Archive for the ‘Media Buying’ Category
What Can DRTV Strategists Take From the “Whitey” Bulger Arrest?
Tuesday, July 12th, 2011
In an ending to a story that doesn’t do justice (no pun intended) to Jack Nicholson’s performance in The Departed, James “Whitey” Bulger was brought down last month by, according to reports, a woman in Iceland who saw this ad on a CNN news story:
Now, what can we as DRTV marketing strategists learn from this? First, avoid being fingered for 19 murders and becoming a despised government turncoat. Oh, wait, this is a marketing blog.
Shotgun Media, Rifle Shot Creative Message
Blame “Whitey” for the firearm analogy — nevertheless it is appropriate.
Several years ago, Eicoff was approached by a company called Liberty Medical that was in the diabetic testing supply business — this was pre-Wilford Brimley. The company explained to us that TV had shown limited success for them and that their target market was Adults 65+, who are insulin dependent, and on Medicare. Unless callers answer yes to all three questions, they are not a worthwhile lead. While I would like to tell you that we all had a vision and jumped on board, the reality was that we were a bit skeptical that TV would be the right strategy.
We developed a very straightforward DRTV spot that was extremely direct – a strong opening that called out the target, “If you are 65….”, supers calling out the benefits of Liberty Medical, and actors the target demo could relate to.
Long story short — the strategy was a huge success, eventually leading us to introduce Wilford Brimley as their spokesperson.
The lesson — while TV is a shotgun medium, a laser-focused commercial can help pinpoint hard-to reach audiences.
Al Eicoff told me many times that DRTV could be an effective way to sell an airplane. I used to laugh to humor him, but then I started to think “you really wouldn’t have to sell many ….” Boeing hasn’t returned my call yet.
PR of a Campaign Can Be as Impactful as the Campaign Itself
According to the FBI, their commercial targeting Whitey’s girlfriend was scheduled to start airing in 14 markets on June 21. Interesting to note that Santa Monica/LA where Whitey was found, was not one of the scheduled markets. It appears the tip came in the night of June 21 from a woman in Iceland who saw the ad featured on a news story on CNN — she apparently had visited LA recently and recognized the wanted couple.
So, after working 16 years and spending God knows how much money trying to find Whitey, the FBI turns to our bastion of marketing and closes the sale in less than 24 hours. Better yet, the PR piece airing on CNN cost them nothing! (Note to DRTV media buyers: I don’t know whether or not they were able to cancel the rest of the schedule — you’ll have to find that out on your own).
I think it goes without saying that you can never publicize your marketing campaigns enough. One more reason it’s critical to integrate your DRTV strategy into your overall marketing strategy.
As far as I know, there is no truth to the rumor that the Charlie Sheen Foundation is working on a campaign to locate the whereabouts of his career. Will keep you posted.
Bill McCabe is EVP/COO 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.
DRTV in Asia
Friday, March 11th, 2011
For those of us that have been involved in DRTV overseas, we know that DRTV’s growth is coming like a freight train, particularly in Asia.
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.
Know Your DRTV Audience
Thursday, March 3rd, 2011
It’s always interesting to look beyond the numbers. We have talked a great deal in this blog about the many misconceptions regarding TV. Namely, that the influence of TV advertising is waning, while all indications are that TV viewing is at an all-time high.
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.
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.
Back to Basics: Maintaining DRTV Efficiency in a Tight Marketplace
Wednesday, June 2nd, 2010
DRTV became even more attractive to a wide array of marketers in late 2008 and early 2009 as media budgets eroded and CMO’s faced more pressure to justify marketing spend by way of ROI. New advertisers tested the DRTV waters, and inventory was available across a broad spectrum of broadcast, cable and syndication outlets. With more vendors willing to work with DRTV advertisers, availability was plentiful and efficiency came relatively easy. But as we face heavier scatter demand in 2010, and brace for a strong 2011 upfront market, it is important to revisit the basics of what makes DRTV efficient.
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.
Packaged Goods and DRTV: A Growing Trend
Tuesday, May 25th, 2010
Over the past two years, we have seen a growing number of major packaged goods companies conducting direct response television campaigns, including P&G, Arm & Hammer, S.C. Johnson, and Clorox. Until recently, most packaged goods companies rarely considered DRTV because of two assumptions:
- 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.
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.
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