Posts Tagged ‘DRTV Direct Response TV’
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.
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.
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.
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.
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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