Saturday, January 21, 2012
DRTV Media Rates and Rollout Strategies
Direct Response TV Rates are based on supply and demand. After the upfront quarterly media buys are made by the largest corporate advertisers, media companies have inventory that may be used for spot branding buys (scatter media buys) and DRTV or Direct Response Television. Check back here often because we also cover radio which works a little differently.
Media rates flatten in the early part of the first quarter and slowly rise as we move closer to the important second quarter with many Spring and outdoor activities starting up again such as lawn maintenance, outdoor recreation, and Easter.
HOW TO ROLLOUT YOUR PRODUCT
Many of our clients understand the concept of a media test or tests to determine the best price points, offers and media strategy. But often we are questioned about the cost and execution of a rollout strategy.
Direct to Consumer: If your product is a Direct to Consumer product such as a supplement or skin care product that will rely on DRTV or DR Radio sales, a rollout can start slow and simply build and ramp up slowly based on sales and budget capability.
Lead Generation: Lead generation rollouts may be impacted by your call center or inbound telemarketing capacity issues. Once your lead generating DRTV commercial or short form infomercial is tested and you are within your allowable, a slow but steady ramp up can take place like Direct to Consumer. But if your phone room is small, steps must be taken to make sure all calls are answered and all leads responded to in a timely fashion. Also lead generating spots are well suited for Per Inquiry or PI distribution once the creative has been tested.
Direct to Retail: Many of the best known direct response products are consumer products that solve a problem and cost $19.95 or less. In the Direct to Consumer model often continuity sales or auto ships or reorders keep the backend very profitable so the marketer can afford a decent allowable cost per order. Check here for more on the allowable concept. The Direct to Retail model uses retail sales to complete the “backend” sales which are crucial to success. DRTV commercials drive retail sales. The retailers are looking for robust media plans in order to give you their precious shelf space. Direct to Retail rollouts should start with budgets of $25,000 per week and a strategy to be rated as an up and coming product. Often media funding companies are brought in to help with this type of rollout.