Direct Response Marketing

Retail Outlet: The Short-Form DRTV Spot May Be Getting Shorter

1 Jun, 2006 By: Donald L. Potter Response

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It has been said that television time is the world's most perishable commodity. At any given time, an unsold spot has a certain value, yet the moment the time period passes the spot is worth absolutely nothing.

Donald L. Potter

DRTV professionals have parlayed this knowledge into a successful buying model. Over the years, they bought unsold inventory at discounted prices before the time became worthless. This approach has worked for all concerned. But things are changing.

Today, there are more networks, both broadcast and cable, selling more TV time than ever before. Logic would suggest that rates should be lower, but they are not. As viewers continue to desert broadcast outlets in favor of the more targeted world of cable, general advertisers have shifted more spending to this venue. As a result, a greater portion of the spot inventory is being scooped up before avails are open for the DR guys to fight over.

So, in order to assure that spots run, DRTV buyers will often pay more than planned. This causes a domino effect playing havoc with media efficiency ratios, cost-per-call, cost-per-sale and the overall profitability of many DR marketing efforts.

Risks and Rewards

DRTV spot buyers are hopeful that one-minute spots will do the job, because these units are more plentiful and cost half the price of two-minute units. For this to occur, the product concept must be easily understood, creative execution has to be strong and a compelling offer/call-to-action is needed. As time constraints continue to tighten, some DR advertisers are looking to 30-second spots as a way to drive people to a Web site where a complete and controlled sales message can be delivered.

The 30-second strategy could prove profitable if enough viewers go online to learn more about the product and actually make a purchase. The downside is there could be significant fall-off as consumers navigate through the site before getting involved in the ordering process. Although, not everyone shops online, usage continues to grow in popularity. There is also concern that the shortened commercial format may not provide the time needed to effectively motivate viewers to take action.

Running more spots will help build awareness and generate Web traffic over time. And, the use of search engine marketing will help bring more visitors to a particular site. Marketers are realizing that while television and search engine costs may increase, telemarketing expenses can be greatly reduced through an effective Web-based program.

In with the New

Reaching consumers and generating sales is becoming a more complex and increasingly sophisticated task. Old formulas for success are becoming just that — old. New marketing considerations will profoundly affect the way budgets are established and ultimately blended together, but the changes won't occur overnight.

As part of the early stages of change, the trend to shorter spots is expected to continue as advertisers seek ways to improve top-line sales and bottom-line profits. Another benefit of abbreviated commercials is products that do well in this DRTV format may be better able to make the transition to retail than their longer form counterpart. This is because shorter spots can be scheduled to optimize reach and frequency, which should result in higher overall brand awareness.

Retailers are most receptive to products with built-in demand created through continuing ad support. Trade buyers look for a TV schedule directed at the kind of people who typically shop in their stores. And, they believe that lots of spots, whether they are 30, 60 or 120 seconds, will move merchandise.

This is not to suggest that DRTV will shift to 30-second spots, or that a URL displayed on the screen will take the place of an 800 number, or that retailers don't appreciate the value of longer format commercials. However, since savvy DR marketers have long believed that "test, test, test" is the way to maximize sales and profits, this emerging paradigm should be considered as one more variable to test.

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