Posts Tagged ‘short-form TV commercials’
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.
The 5 Myths of DRTV
Friday, March 26th, 2010
Despite the growth of the DRTV business in recent years and all the knowledge available about it online and elsewhere, certain misconceptions persist. Some of these misconceptions have been repeated so often by so many that they become full-fledged myths. At worst, these myths create flaws in the DRTV strategies of advertisers—flaws that can produce media plans, creative approaches or even offers that don’t work.
Awareness of what these myths are can help prevent the damage they do. Here are the most common myths we’ve observed and the realities they obscure:
You can’t sell and build a brand in the same DRTV spot.
This myth is rooted in the early days of DRTV, when the common belief was that every second of the spot must be devoted to motivating viewers to respond. For hard-selling DRTV pioneers, building brand or anything that didn’t focus directly on the offer benefits was wasted time. Over the years, however, we’ve found that brand-building and selling aren’t mutually exclusive. In fact, delivering the brand message at the right time in the right way can actually increase response rates.
Late night and weekend slots are always the best times to run DRTV commercials.
Not always. Obviously, these are effective periods because they usually offer lower rates and the type of programming that DRTV thrives upon. But it may be that for certain offers, other slots are as effective or even more effective. We’ve found that there are instances when primetime can be effective for some direct response spots.
The most effective DRTV spots are ALWAYS two minutes in length.
For a long time, two minutes was the gold standard for DRTV. For many clients it still is. However, because of the diversity of offers on the air and the well-known brands using DRTV, even 30-second spots can work well. We’ve learned that the length of the spot should be shaped by the offer, by testing and by availabilities. The more flexible advertisers are when it comes to commercial length, the more likely they’ll produce an effective spot
You can’t sell products or services over a certain price point using DRTV.
Years ago, there was some validity to this myth. At one time, $19.95 was the cutoff. As viewers became more accustomed to buying via DRTV, as Fortune 500 advertisers helped legitimize many spots and as credit card usage for purchases became the norm, the old pricing limits became irrelevant. Nonetheless, some people in our industry still believe that it’s tough to sell high end offers, even though there’s a great deal of evidence to the contrary.
DRTV advertising has no impact on retail sales.
In some ways, this is the most persistent myth of all. For years, many people in our business believed that if people didn’t respond to a DRTV spot by calling the toll free number, they would never buy that product in a store; that DRTV commercials contributed nothing to creating awareness for and a predisposition to buy advertised products in stores. We’ve had clients who have run what are known as “dark tests” where they pull DRTV advertising for a period of time and measure how retail sales are impacted. They’ve found that store sales of their products decreased when the DRTV commercials were off the air and increased when they went back on. Clearly, direct response commercials have a positive, spillover effect on store sales.
Bill McCabe is EVP/COO at A. Eicoff & Co., one of North America’s largest DRTV agencies.
DRTV’s Impact on Traditional Marketing
Tuesday, March 2nd, 2010
It dawned on me as I was watching the Olympics this week the impact DRTV is having on traditional marketers. While we didn’t see a preponderance of 800#/drive to web (though I saw some), the impact I spotted was more subtle.
There has been a great deal of discussion regarding the web’s impact on television viewing. We’ve discussed at length the misperception that TV viewing is declining — there is plenty of research recently published that shows that, in fact, TV viewership is increasing.
Digging deeper behind the “TV is Dying” headlines, I’d propose that what the “experts” really want to be saying is, “The :15 and :30 TV Commercial is Dying.” I suspect that general marketers are beginning to learn what DRTV marketers have known for a long time — longer length commercials are more effective than shorter length commercials.
Here are a couple spots from Nike and P & G that appeared frequently during the Olympics:
Personally, I love these spots — I don’t get tired watching them. The question I ask myself is, “Would I like them as much if they were a :15 or a :30?” Probably not.
As more traditional marketers become exposed to the benefits of longer length DRTV spots, I believe you are going to see traditional marketers shift the balance from :15/:30’s to :60/:90/:120’s. The same reason DRTV marketers know they generate more calls/traffic per dollar via longer length sports, smart traditional marketers will learn this is the strategy they will need to follow for TV to be effective for them.
Bill McCabe is EVP/COO at A. Eicoff & Co., one of North America’s largest DRTV agencies.
Choosing the Right DRTV Celebrity
Thursday, February 11th, 2010
Or How Wilford Brimley rode in on a horse, and Liberty Medical rides out with a success story.
Working with a celebrity endorser can be an expensive proposition for an advertiser. And, as many advertisers through the years have discovered, it can be fraught with peril. But with DRTV, you can find out very quickly whether a celebrity is the right spokesman for your product.
Liberty Medical is in the business of home delivery of diabetes testing supplies and was committed to using a celebrity in their advertising. Liberty tried a number of very famous actors without success. The spots were pulled after short media tests, with minimal financial investment.
It turns out having an instantly recognizable name was not enough to resonate with potential Liberty customers. The spokesman had to know what living with Type 2 Diabetes is all about. Enter Wilford Brimley.
Click on the embedded video to see the spot created by A.Eicoff & Company, and hear Wilford Brimley’s story. The spot was a long-term success for Liberty Medical.
After the initial two-week test with Wilford Brimley proved successful, a national rollout followed. The difference was not the message or the markets where the spot ran. The difference was the simple fact that Wilford Brimley understood what living with Type 2 Diabetes was all about; he was able to connect with the audience. He knew that testing your blood sugar as often as your doctor prescribed was vital, even if it wasn’t the easiest or most pleasant thing to do. He offered a bit of advice, he did it in a compelling manner and there was no mistaking what he wanted people to do: “Call Liberty, they’ll help you live a better life.”
Liberty Medical built their diabetes testing supply business significantly on a Direct Response Television campaign featuring Mr. Brimley. This commercial, which ran successfully for several years, was also parodied on Saturday Night Live, featuring John Goodman in the role of “Wilford Brimley.”
I’m not sure how Mr. Brimley took the satirical piece, (I didn’t dare ask), but when your commercial is being parodied on SNL it’s definitely part of the consciousness of American television viewers. And that was a huge bonus for Liberty Medical. A celebrity is not always the right way to go in a television campaign, but when you can test it with a Direct Response Television commercial, you’ll know very quickly whether you made the right decision.
Terry O’Sullivan is a Group Creative Director at A. Eicoff & Co., one of North America’s largest DRTV agencies.
Evolution of DRTV
Thursday, February 4th, 2010
When Alvin Eicoff created his own direct response agency 50 years ago, did he think direct response television (DRTV) would make products like the Snuggie a national phenomenon? Some may argue that he knew products like this would flourish with DRTV. In fact, one of Alvin’s first products he advertised promised to get rid of rats in your home and was quite successful. Though the products may be as unique as they were 50 years ago, small products are not the only ones using DRTV. Top Fortune 500 companies, who 20 years ago would have never dreamed of using DRTV, now rely on it to sell products, generate leads and build their brand. The following are four developments that helped DRTV evolve into the effective marketing tool it is today:
Call Tracking
The development of telemarketing call centers has become just as important as any other element in DRTV. When a person calls the number shown in a DRTV advertisement, they are directed to a call center where the call can be broken down into several statistics. Most DRTV commercials place a unique 800-phone number on their spot, specific to that channel/daypart. When a person calls one of the unique phone numbers, the call center can track which spot (channel/daypart) generated the call. The call can then be analyzed and statistically reported by aspects such as cost per call, cost per lead, and conversion rate, which have become one of the most important elements when placing media. These statistics help optimize where media is placed based on which channel/daypart/program produces the best statistics. Many call centers today possess real-time tracking technology that gives media buyers the power to know more data faster and optimize more effectively based on this data.
Internet
The internet has provided a new medium to which the viewer can respond. Many DRTV commercials also feature a URL the viewer can visit. Some advertisers are even placing unique web address in their DRTV spots, e.g., www.company.com/tv1. The use of a URL is a less formal response to a commercial, but can provide similar statistical feedback to advertisers. Also, though viewers may not remember the unique URL in a commercial, they may perform an internet search for the company advertised in the spot. If search has gone up, one can assume the commercial has had a positive effect.
Media Landscape
The television media landscape continues to expand. The number of cable networks is increasing and becoming more fragmented, making it easier to place longer length spots (typically 2-minutes or 60 seconds in length) and target specific demographics. For example, if an advertiser wants to target adults aged 65+, they are able to place DRTV spots on stations this demographic is likely to watch, and as a result, more likely to respond to. This type of strategy not only drives more leads, but more qualified leads as the audience viewing the commercial are the ones targeted.
Fortune 500 Companies
Twenty years ago, top Fortune 500 companies like American Express would have never dreamed of using an 800-phone number or a call-to-action in their television commercials. Having DRTV as part of their marketing mix was considered uncomfortable territory for these companies. Nowadays, these Fortune 500 companies are calling us to learn how DRTV can help generate leads and more importantly, sales. Whether it is driving people to a phone number, retail store or website, DRTV has been an effective ROI strategy for these top companies to produce results as well as build brand awareness.
With technology and the marketplace ever changing, the possibilities are endless for DRTV. At the current pace, advertisers in the next 50 years may have no choice but to rely on DRTV. Alvin Eicoff would certainly agree.
Adam Poll is an Assistant Account Executive at A. Eicoff & Co., one of North America’s largest DRTV agencies.
The Power of the DRTV Demo
Friday, January 29th, 2010
With the spirit of the state of Missouri in mind, buyers of your helpful product or cool innovation will often bring a simple demand: show me! Thus, as much as powerful language and nice imagery can enhance your product’s personality and its brand, you cannot underestimate the power of THE DEMO in your television spot.
This is especially important if you’re creating a direct response television commercial.
Over the years at Eicoff, we’ve put numerous products to that task in our DRTV commercials. Craftsman tools, Kenmore vacuums, beauty products, automotive… we’ve demoed it all. Along the way, we’ve learned quite a few things. Here are some.
Demos don’t need to be boring. Whether it’s the angle you shoot it at, the art direction or the sound effects, demos can and should be dynamic.
Think visual. Some demonstrations are made for television, others not so much. Make sure what you’re demonstrating is something that can be told visually. For example, you cannot show how a product smells.
Take your time. Longer format television spots help you help the viewer see your product’s value. Unless you have something that does one thing and one thing only, it’s beneficial to have extra time to give viewers a more complete picture and better understanding of your product. “Wow, it does that and that and that… sold!”
Run a test. It may seem like a total no brainer, but it’s always a good idea to try the demos before you film the demos. This ensures no hangs up on the shoot day and may actually create a thought or two on how to improve the demo.
Here are 3 examples of Eicoff DRTV commercials that work hard to tell a product’s story by utilizing the almighty demo.
Craftsman 2-in-1 Trimmer/Blower
Craftsman Clean ‘N Carry Powerwasher
Craftsman CompuCarve
Tim Burke is a Senior Vice-President, Group Creative Director at A. Eicoff & Co., one of North America’s largest DRTV agencies.
Where Emerging Media and DRTV Overlap
Friday, January 22nd, 2010
There is much focus these days in the trade publications on emerging media. It is a very broad term that often scares traditional DRTV clients. It should not. Much of what makes emerging media exciting overlaps well with traditional DRTV:
- Highly measurable
- Easy to target specific demographics
- Platforms that are conducive for response
- Pricing models that allow for low-cost testing
It is true that the emerging media world is very broad and rapidly changing market. In this post I would like to focus on a few of the key areas where emerging media and DRTV overlap:
- Alternate buying platforms (Google TV, Admira)
- Interactive TV (TiVo, RFI)
- Online Video
One reason these all work so well is that they are rooted in the power of utilizing video to drive response and serve as a new way for the ad to generate response. Alternate buying platforms are the easiest emerging media tool for a DRTV company to grasp. You are buying the same media and running the same creative, but the buying process is more intelligent due to some very exciting technology from companies like Google and Microsoft (Admira). We have had great success using these platforms as additional tools in our media tool box.
Interactive TV allows the consumer easily respond to a call-to-action — most often via the click of a remote. TiVo has proven a very successful tool for our clients. Their platform is very advertising friendly- especially with the addition of show tags and pause screen tags. We are now able to advertise on shows that typically are off limits for DRTV clients. RFI capabilities are currently rolling out on other platforms and should be a great tool to generate cost-effective responses in 2010.
Online video has been the hot medium for the last two years. Unfortunately, the large growth in online video consumption has not been matched in ad spending by DRTV-minded advertisers. That may change in 2010 as the number of consumers watching longer-length videos increases and the cost of online video ads comes down. The willingness of ad networks and publishers to test CPC (cost per complete call) and even CPS (cost per sale) pricing is also increasing, which is a very good sign for the DRTV market.
This was just a very brief skim of just a few of the exciting emerging media tools our clients are using to generate immediate, measurable results. More to come…
Matt Cote is Associate Director of Emerging Media at A. Eicoff & Co., one of North America’s largest DRTV agencies.
TV Viewership and Its Impact on DRTV
Wednesday, November 11th, 2009
Much has been written about the demise of television at the hands of the web. The recent report issued from Nielsen may put a snag in the theory that TV is a dying medium.
The graph below indicates that TV viewership continues to grow, and hit an all-time high last quarter. This by no means diminishes the role of the internet (and, more importantly, its role as a DRTV response option), but it does give one pause to think that HD-quality 52-inch television viewing is going to be replaced by people viewing shows on their cellphones anytime soon.
The skeptics will say that viewership may be increasing for viewers 18+ but the next generation of viewers will act differently. This may be true, however Nielsen’s latest data on viewers 2-11 indicate that viewership is increasing there as well.
Web Impact on DRTV
Many of us remember the heady times of the late ‘90’s in Silicon Valley. Start-up internet companies in garages were receiving millions of dollars in seed money. As the web continued its growth, one had to naturally begin to wonder what the web’s impact would be on the television industry, and on DRTV specifically.
Looking back on it, the internet is the best thing that ever happened to the DRTV industry. The primary benefit: accountability. Marketing and product managers have had to become much more accountable when it comes to their marketing budgets. And for many marketers, take a guess what is usually the largest line item in their marketing budget: TV.
DRTV has allowed marketers to better justify the dollars they spend on TV. As the technology continues to evolve, there is no doubt this efficiency and accountability will continue to grow.
Bill McCabe is EVP/COO at A. Eicoff & Co., one of North America’s largest DRTV agencies.
DRTV and Pharma
Tuesday, November 3rd, 2009
It’s hard to believe it has been 12 years since the FDA eased the guidelines on television advertising for pharmaceuticals. It occurred to us when this happened that DRTV marketing would be a natural component for DTC television:
–Pharma TV ads had to contain an 800# for consumers
–Commercials had to contain a balance statement (requiring a longer length spot)
–Capturing the names of people with a chronic disease state seemed valuable
As I made my rounds of marketing conferences espousing the benefits of DRTV and how it would change pharma marketing, mostly what I received were stares. I quickly learned that pharma product managers in those days not only had no idea what DRTV marketing was, most had no consumer marketing experience either. They had built their success on B2B marketing to the physician.
While we as an agency had some success with a few clients, the growth never reached the level we thought it would. It seemed that while direct marketing was being used here and there, it hadn’t taken hold, for whatever reason. A few years passed.
I walked into a meeting a couple years back at a large pharma company. As the large group introduced themselves, it became apparent that 70% of the people from the company had the term “Relationship Marketing” in their title. The day had come — direct marketing had finally taken it’s place in the Pharma industry and it’s never looked back.
There are rumblings that the new healthcare plan will contain some restrictions on DTC advertising — until that time we suspect that direct marketing/DRTV will continue to play a larger role in DTC marketing.
Bill McCabe is EVP/COO at A. Eicoff & Co., one of the North America’s largest DRTV agencies.
A Message about the Message
Tuesday, October 6th, 2009
Have you ever watched a television commercial and thought, “Wow, I have no idea what you, Mr. Advertiser, are trying to tell me.” It happens all time. Advertisers, with everything they’re attempting to accomplish, can very easily find themselves communicating nothing. You can speak in a language consumers don’t understand. You try to be too clever. You can be too forgettable. You can say too much. You can say too little. Indeed, there are a million ways to mess up your message.
In direct response television, bad communication makes for bad results. In DRTV, the commercial lengths are often longer; the copy is heavier; and the need for understanding is even greater. Thus, while the longer format provides a great opportunity to really make your words work wonders, it unfortunately also can become a showcase for one’s failure to communicate. So when it comes to your TV commercials and relaying what you want to say, here are 5 ways to move your message in the right direction.
1 Make your words relevant and relatable
Instead of telling the viewer this is what my product or service does, try expressing what it means to them. For example, rather than saying, “This phone is equipped with a state-of-the-art global, galactic, digital-mapping navigation system,” try something more like, “With our phone in your purse, you’ll never know the feeling of being lost again and you’ll always know where closest coffee shop is.”
2 Stay focused
What is the main message you want people to take away? Think about it. Think some more. And then do everything you can to ensure it does not get lost. In longer format television spots, the big advantage is the ability to add more and more information. This is certainly a terrific thing because very often a 30 second spot simply does not offer enough time to tell your story. However, if your big message is “our product will make you better looking,” and you open with that statement, then go on to talk about how the product makes you smarter, taller, funnier, faster, stronger, happier, less stressed out about your job and better at Sudoku puzzles without continuing to reinforce your main message, your spot quickly becomes less clear, less concrete and less compelling.
3 Speak their language
No, this does not mean if you’re airing your TV spot in Texas you need a cowboy for your voice. What you need to consider is the fact that you understand your product or service in a completely different way than the guy sitting on the couch watching your commercial. The internal, corporate jargon needs to be locked away in a file cabinet. Be conversational. Be human. Be personal. Make your message feel like it was written from one person to another.
4 Don’t forget your tone
Especially in direct response television, the tone of your spot can often fall into the category of “what tone?” This is a big mistake. Because it’s not only what you say, but how you say it. First, you must think about the personality of your product, your brand or your service. Is it friendly, serious, smart, energetic or something else? If you don’t know the personality, envision what you would like it to be. Tone can help your ad stand out from the clutter and really get noticed.
5 Lead them on a clear path
Okay, so you’ve done everything you can to get a consumer interested in your product. You’ve made it relevant, spoke their language, stayed focus and engaged them with your tone. Now you must make sure they know what to do. If you want them to call, say it loud and proud. If you have a website in mind, put it up there on the screen as clear as can be. Or if there is a store to go, let the people know. Unless your product is well known and where it’s sold is super obvious, don’t be shy about telling the viewer exactly how to take action. And don’t give them 8 different call-to-actions either. Make their path simple and smooth.
The message you send in your TV commercial is everything. The words you choose, and of course the visuals you use, should work effortlessly to convey your story. Whether your story is easy to tell or much more challenging, you should always be thinking about that person on the other side of the TV and asking, “Do THEY get it?”
Tim Burke is a Creative Director at A. Eicoff. one of North America’s largest DRTV agencies.
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