Build Brand Value through your Direct Marketing Media Buying

By admin | April 13, 2007

Direct response marketing provides media buyers with the opportunity to both sell and brand their products simultaneously. If you have a hot drtv brand, it allows you to branch into new product areas. It’s allowed OxiClean to launch a full line of products, Google to branch into radio and video, Apple to offer video and Motorola to come out with new products based on the success of the RAZR. Last year Google’s brand value increased by 46%, to over $12 billion, which represented the biggest gain of any brand. (BusinessWeek 8/1/06).
 
In this age of blogging and instant information on the Internet, a brand can also be undermined faster than ever. For example, Dell’s “service and quality were denounced by bloggers” on a popular website and this publicity negatively impacted their brand. (NY Times 12/17/06). I’m certain the publicity surrounding the recent FTC fines for some of the leading diet supplements has created a great deal of negative buzz among consumers, which has likely impacted their sales and brand value. On the other hand, “positive word of mouth magnified by the Internet can be a boon, as Toyota discovered with its hybrid Prius sedan, which has been praised on sites created just for that purpose.” (NY Times).
 
No matter what type of direct response product or service you are buying media for, nowadays it’s more important than ever to build brand value through your direct marketing efforts and to understand how the power of the Internet and its bloggers, online communities, message boards, etc. can affect those efforts.

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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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Neuromarketing allows media buyers to get inside the heads of their consumers

By admin | March 14, 2007

Even though neuromarketing allows media buyers and marketers to get inside the heads of their consumers, it’s not always easy to understand what’s going on in there.  Figuring out exactly what people are thinking based on scanning results remains a challenge, says Carolyn Yoon, associate professor of marketing at the University of Michigan Stephen M. Ross School of Business.

Yoon says that although scanners do enable researchers to see whether certain well-defined regions of the brain activate when a test subject encounters something like an ad, a product, or a spokesperson, it’s still difficult to interpret exactly what that activity means.  “If your visual cortex lights up, it can mean that you’re picturing something, but what?” says Yoon.  “If your activation pattern shows a strong emotional reaction, is it love, hate, envy, ardent appreciation, anger, or one of many other strong feelings?” In her own research, Yoon typically collects behavioral responses (e.g. emotion ratings) at the same time as the brain scan images, and this can be useful for drawing inferences about neural activation patterns.

Although some observers are concerned that neuromarketing research smacks of Big Brother, others see great potential.  “I am optimistic about what science can do to an area of marketing,” says Christophe Morin, co-author of the book Neuromarketing: Is There A Buy Button Inside The Brain? and co-founder of SalesBrain, the marketing company that worked with Vistage on its revamped campaign. Morin doesn’t see this field as a chance to invasively manipulate, but rather an opportunity for businesses to communicate more clearly with their customers.  “I truly believe that neuromarketing will improve the work that we see done in advertising and communications,” says Morin.

According to Morin, focusing efforts on communicating with the decision-making center in the brain will yield more effective marketing. “The primitive area of the brain, also known as the “old brain,” is critical for all marketers [to be aware of], ” he says, “because it would guide their creative efforts to trigger maximum attention, generate higher retention and ultimately increase the response.”

And there are plenty of campaigns out there that could use some help. “Many ads, especially print ads, violate neurological principles,” says Caroline Winnett, vice president of marketing for NeuroFocus, Inc., which provides in-depth research on commercial advertising and political messaging. But there are some very simple things you can do to make your ad more effective, she says. For example, images on a direct mail piece should be on the left, with the text on the right, because the left brain processes information and the right brain processes images.

Instead of using fMRI imaging, NeuroFocus uses electroencephalograms (EEGs), eye-tracking, and galvanic skin response (GSR) tests to conduct its research. Scanning the brain with an EEG differs from using an fMRI in that the EEG measures electrical signals produced by the brain, through sensors in a cap worn by the subject, and the results are displayed as bumpy lines on graph paper.

Winnett says these methods are more practical, affordable, and portable than using an fMRI scanner.  Winnett says a typical NeuroFocus study costs about the same as a focus group, but yields what she considers more reliable results. “Since we measure brain waves directly, we are language-neutral and free of the cognitive biases inherent in surveys and focus groups,” says Winnett.

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A Closer Look at PPC

By admin | March 8, 2007

Media buying and  advertising experts that run PPC campaigns are charged each time someone clicks on their ad. For example, if you bought the rights to the search term LCD TV on a search engine for $3 per click during the holiday period, the ad would appear next to the search results. Each time someone clicked on the ad, you would be charged $3.Another important part of understanding click fraud is knowing where your ads actually appear. When you buy rights to display your ad after a search term is typed into Google or Yahoo, for example, it can appear not only on the search engine site, but also on thousands of so-called “affiliate sites.”

Affiliate sites are websites that have readers or audiences who might be interested in your product. For instance, a website that provides reviews of digital cameras could arrange with a search engine to run affiliate ads to its content. If a reader clicks on the ad, Google or Yahoo shares the revenue from that click with the website owner, the affiliate.

This is an effective way for media buyers and advertisers to reach a broader number of targeted consumers around the world. But search advertising, and in particular affiliate advertising, is also a medium that is currently threatened by the ease with which fraudulent activity can occur at the expense of advertisers.

Because affiliate websites are paid each time someone clicks on Google ads displayed on their websites, many are tempted to click on ads on their own sites or to organize sophisticated rings of individuals who agree to click on one another’s ads. After years of worry and uncertainty about the severity of the affiliate-based click- fraud problem, BusinessWeek published a cover story on the topic in the fall of 2006, exposing the sophistication and reach of these nefarious networks–many of which the search engines knew little about.

electronic retailer magazine

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How to Avoid the 10 Biggest Direct Response TV Mistakes

By admin | March 2, 2007

Koeppel Direct Inc. is pleased to announce that its president, Peter Koeppel, will be speaking at Austin Ad Fed meeting on March 21, 2007 about marketing products utilizing direct response television.

If you dream of making millions by marketing your product through infomercials, you’re not alone. Direct response television (DRTV) provides an excellent platform for marketing innovative products directly to consumers, eliciting impulse responses that lead to immediate sales. Before you jump into a DRTV campaign to sell your product, however, understand the do’s and don’ts.

Peter Koeppel, a DRTV expert, will tell you how to avoid the ten most common DRTV marketing mistakes, so you have a better chance of making a mint in infomercials, without your dream becoming a nightmare.

About Peter Koeppel

Peter Koeppel is Founder and President of Koeppel Direct, a leader in direct response television, online, print and radio media buying, marketing and campaign management since 1995. With a Wharton MBA and over 25 years of marketing, media and advertising experience, Peter has helped Fortune 500 companies, small businesses and entrepreneurs develop direct marketing campaigns to increase profits.

Peter Koeppel’s presentation to the Austin Ad Fed will be held on March 21, 2007 – 11:30am – 1:30pm

Location: Wells Fargo Bank Building, 400 W. 15th Street (15th & Guadalupe), Hill Country Room on 3rd Floor

Free Parking at DoubleTree across the street, or take the Dillo & ride for free!

Tickets: $25 Members, $35 Non-members

Please call 997-9994 or rsvp to austinadfed@bizaustin.rr.com.

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Marketing and media buying strategy and a brand that lasts.

By admin | February 26, 2007

Jackie Huie, president of JohnsonRauhoff Communications Group, based in southwestern Michigan, said that one of the most commonly made mistakes in branding is not finding and using that niche that makes you stand out from the crowd. Huie’s agency serves both small regional and large national accounts, such as Coca-Cola Foods, GE, McDonald’s, Meijer, Pepsi, Whirlpool and many more. JohnsonRauhoff works on everything from branding to advertising, promotions, direct marketing, trade shows and e-commerce. Huie suggests that you start with your logo. “Spend time on that, and assure that everything you do plays to the strengths and uniqueness you claim as your own,” she said. After you have the basics of your logo and niche marketing message, think about visibility and getting out in front of people to make an impression. “Visibility is very important. Your strategy for building visibility should position you perfectly in your target market so that you are top of mind with your ideal clients, ” said Suzanne Bates, prominent executive coach, communications consultant and president and CEO of Bates Communications. Bates helps executives and professionals develop a unique and authentic communication style to become stars in their industries.
 
Being in places where you can reach your audience and send them a clear, consistent message is vital to creating a successful marketing and media buying strategy and a brand that lasts. “A brand is really nothing more than an impression people have of you based on their experience, or what they hear by word of mouth,” said Bates.
 
In the current market conditions, REALTORS may feel that branding and marketing are not an important place to make an investment with their time or money. Nothing could be further from the truth. When the market is tight, competition for clients is even fiercer. A strong branding and marketing campaign may be just what a REALTOR needs to get ahead of the competition. Making sure you are visible in today?s market could be the reason why you are chosen to list a property over the other numerous REALTORS in your community.
 
In response to the economy, there are different approaches REALTORS might want to consider when tackling their brand. “In this economy, targeted marketing is most advantageous,” said Huie. “Approaches in targeted marketing are direct mail and e-commerce working off contact lists. Think about investing some dollars in supplying communication tools for your agents to use directly, including follow-up materials.” Such tools include utilizing the Internet. This is an effective, inexpensive way to let clients browse your inventory and experience your brand at the same time.
 
When thinking about Web marketing, you need to make it easy for the consumer.Web pages cannot take too long to load, and the colors used should be Web-friendly (don’t use bright reds, yellows, pinks, etc.) so your message is easy to read. Also, remember that uniqueness is the key to successful branding. You should put some thought behind your Web-marketing strategies. Seek experts to provide advice and feedback. With today’s technology, every computer has design capabilities, but not everyone is a professional designer. These programs are great for building personal Web sites, but your brand needs a more polished, professional touch.
 
If you decide that hiring an agency is best for meeting your needs, according to Huie, you should make sure that agency does its homework and knows your market. “The greatest impact will be achieved by matching services with needs and making claims in a proactive way. Our experience has been that impactful communications are clear on the value-added. Gone are the days where businesses have the time or money to advertise for entertainment value.

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The Decline of the :30 Commercial and What it Means for Media Buyers

By admin | February 23, 2007

At the ERA Mid-Winter conference in late January, I heard from a range of people in the media buying industry, who indicated that results were off versus a year ago. Some speculated that it was due to the milder weather this winter, but it seems that it’s not just the weather alone that’s impacting the drtv industry, as well as the broader universe of brand marketers.
 
The CMO of Verizon Wireless, John Stratton, in a recent speech warned drtv marketing and entertainment executives that the traditional advertising model is broken. His company spends more than $1 billion a year for advertising on overvalued, inefficient, rapidly eroding mass-market advertising platforms that continue to underdeliver. He noted that What you’ve been selling for the last 50 years, (:30 TV spot), no longer works. (Source: Adage.com). A recent Yankelovich study seems to support Stratton’s concerns. The survey found:
 
- 54% of consumers resist being exposed to or pay attention to marketing.
 
- 56% avoid buying products that overwhelm them with marketing
 
- 69% are interested in products that permit blocking, skipping or opting out of marketing
 
Source: 2005 Yankelovich Marketing Receptivity Study New York Times (2/12/2006).
 
A 2004 Yankelovich study published in the New York Times reported that clutter, competition and fragmentation have steadily chipped away at the productivity of marketing and 70% of the study’s respondents noted that they tune out advertising more than they did just a few years ago.

Peter Koeppel is president of Koeppel Direct, a leading infomercial and direct response media buying firm.

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The Power of Google and Media Buying

By admin | February 22, 2007

David B. Yoffie, a professor at Harvard Business School is quoted in one of the NY Times articles, Google is the realization of everything we thought the Internet was going to be about but really wasn’t until Google. Google has already had a significant influence on small to medium sized media buying businesses by enabling them to advertise cost efficiently and precisely target their prospects. In addition to direct competitors like Microsoft and their Internet search business, the real estate, newspaper, auto and retail industries are keeping a close eye on Google, according to the NY Times. Even Wal- Mart is concerned about how Google could potentially provide the consumer with additional information that will enable them to shop more efficiently for the lowest prices.

Even though it appears that Google is driving down the price of online advertising, keep in mind that the cost of certain types of online advertising is no longer a bargain and will not pay out for direct response advertisers. For example, the price of advertising on major portals such as MSN is skyrocketing. MSN charges several hundred thousand dollars to $1 million for a prime, 24-hour ad spot on its home page, according to the Wall Street Journal. Compared to the cost of advertising on the major portals, direct response TV and search engine marketing should remain cost efficient options for direct response marketers and media buyers. Marketers who effectively integrate their direct response TV media buys and online campaigns and stay on top of the latest advances in both mediums will be positioned to take advantage of the best opportunities in today’s fragmented media landscape.
 
Peter Koeppel is president of Koeppel Direct a leading direct response TV media buying firm.

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The New Face of Media Buying

By admin | February 20, 2007

Rapid advances in media buying technology have changed everything from health care to communication. Now, as the latest technology becomes more accessible to a broader market, the drtv advertising field is changing, too. Ten years ago, you could plan your media buying campaign around a few television commercials and print advertisements. And most companies would never have considered spending a sizeable portion of their advertising budget on the Internet. But in 2006, online ad expenditures are expected to reach $17 billion.
 
Today, the use of traditional drtv media outlets, such as radio, television, and print, is eroding as alternative advertising options increase. Rather than reading the newspaper first thing in the morning and watching broadcast television news every night, people can find out what’s happening in the world, almost in real time, via the web. Newspaper subscriptions are at an all-time low, and consumers TiVo the news so they can watch it without viewing the commercials. So where does that leave drtv marketers that want to maximize their return on their advertising investment?
 
Media buyers who want to reach their target audience and remain competitive in this high-tech world have to change with the times. You need to keep abreast of emerging new technologies, what drtv media types are most popular, and how consumers use what is available to them. 
 
If you want to remain competitive in the future, technology will be key to your success.  Align yourself with an experienced media buyer who can help you determine the best forms of emerging media. While it’s difficult to predict exactly where the trends are headed, when you keep an eye on new technology, you and your service won’t be left behind.

Peter Koeppel is Founder and President of Koeppel Direct

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