DRTV - only direct selling?

In the past DRTV was conceived as a late-night presentation of somewhat strange gadgets and utility items. No longer. Fortune 500 companies now regularly advertise on DRTV. Big brands such as Black & Decker and Procter & Gamble have made their foray into DRTV busting the myth that DRTV is only for small time manufacturers working on a budget. DRTV has tremendous reach and is a very effective medium of advertising. Although the long form is experiencing a slight dip in slot purchase, the short form is increasing in popularity more than ever.

DRTV is an excellent medium for driving retail sales. According to an estimate, for every unit sold direct, up to a hundred units are sold in the retail shops. Unlike traditional advertising which is all about brand building, DRTV places more emphasis on demonstration and recall value. The length of the commercial (two minutes is still long compared to a 30 second traditional advert) makes sure the viewer is left with no doubt as to the name of the product or what it looks like. Even if they do not decide to buy it as soon as they see the commercial, they can be motivated to buy it when they see it on the shelf at the local store or supermarket. This is particularly true for houseware products.

In recent years, DRTV has also driven sales through another medium – the internet. Many DRTV spots carry not only an 800 number but also a website address. Victor Grillo, president of Advanced Results Marketing estimates that 25 percent of the sales of products advertised on DRTV spots are now conducted through websites.

To keep a top DRTV campaign at the top...

DRTV is going great guns in today’s advertising world. A good DRTV campaign can be a gold mine for a product. Calls can literally pour in. But it is important to remember that every piece of the product sold is not necessarily because of the 800 number. Nor is a successful campaign merely a record of the number of pieces sold by direct calls placed by the viewers.

A good DRTV also induces sales by other means. For example, a DRTV campaign is an effective tool for driving retail sales. This campaign is useful because it uses the idea of memory and recognition. Consumers are shown a product via television and they become familiar with that brand, so when they are out shopping at their chosen retail location they are more likely to purchase the brand that they have seen on TV and that is more known to them. Advertisers also motivate this process by providing “As Seen On TV” signage for the displays that house the products and write this message on the product packaging. Another area that will benefit from a well planned DRTV campaign is internet sales. By placing the web site address in an effective and strategic manner in the commercial, it is possible to induce the viewer to visit the website and subsequently purchase a product.

Upsells also help push up the profits of a product. When a caller has placed an order, they can be offered related products or additional units, often at a discount. An add-on product is something that will enhance the present product or is a better, upgraded version of it – these add significantly to the original profit on a product. Since upsells are executed at the time of ordering and are not part of the commercial itself, they are extremely easy to modify and test.

Continuity programs are also very important where, with the permission of the purchaser, a set of products or replenishments are scheduled to be automatically shipped over a period of time. The income potential of continuity programs are tremendous and wherever possible should be integrated into the overall DRTV campaign.

Short form DRTV

Although traditionally infomercials have been half an hour long, today the shorter form of DRTV commercials is gaining in popularity. Short form DRTV commercials are generally 60, 90 or 120 seconds long. This makes them longer than conventional advertisements, yet they are short enough to keep viewer attention captured for the entire duration of the commercial.

Short form DRTV is a very powerful medium for a large variety of products. Short form DRTV is used not just as a stand alone but also to drive retail sales, fortify web presence, launch new products and to generate leads for dealers. Unlike long form infomercials, short form DRTV also works for products that are not very complicated. In fact ARMDR, a leading DRTV company has such a diverse clientele like Mandalay Bay, The Nevada Tourism Commission and Carvel among others.

More and more big names are using DRTV as a potent tool for brand building to backup their conventional advertising campaigns. Short form DRTV can also be the perfect complement for other advertising campaigns like direct mail and print campaigns. Even though costs have escalated in the past few years due to the great demand for spots, short form DRTV is still inexpensive compared to conventional advertising. Short form DRTV has now become one of the most recognized branding vehicle which also gives the most returns for the advertising dollar. Not only traditional demonstration products, but more and more sophisticated products and services like resorts, pharmaceuticals and computer firms.

How successful is DRTV?

Let us look at some figures. Nowadays DRTV accounts for at least 25% of all television commercials. And nearly two third of the American viewers have watched DRTV commercials sometime or the other. Potential customers for DRTV are usually more affluent and educated. Although previously female customers outstripped the males, it is changing slowly but surely now.

Infomercials tap into the emotional side of viewers. Watching the product in its entirety, being explained all the aspects of the product, watching it in actual use – all these go a long way in building the viewer’s trust. This is a special advantage for complex products like repair kits and multi piece sets where the potential customer has the satisfaction of knowing exactly how to use the product in its totality before deciding to buy it. Nothing is vague or left to the imagination. Surprisingly according to a survey, DRTV viewers are more likely to trust infomercials than congress, used car salesmen and corporate executives!

With DRTV, the viewer is a part of the commercial. The presenter talks directly to the viewer which works sub-consciously at a near-personal level and persuades the viewer to call for more information or to even place an order. Attractive buy-back policies, discounts and freebies add to the winning formula. Add-ons are also very important for a successful DRTV campaign to maintain the recall value of a product.

From extra to superstar

Remember the olden days when you were down with the flu and had nothing better to do due to lack of sleep than to watch late night TV? That used to be the time when those guys in infomercials would sell products that seemed ground breaking, innovative, or at worst, downright weird. What on earth happened that these very same direct response adverts now have whole channels dedicated to them? And when you see that big players like MGM and Apple have made themselves comfortable in this medium, you know that DRTV has arrived big time.

DRTV is all about storytelling. The biggest advantage of an infomercial is that there is plenty of time to present the product, talk about its unique points, advantages over other similar products, illustrate its uses with actual demonstrations, talk about its unique points once again, have genuine users testify to the usefulness, talk about its unique points yet again and finally call on the viewers to place their orders right away. Even though people are generally reluctant to buy what they see on TV straight away, infomercials are surprisingly successful. Breakout hits have become virtually goldmines, for example the all time hit, the Ginsu 2000 Knife Set.

Advertisers are being drawn to direct response TV because it’s a more efficient — and flexible — way to acquire ad time and target prospective customers, says Advanced Results Marketing EVP, Beth Vendice. People love miraculous transformations and the longer time given to infomercials shows very thoroughly all the aspects of the product and simulates a hands-on trial for the viewer. Another reason for the success story of infomercials is the very attractive prices and offers (you almost always have a ton of add-ons or gifts thrown in for free). But the biggest attraction of all is the “Order now! Our operators are standing by!” promises that viewers find simply irresistible!

Next time round we’ll try to look at some figures and statistics concerning all things drtv. Let the comments and ideas come.