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Direct Response Marketing

Field Reports

1 Sep, 2007 By: Thomas Haire, Courtney Beth Pugatch Response


NEW YORK — Ad spending in the second quarter kept pace with worldwide economic growth, according to a study by GroupM. The study finds that the Internet is playing a bigger role in driving worldwide and U.S. advertising growth, though TV remains the most popular method of advertising.



The study, which was featured in the most recent installment of GroupM's report "This Year, Next Year," found that the Internet's momentum will start to taper off in 2008. Television will once again rise to be one of the most profitable forms of marketing.

With traditional media, television is expected to account for 47 percent of worldwide and 36 percent of U.S. advertising spending growth this year. The Internet is expected to account for only 30 percent of worldwide and 50 percent of U.S. ad spending growth.

GroupM's report initially predicted that the Internet would contribute 27 percent of the world's ad spending growth for 2006. In the report, the company wrote that it revised this figure due to stronger-than-expected actual spending this year.

Television is expected to see a larger boom than Internet throughout the next year as the 2008 U.S. election and 2008 Olympics take place. It is projected that candidates for the 2008 election will spend billions of dollars in advertising. GroupM's report expects television will account for 52 percent of worldwide and 48 percent of North American ad spending next year.

RESPONSE Q&A

You Can't Stop Tony Little 85 and Just You Try to Contain Him!

By Thomas Haire ( thaire@questex.com)

Legendary DRTV marketer, infomercial host and TV shopping network pitchman — that's doesn't leave much spare time. But, apparently, Tony Little doesn't need a lot of downtime. The motivational and fitness guru who appeared on the cover of Response as part of a July 2003 profile has kept busy during the past four years, maintaining and expanding his marketing empire. From coming up with new fitness products to spoofing himself in a recent ad for Geico auto insurance, Little continues to create new and exciting business ventures. Recently, Response spoke with Little about his latest plans.



Q. Since appearing in Response in July 2003, what are the three most important events that have happened in your career, and why?

A. My relationships with the shopping channels have remained solid. I have a core product line on HSN in the U.S., QVC in the U.K., and the Shopping Channel in Canada with Rogers Media. But the business is changing, so I've dramatically expanded from fitness into personal care, wellness, food, housewares. You have to constantly reinvent yourself in our business, and one of the areas we've looked at recently is getting more to the Baby Boomer demo and finding out what they're looking for. About four years ago, I signed on with Homedics Corp., a leader in massage and personal care products. The company was built, initially, from the strength of a shiatsu product sold via DR, and is now worth $600 million. With them, I developed a subline called Destress to be sold on HSN. It expanded my market so dramatically that it almost outsold my fitness products. The Micropedic Pillow for Homedics sold close to 2 million pillows without international distribution. I also have an exciting new deal to work with Sydney Silverman's Celebrity Licensing, which also licensed Wolfgang Puck's food line, on a line of healthy appliance products. It's a natural fit to get into the food business because how you eat is 50 percent of the personal training equation.

Q. How is your relationship with HSN? How often do you appear on the network and what are some of your hottest products?

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