By Geoff De Weaver, CEO + Founder Touchpoint Entertainment Inc.http://geoffdeweaver.com/
Despite YouTube and Facebook accelerating with video online, direct response TV (DRTV) is still under-valued and misunderstood despite years of use. But DRTV still gets amazing results can builds brands that generate huge amounts of revenue, customer loyalty and trust.
Data is king when it comes to video and DRTV but the best thing about both are the accountability and immediacy they deliver. Fast results can show you instantly, what works and what doesn’t.
You don’t have to worry about ratings, shows or an Ad Agency’s ‘gut feelings’ because once you have your lead, website and call or viewer data info, it will show you where your leads are coming from.
I am not saying ‘traditional’ TV or branding info, research, ratings, demos and cost per point are not important. However, the immediacy of DRTV, when starting a campaign from scratch, can pay immediate dividends. BUT, the immediacy it can deliver gives you sound reasoning on when and where to start your campaign. DRTV testing lets you make changes almost instantly. Importantly, the data from your first launch ads allows you to make immediate adjustments without having to wait for sales to slowly roll in.
Most Fortune 500 companies today have a ‘Click and Mortar’ orientation today, meaning, they have successfully started implementing and using both ‘Analog’ and ‘Digital’ marketing solutions for their products and services. Some great examples are companies like: IBM, GE, E*Trade, VISA, Coca-Cola, NBA, NFL, Bank of America, Starbucks and others.
I am sure most of you have heard of the: Proactiv Plus, George Forman Grill, ThighMaster, Beachbody, the Snuggie, Bowflex or the Ginsu Steak Knives as overnight success products. BUT, what you might not know is they have all stockpiled millions of dollars selling directly to consumers through DRTV commercials.
But, did you know, the top four categories in long-form DRTV advertising traditionally have been: beauty, health & fitness, household and kitchen? These four categories also represent 78%- 80% of all spending. Importantly, many Fortune 500’s are now seeing these results and looking at how they too can jump on board in 2016!
Check out this Bowflex Commercial (2001) https://youtu.be/yH-LIXm2Ip0 via @YouTube
Having worked with both TV and video over the past two decades, I have personally seen a massive fundamental philosophical shift from companies and brands pushing for short-term profits to Lifetime Value (LTV) of each customer. In fact, studies have shown that even customers receiving good service, good value CANNOT be counted on to remain loyal, especially since the explosion of social media, big data, varying levels of customer experience and digital IQ.
Today, more than anytime in history, the customer calls the shots! They now have the power but the Marketer now has the information. That’s why today’s smart marketers are using big data, analytics and business intelligence to build highly qualified prospect databases to create ‘Actionable Intelligence’ to capitalize in the Digital Age and Age of Digital Disruption.
This means, to succeed in 2016 and beyond, you MUST understand who are your best – and your worst – customers are in order to create relevant, meaningful communications and customer experiences.
Video may have killed the radio star
POOR or BAD creative can kill your DRTV schedule.
If your Cost Per Lead (CPL) is not where you want it for your DRTV schedule, it actually may not be the shows or stations you’re running on – it could be that the creative you’re using is just not very good. A change and update in creative can make all the difference so make sure you have a strong call-to-action, prominently placed in your spot, along with the phone number and URL running during the majority of the commercial – not just on the 5 – 10 second tag at the end. Potential customers need time to write down the phone number or URL while viewing the commercial. Not enough time here means you’ll lose your DRTV leads. (adding links to: Facebook, Twitter and Instagram are also becoming more common too)
Pro TIPs for making great Video’s and DRTV today:
- Make sure you target the precise segment that uses your product or service. Making it blatantly obvious who your spot is talking to will ensure up to 50 percent of your success. (This is critical)
- You must have a great and compelling offer. In fact, from 2 decades of making DRTV, Video’s and using direct marketing materials, I have consistently found that you can get up to a 30% lift in response, with a GREAT offer.
- A big idea at the heart of your spot is vital plus, a storytelling structure usually works best, especially with emotion and a super offer.
- The longer a phone number on screen the better. A minimum of 10 plus seconds is recommended to boost your sales/orders.
- Always feature a URL, as a response mechanism, it drives response levels dramatically online and with mobile.
- Use urgency, but don’t short-change persuasion.
- Have a focused message, stick to the benefits and not the features of your product/service (copy time is very limited)
- Make sure the visuals are interesting and support and reinforce the offer.
- Give the impression that there is more to find out about by acting now and immediately.
- Always come from the truth, the pitch has to be believable and authentic. Consumers today can pick BS instantly today.
- Research has shown for years now, DRTV is especially effective with women (with children) and homeowners earning more than $75,000.00 pa. Interestingly, response ranges for this target area can account for up to 80% of sales in many categories. Never underestimate the power of women as the key decision makers in most major household shortlists and purchases!
Test, Test, Test everything!
Starting a DRTV or a video campaign from scratch means you will have no past data or results to rely on, so you’ll need to test everything to find out what works and why. That’s a huge benefit and ensures you don’t waste a penny!
Test all different times of the day, from the early morning to daytime to overnights. Test weekends vs. weekdays, and test different spots if you have multiple pieces of creative.
Test 30 second ads vs. 60 second (and even longer if you want to test).
Plus, test broadcast television against cable networks e.g. Comcast, Direct TV, Time Warner Cable, etc.. Don’t forget the little guys and Affiliates such as: MyNetworkTV, KOFY-TV, METV, MYTV, ION and Bounce TV.
These often are forgotten stations, but usually are very cheap and can provide some of the best CPLs (cost per leads) out there.
As you get more results and more data, you’ll be able to start adding spend to top-performing areas and programing while reduce spend in the underperforming areas – while continuing to test to find your next great lead generating area. It’s all about being cost effective and analysing every aspect of your campaigns to get the best results.
More to come on this topic. Stay tuned and Stay passionate.
More about Geoff De Weaver:
Hailing originally from New York; Geoff De Weaver is the globally experienced entrepreneur, technology disruptor, trend hunter, transformation expert and keynote speaker behind Touchpoint Entertainment Inc.
Feel free to get in touch with Geoff for further information:
You might enjoy these recent posts too:
Does Disruption Resonate with your Board? http://geoffdeweaver.com/does-disruption-resonate-with-your-board/
AND… Why does Corporate America have so female CEOs? https://www.linkedin.com/pulse/why-does-corporate-america-have-so-few-female-ceos-geoff-de-weaver