The results highlight the fact that client marketing departments are both time and budget challenged.  And to succeed, agencies will need to deliver savings in both of these areas via better collaboration and by proactive innovation.  But the key here is specialization.

When multiple agencies work together on a client project, they need to function as a cohesive unit, and this can only happen if roles are defined.  When an agency enters such a relationship with its eyes on taking away business from the other partners, true collaboration cannot occur.  Energy and resources are diverted to other interests, and barriers start to go up between vendors.

Challenges in collaboration prevent innovation.  Agencies will not properly share new ideas if they are looking to grab business from a partner, or if they fear the loss of their intellectual capital investments.

At Eicoff, we have thrived on multi-agency accounts because we know who we are, and we understand that transparency and collaboration will lead to success for both agency and client.  As the short-form DRTV specialist, our role is defined.  But we also realize that our impact on other marketing initiatives – and the impact of these other efforts on our campaigns – can become a gray area and cloud accurate measurement of overall performance if we aren’t open.  It is incumbent on both the client lead and participating agencies work together during planning, execution, and reporting to ensure success.

And when it becomes clear how each piece works together, it becomes easier for each party to introduce new ideas. And it becomes easier to push the client, and each other, to try new things.

While the statistics in this article may indicate fewer bites at a shrinking pie, they should provide peace of mind for agencies that are comfortable in their role.  Whether it is DRTV, search, outdoor, or even print, specialty agencies that remain disciplined and collaborative should continue to thrive in an uncertain marketing environment.

The MediaPost article “CMOs Using Less Agencies, More Collaboration” can be found at http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=155486&nid=129678

Rob Schmidt is an Account Supervisor at A. Eicoff & Co., one of North America’s largest DRTV agencies.

                          

But what makes DRTV even more appealing is that nearly three-quarters of American consumers are multitasking while watching TV.  This includes surfing the internet, talking on cell phones, and texting.  It is now easier than ever for consumers of any demographic to respond to DRTV offers because there are more options through which to generate response.  Instead of relying on an 800 number and call center, DRTV advertisers can drive response via the Internet, text messaging, and mobile sites.  And with the rapid growth and usage of social media, DRTV also has the opportunity to initiate viral conversations.  This presents several new opportunities with which to leverage DRTV’s ability to extend communications, add accountability, and ultimately increase sales.

Challengers for consumer attention come and go, but TV continues to be the leading medium that people rely on for entertainment, information, and now even conversation.

The following is an excerpt from the original article:

TV Advertising Most Influential

According to Deloitte’s fifth edition “State of the Media Democracy” survey, 71% of Americans still rate watching TV on any device among their favorite media activities. In addition, 86% of Americans stated that TV advertising still has the most impact on their buying decisions.

The survey indicates that the Internet, mobile and social media channels are enhancing the overall television viewer experience, driving people to watch first-run programs and live events during their initial broadcast. And, nearly three-quarters of American consumers are multitasking while watching TV. 42% are online, 29% are talking on cellphones or mobile devices, and 26% are sending instant messages or text messages. 61% of U.S. consumers now maintain a social networking site, where constant streams of updates and discussion forums have made delaying awareness of live TV outcomes a near impossibility.

Phil Asmundson, Vice Chairman Deloitte LLP, points out that “… by embracing the Internet as a platform that encourages audiences to participate in discussions about their favorite programs, television is maintaining its hold on the American public… ”

According to this year’s survey, 33% of American households now own a smartphone, up from 11% only three years ago, and 40% of U.S. consumers that do not own a smartphone are likely to purchase one in the near future. This marked rise in smartphone penetration in the U.S. market is rapidly changing consumer behavior with 56% of smartphone and laptop owners stating that they used their smartphones as a replacement for their laptop while away from home, jumping significantly from 41% in only three months.

For more information and to read the full article, please visit Deloitte.com

Rob Schmidt is an Account Supervisor at A. Eicoff & Co., one of North America’s largest DRTV agencies.

                          

Many agencies like to be all things to all people. They specialize in long-form DRTV, short-form DRTV, radio, search, banners, etc… While it would be ideal if agencies were great at all aspects of DRTV/direct marketing, my experience is that most agencies have one core specialty.

Either the agency is very good at half-hour infomercials and does short-form because their client needs them to; or they’re very good at short-form and try to improvise when it comes to half-hours. I think most DRTV veterans would agree with me on this.

2.      What is the background of the agency’s principals?

How long have they been in the DRTV business? What companies/agencies have they worked for? Is their DRTV background long-form or short-form? You can uncover some interesting things.

3.      Are the agency employees working on my business going to be full-time employees or freelancers?

I think it goes without saying that a full-time employee has a much greater investment in seeing your campaign succeed. Ultimately they will see a financial benefit if the clients do well. The freelancer is getting a set fee, regardless of whether the campaign succeeds or not.

While it may seem like overkill, it is important to visit an agency’s headquarters to determine whether the actual agency headcount matches the advertised headcount.

4.      What is the headcount of the agency staff that works on DRTV full-time?

While an agency’s billings are a fair question, it is not necessarily a good indicator of experience. Headcount of staff devoted to DRTV is a better guide to an agency’s experience and clout.

For example, a multi-disciplined agency may have a client/brand that spends $200 million on TV. The objective of the campaign is to achieve awareness and store sales. The commercial does have a small 800# and URL, but the response is minimal

Further, the media is handled out of a holding company media group on the other side of the country. So, what appears to be $200 million in DRTV billings is actually a brand account handled by someone in another office.

5.      What percentage does DRTV comprise the agency’s bottom-line business?

This will quickly give you a snapshot of whether the agency is focused 24/7 on DRTV or if it is a menu item of a much larger entity.

6.      Does the DRTV agency supply full disclosure of rates paid to stations?

No matter what proposal an agency might present to you (i.e. “Guaranteed CPL’s”), unless you have the ability to see exactly what the agency is paying the station for every spot aired, you are susceptible to being overcharged. There’s a reason station affidavits are notarized – you should demand to see them. It’s a red flag if the agency won’t submit them.

For example, let’s say an agency agrees to a 5% commission, rebating 10% of the 15% agency commission back to you. They report to you a $1,000 spot on CNN, without supplying an affidavit.

The agency invoices you for $900 (rebating the 10% of the reported $1,000) which on the surface seems like a pretty good deal. However, the reality is the agency may have paid $750 for the spot, pocketing the difference. This would translate to a real commission rate of 20%. Demand to see the original unedited station invoice.

7.      What is the DRTV agency policy on conflicts of interest?

Most companies do not want their agency working with a competitor. Not every agency looks at it that way. Clarify this upfront.

These are just a few of the questions you may want to think about when reviewing potential DRTV agencies. Good luck with your search!

Bill McCabe is EVP/COO at A. Eicoff & Co., one of North America’s largest DRTV agencies.

                          

The following release gives you some insight into DRTV’s role in CIGNA’s business strategy in Thailand.

CIGNA Insurance Announces 2011’s Key Business Strategies

and Launches New DRTV to sell “1 Care 2” Policy Plan

Posted by on March 3, 2011

Bangkok–3 Mar–CIGNA Insurance

Management, and Direct-to-Consumers Channels integration. The Company sets to launch new Direct Response TV Commercial to offer “1 Care 2” policy aiming to tap the family generation for the 2 consecutive year. CIGNA Thailand targets Y2011 Sales from all channels to exceed THB 1.5 Billion.

Mr. Gary Wayne Denson, Chief Executive Officer & Country Manager, CIGNA Insurance Public Company Limited, an expert in affinity-based telemarketing and direct distribution business specializing in Personal Accident and Health insurance products in Thailand said that the Company has again been successful in its sales mission which has grown over 300% during Y2008-2010, owing to its continued successful implementation of the first three-year strategic road map since Y2008. To continue its success in Y2011, the Company focuses its key strategies on 3 initiatives which are:

1)  Affinity Business Partnerships: to increase the numbers of major Business Partners (BPs) and to expand a horizontal penetration within existing BPs. The Company aims to bring the Insurance more closer to Thai people through various marketing campaigns with BPs such as the campaign that CIGNA has partnered with GSM advance to offer Personal Accidental Insurance for GSM advance customers free of charge for 3 months.

“Our core business model is based on the affinity partnerships. Therefore, the growth of our business partner numbers is very important to the growth of our business. We’re proud to say that our business partner numbers have tripled over the last 3 years, most of which are the country’s leading financial institutions, plus major companies in the telecom, retail, automotive, and IT sectors” Mr. Denson added.

2.) Customer Value Management (CVM) which is the unique strength of CIGNA around the globe that is used to help CIGNA’s Business Partners to drive effectiveness through targeting relevant and meaningful offers to their customer segments — and where CIGNA’s products meet a buying need. Over time, CIGNA is migrating to a model where its approach integrates the customer, product and channel dynamics. This also enables CIGNA to optimize the customer contact management strategy on behalf of its Business Partners. CIGNA Thailand is striving to utilize this unique selling point with every BP to produce greater customer satisfaction & superior financial results for both CIGNA and BPs.

3.) Synergy of all sales channels, especially Direct—to-Consumer Channels, the channel that creates a direct demand from the consumers which has been another strategic initiative of The Company since early 2008. Being happy with last year’s Direct Response TV (DRTV)’s success, the campaign earned overwhelming response from the Thai consumers, which resulted higher than planned sales value. Thereby, CIGNA Thailand will aggressively pursue the DRTV channel again this year.

“Last year we’ve overwhelmed with about 100,000 incoming calls from airing the DRTV and also achieved THB 100 million sales target (DRTV and Internet); we are extremely satisfied and assume in being the pioneer in Thailand that we have created a movement to the market in this channel significantly. There are number of insurance companies that now play in this channel but focus on a different target groups. For CIGNA Thailand, we are still focusing on the target group of the family generation as last year and we launch “1 Care 2” policy plan to the market today”. said Mr. Denson.

The new DRTV campaign will promote the “1 Care 2” insurance policy, which covers both yourself (a prime insured) and another loved one who is either the prime insured’s father, mother, spouse or son/daughter. The prime insured, aging from 15-59 years old, will be covered with both Personal Accident Insurance Plan and also 5 critical illnesses: Invasive Cancers, Heart Attack, Stroke, Kidney Failure, and Coma ranging from THB 200,000 to THB 800,000, plus reimbursement on medical expenses from an accident, with maximum coverage of 30,000 baht per accident (motorcycling included), with no limit on the number of accidents within the protection period. In addition, CIGNA Care Card will be provided to the insured to allow them to enjoy cash-free payment for medical expenses in case of an accident if the insured receives medical treatment in any of the hospitals under the CIGNA agreed partner network. Moreover, Global Emergency Services 24 hours a day will be provided to the insured, allowing them to have a peace of mind when they travel, anywhere in Thailand and across the globe.

Also, the loved one of the prime insured will be provided the maximum coverage of THB 300,000 lump sum benefit when they suffers loss of life, dismemberment or total permanent disability due to an accident, plus reimbursement on medical expenses from an accident with maximum coverage of 10,000 baht per accident (motorcycling included), with no limit on the number of accidents within the protection period. CIGNA Care Card also provided for 1 year coverage (for those who buy plan 3-5 only). The benefit of covering the loved one will go only to the prime insured who pay the premium by credit card, without any additional cost. The loved one could be the prime insured’s either father, mother, spouse or a child whose age between 1-70 years old. The premium of “1 Care 2” plan starts from 7 baht per day (for the prime insured with age between 15-25 years old and buy the Plan 2.)

In addition to DRTV channel, CIGNA also offers “1 Care 2” plan through the online channel via CIGNA Thailand’s website. It aims to serve the new generation of consumers, who love to purchase products via the online channel. For those who interested in the product can leave their name and phone number on the website, for next step follow up from CIGNA’s telesales specialists who will provide information in detail and complete the sales process.

“CIGNA Thailand will synergize our all sales channel as much as possible whether on telemarketing, internet and other channels which will be launched in the near future to maximize the benefit from every channel to ensure a convenient, easy and enjoyable consumer experience. CIGNA Thailand sets the sales target (ANP) of DRTV and internet in Y2011 to exceed THB 140 Million, which means 40% growth from last year.” concluded Mr. Denson.

For Y2010 overall business performance, CIGNA Insurance Public Company Limited recorded Net Written Premiums as of December 2010 of THB 717 Million, jumping 122 percent from THB 322 Million of Net Written Premiums as of December 2009. Number of Policy in-force is about 570,000 policies as of the end of Y2010. The Company has set the Y2011 sales target (ANP) of all channels of THB 1.5 Billion, 50% growth from Y2010 sales results.

For the original article, please visit http://www.tivarati.com/news/106222

Bill McCabe is EVP/COO at A. Eicoff & Co., one of North America’s largest DRTV agencies.

                          

Like everyone else, it is fascinating for me as a marketer to watch the evolution of new technology available to reach consumers (mobile, i-Pads, gaming, 3D, e-books, online video, to name just a few). It’s particularly intriguing to us here at Eicoff because a day doesn’t go by in which we don’t see a new application for all the DRTV campaigns we currently air.

And yet, we continue to remind ourselves to keep our eye on the ball. It’s not that the new technologies won’t continue to grow in importance — they will (and, frankly, become a larger source of revenue for us). The larger message sometimes gets lost in the numbers however. For example, let’s take a look at the most recent Neilsen numbers for the week of February 21:

Source: The Nielsen Company. Viewing estimates on this page include Live viewing and DVR playback on the Same Day, defined as 3am-3am. Ratings are the percentage of TV homes in the U.S. tuned into television.

It’s one thing to look at the large viewership numbers – pretty substantial. However, we’ve found that it’s just as important to look at the types of programming generating the large viewership.

American Idol, CSI, Royal Pains, WWE Raw, SpongeBob. Now I am sure that there is a certain percentage of these viewers that own an i-Pad, watch video online or via mobile. However, I am equally sure that the vast majority of these viewers don’t.

The point is not that we shouldn’t target audiences via the new technology – that’s a no-brainer. The important thing to remember is that what may be cool to us marketing guys may be much slower to take hold with a much larger audience.

Don’t believe me, the next time you go to the DMV to get your license renewed, count how many i-Pads you see. In 10 years i-Pads will most likely be ubiquitous, but until then we have to remember what any comedian already knows: know your audience.

The impact the new technology is having on DRTV is both exciting and complex. The DRTV messages have to continue to appeal to mass audiences, but must be served up in a myriad of ways to allow the consumer to digest it the way they feel most comfortable (ie online, traditional TV, etc…).

As we continue to layer on new technology to traditional DRTV, it is critical that we continue to analyze who our audience is in addition to how we are reaching them.

For more information on Nielsen Ratings, please visit http://www.nielsen.com/us/en/insights/top10s/television.html

Bill McCabe is EVP/COO at A. Eicoff & Co., one of North America’s largest DRTV agencies.

                          

The survey found that the majority of consumers (63%) were most likely to ignore or disregard Internet ads.  When asked what types of advertising they ignored the most, 43% chose banner ads while 20% selected search ads.  Traditional media like TV (14%), radio (7%), and newspaper (6%) filled out the bottom of the ranking.

This is more evidence that consumers are less likely to pay attention to advertising when they are focused on, and engaged in, the content they are accessing.  In most cases, Internet use is literally a “lean-forward” activity.  When consumers go to a web site or search engine, they are seeking information. Unless your message is extremely relevant, or even helpful to the consumer, you will have difficulty being noticed.

The same premise holds true within each media vehicle. While TV fared much better than digital media in this survey, levels of viewer engagement will vary across different dayparts and programming.  DRTV buyers take this into account when negotiating buys, and can gauge the impact when analyzing results.  Consumers let down their guard when they are in a passive viewing mode, and are therefore more accepting of commercials.  And in the case of DRTV, they are more likely to respond.

Consumers use media for various reasons, ranging from proactive information gathering to engaged entertainment, to passive relaxation.  It is important for marketers to understand how this media usage and behavior will impact their communications plan.

The Adweek Media/Harris Poll “Ads People Ignore” can be found at http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/mid/1508/articleId/649/ctl/ReadCustom%20Default/Default.aspx

Rob Schmidt is an Account Supervisor at A. Eicoff & Co., one of North America’s largest DRTV agencies.

                          

The author of the article points out some pretty startling facts re: the TV industry vs. the growing online video/mobile ad market: “In the first quarter of this year the average American spent 158 hours per month in front of the box, according to Nielsen, a research firm. That was two hours more than a year earlier. By comparison, he spent just three hours watching video online and three-and-a-half hours watching it on his mobile phone.” While 6 1/2 hours of viewing online/mobile video represents a great opportunity to reach a highly valued consumer, it is somewhat surprising that this only represents 4% of total consumer viewing for the month.

The article surmises why, “As Laura Martin, an analyst at Needham & Company, an investment bank, observes, the internet now competes fiercely for the kind of advertising that is carried on the radio, in newspapers and in many magazines. Campaigns to persuade people to consider one product over another, or actually to go out and buy something, are well-suited to digital outfits, with their superior ability to track and segment audiences.” It would appear that while radio, newspaper and magazines (the media that has relinquished control of most of their own content for free) appear to be taking the brunt of the advertising falloff, TV (the medium continuing to protect its content) continues to grow –  a good sign for DRTV marketers.

Those companies that rely heavily on DRTV for qualified lead generation campaigns are increasingly finding that online lead aggregators, while delivering an extremely efficient ROI, can only generate so many leads. The big players are finding that DRTV is much more scalable. There are no signs on the immediate horizon that this will change.

All of us in the DRTV industry are excited about DRTV’s role with online/mobile video; and it appears its growth will continue to augment, not cannibalize, DRTV marketing.

Article:  http://www.economist.com/node/17149050?story_id=17149050

Bill McCabe is EVP/COO at A. Eicoff & Co., one of North America’s largest DRTV agencies.

                          

A recent article by Jack Neff in Advertising Age questions the shift toward 15-second commercials and their effectiveness.  He believes pharmaceutical companies are using 15-second commercials as a means of cutting costs, but sacrificing brand building and effectiveness.  The following are a few excerpts from the article:

We’ve all heard it: The 30-second spot is dying, with penny-pinching procurement practices driving the final nail in its coffin… While it may be a prescription for cost cutting, the shift to 15s is having nasty side effects.

“People are making decisions on going from 30s to 15s recently, I think, purely driven by cost vs. is that absolutely the right thing?” said Lakish Hatalkar, head of integrated marketing communications, package design and innovation for Novartis.

“The companies that live and die by their advertising are stretching their budgets with 15s, and frankly there’s a lot for them to learn,” said Ameritest CEO Charles Young. “It’s an awfully short form for creatives to work with. If it devolves into simply reminder advertising, you’re not building brands. You need to bring emotion and news value to those brands.”

Compared to general 15-second commercials, DRTV 2-minute and 60-second commercials build brands, convey more information and often receive lower rates than station rate cards.  DRTV commercials also use a unique 800 phone number and/or a unique URL, in order to track the effectiveness and accountability of a campaign.

Companies large and small, Fortune 500 to pharmaceutical companies, have realized the effectiveness of DRTV and the numbers back it up.  Short-form DRTV campaigns increased 21.9% from 1^st quarter 2009 to 1^st quarter 2010 and the pharmaceutical industry remains the largest player in DRTV with almost $400 million spent in 1^st quarter 2010.  The following charts from Response Magazine shows the increased use of short-form DRTV campaigns in recent quarters, as well as the largest users of DRTV by industry:

Quotes and graphs from:

http://adage.com/mediaworks/article?article_id=145852

http://www.responsemagazine.com/research/short-form-drtv/research-1q-short-form-drtv-media-billings-fall-below-1-bill-2856

Adam Poll is an Assistant Account Executive at A. Eicoff & Co., one of North America’s largest DRTV agencies.

                          

Wide Landscape

DRTV was born out of a growth in commercial inventory, and even as CPMs increase and avails tighten on top tier networks, inventory is still accessible on a national level.  Make sure your media partner assesses the full scale of availability while building your tactical plan.  Also, fight the temptation to limit your buy to stations and/or programs that you, personally, are familiar with.  A good DRTV buyer can still reach your target efficiently by looking beyond the obvious.

Flexibility

Another staple of DRTV is flexibility.  Stations offer buyers flexibility in rates and cancellation, and in return expect flexibility in placement.  Allowing for leeway in response or impression delivery on a weekly and even daypart level will allow you to take better advantage of station availability, and improve efficiency.

Tracking and Optimization

This is elementary to traditional DRTV players, but many marketers who entered the space during the recession were content with driving phone or web response as a means to earn efficient DRTV pricing.  But rate is only part of the equation. Tracking – both clearance and response – and campaign optimization based on this data is the core of a successful DRTV campaign.  Make sure your media agency has the tools and experience to track and optimize down to the creative, station, daypart/rotation, and even program level.  Also, remember that unique phone numbers and URLs by station and creative are instrumental in this process.

Testing

A good DRTV marketer knows that you are always in test mode.  With the tracking capabilities available via DRTV, your campaign should continue to evolve each week based on testing new stations, dayparts, and creatives.  Your media partner should identify the correct balance between core schedule spend and testing.

There will be a lot written about the return of the traditional TV marketplace in the coming months, and much will focus on increases in upfront and scatter demand and the subsequent impact on pricing.  This more competitive marketplace will elevate the importance of traditional DRTV principles. The marketers and agencies that execute these principles the best will continue to thrive in an increasingly ROI focused environment.

Rob Schmidt is an Account Supervisor at A. Eicoff & Co., one of North America’s largest DRTV agencies.

                          

• It wouldn’t build the brand—the hard-selling reputation of DRTV seemed antithetical to the nuanced process of brand building.

• It would be difficult to reach their traditional target market cost-effectively.

What has become clear, however, is that both these assumptions are false. In terms of the latter issue, the proliferation of cable/satellite networks has provided packaged goods advertisers with a range of effective options to reach their markets. These networks, with programming content in everything from food to Asian culture to travel to senior issues, make it possible to create a highly strategic media plan. Perhaps even more important, these networks are very receptive to DRTV. Not only do they have longer-length availabilities for direct response spots but they are willing to provide direct response advertisers with lower, often substantially lower, rates.

In terms of brand building, the conceptual sophistication and production values of DRTV has increased enormously in recent years. At Eicoff, for instance, most of our CPG clients insist that their spots do double duty—selling as well as enhancing the brand. Many times, we’ll work with a client’s general agency to ensure that a spot delivers the right brand message. In some instances, this means integrating the themes of their general advertising into the DRTV spots – maintaining the brand-building elements of the original commercial but revamping it so it includes a response vehicle.

Not only have marketers recognized that these two assumptions about DRTV are false, but they have found ways to make DRTV their own. In other words, packaged goods advertisers have shaped this advertising tactic to meet their own objectives. Marketers have created DRTV campaigning designed to generate increased product sampling and driving customers to retailers to make purchases. While other packaged goods companies have used DRTV to increase high-value coupon redemptions, refine their database, test new markets and create higher traffic on their web sites.

Another way that packaged goods advertisers have shaped DRTV is through the use of 60-second spots. Many traditional DRTV spots are two minutes in length, but packaged goods advertisers have found ways to make 60-second spots achieve their goals. The additional 30 seconds provides the time necessary to include the information and product demonstrations that shorter commercials don’t allow. Using everything from testimonials to dramatic vignettes, they are able to tell a compelling story because of the additional seconds at their disposal. This story can involve an explanation of the “green” nature of their products to a delineation of the advantages over competitive products.

Be aware that all packaged goods DRTV advertising contains a call to action. It’s not sufficient to flash a URL or 800 number. These response devices must be accompanied by a specific request—redeem a coupon, participate in an online product comparison and so on. Without the combination of a specific request and a response vehicle, these companies won’t be able to qualify for DRTV rates.

This packaged good/DRTV trend is also driven by the times in which we live. DRTV’s ability to deliver immediate, measure results confers accountability on the advertising. ROI is crucial to advertisers today, and DRTV provides concrete evidence of ROI. Packaged goods advertisers relish being able to correlate dollars spent versus sales made or other results (web site hits, coupon redemptions, etc.) It will come as no surprise to anyone that in our current economic climate, accountability is crucial to advertisers. And of course, it’s equally important to viewers. Packaged goods advertisers tell us that respondents often are drawn to these commercials because of the perceived value of an advertised product—they felt they were receiving a better deal on a product sold direct than they would receive in a store.

Finally, DRTV offers significant media savings. Because of the way that direct response television is bought, savings can be as much as 40% to 60% off the rate card. Obviously, this savings depends on many factors, but there’s no question that direct response spots provide bargains that can’t be obtained through traditional buys.

Given all these advantages, what’s surprising is not that so many packaged goods advertisers are using DRTV but that more haven’t hopped on the bandwagon.

Steve Millier is a Senior Vice President at A. Eicoff & Co., one of North America’s largest DRTV agencies.