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.