Direct Tv

When the economy's soft--like it is right now--and the chips are down, U.S. consumers spend less on certain everyday items, according to findings by InsightExpress and Universal McCann. This is having a ripple effect in the field of advertising, where belt tightening is becoming a common occurrence. That leaves brand marketers with no choice but to look for alternative ways that are both bottom-line and ROI-justified to get their message out.

Direct response television may just be their best answer. Here's why.

In direct response the marketer knows instantly how effective their ad and day-part buys are by how often the 800 number rings, how many people go to their Web site or how many sales it generates. In my experience, good direct-response campaigns often pay for themselves, partly due to the substantially reduced day-part purchase rate and partly due to sales that can offset the cost of the campaign.

So what constitutes a good DRTV campaign? Here are six questions I often ask myself--and my brand manager clients--before we start:

* Does your product or service fit the direct-response model? An effective direct-response product or service must be a mass-market item that solves a problem that is visually demonstrable. Unlike traditional brand marketing where image and cumulative impressions may add up to purchase influence, a direct response product or service should answer a need immediately. The viewer should be able to say, "I've been there, I need that"--and call.

* Can your product or service ad define the problem and show the solution in 60 seconds (short form) or less? What about long form (30 minute infomercials)? Will it get the viewer to pick up the phone or go to the Web site immediately? Some ads opt more for traditional branding. Some, such as housewares or health and beauty aid items, opt more for traditional DR, and some are a combination. Be sure where you want to be on this scale before structuring your campaign.

* Do you have the right media buys? The right backend software to track, report back and manipulate media dollars to the best day parts in real time? The name of the game is viewer response. You need to make sure that your dollars are buying the best day parts on the best network cable channels and shows for your audience. If your phones aren't ringing, your ads aren't working. Develop a cost-per-lead or cost-per-order formula and make sure all your day-part buys can meet it. Demand a proof-of-concept test before going ahead. And make sure that at least 90% of your ads are running in the day parts you want.

* Do you have the right telemarketer? Make sure your telemarketer has a script that calls for the sale but doesn't include too many up-sells; has enough phone banks to handle the call volume (busy signals are lost sales); make sure the telemarketing personnel are pleasant, cordial and experienced; and make sure your telemarketer is responsive to your needs.

* Do you have the right credit card/banking arrangement for speed, efficiency and security? How quickly can your credit card provider validate the purchase? How quickly can they bill? How quickly will they pay you? And how secure are they?

* Do you have the right shipping/fulfillment/customer service relationship? This is crucial. If your customer doesn't get their order, gets it late or can't get prompt satisfaction if the shipment is wrong, they won't come back.

Direct response is now regarded as the fastest, most cost-effective way for many brands to open a new distribution channel and enhance existing channels (in retail) for mass consumer products. Dramatically improved ROI combined with rapidly improving technology makes direct response a must-have for any brand looking to improve sales and marketing effectiveness in these challenging times.

Based on my experience-successes and failures-I advise brand managers about to embark on a DRTV campaign-especially if it's their first-to know what to expect and then make sure their solution provider has the experience, personnel, technology, creativity and media purchasing know-how to deliver it-in real time.

Victor Grillo, Jr. is the founder and chairman of Advanced Results Marketing, which specializes in direct-response campaigns.

COPYRIGHT 2003 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2003 Gale Group

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