A rise in the number of inserts in newspapers and magazines is costing retailers in more ways than one, according to the National Federation of Retail Newsagents (NFRN).

The Direct Marketing Association annual survey found that the inserts market grew by 10% in 2011, with the figure rising to 31% for Sunday newspapers.

NFRN president Alan Smith said inserts incur extra costs because news retailers have to pay for extra deliverers or for additional rounds.

“While publishers do now reward newsagents for handling such inserts, in most instances the payment only comes into effect when the inserts weights 70g or more and thant still falls shorts of what retailers really need,” he said.

The Daily Mail is the only newspaper that pays retailers on a cumulative basis, if there are a number of inserts that weight 70g or more collectively, he said.

Retailers are also suffering because many inserts encourage consumers to engage online, according to the DMA.

“So not only do these inserts cause independent retailers who home deliver more work and cost, they are actively encouraging customers to turn their backs on their town centres in favour of purchasing online,” Smith added.

He added that publishers also use inserts to promote their own subscription offers or delivery schemes which bypass retailers.