Who says Facebook apps are useless? Hippopost has launched a new Facebook application that allows users to send their friends customized postcards free of charge. For now the service is limited to recipients in the United States and Canada, though we can expect the range to expand if Hippopost catches on.
To create a card, users select an image from one of their Facebook photo albums, which will be printed on the card’s glossy side. Then they can enter a custom message for the reverse side, along with the recipient’s address information. Cards are sent from “a globally distributed print network” to ensure speedy delivery, though the site doesn’t appear to make any guarantees on timing (reviews on Facebook indicate that most people get their cards within a week). Users not on Facebook can find similar functionality on the company’s site here.
Hippopost seems like a great service that could really catch on, especially for travelers who would rather forgo generic shop-corner postcards in favor of something a little more personal (and cheaper). But postcards aren’t cheap - postage in the US for postcards is 27 cents a pop, plus printing and handling costs.
Hippopost pays for the cards (and the postage) by including an ad at the bottom of each card. After generating a card, users are presented with a short list of ads and asked to select the one that will appeal most to the card’s recipients. This helps make the advertising more targeted and should allow Hippopost to charge more from their advertisers, but is one ad per card really going to be enough to sustain the company?
Thanks to Carlton Northern for the tip.
So unless I’m nuts, that’s effectively a minimum CPM of $2,700+ just to break even?
sorry, $270.
This should be called something like Real mail, or even R-mail.
How about telegram’s next or even paper?
Why would somebody PAY for a postcard when an electronic one is free?
Jon
http://woodmarvels.com - Create Unique Memories
Just realized that there was no privacy policy on their site. I fear I just signed myself up for a world of junk mail and spam for the price of a free postcard.
@Jon
This is free. And good luck sticking your electronic card on the fridge.
@Karen
I had similar concerns (as did Carlton Northern, who I linked to at the bottom of the post). This is what a member of the Hippopost team said in the Facebook app’s message board:
Guys, there’s been some questions about privacy policy… I hope this provides some clarification, and keep an eye on our corporate site at http://www.hippopost.com (it’s not updated yet but we’re working on it).
Hippopost does not sell or rent the names of your postcard recipients to our advertisers. We need this information in order to create and mail the postcard. Additionally, advertising is often based on geographic regions - so if you’re sending a postcard to the US, you might see different available advertisers than if you send to Canada, regardless of where you live. Of course, we encourage you to select the advertisement that you think is most relevant to the recipient so they click/visit/buy and we can keep this free!
I guess my question would be:
Why would an advertiser spend more than $0.27 for an ad on the bottom of a post card, when they could just direct mail their entire message (on their own post card) to a targeted demographic for the same or less money?
Maybe Im missing something?
I tested this out, it didn’t like my address, it couldn’t locate it..
Have anyone else tried it out fully?
Yeah,
It does work. I’ve sent quite a few. I totally get the marketing behind it. This is targeted ad sponsorship. It goes to someone’s home and could be local retail. It’s kinda cool that you get to pick the ads. Just wish there were more to choose from. Maybe a pizza voucher or something or drive the recipient to go back online to get some type of offer. Direct mail costs a ton and never gets looked at. This is a social marketing goes offline type of thing.
I love it and people love it too when I send them one of these.
It’s really cool.
This works great — I didnt’ try Facebook but did try there site hosting — the hippo logo gave me an idea.. its only a small step form free hippo cards to free hippo blogs.. or do people already have their pet hippos ‘on-line’?
ToyWeb
I love anything that is an attempt to combine a physical product with something virtual.
I think there is a market for this, though it may end up being relatively small and niche. It’s a great way to send a photo to someone who might otherwise not be on Facebook or Picasa.
LeveragingIdeas.com
@Jenni - I tried several addresses that it could not locate.
I’m pretty sure I know my own address. Fail.
I can electronically send a physical piece of mail with Hippopost. And then Earth Class Mail can digitally encode my physical mail. Hehe. I love it.
“Why would an advertiser spend more than $0.27 for an ad on the bottom of a post card, when they could just direct mail their entire message (on their own post card) to a targeted demographic for the same or less money?”
Because that mail will end up, unread, in the recycling bin? I would definitely read a postcard from my friend, and probably keep it for a while.
Benefits to Users & Recipients
• Free postcards - Sounds Great!
• Inherent emotional value – ‘when it means more than an email’- This matters only if the card reaches on specified time.
• Bridges on and offline communities – Yes, It may happen
• Tactile, personal, unique, global – I agree
I think currently they are doing pilot test in US & Canada.
- Deepa (dooyt.com)
I think this is a great idea … but faaarrk me, why does it (and everything) have to be paid for by an ad. Has everyone forgotten how to charge ppl or sell something?
Its a service that has value - I think you will find a small niche of people who will pay. People pay for postcards in the real world, why should it be free for them just because its activated in the online world?
Better yet, merge this idea with the biz model of birthdayalarms i read about recently and you might make the $4 million or so that they make. I guess the ultimate solution is have the free one you’re doing currently with a paid one like i suggest. Thank me later.
LP
Sam said…
I think there is a market for this…
That’s true. There are heaps of suckers, naive, vain internet users who would be the target market for another Facebook related useless product.
I tried this out for fun, and it works — but goes dreadfully wrong for them in my two tests (in my opinion).
Postcard sent to Western NY, but was sent from Canada (!!). This made the postage cost rise to 96 Cents Canadian, which I think is pretty close to at least 80-85 US Cents without checking the rates.
Made me laugh, knowing their “formula” for deciding where to send them from must be only based on statute miles from nearest Post Office.
Heh, this is a pleasant surprise. I didn’t even bother checking Techcrunch until this morning to see if they covered the story. Thought it would take longer than it did.
@Lloyd I personally appreciate that I get tons of free stuff through advertisements. Without advertisements you would be paying for all the entertainment you’ve ever seen including TV, websites and radio. What ticks me off is when I’m advertised to but I get nothing in return. Like Billboards.
@jason
@carleton
Thanks so much for the article and props Jason and also for everyone’s comments. The response has been amazing… and yes a pleasant suprise.
To your comments on privacy, we are working on our statement and will have it up in a day or so… there are terms that cover off what we do with data and please understand that we do not intend to do anything malicious with information. Quite frankly, we just love the idea of taking social marketing into the offline space… that and my mother needed to hear from her son a little more often.
Really appreciate the support.
Thanks again.
Bob, Please spare us from the drivel that is some real world problem you are solving. Just admit you wanted to make money from an activity people are already engaged in and leave it at that. We don’t believe your “altruistic” intentions here, save it for the mainstream press. You provide a service to consumers AND marketers, call it like it is and you will gain credibility here. Do otherwise and we’ll crucify you.
@Frank
Why so cynical? Can’t a person believe in what he’s doing and make a buck at the same time?
@frank
Point well taken… it’s a service for consumers and marketers and will only work if both are at the table. Thanks for keeping me in check.
i love kids.
Neat idea, BUT - they are applying technology to an outdated paradigm. If you have online access while on a trip, who needs to send physical postcards any more? On my last trip, every couple of days I uploaded my pictures to Flickr, wrote blog posts, and posted on Twitter. I was able to stay in touch with all of my friends and let them know about my trip without having to write individual cards and drop them in the mail.
@Tom
Why? Because there are some ppl out there who still live in the real world unlike yourself and place value on receiving something real. Personal Projects said it well - ‘means more than an email’.
Also, you dont have to drop a postcard in the mail with their service, they do the posting for you so your last point is redundant.
Bob, Thanks for taking the criticism so well. If you ever seek funding, you will be “beat up” lots worse.
I do like your service (from both a personal and business standpoint), and could see a number of possibilities for business partnerships. Mkt agencies, event planning sites (eg. meetup), and social network applications seem the most appropriate off the top of my head.
Direct Mail marketing has lots of capital being dumped into it, and response rates of 3% are considered outstanding. Being able to move the needle to something as small as 10% response rates would be highly welcomed.
Some issues:
1) Your location puts you at a disadvantage. Finding fulfillment companies more strategically located (east/west coast, and possibly central US) would allow for quicker delivery and lower costs w/o international (you place a PC and printer at their location, your system remotely handles which orders go to which place by which is closest, they make sure the postman picks them up daily). The beauty of 1800-flowers is that I can have same day delivery and a partnership with FedEx-Kinkos would allow premium some-day delivery
2) Barrier to entry is low; Zazzle, birthdayalert, and the like, could easily ad support for advert-supported
post cards; your narrow focus will help, but so would a “catchier” name that can be made a verb
3) premium service which would put you in direct competition with birthdayalert is also possible where the differentiator is speed of delivery and customer service
Good luck!
Er, birthdayalert= Birthday Alarm
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Cool Article!