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Direct Response Marketing

AdSphere: DRTV’s Size Many Times Larger Than Previously Thought

29 Mar, 2017 By: Doug McPherson

TEMECULA, Calif. – DRMetrix, the TV research company, says in a new study that the size of direct response television (DRTV) industry is many times larger than previously thought.

DRMetrix, a research partner of Response, monitored 92 national cable networks and identified more than 3,500 direct response brands, which have included some combination of 800, web, mobile app, and/or SMS response mechanism for consumers.

The company deployed its AdSphere™ monitoring platform, which monitors more than 100 national cable networks, and found more than 89,000 infomercial (28.5 minute) airings and 7.92 million spot airings with an average run time of 39.7 seconds up to a maximum of five minutes.

That averages to 6.49 minutes of DR spots running across the measured networks every hour. AdSphere calculated the value of this inventory at $6.4 billion dollars by applying average DR industry rates and weighting the value of DR spots running across two different types of national cable ad breaks.

Joseph Gray, DRMetrix’s founder and a 30-year veteran of DRTV, projects estimates for network cable direct response valuation are three to four times greater than what leading television research companies have reported based on differing philosophies of what constitutes “direct response” versus “brand” – the lines of which have blurred over the years.

DRMetrix’s research shows, among other findings:

AdSphere™ 2016 Short-Form Media Valuation by DR Classification
(92 national cable networks)

  • Short-form product (call-to-order): $315,559,760
  • Lead generation (unique 800 or web/promo code tracking): $1,214,017,067
  • Brand/DR (Using vanity 800 numbers): $2,093,214,169
  • Brand/DR (straight web, SMS, and/or mobile app response): $2,813,172,646
  • TOTAL: *$6,435,963,642

*This number does not include broadcast, satellite, local cable DR expenditures, or 28.5 infomercial valuations.

Gray said he has long thought that mainstream television research companies have underestimated the size of the DRTV industry. He believes the ability to measure the size of the industry eluded research companies who are unwilling to properly segment direct response from traditional branded commercials.

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