Latest News from The DRTV Centre

Latest News

From the DRTV Specialists

Everything Old Is New Again

I can still hear the echoes of pundits claiming the imminent demise of print catalogs, direct mail, and direct response television (DRTV) as e-marketing ascended to dominance.

Yet, the exact opposite happened. These direct channels are playing essential roles in drive-to-web strategies. To understand why, let’s take a stroll down memory lane:

In 1897, with the help of a new, functioning postal service, the Sears Catalog was born. Among the first mail order vehicles, it made a broad range of goods accessible to rural customers. The catalog would grow to sell live chickens, and even pre-fab homes — “do it yourself” structures that made putting together a Kallax bookshelf from Ikea look like child’s play, and — of course, spawned a world-famous retail store.

Today, the web is a new form of access that has facilitated shopper engagement and direct sales. And print catalogs are driving customers to them. According to the Data & Marketing Association (DMA), in 2016 9.8 billioncatalogs were mailed. That may be significantly less than in 2007 (19.6 billion) — but think about it: 9.8 billion catalogs despite the fact that virtually all the merchants sending them are selling online.

For DRTV, one of the first known “informercials” came in 1949 when William G. “Papa” Barnard created his long-form spot for Vitamix. In it, he exhorts, “The most vital subject that concerns you and your family is health. With health we have wealth. Without health, you’re a miserable failure!” Ouch. 

Watch the Vitamix informercial and see for yourself how “breadcrumbs [could be made] by electricity” – while imagining just how “disruptive” this must have been on TV in 1949.

DRTV, of course, has had a love/hate relationship among consumers and marketers. But the fact remains: carefully constructed appeals that present compelling demonstrations with can’t-refuse offers and, ultimately, an attractive cost per lead/cost per sale will always have its place. And, as a new frontier of “DRTV” takes shape, with addressability, OTT, programmatic TV, etc., similar principles of measurability will continue to prevail.

There isn’t consensus on when modern-era direct mail — or, as conflicted insiders call it with Valdermort-like withdrawal, j--k mail — was born.  There’s no debate, however, that there was a time when the sales letter loomed large.

One of my favorites begins this way: “Good Friend – This invitation isn’t for deadbeats, rip-off artists or “gentlemen” who hate to get their hands dirty. It’s for the rest of us.” It then goes on to talk about the average guy who isn’t afraid to stick his hands in a toilet tank or get down under a sink with a pipe wrench. 

This masterfully targeted subscription appeal, an enduring “control” piece for Popular Mechanics magazine, ran four-pages long. Nowadays, people don’t read four-page letters, at least so they say. (Perhaps there aren’t as many good letter writers.) Yet, the fact remains, if you have a good story to tell, and you tell it well, people will engage.

Today, DM is being used by virtually all types of merchants and manufacturers to bring their best prospects online — where they can tell a “four-page story” (or more) in video, graphics and reviews. And perhaps the greatest irony of them all, is that they’re turning to it because there can be less clutter in the mailbox than there is in the inbox.

Most interestingly, all of these channels, whether in their infancy or re-imagined for our digital times, have relied on the exact same drivers of success:

  1. Start with precise targeting founded on an intimate knowledge of your customers as told by data.
  2. You need an offer, something that helps overcome decision hurdles and drive immediacy.
  3. And, of course, you need to tell your story with drama and purpose. That’s what it means to be creative.

So, what’s old is new again. Catalogs, DRTV and DM are driving prospects to the web and to the store, and phone. And the goal is still the same. As Papa Barnard might have said if he were still alive today, If you don’t inspire a response, you’re a miserable failure!

DRTV - Direct response television – Wikipedia

Direct response television (DRTV) is any TV advertising that asks consumers to respond directly to the company — usually either by calling an 0800 number or by visiting a web site. This is a form of direct response marketing.

There are two types of direct response television, short form and long form. Short form is any DRTV commercial that is two minutes or less in length. Long form direct response is any television commercial longer than two minutes.

Direct response television campaigns are commonly managed by specialist Direct Response or DRTV agencies with a full range of strategic, creative, production, media, and campaign services. They may also be managed by media buying agencies who specialize in direct response.

(excerpts from Wikipedia, 28.6.17)

AdSphere Reports Impressive Growth for DRTV Industry

DRMetrix, the industry’s leading television research company, has released a surprise study that reveals the size of direct response television (DRTV) industry to be many times larger than previously thought.

DRMetrix is the brainchild of Joseph Gray, a 30-year veteran of the direct response television industry who has long thought that the size of the direct response television industry has been under-estimated by mainstream television research companies.  The ability to measure the size of the industry alluded him as research companies were unwilling to segment ‘direct response’ from traditional branded commercials.

“Back in 2003, a group of DRTV professionals joined together with the Direct Marketing Association (DMA) to form the DMA Broadcast Council”, Gray recalls.  “I was invited to co-chair the Research Committee.  We worked on a whitepaper to document solutions that would enable the DRTV industry to quantify itself with credible research.  We were hoping to convince the television research companies to start flagging commercials that included 1-800 numbers and web addresses but they were unwilling to do so.”

Nearly a decade later, Gray mustered the resources and started DRMetrix to tackle the problem.  Prior to the beginning of the 2015 broadcast year, the company deployed its AdSphere™ monitoring platform which today monitors over 100 national cable networks 24/7/365.  AdSphere™ was designed using the latest “automated content recognition” (ACR) technology along with advanced pattern and optical character recognition technologies to sniff out any television ad or program that includes direct response attributes such as 0800 numbers, web addresses, SMS, etc.  Millions of dollars in investment and four years later, the moment of truth has finally arrived.

Gray projects that AdSphere™ estimates for network cable direct response valuation are 3-4 times greater than what leading television research companies have reported based on differing philosophies of what constitutes ‘direct response’ vs. ‘brand’ the lines of which have blurred over the years. 

In order to scale a DRTV campaign, an advertiser’s creative and media execution needs to be optimized at the highest level.  Further, the campaign has to resonate with consumers in order to deliver an ROI to the advertiser sufficient to scale the size of the overall campaign.  Accordingly, the brands and advertisers with the highest overall projected schedule valuations have exemplified the art and science of DRTV advertising. 

A Guide To Optimising #DRTV Creative Performance

The #DRTV guide has been produced by digital marketing firm fast.MAP in response to growing interest in the method following changes in fundraising. 

A guide to optimising #DRTV creative performance includes advice on how to create and measure a television appeal and a case study from the Children’s Air Ambulance. 

David Cole, managing director of fast.MAP said: “Direct response television is seen by many as a beacon of light for the new fundraising way.  “There are several challenges though, many charities have had the DRTV idea at the same time, so it is getting crowded.”

Civil Society News readers can download the guide for free here using code FMTV16. https://www.civilsociety.co.uk/news/new-guide-to-creating-charity-television-appeals-published.html#sthash.SxyvRZc0.dpuf

Published by Civil Society News

Should DRTV Be In Your Marketing Mix? By Peter Koeppel

With today’s hyper-distracted consumer, marketers need a healthy media mix to spark consumer engagement. One frequently overlooked option is direct response television (DRTV) advertising, a discipline we've used with success for years.

DRTV, which consists of both commercial spot lengths and program-length advertising, gives advertisers two distinct advantages: more time to break through media clutter and media rates that lower airtime costs by as much as 60% or more. 

DRTV can be used to drive online and retail purchase intent, revive a brand in a flagging product category, and act as an effective pull marketing tactic. But before analyzing these possibilities, let’s explore the unique characteristics of DRTV by contrasting them with traditional or “general” television advertising.

In the simplest terms, general advertisers are often looking to build awareness, whereas DRTV advertisers use a call-to-action to get consumers to take action. 

How to get the best from DRTV, by Simon Foster

Many advertisers are returning to Direct Response Television (DRTV). Whilst the goal today is to maximise web response as opposed to phone response, many of the rules of traditional DRTV remain constant. Here’s a summary of how to get the best from Direct Response TV:

  1. Remember all DRTV begins with the offer. Whilst issues around DRTV performance are often seen as “creative” or “media” we need to remember that the proposition to consumers is key to DRTV success. If you are offering free Ferraris you will not need to think in terms of creative or media optimisation. The offer will work. Equally, if you are offering a poorly differentiated product or service, you will find it difficult to sell. Your problems will be exacerbated further if you are in a mature market packed with established offers.  So ask yourself the “so-what” question against every line of copy. If you wouldn’t buy it, no-one else will.
  2. Develop compelling DRTV creative. DRTV seeks behavioural change, and consumers need to be given good reasons to stop what they’re doing and do something else. You need to talk in terms of meaningful benefits. There are certain category rules that are helpful. If you’re selling a financial product don’t use jokes. For most people, talking about their hard-earned money is not a funny business. Concentrate on explaining what the product is different, what it offers that is new and why your target audience should find out more.
  3. Be careful with emotional sales messages. Most mainstream advertising seeks to build emotional connections between people and brands. For many brands this is the right approach, but if you want to sell off the screen, stick to promoting the benefits that make you different and giving good reasons to buy.
  4. Make sure the creative identifies your target audience. Everyone watches broadcast media. The trick to making DRTV work is to create a sense of identification between you and your target audience. Show people and situations that your target audience will identify with. Create the impression that your target audience belongs in the ad.
  5. Understand the economics of broadcast media. TV companies use every possible device to maximise the yield on the audience they are selling. Yield is the revenue generated by advertising over the cost of attracting that audience i.e. producing or buying the programming.  High quality peak programming is expensive to produce or buy. More people are at home available to view during peak viewing times (5pm to 11pm) so audiences are higher. So TV companies put their highest cost, highest quality programming into the times of day when most people are available to view.  Moreover, ad agencies want high reach, so there is high demand for high quality, high audience programming. All this makes peak airtime expensive both in terms of unit cost and capital cost. The premiums embedded in peak mean it sells at rates that rarely work for DRTV advertisers. But off-peak airtime is an entirely different matter….
  6. Unlock the benefits of off-peak airtime. Everybody watches off-peak TV; young, middle-age, old, affluent, less well off, single, married, students, working people and those who’re retired. People take holidays and have days off. But most importantly, the homemaker watches daytime TV and the homemaker is often the person who researches and makes financial plans.  Daytime can be ideal for reaching family decision makers. Daytime can be ideal for reaching students and it can be ideal for reaching affluent grey markets. Off-peak is the place to test your product in DRTV.
  7. Test, measure and learn. DRTV is direct response marketing and the lifeblood of direct response is quantified planning and control. Using BARB data it is possible to match minute by minute audience data with your minute by minute click traffic. This allows advertisers to build a response database which matches TV audience with web response. Each spot can be defined by a number of planning variables that can be controlled: day of week, time of day, channel, proximity to previous spot, length of spot and creative execution. All these factors can be combined and used to optimise future DRTV media buys.

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