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2/07 Media Life Magazine

Connecting your client with taxpayers
Ads on envelopes containing workers' W-2 forms

By Kathy Prentice
Feb 24, 2007

This tax season some employees are finding more than their W-2 forms when they receive their pay envelopes with their tax information in it. Advertisers are placing branding messages and promotions on the tax form envelopes. They're also putting messages on the backs of paychecks and on direct-deposit receipts as part of ongoing payslip marketing efforts. To find out how to get your client's message directly into consumer's hands on payday, read on. This is one in a Media Life series on buying the new out-of-home venues. They appear weekly.

Fast Facts

What
Ads placed on W-2 envelopes, pay checks and direct-deposit statements.

Who
PaydayPERX of Columbus, Ohio.

How it works
Advertisers put their message in pay envelopes given out to workers on payday. Employees receive brand messages and coupons on a day when they have money to spend, and the value of the branding is that it's on documents the employees are sure to read, says CEO Dana Bromberg. Ads are placed on the back of payroll checks and direct-deposit slips and on the outside of W-2 envelopes. "Over the years we've transitioned from stuffing pay envelopes with ads to offering discounts and other promotions to employees inside the corporate borders through their electronic payrolls," Bromberg says. With the discount promotions, there's a code printed on the receipt the employee receives when their pay is deposited directly, and the employee can then go to a web site to redeem the coupon.

Print ads on paper paychecks can be for branding or coupons. Coupons measure 1 inch by 1 inch and can be perforated for detaching from the check. Ads can measure 1 inch tall by 3 inches wide or 3 inches by 3 inches. The payday theme can be tied into creative. For example, the Mexican food chain Chipotle ran a special offer on burritos that compared it to receiving a payroll bonus. Advertisers can change coupons or promotions during a campaign or run several different creatives or coupons in the same run. Creative can be provided by the advertiser or developed by PaydayPERX. Currently about 80 percent is provided by PERX. Ads are in full color.

Markets
The program is available in the Midwest and in other regions where participating employers have operations. Such companies include United Airlines, Kroger's and Darden Restaurants.

Numbers
A network buy reaches 60,000 employees monthly.[PaydayPERX note: The actual number of checks printed with PaydayPERX advertising on them is currently 2.2 million per month, reaching half a million employees at a minimum per month; this article mixes up a specific regional buy with a network buy.]

How it is measured
With checks, impressions are based on the number of checks with a particular ad but also coupon redemptions and web site visits where there is a promotion.

What product categories do well
Coupons are typically for regular payday purchases like groceries, car washes, pizzas, movies and oil changes. Financial services also do well. Higher-priced products and services like pool tables and body shops also use couponing. Exclusivity is built in.

Demographics
Ads on checks reach a broad demographic, but some targeting is available by type of company or employer, Bromberg says. “The common theme is predominately hourly wage earners, people who punch a timeclock, not coat-and-tie workers. "Payroll companies serve the most diverse population because they work with employers with a full range of workforces, from 20 to 20,000, and they can reach all kinds of workers, from doctors to construction workers. "We think this vehicle probably works best with people who work in service and retail industries," says Kevin Leek, director of business development for H&R Block, which has used the program to offer discounts on envelopes used to deliver W-2s to employees.

Making the buy
Lead time is one month. Advertisers can buy the network or companies within the network. Buys are based on number of pieces, but usually correlate to a time period as well. "We supply United Airlines with 110,000 checks a month, so the minimum purchase is one month," Bromberg says. "We synchronize expiration dates with checks." A check program can run between $15 and $45 per thousand. Factors that affect cost include size of ad, number of checks and length of campaign.

Who is already on paycheck stubs and W-2s
Advertisers include H&R Block and Jackson Hewitt.

What they're saying
"For most people the W-2 is the critical document they need to do their tax return, so there’s a receptive audience, and the timing is perfect." - Kevin Leek, director of business development for H&R Block.