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Why direct response television ads remain viable

By admin | October 15, 2007

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DRTV ads once relied almost exclusively on viewers’ picking up the phone. Now many also steer consumers to Web sites. “If you give the customer a choice of an 800 number or a Web site, about 30 percent, on average, now go to the Web site,” says Peter Koeppel, president of Dallas-based Koeppel Direct Inc., a direct-response media-buying agency. “Just a couple of years ago, it was 5 or 10 percent.” To goose ROI even more, most DRTV campaigns are also now mixed with banner ads, search campaigns and a Web site. They also include a direct-mail component, as marketers typically follow up with brochures, videos, DVDs, catalogs, coupons and other materials.
 
For many companies the appeal of DRTV rests in its speed and malleability. “You see results very quickly” as customers respond or fail to do so, Burke says. Because ads use highly specific phone numbers or URLs, marketers can determine almost instantly what works and what doesn’t and can adjust campaigns accordingly. Meanwhile, growing specialization among cable networks makes it easier to target viewers. “If you’re marketing household products, you have the Food Network or HGTV,” says Koeppel. “You can be pretty precise in targeting your message to reach certain demographics.”
 
Those in the DRTV industry say the fast-forward factor isn’t as big an issue as people had originally feared, largely because direct-response ads tend to run on cable and satellite stations that people don’t record as much. “We don’t advertise on regular-program stations,” says Duitch. “We do one and two-minute commercials on CNN and the Weather Channel and other stations that people just watch.”
 
What’s more, certain viewers for instance, those considering investing hundreds of dollars in home gym equipment or adjustable beds are still likely to sit through half-hour infomercials, according to TiVo Inc.’s StopWatch data service, which measures program and commercial viewership in DVR-using households nationwide.
 
Finally, today’s infomercial ads are designed to build ongoing relationships through, for instance, automatic shipments of recurring orders and follow-up mailings with special offers and new product samples. Burke puts it this way: “It’s not just about the initial sale; it’s about everything that happens after that person contacts the seller.”

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