Saturday, November 7, 2009

Infomercial Advertising On TV

Every day our telephones ring with entrepreneurs and established companies alike asking the same questions about TV advertising cost. In addition, since Billy Mays tremendous success and tragic death, many advertising and marketing executives are looking to get started with infomercial advertising on TV. This blog is for all of you, and hopefully we will "see" you here often for the current state of TV advertising rates, infomercial production costs, and media planning services.

In our last blog we talked about short form infomercial inventory being tight and expensive. The cable TV networks have gone "all in" after the upfront quarterly media buys that were mostly reserved for the big four networks (ABC,CBS,NBC and FOX) before the recession. Direct response television advertising depended on unsold preemtible media buying to make their offers payout. Well -- our DRTV inventory is being sold to major branding marketers looking for impressions and ratings - not orders! For example, last week a major cable advertising network called after we negotiated TV media rates for our client. They informed us that our rates would not clear and they needed another $100.00 per spot. We cancelled because our clients need cheap TV ads that can bring a profit.

So here's some food for thought. Long form infomercial television advertising rates are down, not up! Inventory is plentiful and highly negotiable. You rarely get bumped or preempted, and we are buying half hours for our clients as low as $40 in top ten markets like San Fransisco and Boston. When you do long form infomercial production, you have plenty of footage to create short form TV ads, Internet TV ads, and fill your web site with compelling demos and testimonials. The benefits of a traditional half hour infomercial are even more compelling in this "new" economy and Internet video era. The old saying "The more you tell, the more you sell" is more true than ever. We like to say there is much power in the half hour!

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