Tag Archives: direct response

Direct Response Television for Interactive Television Marketing

Direct response television or DRTV is not a new form of television advertising; it has, in fact, been around for a few decades. DRTV basically is TV commercial but with an 800 number that consumers can directly contact while the commercial is being aired. It’s a TV advertisement that lasts longer than the usual 30 or 60 seconds, with the aim of providing comprehensive information on the product or service being advertised.

DRTVs are best suited for new products or services – the kind that have not yet been introduced to the retail market – such as a battery-operated split end trimmer, vacuum-sealed clothes bags, flatulence odor-absorbing blankets, boyfriend-arm shaped pillows, and oscillating barbells. These products are usually newly-invented and patented, and most of the time comical. They are often sold first on television through DRTVs that typically last for 2 minutes or for 20-30 minutes depending on the preference of the product or service producer.

DRTVs are more complicated than regular TV ads and infomercials, whose only requirements are the services of an advertising agency, a media planning agency and a production outfit. On the other hand, successfully launching and managing a DRTV would require a solid sort of machinery that covers production, media buying, call center support, order processing and freight management, to mention the basics.

Because of the difficulty in managing the entire DRTV production and management, many video and multi-media companies expand to provide all necessary services for DRTV production and management. This makes the whole process easier for the producers as all tasks can be centralized into one service, which is in turn more profitable for the production company.

While the actual DRTV production process should be easy enough, as they are most of the time low-budget, focusing more on giving information than on visual appeal, it’s the whole management and follow-through system that’s tricky. A team of people – a call center or a pool of customer service agents – is required every time the ads air for order processing.

The use of DRTVs is still considered very effective for retail-virgin products. DRTV production allows their consumers to react directly and quickly to the products being advertised, which in turn gives producers real-time knowledge of their business’ profitability.

For More Information, please visit our website at DRTV production.

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Direct Response Advertising, Is Everybody Really Doing It?

The direct response advertising business is a $250 Billion dollar industry. Yes, Billion with a capital B. Yet people think they are not affected by direct response – until you find a George Foreman Grill in their kitchen. Even the most unsuspecting people are roped in by direct response (DR) advertising. This is why it is a growing industry for medium to small business owners to get their products and services sold.

Many of products you use today got their initial launch through DR advertising: TheraBreath; OxyClean, the Ab Roller®… and the list goes on.

Ironically, many people think they know nothing about it and are not affected by it. It is the most unsuspecting, yet highly workable, marketing method today. Why? TV. A newsblaze.com article Why You Can’t Ignore the Power of Direct Response Ads to Boost Sales, cites television as reaching a whopping 98% of the homes in the U.S.

And according to a study from the Electronic Retailing Association, called The Evolving Role of Direct Response Television in Multichannel Marketing Execution, multichannel marketers are growing the DRTV industry. (Multichannel marketing is offering customers more than one way to buy something — for example, from a website as well as in retail stores.)

Bob Francis, the Vice President of Commercial Production for Event Management Services, Inc. is a pioneer in the world of direct response. With 25 years under his belt in the DR advertising industry and accolades like having been the creative genius behind the well-known 8-Minute Abs campaign, when Francis comments on what it takes to be successful in DRTV, people listen.

To hit it big with Direct Response, one needs:

o A product that has mass appeal

o A good ratio between hard cost & retail price

o An irresistible, generous offer — give away way more than what the consumer pays for (Victoria Principal’s skin care line is a great example).

An added advantage is to have a consumable product. “Once they [consumers] like it, wear it or use it and get compliments three days in a row, you can guarantee when they run out they will buy it again.” says Francis. “Consumable products have lifetime customers.”

DRTV is not just for celebrities. Today’s small to medium businesses can reap the rewards. The benefits include:

o Building brand name recognition

o Retail backup – in other words, take your product with proven DR advertising and sales backing it up, that retailer is already ensured they have a product that is going to sell in their stores.

What’s the ultimate goal of DR advertising? Going to retail. George Foreman made millions before taking to retail. Jane Fonda’s videos were once sold via Direct Response – now you can even rent them at video stores.

Francis’ acumen lies in not only writing, producing and directing Direct Response ads, but also in assessing what products are viable candidates for this type of marketing approach. He imparts his knowledge to entrepreneurs from many different industries nationwide at marketing boot camps organized by Joy Gendusa, CEO of PostcardMania, and Marsha Friedman, CEO of Event Management Services, Inc.

One factor Francis claims he loves is disabusing entrepreneurs of the misconceptions of direct response advertising. Direct Response advertising is very workable today because:

o The costs of production is low

o With the advent of cable TV, media time is inexpensive

o You can target your audience with cable like never before

“You can’t just utilize one channel of advertising these days,” says Francis. “DR advertising coupled with an aggressive web and retail presence can boom your business.”

Bob Francis is one of the pioneers in the direct response advertising industry. Bob began his career in 1983 as the producer of the hour long infomercials for the Lowry Group and National Super Star, two Real Estate seminar companies. Bob’s biggest and most notable TV commercial hit was “8 MINUTE ABS” which he wrote, produced and directed and which sold over twenty million dollars in the first eighteen months it aired. It is still being sold on the internet today.

Karla Jo Helms is the Vice President Public Relations for PostcardManiaJoy Gendusa founded PostcardMania in 1998, her only assets a computer and a phone. By 2005 the company did over $12 million in sales, employed over 100 people and made Inc. Magazine’s prestigious Inc 500 List as one of the 500 fastest growing companies in the nation. She attributes her explosive growth to her ability to choose incredible staff and her innate marketing savvy. As an Expert Author, she is always willing to share her marketing advice through articles, interviews and speaking engagements. Visit PostcardMania’s web site at www.PostcardMania.com For more information on Bob Francis’ educational seminars, visit www.PowerMarketingMania.com [http://www.powermarketingmania.com]

 

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Direct Response Marketing Can Solve CMO’s Problems

The average tenure for a chief marketing officer (CMO) was down to approximately 23 months in 2006, according to a study by executive search firm Spencer Stuart and reported in BtoB magazine on 5/7/07. The Spencer Stuart study also found that nearly three-quarters of CEO’s and board members consider the marketing organization “highly influential and strategic” in the enterprise, but nearly two-thirds say that their top marketers don’t provide adequate ROI with which to gauge marketing’s true performance.

Another recent survey reported that only 7 percent of senior-level financial executives are satisfied with their company’s ability to measure marketing ROI. The survey also points out that less than 10 percent of these executives indicated that their company had a separate budget allocated for measuring marketing effectiveness. (Marketing Management Analytics and Financial Executives International survey, revenue magazine May/June 2007).

“I worry about what will happen to the future of marketing leadership because of the turmoil-the short life span [in the CMO position], the pressure and the high expectations,” said Greg Welch, head of the CMO practice at Spencer Stuart. The steady stream of departures among high profile senior marketing executives is evidence of this “turmoil”. Just this year, Macy’s CMO, AT&T’s CMO, Verizon’s VP of marketing and the CMO at Wachovia all left their positions. (BtoB)

The mounting pressure on CMO’s, combined with corporate executives being dissatisfied with the lack of measurement of ROI by these marketers, creates the perfect opportunity for more companies to adopt direct response marketing initiatives to address these problems. This also represents a big opportunity for our industry to step in and help these companies develop direct marketing programs. Since the direct response marketing model is all about measuring ROI, it seems like more of these marketing executives will now be open to testing out direct response advertising.

Of course there are many CMO’s outside of the direct response industry that are doing a good job. The BtoB article notes that Martin Etherington, VP-marketing at Tektronix said his marketing department is 100% accountable and measurable and it aligns its metrics with the strategic objectives of the company. However, it appears that this type of marketing measurement and accountability is not yet that widespread among Fortune 1000 CMO’s, judging by the high turnover and the survey feedback from corporate executives.

From the perspective of a direct marketer who lives in a world of total accountability, the need for more accountability and better ways to measure ROI among traditional marketers seems like a relatively easy problem to address. However, many of the Fortune 1000 brand marketers work with mega ad agencies that have been slow to move away from traditional brand marketing and adopt the principles of direct marketing. Perhaps the increasing pressure on CMO’s will force them to take a more serious look at the power and accountability of direct response marketing.

Peter Koeppel is Founder and President of Koeppel Direct, a leader in (DRTV) direct response television online, print and radio media buying, marketing and campaign management. With a Wharton MBA and over 25 years of marketing and advertising experience, Peter has helped Fortune 500 companies, small businesses and entrepreneurs develop direct marketing campaigns to increase profits.

Peter started Koeppel Direct in 1995 and has built it into one of the leading direct response media buying firms in the U.S.

For more information please visit: www.koeppeldirect.com

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How to Hire a Direct Response Television Advertising Agency

As a direct response television advertising agency owner there are three points that I want to drive home in this article when it comes to advertising on television.

1) television is not the only game in town
2) testing and tracking and repeating the process
3) MER media efficiency ratio, the really simple math

While television is the biggest game in town and can get you the fastest number of eyeballs it has some downside as well. It can be expensive, it is harder to measure that let’s say direct mail responses or than form fills on web sites. It is also harder to to target your audience, however that has improved over the years as cable offers more options as far as programming is concerned.

Another way to think about direct response television is using online direct response video. Direct response online video has plenty of benefits, some of which are the ability to create video quickly and at low cost. You can also push the video out to multiple sites using Google or video syndication like Tube Mogul. The advantage here is you can test different versions on the same day and get answers back on how the video performed. A good direct response television advertising agency will test both online video and television and use the results to your benefit.

There are so many ways to test video in direct response. (I am not talking about the little ads in the videos themselves, I am talking about the videos themselves). For example, you can see how many times the video has been played/viewed. You can test different offers inside the videos. You can tag the videos with different title tags to see which one pulls better. You can insert customer testimonials and remove customer testimonials and measure the results. You can change the length of the videos, kind of like a long form and a short form in DRTV speak. You can measure a multitude of audiences online where you might not have as many in television programming, especially when it comes to unique niches. Find out what works online and then move the direct response online television test to DRTV or television.

Once we have the direct response television advertising running on TV we look for a MER or what is better known as a media efficiency ratio. What MER means is you spend $10,000 per week and you generate $40,000 in revenue that means you have a 4:1 MER. Spend one dollar to make four dollars. Once we have a stable MER we know we can increase the media spend and generate X more amount in revenue. The same is true for Pay Per Click advertising online but instead of buying television media we are buying online media.

Finally, for the online video to pull it needs the same ingredients as a DRTV commercial, pain, problem solution/demo and call to action. Do these few things and you will see your results and hire a smart direct response television advertising agency.

http://www.directresponsetelevisionadvertisingagency.com/

Jim Peake is an entrepreneur and small business owner focused on online marketing including online video, PPC, SEO and other lead generation techniques. You can find him at http://www.directresponsetelevisionadvertisingagency.com/.

 

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