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.

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