Friday, December 19, 2008

Direct Response Media Costs Down

You know the saying is that everyone gets hurt in a recession, it's a matter of how much. But in my business -- the direct response media business, that sometimes is not true. You see media costs, like all costs, are driven by the number one economic law....SUPPLY AND DEMAND. Like many firms today, media companies are cutting costs, laying off workers, and hunkering down as advertising revenues decline. It has been widely reported that the Super Bowl is not sold out, and networks like NBC are restructuring their business models. Advantage - direct response marketers. We buy media to an "allowable" which is the media cost we can afford on a cost per order basis for the client to make money. Read this sentence again, if you do not get it yet. In Direct Response we measure the number of leads or orders compared to the cost of media. With media costs down across the board offers that could not work in 2006 or 2007, can now "pay out."

Of course your offer must still create the impulse for the buyer to call or log in to your website. Infomercial and successful DRTV strategies must always have an almost irresistible offer in good times and bad. The good news is that the cost of testing, the available short form and long form media is up and media rates are down.

Friday, November 28, 2008

Online Video Ads Reach a Large Audience

As online video grows, and it’s audience grows, more data is available as to who and how often they are watching. Remember infomercials and direct response television are all about the metrics. Cost per order, cost per lead, cost per acquisition. As we at InfoWorx drill down into the vast new opportunities for infomercial products, we are finding many online video ad networks who are willing to work on a cost per acquisition model. Sometimes however, working at an auction based level with a low CPM can be even more effective then direct response rates found on mainstream TV.

Here are the top 10 Online Media Destinations (week ending Oct 19, 2008)

NBC Universal 7,1655.08
Clear Channel Online Network 5,2473.72
MSN TV 5,1833.67
AOL Television 4,2993.05
PBS 4,0772.89
Yahoo! TV 3,8102.70
ABC.COM 3,5022.48
DirecTV 2,8622.03 2,1421.52
CBS Television 2,0801.47
Source: Nielsen Online, NetView

As new data comes in, check this blog frequently. In order to reach 21st century customers, you need a scientific approach that targets your best customers with the lowest cost per order. Online video now offers a new and exciting method to drive your brand straight to your web site with an irresistible offer.

Sunday, November 9, 2008

DRTV Media Buying Made Easy

Broadcast spending is down despite the election and the Olympics. Recessions, slow downs and fewer advertisers is often a good omen for DRTV marketers and their Direct Response Agencies. Why? Direct response television media buying rates are usually the lowest in the market. After all, you must make your irresistible offer or lead generating short form infomercials pay out according to your allowable cost per order. Check through this blog for more information on these important metrics and concepts for As Seen On TV Success.

Between January and August of this year television media buys fell 1.3% and removing political spends -- the decline is 1.6%. If you back out the television media costs surrounding the Olympic games....there is a year to year loss of $89.4 billion, according to TNS Media Intelligence.

For Direct Response TV, this means that there is more cheap television inventory....and this makes DRTV media buying easy for smart, savvy media buyers.

Thursday, November 6, 2008

Direct Response TV Viewers Also Online

Media fragmentation is a controversial issue these days with so many offline and online alternatives for limited media budgets. Well there's good news! The heaviest TV viewers are also the heaviest online viewers, according to Nielsen Research. In fact Nielsen's TV/Internet Convergence Panel found that television viewing and online streaming are complimentary activities. You need not worry that your direct response TV audience is not watching. In fact, the study also find that the lowest consumers of television have the lowest usage levels of the Internet.

-- Your direct response lead generating offers can drive online viewers directly to your website.

-- More than 80% of people who watched TV and used the Internet had simultaneous sessions during the month.

-- While teens dominate streaming video online, 55% of men 35-54 also stream online and watch TV at the same time.

There is much discussion, concern and angst among marketers trying to understand behavioral changes among the audience. Certainly, TV viewers continue to provide a rich audience and conventional television the most compelling media delivery method.

Friday, October 24, 2008

DRTV Media Buying Requires Good Testing

If you've been following this blog, then you know that we are here to educate you and position you for success in the DRTV short form and long form infomercial marketplace. I've talked with over 10,000 potential DRTV marketers in the last 16 years, and worked with hundreds of them. Successful marketers always test several factors to optimize their direct response products and services. Ask yourself a few questions when formulating your strategy.

1. For my short form product do I have enough premiums and stuff to create an irrestible offer?

2. Do I have an upsell stream or the retail backend to support a higher allowable cost per order?

3. Could DRTV or infomercials work better for me by gernerating leads and a drive to my website for closing the sale?

If you empower your DRTV Media Buyer with small test budgets to test various offers, premiums, and upsell stratgies, then your success rate will soar.

Saturday, October 4, 2008

Google TV Ads Power Direct Response TV

Google has changed our world in many ways. Most of us now have Google tools on our desktop and many powerful Google enhancements to our everyday cyber lives. In the spring of 2008, Google changed television advertising distribution and revolutionized DRTV media buying. Through their affiliation with DISH network, Google now provides an auction platform for cable network media in 14 million satellite households. What's more, for the first time in direct response history, advertisers have "overnights" that report total viewers, how long they watched, and in what program your short form infomercial or direct response TV ad ran. Google TV has already begun adding local markets to their inventory and recently cut a deal with NBC/Universal for even more inventory.

The impact of this new technology on entrepreneurial and established marketers is enormous. Now an experienced media buyer, direct response company, or turnkey infomercial / infomarketing company can shorten the testing process, substantially lower the cost of media tests, and make adjustments to a campaign on a daily basis.

The entrepreneur or infomercial product developer now has an opportunity to test more offers for less money in a shorter amount of time then ever before. At, my company, InfoWorx, we have embraced this new technology and utilize the latest research to target the client's most profitable customer, reach more viewers for less dollars, and use all of the new metrics to analyse response and make more money for our clients.

Friday, August 15, 2008

Direct Response Online Video or DROV

As streaming technologies improve, and broadband distribution grows, direct response online video or DROV becomes an increasing opportunity for savvy marketers to find new customers. Of course, as always, it comes down to cost per acquisition or cost per order, so it is essential to pay direct response rates that are well below branding rates. Often, pre-roll CPMs are too high to support a direct response online video campaign, just as general broadcast TV rates are too high to bring in your orders within a reasonable allowable.

When considering a DROV campaign make sure you work with an experienced direct response media buyer who understands the metrics of DR. Remember, impressions may help your overall branding campaign, but direct response is measured in cost per order.

On the creative side, DROV is not DRTV! Internet viewers, shoppers and browsers have short attention spans. A drive to your web site is the goal here, so creative strategy may be different than a TV infomercial campaign.

Monday, July 28, 2008

Internet TV Preroll Ads Lower Cost Per Order

Remember, direct response consumer selling equals low cost per order. Smart marketers are looking for new ways to drive sales and lower cost per acquisition. Internet video ads or pre roll ads of 10 to 20 seconds increase viewer response and involvement. Demand and supply for this new direct response interactive media is exploding because click through rates score five time as high as banners.

Mobile devices and podcasts are changing human behavior once again, and we are receiving content through our telephones as well as laptops and broadcast television sets. New opportunities have opened to reach younger, more targeted direct response buyers using all of the sophisticated targeting that keywords and modern ad serving techniques provide. Stay tuned to this blog to learn more about: podcasting, Internet TV, preroll, midroll and other Internet video formats. The Internet has the power and reach to lower customer acquisition rates and effectively find new groups of direct response and infomercial buyers.

Monday, July 21, 2008

Infomercial Media Funding

After 16 years working with entrepreneurs, startups and inventors, we have learned the challenge of funding an infomercial or direct response TV campaign. And there's good news! Since DRTV is a direct to consumer selling science, small media tests of as little as $5,0000 to $7,500 can interest large investments in a media funding roll out.

InfoWorx finds media funding partners for our clients. In order to qualify for media funding, a marketer must have a merchant account through a large direct processor. Recently, we helped a client gain an approved merchant account in less then a week, so there's always a benefit to leverage InfoWorx' vast network of colleagues and strategic partnerships.

Media funding partners will not ask for personal guarantees, but their contract will require their loans to be paid through the flow of revenue into the merchant account. An expert consultant can help navaigate the complex landscape of direct response marketing. And even find media funding as high as $50,000 to $100,000 per week. Media funders can be persuaded to work with multi pay offers and even free trial offers if the test data supports a roll out.

Saturday, July 12, 2008

Help! My Infomercial Is Not Working!

I hope some of you keep returning for these infomercial blogs because I will continue to reveal the secrets to infomercial profits. I'm often asked about the infomercial rate of success. The answer to this simple question is easy. Direct marketing is a science. You test, gather data and test again. Infomercial success therefore depends on patience, determination and infomercial and DRTV marketing research.

At InfoWorx, we conduct pre-production research to test messaging, DRTV offers, and infomercial strategies. After an initial affordable media test, we listen to telemarketing call flow, non buyer disposition reports, and media performance by time slot, network, and region. Then we revise as necessary and test again. That's the science of DRTV.

Saturday, July 5, 2008

My Media Buyer Better be Smart

Well if short form DRTV media is bought on a preemtible, standby basis....what about long format infomercial media and airtime? Now this is where it gets confusing. And if your direct response television marketing campaign will succeed...your media buyer Will be connected to most cable networks, many broadcast stations, and all of the brokers holding long form infomercial media time. I told you it was confusing.

Each month most cable networks dispatch paid programming packages to their best customers...and they keep some of it, too! Some of the media goes to the same brokers month after month and year after year. Top slots, top shows...and for those time slots you pay top money. The skill comes with knowing value, knowing your product's audience, and knowing the best times to run at the least cost per acquisition.

Make sure your media buyer is smart.

Monday, June 23, 2008

DRTV Media Buying 101

First of all, remember this: your media buyer must be a bulldog! Now, the direct response television marketplace is pretty complicated and requires some tough negotiation, media buying power, and lots of nationwide and syndicated media placement experience.

Let's start with short form media buying basics. Like broadcast media, nationwide cable media is sold to general advertisers for branding purposes on a CPM or ratings basis. We buy DRTV media strictly based on response and cost per order or cost per acquistion, if you will. The lower the rate, the lower the CPO! The stations want the highest rate they can get for their unsold, remnant, preemtible media and airtime. Thus, your media buyer must be a bulldog!

Thursday, June 19, 2008


Back in the day, it was easier to succeed with Direct Response television. Nationwide cable media costs were much lower, general advertisers did not use Direct Response TV as a branding medium, and there was much less competition for direct sales to the consumer on television. Now, AS SEEN ON TV SUCCESS requires a compelling media strategy, a bull dog of a media buyer, and infomercial television production that captures the audience’s attention.

But one thing that will never change is that DRTV and infomercials work based on the concept of a pre determined cost per acquisition. It is the concept of an advertising allowable or media cost per order. Great media buyers buy nationwide airtime to a media cost allowable, and know if an offer is working from the first direct response media tests. Customer acquisition costs and great DRTV media buying go hand in hand.