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Direct Response Media Buying and Wal-Mart

By admin | March 29, 2007

A CHANGE OF COURSE

Wal-Mart is looking to simultaneously target “low-price loyalists and high-income customers,” as reported in the WSJ. It wants to appeal to higher income customers without losing the customers who shop at Wal-Mart because of the low prices. By utilizing a targeted direct media buying approach, Wal-Mart will be able to selectively reach these two diverse audiences with customized messages for each group.

The bottom line is that Wal-Mart’s marketing approach was not working. The retailer decided it needed to generate measurable results from its advertising and that direct marketing could help the company achieve that goal. Most traditional ad agencies are still more interested in winning awards than generating results. This creates a big opportunity for DR media buying agencies to step in and demonstrate how their approach to marketing can help marketers to become more profitable and accountable.

For years, brand agencies and Fortune 500 companies considered direct response marketing beneath them. However, the selection of a direct media buying agency as a marketing partner for Wal-Mart might help traditional agencies realize that all those awards are useless if they can’t deliver a measurable ROI for their clients. Now is a great time for our industry to capitalize on the growing acceptance of direct marketing among Fortune 1000 companies.

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