Archive for the ‘Emerging Media’ Category
DRTV Agencies Will Thrive via Innovation and Collaboration
Wednesday, August 24th, 2011
MediaPost recently reported on a survey conducted by The Horn Group that indicates a shrinking of agency rosters is likely to happen over the next five years. The survey polled 265 CMOs about their perceptions on client agency relationships, and how they see these partnerships evolving in the future.
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.
Survey Suggests Need for DRTV
Friday, April 8th, 2011
Deloitte’s recent “State of the Media Democracy” survey provides compelling data that suggests DRTV should be playing a larger role in marketers’ media mix. The most glaring statistic is that 86% of Americans state that TV advertising still has the most impact on their buying decision. And this sentiment is relatively consistent across generational segments.
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.
Adweek Poll & DRTV Buyers See Impact of Media Usage
Monday, December 13th, 2010
A recent AdWeek Media/Harris Poll revealed numbers regarding advertising acceptance that reflect what DRTV marketers already know about how consumers use media – there is often an inverse relationship between content engagement and ad effectiveness.
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.
Can DRTV Continue It’s Growth Curve?
Friday, October 15th, 2010
An interesting article in this month’s The Economist, “The Return of Advertising: The Box Rocks.”
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.
DRTV Will Benefit from New Technology
Wednesday, June 16th, 2010
As new technology continues to explode around us, many of us continue to assess the impact it will have on both consumers and marketing. Call it half-glass-full thinking, but it appears to us that this is all good, particularly for DRTV marketers.
Upon reading the article below about ESPN’s expansion into 3-D (in addition to mobile, online, iPads, etc…) the line that jumped out of the article was, “New second and third screens, online, iPad, mobile, are not cannibalizing traditional media. ” Said another way, it would appear that most of the new technology is adding to, not taking from, traditional media.
ESPN Pushes 3-Screen Approach, But TV Still King
Wayne Friedman, Jun 15, 2010
Las Vegas, NV — ESPN isn’t just about all screens all the time; it’s about content producers all working together, which can be rare in media. It’s also about moving fast with new technologies.
“Digital producers sit next to online producers [who] sit next to TV producers,” says George Bodenheimer, president of ESPN Inc. and co-chair of Disney Media Networks, speaking at the Nielsen Consumer 360 conference.
“I don’t believe in silos,” he says. “I hate hearing about silos.”
ESPN recently built the biggest digital-TV facility in Bristol, Conn., which the company believes is the largest facility of its kind in the U.S.
ESPN has been pushing its three-screen approach for some time now — whether it’s traditional TV, online, mobile or the iPad. These businesses are still growing, although the latter is small. “Nearly 10% of the people who watch the World Cup, and who enjoyed, weren’t watching on TV,” he says.
Television remains the big gun for ESPN. “Television is the Mac truck of media usage,” he says. Eighty percent of the sports network viewership comes from TV. New second and third screens, online, iPad, mobile, are not cannibalizing traditional media.
Bodenheimer says 75% of ESPN’s traditional TV usage comes from male viewers, with 85% of ESPN’s new digital video products also consumed by men. But he adds that the network has women users; it’s just that the cumulative usage of men versus women is much higher.
ESPN’s rapid deployment of new technology is necessary — even with doubters. “It’s very easy to throw your hands up [about 3D],” says Bodenheimer. “How big? How fast? What about the glasses? The answer is: We don’t know… [but] if we are going to continue to be leaders, then we must launch [these products].”
Why is this good for DRTV marketers? First, traditional TV media will continue to grow in the near future as the population increases. One only has to count the increasing number of cable/digital networks to bear this out. As we all know, more air time means lower rates, etc…
What’s even more intriguing is the opportunity new media presents for DRTV marketers. While much of the new media is still over-priced on a CPM basis, just imagine the day when those costs come back to reality. Combine these more rational media costs with DRTV’s ability to both utilize video content to drive a response, and track every single spot aired. Based on our experience in new media, that day is fast-approaching.
So get your 3D glasses on, grab your iPad and hold on, it’s going to be a fun ride!
Original article here: ESPN Pushes 3-Screen Approach, But TV Still King
Bill McCabe is EVP/COO at A. Eicoff & Co., one of North America’s largest DRTV agencies.
Do Longer Length DRTV Spots Belong Online? Just ask Hulu.
Monday, May 10th, 2010
It’s no secret, video on the web is booming. More and more venues are being created to showcase online video, and as a result, advertisers are presented with increasing opportunities to use their existing spots on the internet.
But virtually all of them currently focus the super-short :30s and :15s length creative. Where are the opportunities for DRTV marketers who use longer length spots?
The answer may surprise you: Hulu.
About a year and a half ago, Hulu ran an experiment where consumers were given a choice: they could view their online content with a longer-length :120 ad at the start, or with multiple 30 second ads during the program. The results were astonishing – nearly 90% of Hulu viewers opted for the longer, two-minute ad.
What’s more, the overwhelming opt-in rate for the longer length ads strongly suggests a greater engagement level, as well. A longer spot with a higher opt-in, greater engagement and more options for messaging than my :30s? Marketers took quick notice, and blue chip companies from American Express to Sprint all used longer length creative on the site.
The takeaways are pretty clear to Eicoff: short copy may rule the roost now, but it would appear clear that :120s and :60s will eventually find their rightful place online, just as they have on TV.
Original article here: Why Long-Form Ads Are the Wave of the Future
Scott Ballew is Account Supervisor at A. Eicoff & Co., one of North America’s largest DRTV agencies.
Evolution of DRTV
Thursday, February 4th, 2010
When Alvin Eicoff created his own direct response agency 50 years ago, did he think direct response television (DRTV) would make products like the Snuggie a national phenomenon? Some may argue that he knew products like this would flourish with DRTV. In fact, one of Alvin’s first products he advertised promised to get rid of rats in your home and was quite successful. Though the products may be as unique as they were 50 years ago, small products are not the only ones using DRTV. Top Fortune 500 companies, who 20 years ago would have never dreamed of using DRTV, now rely on it to sell products, generate leads and build their brand. The following are four developments that helped DRTV evolve into the effective marketing tool it is today:
Call Tracking
The development of telemarketing call centers has become just as important as any other element in DRTV. When a person calls the number shown in a DRTV advertisement, they are directed to a call center where the call can be broken down into several statistics. Most DRTV commercials place a unique 800-phone number on their spot, specific to that channel/daypart. When a person calls one of the unique phone numbers, the call center can track which spot (channel/daypart) generated the call. The call can then be analyzed and statistically reported by aspects such as cost per call, cost per lead, and conversion rate, which have become one of the most important elements when placing media. These statistics help optimize where media is placed based on which channel/daypart/program produces the best statistics. Many call centers today possess real-time tracking technology that gives media buyers the power to know more data faster and optimize more effectively based on this data.
Internet
The internet has provided a new medium to which the viewer can respond. Many DRTV commercials also feature a URL the viewer can visit. Some advertisers are even placing unique web address in their DRTV spots, e.g., www.company.com/tv1. The use of a URL is a less formal response to a commercial, but can provide similar statistical feedback to advertisers. Also, though viewers may not remember the unique URL in a commercial, they may perform an internet search for the company advertised in the spot. If search has gone up, one can assume the commercial has had a positive effect.
Media Landscape
The television media landscape continues to expand. The number of cable networks is increasing and becoming more fragmented, making it easier to place longer length spots (typically 2-minutes or 60 seconds in length) and target specific demographics. For example, if an advertiser wants to target adults aged 65+, they are able to place DRTV spots on stations this demographic is likely to watch, and as a result, more likely to respond to. This type of strategy not only drives more leads, but more qualified leads as the audience viewing the commercial are the ones targeted.
Fortune 500 Companies
Twenty years ago, top Fortune 500 companies like American Express would have never dreamed of using an 800-phone number or a call-to-action in their television commercials. Having DRTV as part of their marketing mix was considered uncomfortable territory for these companies. Nowadays, these Fortune 500 companies are calling us to learn how DRTV can help generate leads and more importantly, sales. Whether it is driving people to a phone number, retail store or website, DRTV has been an effective ROI strategy for these top companies to produce results as well as build brand awareness.
With technology and the marketplace ever changing, the possibilities are endless for DRTV. At the current pace, advertisers in the next 50 years may have no choice but to rely on DRTV. Alvin Eicoff would certainly agree.
Adam Poll is an Assistant Account Executive at A. Eicoff & Co., one of North America’s largest DRTV agencies.
Where Emerging Media and DRTV Overlap
Friday, January 22nd, 2010
There is much focus these days in the trade publications on emerging media. It is a very broad term that often scares traditional DRTV clients. It should not. Much of what makes emerging media exciting overlaps well with traditional DRTV:
- Highly measurable
- Easy to target specific demographics
- Platforms that are conducive for response
- Pricing models that allow for low-cost testing
It is true that the emerging media world is very broad and rapidly changing market. In this post I would like to focus on a few of the key areas where emerging media and DRTV overlap:
- Alternate buying platforms (Google TV, Admira)
- Interactive TV (TiVo, RFI)
- Online Video
One reason these all work so well is that they are rooted in the power of utilizing video to drive response and serve as a new way for the ad to generate response. Alternate buying platforms are the easiest emerging media tool for a DRTV company to grasp. You are buying the same media and running the same creative, but the buying process is more intelligent due to some very exciting technology from companies like Google and Microsoft (Admira). We have had great success using these platforms as additional tools in our media tool box.
Interactive TV allows the consumer easily respond to a call-to-action — most often via the click of a remote. TiVo has proven a very successful tool for our clients. Their platform is very advertising friendly- especially with the addition of show tags and pause screen tags. We are now able to advertise on shows that typically are off limits for DRTV clients. RFI capabilities are currently rolling out on other platforms and should be a great tool to generate cost-effective responses in 2010.
Online video has been the hot medium for the last two years. Unfortunately, the large growth in online video consumption has not been matched in ad spending by DRTV-minded advertisers. That may change in 2010 as the number of consumers watching longer-length videos increases and the cost of online video ads comes down. The willingness of ad networks and publishers to test CPC (cost per complete call) and even CPS (cost per sale) pricing is also increasing, which is a very good sign for the DRTV market.
This was just a very brief skim of just a few of the exciting emerging media tools our clients are using to generate immediate, measurable results. More to come…
Matt Cote is Associate Director of Emerging Media at A. Eicoff & Co., one of North America’s largest DRTV agencies.
TV Viewership and Its Impact on DRTV
Wednesday, November 11th, 2009
Much has been written about the demise of television at the hands of the web. The recent report issued from Nielsen may put a snag in the theory that TV is a dying medium.
The graph below indicates that TV viewership continues to grow, and hit an all-time high last quarter. This by no means diminishes the role of the internet (and, more importantly, its role as a DRTV response option), but it does give one pause to think that HD-quality 52-inch television viewing is going to be replaced by people viewing shows on their cellphones anytime soon.
The skeptics will say that viewership may be increasing for viewers 18+ but the next generation of viewers will act differently. This may be true, however Nielsen’s latest data on viewers 2-11 indicate that viewership is increasing there as well.
Web Impact on DRTV
Many of us remember the heady times of the late ‘90’s in Silicon Valley. Start-up internet companies in garages were receiving millions of dollars in seed money. As the web continued its growth, one had to naturally begin to wonder what the web’s impact would be on the television industry, and on DRTV specifically.
Looking back on it, the internet is the best thing that ever happened to the DRTV industry. The primary benefit: accountability. Marketing and product managers have had to become much more accountable when it comes to their marketing budgets. And for many marketers, take a guess what is usually the largest line item in their marketing budget: TV.
DRTV has allowed marketers to better justify the dollars they spend on TV. As the technology continues to evolve, there is no doubt this efficiency and accountability will continue to grow.
Bill McCabe is EVP/COO at A. Eicoff & Co., one of North America’s largest DRTV agencies.
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