Mar 26 2009
Direct Response TV Ads Getting Attention
Worn out by the amount of debate, downsizing, and anguish going on regarding the global economic woes, I’ve decided that now is a good time to take a break from the downturn and look at one of the bright spots in marketing today: Direct-to-consumer TV advertising.
The prevailing thinking among email marketers for many years was that email could become more like mainstream media by incorporating elements such as streaming video and other rich media into their messages. As it turns out, the exchange seems to be working the other way around; TV advertising is becoming more like email, and it might be a trend here to stay.
Skipping right past Bob Garfield’s latest marketing doomsday prophecy (because we’re staying positive, people!), Ad Age has a great profile on the success of Direct-to-Consumer TV spots, with newcomers such as the “PedEgg,” “Rosetta Stone,” and “ShamWow” raking in dollars and almost single-handedly keeping the TV advertising model afloat. Jeck Neff’s article explains:
While many traditional TV advertisers pull back significantly amid the sharp downturn, short-form direct-response advertisers have been quick to take their place. And some, in fact, would say the PedEgg, Snuggie and Loud ‘N Clear could yet save an economy where consumers have largely lost their will to buy.
…Mainstays of direct response appear to be holding up well, despite price points that reach well into the three figures, including Video Professor computer-training courses and Rosetta Stone language training, which have seen their web traffic rise 47% and 19%, respectively, the past year, according to Compete.
And some of the classic DRTV purveyors of merchandise at $19.99 and below are doing nicely, or even posting record results. Beyond All-Star Marketing’s pop-culture sensation, the Snuggie, which sold 4 million units in the fourth quarter, were some lesser-known yet bigger-selling hits, such as TeleBrands’ PedEgg, which sold an astounding 24 million units last year, according to Mr. Sullivan. At $10 a unit and up, it may well have outsold any new personal-care product put out by the package-goods industry last year.
In addition to reporting on the continued monetary success of these ads, the article also hints at how direct response could provide a blueprint for the future of TV advertising:
A former package-goods executive who’s now a principal in a Web 2.0 start-up is also an investor in a direct-response nutritional supplement. He said the company can make TV ads of decent quality for about $5,000 and air them on late-night cable at $1 per thousand viewers, which makes even those in online display look princely.
By lowering production costs (making them ripe for customization, essentially) and focusing more on niche targeting rather than mass audiences, TV advertising could be entering a new era. The “digital” model of customized 1-to-1 messages that appeal to more specific audiences could finally make its way to the silver screen as it has with email marketing and display advertising.
As you might be aware, our friends at Experian Marketing Services have a new line of related Digital Advertising products that aim to make TV, web, and mobile advertising target-able at the household level – basically, taking these niche advertising opportunities one step further and applying them to a larger pool of people (i.e. not just late night spots on obscure networks) while only targeting the customer segments that the advertiser specifies. It’s exciting to see how technology is making TV, mobile, and web advertising as targeted as direct marketing.
Yes, I know I’ve touched on the topic of direct-to-consumer TV spots in the past, but I really do have a soft spot in my heart for them. There’s something oddly earnest and effective about TV direct spots that makes them stand out; whether Billy Mays is shouting at you in his bizarre monotone or those backwards robe-wearing people are sitting on the couch with flashlights attached to their foreheads, chances are you will remember them for a long, long time. And when you think about it, isn’t that what marketing is all about today? Rising above the clutter, being memorable and reputable, and encouraging response – these are all keys to a strong marketing effort.
Case-in-point: I might not own a Ronco Showtime Rotisserie Grill, but I could definitely tell you how to use one. Just set it and forget it!
