Short-Form DRTV Media Billings Surpass $1 Billion in Second Quarter1 Nov, 2007 By: Shay Moftakhar Response
Fig. 5 Top 40 brands for Second-quarter 2007 Short-Form DRTV Reported Time Period: Apr. 1- June 30, 2007
The Farmer Left the Dell
The top 40 campaigns tallied a mighty $712.4 million, good for 64.2 percent of the total. This figure is $162.3 million, or 29.5 percent, higher than 2Q 2006, and it also more than doubles 2Q 2006's $77.1 million rise measured against 2Q 2005. The top 10 campaigns totaled $337.2 million — 30.4 percent of overall spending.
Fig. 6 Total Short-Form DRTV Campaigns
The total number of individual short-form DRTV campaigns aired during second-quarter 2007 rose by 29 to 1,190. The average cost of a campaign based on the total elevated 25.4 percent to $932,083. The average cost of a campaign outside the top 40 rose 23.7 percent to $345,006. The minimum spent on a campaign needed to gain entry into the top 40 rose by $1.5 million — a marketer had to spend at least $7 million to have one of the top 40 short-form DRTV campaigns in 2Q 2007.
Fig. 7 Average Money Spent on a Campaign Based on Total
There were 18 new campaigns in this year's top 40, reflecting the fleeting popularity of successful campaigns. However, the top 12 campaigns remained veterans of last year's top 40. One major item of interest was the absence of any Dell computer campaign on this quarter's list. Dell held the No. 3 spot and had four campaigns in the top 40 in 2Q 2006. That number had dwindled down to only one campaign, ranked No. 37, in 1Q 2007.
Fig. 8 Average Money Spent on a Campaign Minus Top 40
This performance by a top-40 stalwart raises some interesting questions about Dell's actions. Is Dell moving its advertising completely to other media? Has Dell decided that short-form DRTV doesn't sell? Is Dell's decision based on reduced advertising budgets from loss of revenue, or has Dell's popularity finally waned? The answer to these questions may better be understood in the next two quarters — by whether Dell decides to win, place or show in the top 40.