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Direct Response Marketing

Response Magazine's 13th Annual State of the Industry Report

1 Sep, 2008 By: Thomas Haire Response

Knight: While the effect has been ongoing for the past few years, it is only now that we're seeing it starting to accelerate. Technology and expanded broadband capabilities are making it easier for online sites and mobile platforms to deliver richer video content, which is translating to higher traffic and/or usage.

Lee: Online video is having a very positive effect on our business. It has become another tool to reach out to the consumer to educate about one's product.

Medico: It has become a mainstay and generally expected as part of the micro-site or E-mail.

Orsmond: The affect of online video is not reported in the trade press here, and it is difficult to make comment on whether it is having a negative effect on TV advertisers. A greater number of U.K. consumers have changed to broadband than most other European countries but it is still relatively expensive here. I do not envisage this having any discernable affect right now on DR advertisers.

Sarnow: Online video is having a wonderful effect. Direct response marketers are already used to using videography to communicate with consumers and make sales. Going one step further and using video in the online space is a natural extension for DRTV marketers, giving them an incredible advantage over most other marketers. Our job is to push in this direction even more. Instead of being two steps behind in the online space, it is imperative that DRTV marketers pioneer the future in the online space using video.

Savage: Online video is another effective tool for marketers and their agencies to communicate the unique features and benefits of products and services to both savvy and impressionable consumers. What's really impacting the business, though, are the media strategies that are being employed to get consumers to watch the online video.

Stacey: Online video can boost online sales by 25 percent or more. It's like installment payments when they were introduced. In the old days, it was one payment of $99, but soon everyone found you could boost sales if you offered three payments of $33. Today, it's the norm.

Has the influence of mobile/wireless marketing on the industry grown in the past 12 months? How will the expansion of mobile/wireless affect DR in coming years?

Eden: This area is still in its infancy. The issues surrounding this medium will be cost and payment. Companies will need to develop a balance regarding purchases. If mobile messaging takes the path of E-mail into the spam realm, the power of the medium will be greatly reduced.

Fays: We are receiving many requests to present mobile/wireless, but I personally don't see the revenue impact becoming significant anytime soon.

Garnett: Having done our first mobile project several years ago and remaining tapped into some solid movers and shakers in the business, it's clear that it's going to be several years before mobile becomes at all significant — other than creating an RSS feed for your Web site.

Hawthorne: Thus far, mobile has made little impact on our business and a profitable functioning model is as yet undetermined. Mobile DRTV, with its immediacy, "always on" functionality and location pinpointing capabilities, has huge potential.

Knight: An increasingly large number of people are starting to look at mobile and wireless as a viable way to market their products. The capability, power and speed at which wireless devices are operating have made the point of entry into this space for all advertisers significantly easier. This will continue to bode well for DR.

Lee: Mobile marketing is in the infancy stage but is preparing to start playing a bigger role in marketing campaigns.

Medico: It is still in its infancy but the technology is amazing. Given the need to reach the Gen-Xers who are technology-savvy and carry mobile devices like appendages, it appears to be set to expand rapidly.

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