Electronic Retailer

Q: What's your take on the FTC's plan to rewrite the guidelines for TV ad testimonials? A: Same song, different decade. Unfortunately, the proposals seem targeted toward DRTV, which could face at least four major challenges:  

There is a point at which patience eventually ceases to be a virtue. Buoyed by enthusiastic forecasts, we've waited patiently for video to become mobile marketing's killer app. Each year, the technology improves and the base audience grows. Yet game-changing breakthroughs don't happen.

The reasons for this are well-chronicled:

Barack Obama isn't a product, but he may be our next President. If his leadership skills are as strong as his infomercial instincts, he might be a very good one (see for yourself at http://my.barackobama. com/page/content/08-2008_join/).

In the early 1990s, recognized brands and Fortune 500s like Apple and Barun Nissan embraced long-form DRTV. While enjoying the big budgets and credibility boost that these advertisers brought, DRTV insiders worried that shrinking inventory and higher media rates would force out entrepreneurs. That tide has receded. A February Jordan Whitney "Top 60 Infomercials" report listed only one major brand--Humana--whose Gold Choice show registered at number 60. What changed?

How will the transition from analog to digital affect production on DRTV campaigns? On February 17, 2009, federal law will end transmission of analog TV signals in favor of digital. We've heard this before, but the deadline was extended. For that reason, some agencies will take a wait-and-see approach before switching to high def production. But DRTV shops should act now.

As marketers flock to user-generated content (UGC) as the latest road to riches, the increased traffic has created some potholes. Clumsy creatives, self-absorbed spots that stray from product benefits and overtly negative brand associations are landmines that all sensible marketers should avoid. But since a UGC campaign's goals are positive and promising, advertisers must develop a strategy to harness consumer communities' energy.

The economy is bleak, and pundits and economists blame bellwether corporations. Financial institutions such as lenders and insurers are particularly vulnerable. Because recovery significantly depends upon these institutions regaining their footing, this is a grave problem. But negative image is a marketing issue, which can be calmly assessed and strategically addressed.

Reps. Henry Waxman, D-Calif., and Ed Markey, D-Mass., have asked the FCC to review its advertising disclosure rules. The congressmen contend that today's product placements are purposefully deceptive and blur the separation of commercials and content. Well, yes. That's the point.

Brands with a future take risks. Giving consumers your brand platform -- for them to play with -- is the risk du jour. More and more companies are launching contests that ask consumers to generate commercials -- just like Madison Avenue makes (or so they hope!). Most participants love the challenge, while others crave the incentives. The standard issue prize package includes cash, air time and the fame that accompanies both. And a classic consumer ad contest in the making is from Heinz.

Advertisers are uneasy. It's not just because we're learning new media and formats, it's because our audience claims it hates ads. You've seen the statistics. DVR owners love their ad-skipping button. Web surfers install ad-blockers. Mobile phone users delete before peeking. Consumers gripe that ads are intrusive and interrupt the enjoyment of the content they want. Sounds bad. But if we accept these complaints at face value, we can knock down the walls of resistance. It's simple: we must make our ads as compelling as the content surrounding them.