Direct Response in Television, Part 2

Part II
For the next part of the direct response planning process you will need to begin the creative development and, as you can imagine, this leads to its own set of queries.  Among the most important questions that need to be answered are:

What makes a direct response commercial different from others?
Every successful direct response creative has 3 common elements and it is the collective impact of these elements that go into making a spot effective:
• Create a Sense of Urgency – This is the greatest product/service ever and I want it now
 
• Provide a Compelling Reason to Respond – Order now and receive a “Free”, “Bonus”, “Premium”, “We’ll cut a payment”…
 
• Have an Effective Call to Action – Call, Write, Log-On…in the next 5 minutes
Having these 3 elements built into the copy and re-enforced in the video can properly position your offer to elicit immediate response.

What is the difference between a “Short Form Commercial” and a “Long Form Infomercial”?  Which one is appropriate for my promotion?
Broadly defined, “Short Form Commercials” have lengths of 120, 90, 60 and 30 second durations. “Long Form Infomercials” are generally 30 minutes in length with 3, 2 to 3 minute, commercials integrated in the show.

Most direct marketers use short form commercials when they have low priced offers or are soliciting response for free information etc.  
Long form infomercials are generally used for more complex, higher-priced offers. An example of this would be for high priced exercisers such as “Bow Flex” or “Total Gym” that are priced high, and the client needs more time to explain the product attributes and benefits. 

How much should I expect to spend for the creative and production?
As you might imagine the answer is “How High is Up” or “How Low is Low,” but in reality direct response commercials have budgets that are far lower than traditional brand advertising spots.
In determining a realistic budget you will want to take into consideration if your goal is to sell only direct to consumer or if you are looking to brand the offer for ultimate sale at retail or other channel of distribution.

Each year, “Response Magazine”, an industry resource, updates and publishes the average ranges for both commercial and infomercial production. This is usually a good indicator of what an advertiser should spend.

Should I use a celebrity spokesperson?
The answer to this would depend on a number of factors:
• Will a celebrity enhance the credibility of your offer?
• Can your offer’s financial profile accommodate the extra cost?
• Do you need to enhance your image to support sale of the offer at retail?
• Is the celebrity identifiable with your product or service?
Using a celebrity that the right one can make a difference if your product needs that “credibility factor”, however if the product or service can be easily demonstrated a celebrity might even distract from the ultimate selling proposition.

Several questions that relate to media choices must be addressed prior to submitting the final recommendations:

What does media history tell me about past promotions in the category?
History on a specific media can provide the platform to launch what will be an effective test. For example, a cable network like “Lifetime” has a history of generating efficient response for women’s offers and you have an offer that appeals to women, this can be used as criteria in planning. However, the commercial spot rate you paid in the past, time of year, programming can also impact response and all need to be taken into account.
  
Is there a good time of year or bad time of year to run my ads?
Generally speaking, direct response offers have the greatest potential for success when that cost of media is at its lowest. The first and third quarters of the year are, traditionally, the best time of year to run direct response because general or brand advertising is at their lowest levels. It then becomes a “supply and demand” issue that says, the more spots available the lower the cost.

It should also be mentioned that while media cost may be lower at certain times of the year, if your promotion has an cost per response allowable that is high enough, you can afford the higher media costs in the 2nd and 4th quarters.

Should I test national cable networks?
For the most part, national cable networks represent media that can be purchased at a lower cost per thousand households and viewers. Certain cable networks also program to niche or targeted audiences e.g. “ESPN”, “Lifetime” “Nickelodeon,” making the overall buy more effective.

By virtue of their numbers cable networks, collectively, represent an enormous amount of media inventory and they make this available to direct response agencies and advertisers. In many instances, cable networks are able to launch based on a majority of their advertisers being in direct response.

Do I need to support other efforts in local markets?
Many companies need to air schedules in local markets as well as cable networks to obtain greater audience reach. Others in the music and entertainment areas require local market schedules in order to support the sale of a product at retail. For companies such as “Arista Records” there may be the need to create awareness for a dance music package in large urban centers such as New York or Miami. A company like “Saving Bank Life Insurance” will only use local market buys as they are licensed to do business in select areas.

In addition, cable networks are in about 80%+ of US households, and local market buys allow for all the TV homes to be exposed to the promotion.

Is it important that the media plan deliver cost efficient response or generate awareness to the target audience?
This will depend on the overall objectives of the promotion. Traditional direct response advertisers will usually look to generate the most efficient cost per response and this will dictate the media rate they pay and their tolerance for pre-emption. “Branded” direct response advertisers, however, look to blend the need to generate response with the need to gain maximum awareness for an offer and they plan accordingly.

This “hybrid” type media planning strategy often results in having to pay a premium for direct response media in order to air the commercial with greater frequency.

How will frequency of airings impact response in the short and long term?
It is almost axiomatic; “The more spots you run the greater the impact on response”. But it is also axiomatic that “Offer is King” and there are some promotions that will never be successful no matter how many spots you run.

This is where an agency with the requisite experience can give you the best advice on what the next steps in the testing process should be.

Conclusion
As you might appreciate, the process of planning and testing direct response promotions is more complex than it may initially appear. What each and every successful promotion has in common is a well thought out and articulated business plan. Build to the details from the business plan by asking questions about goals, strategies and techniques.
Each and every one of the questions should lead to more and more questions. It is in these details that you would rely on creative, media, telemarketing and fulfillment professionals for advice.