Response Magazine's 12th Annual State of the Industry Report
1 Sep, 2007 By: Thomas Haire ResponseAs we close in on 2008, the direct response television (DRTV) market continues to solidify its base as a key driver in the corporate marketing world, while still remaining true to its product-driven roots. DRTV can no longer be considered its own niche in the advertising world, as the sheer volume of corporate marketing dollars spent in DR has made the method's focus on return on investment (ROI) and measurability arguably the most important factor considered by all of today's advertisers. At the same time, new technologies, such as online video, mobile marketing and digital video recorders (DVRs), continue to gain wider acceptance among consumers — and DR marketers remain the best positioned to service companies looking to reach the widest audience in these new areas.
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For the past 11 years, Response has asked members of its Editorial Advisory Board to analyze current trends and make predictions about the future of the direct response space. Once again in 2007, their thoughts represent a cross section of the industry: from DRTV legends to technology experts; from the international perspective to that of the cable networks. According to these leaders, this is the state of our industry.
What was the most significant accomplishment in the past year for the DR industry?
Stan Bruckheim, Latino Media Services: In Latin America, the expansion of retail for DRTV products has been very significant. While Latin American DRTV companies have had a retail presence in the past, the share of retail sales as part of their overall sales has trailed U.S. and global marketers significantly. With increased distribution in traditional retail, and the expansion of the number of owned-and-operated retail stores, related sales and profits have increased nicely, for distributor/marketers throughout the region and global product suppliers alike.
Brian Fays, MTV Networks: It has to be the advertisers' ability to step up with online budgets and significant marketing budgets to supplement their DR on-air media campaigns. "Multiple platforms" — not just 60-second spots — has been our mantra at MTVN.
Doug Garnett, Atomic Direct: This may surprise some, but I think the 2007 Response Expo may prove to have been the most notable moment. It was the best gathering this industry has seen of the clients who are the future of DRTV. These are the brand manufacturers — not the old "DRTV product" companies who make their money primarily from TV.
Tim Hawthorne, hawthorne direct: The steady increase of DR video migrating to the internet — finally! We all know that video is exploding online. But it's not just standard 15- and 30-second spot TV commercials now being streamed. Savvy web masters are stealing DRTV's "best practices" playbook and adapting the rules for hyper-interactivity online. Two-thousand-six was "Year 1" in the "Videoactive" era.
Maria Kennedy, Discovery Communications: It's the fact that more DRTV advertisers are finally starting to utilize the multiplatform opportunities being offered to them on cable right now.
Toni Knight, WorldLink: The ongoing implementation of monitoring our industry from within continues to be one DR's best accomplishments of this past year. While new technology is becoming an even larger player in the advertising business and opens doors for opportunity, we must continue to self-regulate so that DR addresses this issue as a unified group, and its integrity is not jeopardized by those who may take advantage of today's multimedia environment to improperly benefit from others.
Fern Lee, GT Media, a GAIAM company: It had to be the continuation of building on the Internet and how it relates in DRTV to expanding relationships with the consumer.
Mike Medico, E&M/Impart Media Advertising: It is the continuing growth and seamless integration of the direct response online media component.
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