Guest Opinion: Hey, Are We Leaving Money on the Table Here?
1 Sep, 2006 By: Doug Garnett ResponseBrands have come to love short-form DRTV. But, they haven't yet grasped the larger opportunity of long-form direct response. Part one of two.
Consumer giants increasingly use short-form DRTV to raise awareness of their products. Surprisingly, they haven't embraced long-form — or half-hour — programs as readily.
 Doug Garnett |
I asked long-time clients — and experienced half-hour users — Dave Merten and Kevin Blodgett for their thoughts. After all, today's half-hour infomercials provide a unique tool for the brand marketer: the opportunity to make innovative, complex and highly profitable products sell while building brand.
How did they answer? Lacking half-hour experience, few corporations understand where to start, what can be achieved or how to create successful half-hours.
Half-Hours Fill Retail Gaps
Today, you'll find Merten developing branded products as an independent consultant, but his infomercial experience started as director of marketing at Bissell and expanded as vice president of merchandising at Newell/Rubbermaid's Mirro division.
"Infomercials are the magic ingredient for unique, higher-end products with high retail value," Merten observes. "Research shows that branded infomercials aren't even considered infomercials by consumers — simply long forms of advertising."
Blodgett's experience with the half-hour show began when he joined Professional Tool Manufacturing (ProTool), manufacturers of Drill Doctor, the drill bit sharpener. "I had an extensive understanding of traditional advertising. But when I started with ProTool, I knew nothing about DRTV and disliked infomercials," he says.
"It has been a learning experience for me because long-form DRTV is very different," continues Blodgett. "My perceptions have turned 180 degrees — our half-hour infomercials are critical to our retail success. It takes time to show customers how Drill Doctor works. Long-form DRTV gives us that time."
Blodgett's experience is not unusual. In the late 1990's, Philips Consumer Electronics spent $11 million on traditional spots introducing WebTV, but inventory sat on shelves. Then they created a half-hour infomercial. After $2-3 million in spending, retailers sold out.
Half-Hours Help Complicated Products Succeed
Merten notes that many products that would flourish with infomercials are rejected because typical product evaluations filter them out. "It is sad when companies recognize a need for complex communication on a viable product — and then reject the product," he says.
Standard market research tests are part of the problem. Blodgett notes, "Most companies would have abandoned Drill Doctor based on early 'top-two box' scores." ProTool has sold more than 2 million sharpeners.
Merten contends that advertising agencies must share the blame for companies avoiding infomercials. "Most [traditional] ad agencies don't understand infomercials any better than their clients do, so if there's a product that needs more time to deliver a complex message, they recommend rejecting the product," he says.
Half-Hours Build Margins
But it's worth it to get it right. Consider this regular complaint: "The buyer says Home Depot won't stock my product at a price any higher than X." The infomercial is your opportunity to regain margin.
Look at the experience of Merten's Wearever Allegro team. They sold square cookware on TV for $400 when traditional products sold at retail for closer to $100. With the price point benchmarked, they rolled the product into retail and were able to maintain high margins.
Blodgett duplicated this success with Drill Doctor. With half-hour, the value is built in the retail consumer's mind before they walk in the store.
Half-Hours Deliver Solid Numbers
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