Sunday, February 28, 2010

Infomercial Media Rates

“How many airings will we get?” “I think my infomercial media should air on Lifetime.” “How much does infomercial media cost?” The questions keep coming, and we have the answers here at the DRTV and Infomercial blog.

Lets start with some basic information. The largest and best known cable networks now reach about 90 million TV households in the USA. Broadcast networks have been losing audience to cable for a generation. So make no mistake, the best known cable networks have plenty of demand for their limited inventory from the largest brand marketers out there. For example, back in January a :60 second direct response spot on HGTV would clear for about $2500.00 with :120’s costing double. The rates go up each month as we closer to second quarter. Remember, when it comes to media, it’s all about supply and demand. And even the nest media agencies have to pay the rate that will clear. Cable networks do not give their inventory away because they like the agency.

When selling a product with a hard offer, it is generally known that a two-minute infomercial will work the best — so as you can see large networks are not efficient methods of testing and may not be the best medium until you have a large roll out in retail.

We generally recommend media tests in the $10,000 to $20,000 range using the most efficient media available, which is usually lower tiered national cable networks, not local cable.

Using the example above, we ran our client on DIY (which is owned by the same cable family as HGTV) but has a smaller cable footprint and is much more infomercial and direct response friendly. We were able to clear on DIY at rates from $250 to $700 for two-minute airings.

Another efficient media buying strategy is satellite networks like DirecTV and DISH. These networks work best for lead generating offers because they do not have 2 minute inventory available. You can buy 26 HD cable networks on DISH for as low as $50 per :60 second airing.

Infomercial media rates change on a daily basis, and the market is fluid and demand is heavy even in this tepid economy. You see it pays to advertise and everyone realizes that TV infomercials are effective channels of distribution