Is Now the Time to Test DRTV?
By Peter Marshall and Mary Ram
The price is right—see if your product fits the medium.
There's no doubt about it—the economy has been rough. But while general advertisers have been pulling their money back, direct marketers chug along, allocating dollars that produce leads and make direct sales—in other words, delivering results and realizing a positive return on investment (ROI).
With ROI driving everyone's business decisions, cost vs. response is obviously the most important concern. Direct response television (DRTV) presents an attractive option for many advertisers in this environment. The Direct Marketing Association reports that DRTV has grown every single year by 11.5 percent from 1995 to 2000, and that it is projected to grow to $30.6 billion by 2004, to comprise a minimum of 15 percent of all direct marketing advertising expenditures.
With media rates 50 percent to 70 percent below general ad rates and measurability that can drill down to market, station, day part, creative, offer, etc., DRTV provides a long-proven, cost-effective media option.
Direct response television is 100-percent accountable. It allows an advertiser to determine—in short order—exactly how much business is derived from each station, each run, and/or each creative effort.
Is My Offer Right for DRTV?
Contrary to what some believe, there is an appropriate DRTV application for virtually every product or service. While certain product categories lend themselves naturally to the medium—fitness, household, beauty products and insurance—the medium also has proven effective for products that may not have been marketed via DRTV a few years ago, such as motor oil and dishwashing detergent.
How can you gauge whether your product or service may be appropriate for DRTV? Ask these questions:
* Does the offer have a wide appeal?
* Can the product or service be easily demonstrated?
* Has the offer been successful in other direct response media, such as print or direct mail, and/or has it had retail success?