Saturday, March 23, 2013

DRTV Response Rate-How to Buy DRTV

Average response rate for DRTV and DRTV Response rate are two of the most searched terms – so let’s talk about it!  And thanks to all of you who read and follow my blogs!  

Direct Mail, the grandfather of all direct marketing, primarily uses a metric called “response rate.” This defines the number of responses to a given mailing in a percentage format. It’s easy to measure. If you send 100,000 pieces and receive 1000 responses you have a 1% response rate. TV is not that easy, however. First of all, the remnant media buys are often on un-rated networks or local cable carriers, and there may not be any ratings info available. Secondly, the distribution varies widely DRTV media buy to DRTV media buy.

How to Buy DRTV? The first metric we look at is the distribution. How many households are in the universe? This will vary station to station, network to network. So there are not a finite number of impressions that we can calculate in many remnant DRTV situations. And make no mistake you want remnant media – not high priced media! For more on remnant media buying techniques go here and here.

Cost per call, cost per lead, cost per order – these are the metrics which are compared to your allowable. Click here for more info on allowable.

DRTV Media Buying tactics change with the times, change with the economy, and change by client profiles and goals. Your DRTV Media Buyer better be a bulldog, have a robust contact list, and have your allowable in mind with each media buy.

Saturday, March 16, 2013

Remnant TV Media Buying

DRTV Media buying is Remnant TV Media buying. All of the cable networks allocate the “left overs” – which is the media not sold in quarterly upfront buys – to DRTV. The direct response TV departments at each cable network in turn sell that media to the highest bidders week to week. It is a complete fallacy to think that a large DRTV agency has more sway over the “left over” rates than a smaller agency. The networks do not care – they simply want to move their left over inventory at the highest prices. “Clearing rates” are the rates that will run in any given week based on inventory. But, again, remember these rates are pre-emptible and the spots go to the highest bidder.

A great DRTV Media Buyer has an innate sense of value and has zero allegiance to their friends at the networks and cable systems. A great DRTV Media Buyer has allegiance only to the client and the client’s allowable cost per lead or order. For example, we run overnight spots on a cable network reaching 57 million homes. We book a $15 rate, and we clear at about 50%. Our client wanted more clearance and the network asked for $25 as a reasonable clearing rate. We booked at $18, expecting 80% clearance – so you see there is a great deal of skill and knowledge involved to execute these buys correctly.

Remnant TV media drives sales and leads and can be targeted to all demographics. That’s the beauty of direct response television. And in today’s fragmented media landscape there are more opportunities than ever for a marketer to expand their TV presence via DRTV Remnant buys. Please check back here often for more updates and straight talk about the DRTV media industry. Or visit us at