Posts Tagged ‘direct response agency’
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.
The Increasing Use of Short-Form DRTV
Monday, September 20th, 2010
According to recent reports, the use of 15-second commercials by the pharmaceutical industry is on the rise. However, the use of short-form DRTV commercials (2-minute & 60-second length spots) is increasing as well. Before a company decides to implement 15-second commercials as part of a campaign, companies should always consider using DRTV to build brand awareness, improve cost effectiveness and increase accountability.
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 1st quarter 2009 to 1st quarter 2010 and the pharmaceutical industry remains the largest player in DRTV with almost $400 million spent in 1st 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
Adam Poll is an Assistant Account Executive 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.
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