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Research

1Q Short-Form DRTV Media Billings Double in 4 Years

1 Aug, 2008 By: Shay Moftakhar Response

"Computers, Software and Home Office" category gains $78 million, while Cable TV expands $158 million.


All five outlets of media distribution enjoyed gains in the first quarter. Cable TV continued its string of first-quarter triumphs with a 24-percent increase of $158 million. Hispanic Network TV led the other four outlets with nearly a $37.5 million increase (28.7 percent). Network TV's 26-percent gain of $11.3 million was just enough to maintain its market share. Spot TV's extra $13.5 million represented a 25-percent advance, while syndication reversed its 1Q 2007 loss of $2.9 million to the tune of a $22.7 million advance — an impressive 49.2-percent turnaround.

Fig. 5: First-Quarter 2008 Short-Form DRTV: Dollars Spent by Media Type
Fig. 5: First-Quarter 2008 Short-Form DRTV: Dollars Spent by Media Type

 

Rosetta Colored Glasses

 

The total number of individual short-form DRTV campaigns aired during the 1Q 2008 increased 9 percent to 1,183. The average cost of a campaign based on the total increased by almost 15.8 percent — $135,093. At the same time, the average cost of a campaign outside the top 40 spiked 27 percent, or $90,295 — mirroring the past two annual percentage increases (1Q 2007, 26.9 percent; 1Q 2006, 26.2 percent).

Fig. 6: Total Short-Form DRTV Campaigns
Fig. 6: Total Short-Form DRTV Campaigns

The top 40 campaigns accounted for 58.6-percent ($680.4 million) of the total, expanding 18.5 percent, or $107.2 million, over 1Q 2007 results. The No. 1 campaign this quarter was "Rosetta Stone Various Software" with a whopping $55.2 million spent — not bad for a campaign that didn't break into the last year's 1Q top 40.

The top 10 campaigns totaled $355 million — a $75 million increase, but the same share of market. The amount spent on a campaign necessary to reach the top 40 rose by $615,700 (9.4 percent), creating a new threshold just below $7.2 million.

Fig. 7: Average Money Spent on a Campaign Based on Total
Fig. 7: Average Money Spent on a Campaign Based on Total

Such a strong first quarter for both long- and short-form DRTV foretells a promising year for the DR industry in general. The 100-percent growth of the short-form market in less than five years is another milestone that is testament to the increasing popularity and strength of this medium. While 2007 short-form results totaled more than $4.5 billion, the first $5 billion short-form DRTV year is likely if the rate of growth holds through the remaining months of 2008.

As we enter our fifth year of this valuable research, the staff of Response again thanks TNSMI for providing this resource and allowing us to analyze and share the results with our subscribers.

Fig. 8: Average Money Spent on a Campaign Minus Top 40
Fig. 8: Average Money Spent on a Campaign Minus Top 40

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