one campaign, driving repeat purchases while simultaneously filling the funnel for a fraction of the cost. Valpak can also incorporate QR codes on a mail piece at no charge to drive mobile or online sales. This will help businesses capitalize on shifting consumer behavior while managing short term disruption of inventory and supply chain. Optimizing these traditional Valpak products has kept advertiser momentum strong in a time when it is estimated Q2 traditional media can be down as much as 35%.

A local advertising leader in more than 180 communities for over 50 years, Valpak’s 92% open rate presents the perfect opportunity to connect with consumers as the rebound commences.  Combine that with an industry-first technology, and Valpak feels confident it can help brands connect in a more personal way than ever while eliminating wasteful ad spend. “We’re all about helping businesses grow and neighborhoods thrive. We’re working harder than ever on creative solutions to emerge with opportunities that are timely and relevant for our partners to reach consumers with an emphasis on efficiency and engagement,” said Mike Davis, CEO of Valpak.

In the wake of COVID-19, the advertising landscape will be full of companies looking to spend smart, and Valpak’s audience is the ideal way to message at scale to a large section of the U.S. population. Their reach and brand legacy connects with local communities and they offer the tools businesses will need in the coming months. These include affordable testing, versioning and targeting capabilities, plus the expertise to craft aggressive incentives early in recovery to capture consumer attention. So while we are determining what the “new normal” looks like for advertising and direct mail, one thing is certain: Valpak has the data, technology and industry knowledge to keep advertisers connected to their audience, now and in the future.

About Valpak
Valpak is the nation’s premier direct mailer, trusted by 35,000 businesses to drive sales and brand awareness through easy-to-measure, results-oriented advertising solutions that work. For more than 50 years, Valpak has introduced millions of consumers to local business offers and opportunities. Each month, our Blue Envelope of Savings, and PlusOne postcards are mailed to nearly 36 million demographically targeted households in the U.S. Valpak’s digital products, including valpak.com and Savings.com, reach more than 110 million users. Contact us today to see what Valpak direct marketing can do for your business. Connect with us on Twitter: @Valpak and Facebook: @ValpakAdvertising.