DRTV Moves Into Traditional Advertising

Television advertising ROI is no longer the province of DRTV Marketers. And we have the Internet to thank. Over the past 10 years, internet search, with its known Cost Per Leads/Clicks and now comprising over 40% of all online advertising, has become de rigueur for most Brand advertisers. Its growing importance has made the pursuit for advertising ROI a major initiative among Brand marketing teams across the U.S.

Response Magazine: January 2007
Timothy R. Hawthorne

How DRTV is making its way into a domain once reserved for brand marketers

Television advertising ROI is no longer the province of DRTV Marketers. And we have the Internet to thank. Over the past 10 years, internet search, with its known Cost Per Leads/Clicks and now comprising over 40% of all online advertising, has become de rigueur for most Brand advertisers. Its growing importance has made the pursuit for advertising ROI a major initiative among Brand marketing teams across the U.S.

And it's finally impacting their television ad strategies, irrevocably. First, there was pharma. Over the past six years, we've seen all major pharmaceutical corporations make their way into the DRTV space, eager to tap its accountable, direct sales channel via lead generation. Then there were American Express, Allstate, IBM, P&G and Clorox, among many others gracing their commercials with 1-800 numbers and Web site URL's.

More Fortune 500 companies now embrace, with a vengeance, a medium once reserved for the slicers and dicers of the world. In doing so, these companies not only reap the rewards of lower advertising costs, but also get a measurable sales channel that integrates well with existing print, general TV, direct mail and Web campaigns. So instead of just presenting a "now you see it; now you don't" 15 or 30-second product image spot and catchy slogan by a consumer - who may promptly forget about it - companies are incorporating a DR mechanism in longer commercials that drive interested customers to pick up the phone or boot up their computer to learn more, and to hopefully request more information or even place an order.

This trend is particularly noticeable in both the long-form and short-form DRTV arena, with the latter comprising the bulk of brand commercials that incorporate direct response mechanisms. That's because 60- and 120-second short-form DRTV spots parallel traditional 15- and 30-second spots in that they can be measured with targeted ratings points (TRPs), a familiar brand yardstick that doesn't force brand marketers to think too far out of the box when planning DRTV campaigns. Thus, short-form DRTV spots have become a "safe" bet for corporations of all makes and size.

Short-form also fits the traditional Nielsen analytical approach, which looks to the measured rating value of the media when deciding which avails to purchase. They also give marketers those extra golden seconds to describe and demonstrate their products in depth - something 15s and 30s just don't provide.

And while many enjoy seeing DRTV's profile raised as more companies comprehend its value, the trend is creating some issues for traditional DRTV companies selling $19.95 widgets via one-step ("Call now and use your credit card!") offers. Whereas 10 years ago they may have had their pick when it came to selecting both short-form and long-form avails, today these firms are going up against corporate marketers with deep pockets for the same media time.

As a result, most national cable networks are now selling their prime DR time to major corporations, with smaller companies forced to pick up the scraps. The guy who wants to sell the $19.95 kitchen appliance has to find his media at mid-tier, smaller subscriber-base cable networks. It has pushed them out the Lifetimes and CNNs, and into the much less popular channels.

Will that let up anytime soon? It's doubtful. Just look at the results that marketers are getting in return for attaching 1-800 numbers and Web site URL's to their traditional ads. Large companies across the board are reaping the rewards of this more "direct" way to reach the consumer, who - when interested - is usually more than willing to pick up the phone or visit a Web site to learn more about what they just saw on TV.

As we move into 2007, don't be surprised to see more DR woven into what you would consider a "traditional" TV ad for an automobile, electronic product or consumer packaged good. The trend has unfolded over the last two years, but has taken an even firmer hold over the last few months. Investing more in ROI based internet search, banner and pre-roll video ads, and reaping the accountable rewards, major brands are ever more ready to harness the power of DRTV. Stay tuned...