Plugging Into 'New Media' Buying Opportunities

1 May, 2007 By: Response Contributor Response

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Consider direct response advertisers the mavericks of marketing. Whenever new communication technologies emerge, they are among the first to explore the earning potential. They innovate ways to integrate targeted messages, and they are the first to quantify a solid return on investment.

Take digital video recorders (DVRs), such as TiVo, which enable consumers to record television shows and watch them at a later date and also provide the luxury of fast-forwarding through commercial breaks. Today, both DR and traditional brand advertisers will agree that DVRs present endless opportunities to advertise everything from credit cards to home gyms with targeted, measurable results.

But when this technology debuted a few years ago, many brand advertisers bit their nails and panicked about a future void of primetime TV ads. DR marketers saw a new era of extremely targeted demographics and messaging, and most importantly, opt-in advertising. They envisioned a scenario where consumers not only watched but proactively sought information on a variety of products and services.

This has become the reality. Consumers want the advertising. They gather information about products that interest them, and they dedicate time to listen to the message, but on their terms. This consumer behavior sets the stage for media buying and planning now and moving forward.

DR at the Forefront of New Media

At New York-based Discovery Communications, Maria Kennedy, vice president, direct response/paid programming, describes DR marketers as the chameleons of the advertising world.

"They will adapt to the changing environment, will always find an innovative way to get their message directly to consumers and are among the first willing to test new media avenues," she says. "For example, DR advertisers have already penetrated the HD (high-definition) marketplace, and clients like American Express have already tested VOD (video-on-demand) and TiVo. DR viewers are distinct. They watch because they want to, not because they have to. Viewers are interested in the products and the information presented. They watch, and they order. DR marketers have more opportunities today than ever before to reach their consumers, be it through multiplatform opportunities, yearly or quarterly deals, program sponsorships or partnerships, or various broadband, VOD and online opportunities."

Discovery Networks offers a breadth of multiplatform opportunities including sponsorships, integrating products into actual programming, as well as new media ventures such as VOD and online advertising, which all hearken back to the core DR fundamentals of an immediate call to action. "Discovery HD Theater, our 24/7 high-definition channel, has afforded many opportunities to date for DR advertisers such as Bose, the U.S. Army and various tourism accounts," says Kennedy.

High-definition TV is particularly appealing to DR advertisers at Lifetime Networks as well, and it all ties back into direct response lesson No. 1. "HD represents an incredible opportunity for our industry as it can present a more powerful product demonstration to the viewers," says Kevin Lyons, president of New York-based Lifetime/Opportunity Media. "Future capabilities of interactive television represent a huge revenue opportunity for DR marketers."

Interactive direct response advertising also abounds at MTV Networks (MTVN). "There are currently discussions about teaming up with a service to have a product pop up on screen and allowing the viewer to click on the product for additional information and an opportunity to buy the product," explains Brian Fays, senior vice president. Fays oversees DR advertising across all MTVN media properties, which include MTV, VH1, CMT, Comedy Central, Spike, TV Land and many other household names (see cover story).

Dell, Allstate and Vonage are all corporate brand advertisers that have succeeded with DR advertising on MTV Networks. They paid premium rates for media buys on popular events, such as the MTV Movie Awards, and used direct response ads. It's clear now that DR goes head-to-head with corporate brand advertising. Now, all the major networks scramble to keep pace with the demand for DR media buys. So how do the little guys stay in the mix?

Dollars and Sense

It's no secret — it's no longer even a trend — that corporate advertisers are invading the DR space with lofty media budgets, scooping up many of the prime buys and skyrocketing costs. Fays sees it as a positive for the industry overall.

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