Posts Tagged ‘direct response media’
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.
7 Questions to Ask When Choosing a DRTV Agency
Wednesday, March 23rd, 2011
1. What is the DRTV agency’s primary focus?
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.
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.
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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