BRTV – The right low-cost strategy

Brand Advertising with the strengths of Direct Response

DRTV (Direct Response TV) is often seen as the poor relation of traditional high budget Brand advertising but in the past 5 years the increased use of the internet by consumers has narrowed the gap. This has recently led to the creation of a new low cost genre of TV advertising called BRTV (Brand Response TV). These are 30-second spots that promote a URL to drive viewers with tablets or smartphones to visit a website and make a purchase. With BRTV the focus is less on name recall and more about driving online traffic. This type of ad qualifies as “direct response” and allows the clients’ media agency to purchase airtime that can cost as much as 50% less than fixed-position brand inventory in which a guaranteed TV audience level is purchased. With BRTV there is usually a more effective viewer engagement via the advertisers website and this more than makes up the difference in spend levels. Additionally, the airtime discount minimizes risk and allows first time advertisers to safely test TV.

BRTV increases traffic to your website

At ARM Direct our experience is that a hefty 20% of additional online response is generated within 10 minutes of a well made BRTV spot being transmitted. Nielsen tells us that some 60% of television viewers watch the box and surf the Internet simultaneously and we find that the multitasking 18-35yr age group react positively to BRTV ads – especially if these are highly creative and slightly edgy. Younger viewers especially are happy to immediately visit a BRTV advertiser’s website and just as importantly share what they’ve found with their friends on Facebook & Twitter. Results are even more powerful when the BRTV ad offers a free sample or special discount.

BRTV success story on a small budget

We’re on a mission to make BRTV more affordable in the UK and one of our recent successes has been to help a dynamic young online company to significantly grow sales of their hero brand.

Founder, Claire Barratt, took to social media in 2011 to sell her unique customised ClaireaBella bags and Chloe Simms from the hit TV show – The Only Way is Essex – bought one and was “papped” with the photo appearing prominently in a national newspaper. Claire says of that time, “I was bowled over with the immediate response online! A few days later Chloe was also spotted in series 2 of the TV show with her bag and my Twitter timeline went crazy!”

Later that year Claire got in touch with an online gift website called ToxicFox.co.uk and they were soon collaborating and extending the range further.

Clinton Njie (CEO of ToxicFox) decided to explore whether television was an affordable option and in September 2012 he appointed ARM Direct to make a stylish 30sec BRTV creative using the catch phrase “carry yourself with style”, featuring 3 young models and fun character animations by Nick Sneath. For a modest media budget this was tested on selected UK TV channels and ToxicFox website sales increased significantly with ClaireaBella fast becoming a “must have” bag in the all-important pre-Christmas online sales period. This initial test proved so successful that ToxicFox are now rolling out a February 2013 campaign and plan to make further BRTV ads to support their brand later in the year.

Low-cost BRTV Ads drive viewers online Research ‘TV and Online: better together’ conducted by Thinkbox & IAB, confirms that TV advertising can drive people online in a host of ways, the benefit being that the smartphone consumer journey is now much shorter and viewers often respond to TV ads as and when they are seen in real time. From their analysis it became apparent that the role of TV in driving online response has been undervalued. Partially, this is down to the fast changing technological landscape and the huge increase in smartphone ownership. Plus BRTV campaigns are based on hard facts as the response numbers don’t lie – meaning that results can always be improved month-on-month by cutting out the slow performing TV channels and testing others.

Television’s impact on website response all too often slips under the radar but the reality is this; making a low-cost highly creative BRTV ad can help drive significant online traffic especially as all BRTV ads shown on broadcast channels can now instantly be searched, shared and copied adding a whole new dimension to agency accountability. At ARM Direct we welcome this new challenge.

Can I reach the Right TV Audience?

Proven over many years TV offers advertisers the best methods for measuring audience demographics plus tracking the age, sex, status and the interests of viewers watching specific programmes on selected TV channels.

This valuable data allows you to target specific audiences for your TV campaigns, whether it’s kids, teenagers, young housewives or active 60+ oldies. This allows you to develop a TV media buying strategy for reaching exactly the right target market at an agreed budget for the lowest cost possible. In addition to selecting the best audience for your product or service message, there is also geographical targeting to suit your geographical location if you are in retail or to substantially increase your online website traffic.

How much does Making a TV Ad Cost?

Generally speaking all TV advertising budgets are a split between the airtime cost and the cost of making the TV ad. The good news for advertisers considering TV is that the cost of making a TV ad is now substantially less than it was 10 years ago. ARM Direct has made several very successful DRTV ads for as little as £4,500 for a USA financial services company that wanted to test the UK market but the final cost depends on what the client wants to achieve. On average many of the highly successful DRTV ads we make cost between £15k up to £40k and this includes all stages to project completion with the DRTV ad approved by Clearcast ready to be broadcast. We do not recommend using celebrity artists and voice overs as this adds massively to the costs and there are always plenty of talented artists who are more than happy to work hard for modest buy-out fees.

Fundamentals of a Good DRTV Ad?

ARM Direct has been responsible for several of the UK’s most successful DRTV campaigns and over the years we’ve always stuck to the basic, core principles that we know help our clients to succeed first time, every time. The DRTV ad creative style must inform & persuade and have immediate appeal to the target audience. Because watching DRTV is a passive activity the DRTV ad must grab the viewer’s attention right at the start and sustain interest throughout the commercial and persuade people to either pick up the phone or take action on their smartphone or iPad and go online to your website. Persuading a “passive viewer” to make an instantaneous switch to “active consumer” is what ARM Direct is very good at achieving.

ARM Direct’s Production Manager comments, “Ideally you should know what you’re trying to say, who you want to reach, and what you want them to do about it. Creating a need and doing this using simple visuals & language is often the key to a successful DRTV ad. For example if a debt ad persuades viewers that one phone call will solve their problems, it’s halfway to getting a “good” response and converting the lead to actual business. Make the product or service appeal to the individual by depicting situations to which the TV viewer can relate”.

What is the Best DRTV Ad Length?

In the UK all airtime costs are based on a 30 second commercial length and this format is used by almost all Brand advertisers. Some might even use 10 or 20 second length ads but this is disproportionately more expensive in terms of airtime media buying cost and should be avoided by DRTV advertisers who need to always get the best ROI from their campaigns. In our experience using a 30 second length can work really well if you’re trying to increase website traffic by only featuring the URL in the ad. If, however, you’re selling a more complex service (eg. Pension or Home Equity Release) then you’ll definitely need a 60 second length to include all the product’s unique features & benefits.

In the UK every TV ad must be submitted to Clearcast who check the content and make sure the message is “honest & truthful”. ARM Direct has worked closely with Clearcast since 1990 and we can guide you on all the script & production stages to ensure your DRTV ad is approved for broadcast.

Is DRTV More Accountable?

DRTV advertising is probably one of the most accountable of all creative options as every viewing must generate a lead or make a sale. The TV industry uses detailed audience research to measure minute-by-minute viewing figures and when you add into the mix a DRTV ad which features an 0800 number + URL it becomes wholly accountable – something you can’t say about a general Brand ad.

If you’re considering DRTV or currently running a campaign on a limited budget then let us fine-tune what you’re doing and we guarantee to generate better results for you. After nearly 30 years of DRTV airtime buying & creative experience our accumulated multi-level media knowledge could really make all the difference to your business and ROI.

Ecommerce retailers often complain about being held to ransom by Google each month. We hear this a lot when they’re forced to increase their online ad spend to generate qualified leads or sales.

Our mission is to help these clients understand that TV advertising is still the most powerful mass market media for creating mass awareness and driving significant numbers of consumers to their websites.

Companies exclusively committed to running online campaigns are missing out on the bigger picture and often do not realise that TV advertising is now much more affordable than at any time in the recent past. At ARM Direct we’ve proven that in simplest terms, online advertisers can test TV for a relatively low outlay of circa £30k (this includes producing a high quality TV ad + 1 month of advertising across a wide mix of selected responsive TV channels).

‘Free App’ Download

Using a smartphone or iPad while watching TV is something most consumers now admit doing and we find the biggest sales growth is when advertisers can offer a ‘free app’ download in their BRTV ad (Brand Response TV).

If viewers watching the BRTV ad are interested in the service or product then a high percentage will immediately go online and download the ‘free app’ within minutes. We’ve run several ‘free app’ download campaigns for clients offering language learning; life insurance; kids games; crowd-funding – these campaigns have all substantially exceeded website response targets every time the BRTV ads were broadcast.

Successful direct marketers realize they can take advantage of the lower BRTV media rates.  Using an eye catching creative which highlights brand benefits strongly with a marginal nod to traditional direct response. This TV advertising has helped clients to substantially increase website traffic, improve margins and push back against being held prisoner by Google.

Brand Advertising

Telephone numbers rarely appear on these ads and many don’t even ask for an order. Measuring success can be subjective or by impressions ie. how many people have seen the ad and not by immediate sales.

These are used to drive image and the message is all about brand awareness & loyalty building.

The creatives will have high production values and create a buzz about the brand that drives all other marketing efforts.

Direct Response

Dedicated to dealing with a consumer’s response – the call-to-action – that makes the phone ring or website register an immediate sale as soon as the ad is aired or appears in print or online or OOH. This is all about offering the buyer ‘added value’.

The ads are often inexpensive and often have low production values as it’s all about generating an immediate sale using hooks like “two for the price of one” + “money off if you call today” + “and there’s more”.

Frequently there’s no relationship to branding and the advertising is all about offering something that is not available in retail.

Brand Response

These are mostly benefits driven ie. “download the free app” or “go online now and you could make savings.”

As respondents go online BRTV is very good for developing a qualified database plus being a sales & loyalty builder.

These usually have medium-high production values and creatives that drive online traffic to the website and must be styled to drive additional results on all social media channels.

Offering better value

For BRTV to work effectively you will need to ensure that your website can handle the high volumes of extra traffic once the campaign starts.

Whilst BRTV is more affordable you will need to invest most of your budget in the media using the BRTV creative as the primary driver. Print campaigns rarely generate anything near the levels of awareness you get from a well planned TV campaign.

We find that BRTV generates very positive brand synergies between online + outdoor + print + radio + direct mail. Being on TV always adds considerable kudos to any brand and this should not be under estimated over the longer term as the BRTV campaign grows and the ad is seen on more channels in more TV ad breaks.

Is BRTV right for you?

Low-cost BRTV Ads get smartphone users online and research proves that the role of TV in driving response is often undervalued by marketers. BRTV campaigns are based on hard facts as the response numbers don’t lie – meaning that results can always be improved month-on-month by cutting out the slow performing TV channels and testing others.

Television’s impact on website response all too often slips under the radar but the reality is this; making a low-cost highly creative BRTV ad can help drive significant online traffic especially as all BRTV ads shown on a mix of broadcast channels (TV + YouTube + facebook + Instagram) can now instantly be searched, shared and copied adding a whole new dimension to agency accountability.

With the increased awareness this generates, along with substantially increasing website traffic plus the ability to accurately attribute results, BRTV is a marketing opportunity that every online marketer should consider as part of their sales arsenal.

CLAIREABELLA – CARRY YOURSELF WITH STYLE

DRTV (Direct Response TV) is often seen as the poor relation of traditional high budget Brand advertising but in the past decade the increased use of online retail has narrowed the gap. This has led to the creation of a low cost TV advertising called BRTV (Brand Response TV).

Increasingly we are making 30sec TV spots to encourage viewers to use their smartphones to visit a website and make a purchase. With BRTV the focus is less on brand name recall and more about driving online traffic.

This style of TV ad qualifies as “direct response” and allows ARM Direct to plan & book TV airtime that costs nearly 50% less – these rate savings help make TV advertising affordable for start-ups to test TV.

BRTV delivers a more effective viewer engagement via the advertisers website and the airtime rate discount minimizes risk and allows first time advertisers to safely test TV.

Our experience is that BRTV can generate over 45% more online responses within 10 minutes of a well made BRTV 30sec spot being transmitted.

Nielsen Research tells us that some 60% of TV viewers watch the box and surf the Internet simultaneously and we find that the multitasking 18-35yr age group react positively to BRTV ads – especially if these are highly creative and slightly quirky – similar to what they like to watch on YouTube.

Younger viewers like to immediately visit a BRTV advertiser’s website and just as importantly share what they’ve found with their friends on Facebook & Twitter & Instagram & Snapchat. Results are even more powerful when the BRTV ad offers a free sample or special discount.

We’re on a mission to make BRTV more affordable and one recent success has been to help a dynamic online company to significantly grow sales of their hero brand.

Founder, Claire Barratt, took to social media to sell her unique customised ClaireaBella bags and Chloe Simms from the hit TV show – The Only Way is Essex – bought one and was “papped” with the photo appearing prominently in a national newspaper. Claire says of that time, “I was bowled over with the immediate response online! A few days later Chloe was also spotted in series 2 of the TV show with her bag and my Twitter timeline went crazy!”

Later that year Claire got in touch with an online gift website called ToxicFox.co.uk and they were soon collaborating and extending the range further.

Clinton Njie (CEO of ToxicFox) decided to explore whether television advertising was an affordable option and he appointed ARM Direct to make a low-cost stylish 30sec BRTV creative using the catch phrase “carry yourself with style”, featuring 3 young models and fun character animations by Nick Sneath.

For a fixed media budget this was tested on selected UK TV channels and ToxicFox website sales increased significantly with ClaireaBella fast becoming a “must have” bag in the all-important pre-Christmas online sales period. This initial test proved so successful that ToxicFox made further BRTV ads to support their brand on a wider mix of TV channels.

Research ‘TV and Online: better together’ conducted by Thinkbox & IAB, confirms that TV advertising can drive people online in a host of different ways, the benefit being that the smartphone consumer journey is now much shorter and viewers often respond to TV ads as and when they are seen in real time. From their analysis it became apparent that the role of TV in driving online response has been undervalued. Partially, this is due to the huge increase in smartphone ownership.

BRTV campaigns are based on hard facts as the response + sales numbers don’t lie – meaning that results can always be improved month-on-month by cutting out the slow performing TV channels and testing new ones.

Television’s impact on website response + sales all too often slips under the radar but the reality is this:

Making a low-cost highly creative BRTV ad helps drive significant online traffic especially as all BRTV ads shown on TV + social media channels can now instantly be searched, shared and copied adding a whole new dimension to agency accountability.

DRTV proves an effective choice for advertisers needing an accountable medium

Traditional TV advertising continues to make way for DRTV (Direct Response TV), the offspring that has matured rapidly to take a grown-up share of the UK broadcast TV ad market.

The key benefit driving DRTV’s popularity is its accountability, providing advertisers with detailed customer data that can be analysed to accurately measure the success of a TV campaign.

The main performance indicator for any DRTV campaign is its overall cost-efficiency and return on investment. Having the data-mining tools in place to delve deep into the increasing amount of customer and viewing data is therefore essential to long-term success.

So what are the key steps to analysing DRTV effectively?

(1) Estimate scheduled call volumes

Always obtain scheduled TV spot times before a campaign airs. Ensure the right copy is running, along with correct telephone numbers, and that spots are broadcast as planned throughout campaigns. This information, along with estimated call volumes, is vital to the advertiser’s call centre, so that responses can be handled efficiently.

(2) Obtain detailed DRTV response data

Know what response data is going to be available once the campaign is running and how often it will be supplied. Having an infrequent supply of data leaves little time to revise media plans while a campaign is on air. Be sure to receive exact times of calls in order to match this back to spot times at a later stage.

Collecting details of when qualified respondents called is more useful than simply noting gross call volumes. While a DRTV campaign’s main objective is the ’call to action’ to generate as many cost-effective calls as possible, the quality of respondents is also important. The number of qualified leads can feed back vital creative information, such as the advert’s appeal and whether it contains a clear message. It can also influence future media plans, for example a kid’s channel may be generating a large number of hoax calls and may need to be removed from future plans.

(3) Attribute accurate responses to DRTV spots

Determine how quantifiable the data is. If TV channels have run separate telephone numbers, the response data can be assigned with greater accuracy. Should one ‘golden’ number have been used across multiple TV channels, then a spot-matching methodology is needed to attribute each response to an individual TV spot. The most efficient is a purpose-built software system programmed to do this automatically.

(4) Drill down to your DRTV results

Analyse the response data with BARB viewing figures to determine response rates and costs. The DRTV campaign’s overall response rate and cost-per-response provides a first indication of success. However, successful or not, it is essential to drill down further into the data to establish the accountability of all the TV airtime and plan how future DRTV campaigns can be improved.

Each TV channel’s performance can be judged after responses are spot-matched, but it is also important to analyse other variables, such as days of the week, dayparts (such as peak time), position in breaks and individual TV programmes or programme genres.

Even a cost-efficient and successful TV channel may have poorly performing days or dayparts, which, if removed from future plans, could lead to a lower cost-per-response. Conversely, a TV channel that has not been effective may have certain times which were cost-efficient and the airtime could be restricted to these times in future. All these affect the overall campaign results.

This is why DRTV campaigns should be constantly tested, analysed and refined.

(5) Ensure transparent DRTV airtime costs

An ongoing (and campaign-end) reconciliation of delivered viewing figures versus budgets will give a transparent picture of final TV airtime costs. Reconciled airtime figures will show an over or under-delivery for each TV station, which will help plan spend levels for future DRTV campaigns.

(6) Use return on investment to judge your DRTV campaign success

When planning subsequent DRTV campaigns, use recent response rates to judge each channel’s expected performance. However, it is also important to balance the plan with cost-efficient channels and high volume generators. Response rates are guides, but cost-per-response and ROI are the key performance indicators.

(7) Variable DRTV airtime costs may reduce future efficiencies

When analysing campaign results and planning future budgets, the changeable TV landscape should be considered. A TV channel may not perform successfully month-on-month due to external factors, such as new competing satellite channels launching, programming changes and particularly price changes.

The majority of TV airtime is purchased through CpTs (cost-per-thousand viewers). Each station’s price can fluctuate by month. Therefore, airtime purchased in one campaign may be more expensive by the next. This can have a large bearing on future results and must be taken into consideration when planning future DRTV activity based upon previous results.

DRTV is all about getting:

The Creative Message in the Right Ad Break at the Right Time of Day at the Right Media Price

(1) The DRTV Ad must generate an immediate response

It must be able to grab the viewer’s attention right at the start and sustain interest throughout the commercial. Watching TV is a passive activity. When a DRTV ad is on screen it should demand that the audience take an active role. Picture yourself watching a DRTV ad for a new service or product – now ask yourself what would make you pick up the phone and take action? Persuading the passive viewer to make an instantaneous switch to active consumer is tough. You need to know what you’re trying to say, who you want to reach, and what you want them to do about it.

(2) Express a common need or problem that the target market can relate to

Creating a need and doing this using simple language is the key to a successful DRTV ad. For example if a debt ad persuades viewers that one phone call will solve their problems, it is halfway to getting response. Make the product or service appeal to the individual by depicting situations to which the TV viewer can relate.

(3) Provide the DRTV product / service as the solution to the problem

It would be unusual if there were only a couple of reasons for buying a service or product. Identify the “selling point” that will most persuade TV viewers that the DRTV message may change their lives. If there is a USP always use it to full advantage.

(4) A DRTV ad should always be 60sec with a 30sec cutdown

CH4 TV Response Research confirms that the longer the DRTV ad, the higher the response is likely to be. The best length to get your message across is usually 60sec, however always plan to do a 30sec cutdown from the original footage as this shorter length will allow you to test on the more expensive Terrestrial channels.

Advertisers in the USA and on satellite channels in the UK have had considerable success using the 30minute Infomercial length. This longer format is ideal for selling products that require lengthy demonstrations or explanation allowing the advertiser to present a stronger case as to why the viewer should buy the product/service. Several USA companies have ceased using shorter DRTV ads and are now concentrating their marketing efforts on securing low cost satellite TV airtime so that they can broadcast their half hour Infomercials across Europe.

(5) Overcome scepticism or other objections

Always keep the target audience in mind and address them in a way that is relevant to them. This includes a suitable tone of voice and an understanding of the way in which the audience perceive themselves. For example, an ad aimed at teenagers will not attract its target group if it uses a middle aged cast. Conversely it has been proven that in the 50+ sector TV viewers tend to identify with people that are around 15 years younger.

(6) Make the nature of the DRTV ad immediately clear

DRTV combines sight & sound so make sure the selling point of the DRTV ad is credible. If an ad lacks sincerity or conviction, then the viewer will not be convinced either. Any confusing language or captions are fatal where the aim is to achieve maximum response. The style of DRTV ads does not mean that you have to stretch credibility as this only brings the cynic out in the viewer.

(7) Always add an 0800 Freephone number within 5secs of the start

The benefits of using a freephone 0800 number are obvious. Viewers are more inclined to call the number on the DRTV ad because they have nothing to lose. Make sure your DRTV ad follows the tried tested rule of placing the number prominently on the screen within 5secs of the start. The longer the number is on screen the higher the response will be.

(8) Use DRTV to clearly demonstrate the product or service

Many companies already use DRTV to promote products that benefit from visual demonstrations. These include vacuum cleaners, kitchen equipment, exercise machines, even colour contact lenses. When promoting a product or even a service don’t leave anything to the viewers imagination – demonstrate the benefits clearly.

(9) Use compelling captions to support the dialogue

Don’t drown the call to action or the audible repeating of the 0800 number with loud music or sound effects. Also, always use legible and persuasive captions that match the dialogue exactly. For a DRTV ad especially, the soundtrack and captions should enhance the main aim of the ad, which is to persuade people to call, not entertain them.

(10) Finally, don’t forget to ask the DRTV viewer to call…!

The End Frame containing the all-important call-to-action captions should never be less than 10secs on screen.

DRTV viewers need to be reminded to write the number or the URL down even if these have been up in the main body of the DRTV ad for much longer. Also, if possible always try to offer something for FREE (free call – free information pack – free gift – free bonus – saves you money). Something extra that encourages viewers to make the call now!

What is the size of the DRTV market in Europe?

The European Union has been with us for over 50 years and what started out as a treaty between 6 founding countries now includes 28 member states with a total population of circa 511 million until the UK’s BREXIT vote in 2016. Together these countries account for less than 22% of the worlds population, however their combined economies produce an impressive 37% of the global GDP and they own more than 32% of the worlds telephone lines making Europe the ideal target for DRTV andHome Shopping.

DRTV, of course, is not a new TV advertising concept. It has been successfully used as an advertising medium in America since the mid 1950s. The real boost for DRTV came with the availability of freephone numbers, and the advent of credit cards as the preferred means of payment. According to Teledirect Magazine, 68% of all US TV commercials now carry a telephone number or URL, and this figure rises to around 87% after 10pm.

Western Europe only embraced DRTV in the mid 80’s, however it is estimated that TV shopping revenues in the EU are likely to grow to circa 6.4billion Euros by 2012.

Which countries in Europe are consumers more receptive to DRTV than others?

Many DRTV advertisers thought the expansion of the EU would open up new and profitable markets. Consumers in Austria, Germany, Holland, Italy, Ireland, Spain and UK have populations that like using their televisions for all manner of home shopping. Interestingly these West European countries have the most call centres per head of population.

East European countries also want to buy innovative DRTV products but the logistics (lack of call centres and credit card usage) in those countries will continue to throw up challenges meaning that DRTV operations might take several years before they deliver acceptable sales and ROI. An upside, however, is that advertisers can test DRTV for a much lower entry cost in these countries and DRTV sales are predicted to forge ahead of their less progressive neighbours.

Another country where DRTV is growing fast is Poland.

The cost of both DRTV & Infomercial airtime is very competitive (when compared to the USA) however the British, Germans & Dutch have always been inclined to buy products offered in US style creatives. An added advantage in the UK is that TV audience levels can be tracked using BARB (Broadcaster’s Audience Research Board) making media planning & buying TV airtime more accurate than any other country in Europe.

To highlight just how much the UK (population 64 million) has embraced tele-shopping there are more than twice as many home shopping styled TV channels in the UK than in Germany (population 84 million). In summary, Britain continues to be the best performing DRTV market in Europe.

If considering DRTV in Europe will you be able to monitor & track results accurately?

ARM Direct recognised several years ago that the best way to help all our DRTV clients keep ahead of their competitors was to guarantee them the ability to accurately track & analyse every TV channel’s performance on a daily basis.

Are there differences in the way DRTV operates in Europe compared to USA?

Many already successful USA DRTV advertisers assume that what they have done one side of the Atlantic can automatically be repeated on the other. The challenge is to learn from and then develop each individual European market finding ways to target the desired audience at the lowest cost-per-response. Smaller audience numbers, as most advertisers in the USA are fully aware, are not necessarily a problem in the direct response arena. What matters is the equation between the cost of the airtime and the number of sales or leads generated.

An experienced DRTV media buyer with expert knowledge of the European market can identify the type of audience demographics required for a particular product or service and negotiate airtime accordingly to generate the maximum response.

The UK and Germany have the most DRTV media avails in Europe – mainly driven by the sheer number of digital satellite & cable channels in those countries. The UK has the most Infomercial and home shopping airtime and our recommendation is to test DRTV in the UK first and then Germany, Holland and Belgium.

How do you find the right DRTV Creative & Media Agency partners?

It is important for Direct Response companies to find the right partners from day one. Each European country presents its own set of challenges and it is therefore essential to seek out a successful London based DRTV creative & media agency like ARM Direct.

Do Infomercials really work in the UK?

The use of American made Infomercials is something that UK TV audiences have only just got used to seeing on their screens over the last 3-4 years. However, the global marketing policy of “One World, One Ad” has often failed internationally.

Pepsi’s “Come Alive with Pepsi” was translated into one Asiatic language as “Pepsi brings your ancestors back from the dead”. And Kentucky Fried Chicken’s “Finger Lickin’ Good” first hit China as “Eat Your Fingers Off”. There will always be challenges testing DRTV & Infomercial products and launching USA products in the UK is no exception. However, the fact that something has worked well in the US gives most European DRTV players confidence that there is a good chance the same product will work well over here.

UK marketers have often marvelled at how buying off the TV screen has matured into very big business in the USA. QVC were the trailblazers in the UK (launching in October 1993) and their popular “live” show format is still regarded as the perfect balance between entertainment and hard sell reaching 95% of UK Cable homes and 100% of Satellite homes. Their success in Britain spawned several smaller “live” home shopping channels but these have never become serious challengers and some have already shut down.

QVC UK has outmanoeuvred and outsold all of these newcomers maintaining their dominance from a fairly small demographic group – typically older female viewers. Home Shopping in the UK has never really managed to excite younger TV viewers – but this is about to change.

Growth of Transactional TV Channels

What UK marketers have discovered however, is that the longer half-hour show format is ideal for targeting a broader social-economic demographic. The continued growth of TV channels in the UK offering 3 hours per day of home shopping is said to be generating revenues in excess of £483 million per year.

A Director of London based ARM Direct comments, “What the Americans have known for a long time is that ‘the more you tell, the more you sell’. They understand the simple rule that the longer you can talk to a prospect, the greater the chance of a sale. British marketers have taken a while to learn that one of the great strengths of long-form is that TV viewers actually choose to watch an Infomercial because they are attracted to it while channel surfing. Once hooked they tend to stay with the show”.

Do US Infomercials transfer to the UK?

At present about 18 Infomercial product categories are on UK TV screens. These include Audio & Video, Automotive, Beauty & Wellness, DIY, Food & Beverages, Jewellery & Watches, Home & Garden, Electronics & Computers, Collectibles, Health & Fitness, Multi-Media and Gifts.

The danger, however, for US advertisers lies in assuming that what they can do on one side of the Atlantic can be automatically repeated on the other. FDA Approval doesn’t mean a thing to Clearcast (British Advertising Clearance Centre). All Infomercials must comply with the UK’s stringent TV Broadcasting Rules.

For instance, nudity is accepted in France but would never be allowed in the UK. Sometimes whole product categories are banned. For example it’s still not possible to use Infomercials to sell dietary or vitamin supplement products in the UK.

It’s also not possible to use Doctors, Dentists or anyone else claiming to be in the medical profession in an Infomercial or DRTV ad to endorse your products. Selling to children is also highly regulated and all Testimonials have to be authentic and backed up by signed declarations.

Getting UK Infomercial Compliance

Less controversial product categories like fitness, housewares, collectibles, music & videos plus cleaning products tend to be the strongest sellers. Even so, several US sourced health & fitness Infomercials have recently had to be taken off air in the UK due to non-compliance issues as well as over enthusiastic testimonial content.

Specialist DRTV agencies such as ARM Direct help clients to navigate their way through UK broadcast regulations and also to lobby for changes within the TV industry with a view to helping the public have even more home shopping choice on their screens.

ARM Direct’s Head of Teleshopping says “Over the years I’ve often been approached by companies wanting to run their Infomercials here in the UK and compliance has often been the main stumbling block. It’s not much good making a great Infomercial in the USA only then to find you cannot run it in an English language market like the UK simply because you were not aware of this country’s Clearcast broadcast compliance issues”.

UK Infomercial Success

Until recently only a few TV channels in the UK were able to sell long-form airtime avails. That’s all changed and ARM Direct now offer longform airtime on over 40 TV channels.

Predicting the UK’s Infomercial Future

Although Infomercials are only now becoming more familiar to many UK TV viewers, the future is looking very positive.

The days when US sourced Infomercials were either ignored or ridiculed by mainstream UK marketers are just about over. Writing about European DRTV trends for Response in 2001 ARM Direct predicted that US styled Infomercials would become common place on UK TV screens. It’s taken several years for this to come about but these new home shopping channels are now very much part of the UK’s TV landscape. Annual sales are climbing, the quality of the creative production is improving and all we need now are better products.

The real test for the UK will be how long it takes for the bigger and better known Brands to wake up to the power of the half-hour show. Companies in the Insurance and Financial sectors are already considering long-form advertising and this will encourage others to examine this proven format. The downside for the product advertisers is that once Brands get involved the airtime rates will very likely go up as these advertisers are willing to pay higher airtime rates.

On the more positive side the UK’s Infomercial revolution is certainly destined to help both new and established Direct Marketing & established Brands to even greater success in Britain and we now look forward to seeing more innovative products and services on our TV screens.

Fragmenting TV audiences continue to give many marketers a headache in the UK – yet for brands who have embraced DRTV the increase in channels to market is a massive bonus.
 
But many of the big media & creative agencies in Adland continue to avoid advising their brand clients to try DRTV – why?
 
It may be these agencies still consider DRTV to be the ‘poor relation’ of mainstream media, lacking creativity and aimed solely at daytime TV viewers with debt problems or those seeking personal injury compensation.
 
Companies offering quick solutions to these everyday problems still use DRTV because they know it works. The question the increasing numbers of start-ups, pushing their free download apps, always ask is will their DRTV ad compel consumers to act straightaway?
 
Major USA brands started running direct response campaigns many years ago and this helped improve DRTV’s credibility – Apple, Braun, Coca-Cola, Disney, Time-Life, McDonald’s, KFC and many others such as charities needing to sign up donors.
 
DRTV is not new, the first references to this medium were in the USA during the 50’s yet it was in the 60’s that DRTV really took off helped by the introduction in the States of freephone numbers + fast talking sales presenters.  Today 87% of all TV ads in the USA include a response mechanism (Freephone number and/or URL) whilst in the UK this is still only 41% of all ads.
 

Use a Specialist DRTV Agency

 
Arguably it has been the emergence of specialist DRTV agencies who’ve helped to substantially grow this direct response sector. ARM Direct, formed in 1984, provides UK clients with DRTV ad production alongside media planning & buying.
 
We also use ad performance measurement software so that brand owners can monitor which TV channels are generating the most responses; at what time of day; in which TV programmes.
 
Accountability and the ability to accurately track & analyse each response should be top of every direct marketing ‘wish list’ – ARM’s analytics software allows us to improve a client’s media buying efficiency and to lower their DRTV cost-per-response targets on a month-by-month basis.
 
DRTV alters the relationship with your consumer and it also changes the nature of your TV ad campaign from one with long term ‘brand’ objectives which are difficult to measure to one providing immediate results.  Simultaneously, it can generate an accurate database profiling large numbers of consumers by their needs as well as geographical locations etc.
 
DRTV consumers do not necessarily fit the demographic profile some its critics might expect – around 79% of respondents are home owners aged between 35-45; 53% are professionals; 68% are graduates.
 
It is crucial for marketers to know when people are most likely to go online or pick up the phone.  On average 53% of consumers respond to DRTV ads in the afternoon; 23% in the morning; 24% in the evening. This can differ Monday to Sunday so it is vital that you are using a DRTV specialist agency like ARM to do the day-by-day response analysis on your campaign.
 

Making a Successful DRTV Ad

 
Your DRTV ad must also be the right length – we make 30sec + 40sec + 60sec versions and then over 2-3 months we test and monitor which length works best on what channels.
 
The creative must quickly overcome any objections and encourage TV viewers to respond immediately using a URL or 0800 number which must be clearly displayed throughout the commercial (not just at the end for a few seconds – a classic mistake made by many brand creative agencies). The DRTV ad must ideally entertain and use an emotional trigger – admittedly we all see lots of bad DRTV ads which look cheap and don’t help consumer confidence’ however, smart DRTV ads take a more broadminded creative view of what constitutes a ‘direct sell’ and when done well using imagination the often low-cost DRTV ad can achieve marvellous results – please look at Gousto or ClaireaBella in our Case Studies.
 
While DRTV has a lot in common with other forms of direct marketing, there are some important differences. TV ads are extremely competitive and viewers like to be entertained so a good DRTV ad must be memorable because the sales message will disappear from the screen in 30-60secs. The creative idea should be quickly understood and the DRTV campaign should be part of a ‘multi-channel marketing strategy’ which includes social media & online activity at the same time.
 

DRTVis now affordable

 
Many start-ups are worried about TV needing a big production & media buying budget – this is not the case. These days new TV advertisers should work backwards and ask themselves how many units they need to sell to cover the cost and ensure this is a realistic forecast. New DRTV advertisers must not only look at the immediate payback any campaigns will generate but also factor in the value of customers returning to their website.
 
A DRTV campaign budget usually ranges from £15,000 to £35,000 – this includes making a hard working DRTV ad + running it for 4 weeks on a wide mix of proven TV channels. 
 
The wide choice of SKY channels and the fact that DRTV works best off-peak means advertisers can take advantage of cheaper airtime deals. These lower cost spots can accurately target your buyers and DRTV response levels are optimised because viewers are more likely to have a genuine interest in the product or service offered.
 
One recent £5,000 DRTV ad + £15,000 media spend over 4 weeks helped to launch a new 50+ cosmetics brand and this £20,000 test spend generated over £175,000 sales during the launch month. Awareness of this online only product range was created using highly targeted TV channels that research proved have high numbers of the right age group watching during the week.
 
A specialist Direct Response agency like ARM will ensure a new client has an ad that follows all the DRTV ‘golden rules’ we always work hard to plan & book the most appropriate airtime slots in TV programmes that we know your demographic will watch during affordable off-peak dayparts.
 

Smarter is Better

 
Our business philosophy is ‘SMARTER IS BETTER’ – by this we mean using proven DRTV creative & media buying principles.
 
We know viewers are probably doing other things when they see a DRTV ad on TV – this means the creative message must grab their attention and make them want to respond immediately.
 
The message and tone in your DRTV ad are crucial plus the idea must be original and clever to cut through all the other ads in the break.
 
In the UK it’s becoming more and more to reach consumers cost effectively which is why many UK brand advertisers are now using entertaining 30sec ‘softer sell’ BRTV (Brand Response TV) ads to raise awareness and website traffic. Some are dovetailing these fun BRTV ads with ‘direct sell’ DRTV ads helping to generate an immediate ROI whilst at the same time continuing to support their brand values.
 
Being smarter is definitely better and working with an affordable budget is always our stated business goal – making sure clients are ‘seen more often on more TV channels at the right times of day to find their target demographic’.
 

Key Facts

 
• Marketing campaigns that utilise TV are six times as efficient compared to those that do not.
• TV drives 17% of paid search; 15% of response from display advertising; 14% of affiliate referrals; 13% of direct web visits.
• Brands using TV as part of their marketing strategy experience an average uplift in branded search of 33%.
• Over the course of your average week, 93.8% of the UK’s adult population is reached through commercial TV.
• Live TV accounts 48% of the average UK adult’s daily media consumption.
• Live TV reaches 88.6% of 16-34 year-olds every week, and represents 48.8% of all daily video consumption within this age group.
• TV generates 51% of all online and offline word of mouth activity and the most social conversation, with 44% of all media-driven Facebook activity now deriving from TV content.
• Brands that utilise TV advertising as part of a marketing campaign experience on average 69% uplift in online conversions.
• 74% of UK adults browse online via other devices whilst watching TV, with ad recall generally unaffected.
• TV campaigns that span a period of time longer than 3 years generate an average profit uplift of 140%.

 *Statistics sourced from Thinkbox and BARB

What was the most significant accomplishment in the past year for the UK’s Direct Response industry?

Unlike typical Brand advertising, DRTV will always deliver a measurable & accountable return on investment and the almost immediate results continue to provide marketers with real day-to-day numbers, feedback that helps determine whether their campaign is on track or if it needs adjustment.

In the past DRTV was often seen as the poor relation of traditional high budget Brand advertising but in the past 5 years the increased use of the internet by consumers has narrowed the gap. This has recently led to the creation of a new low cost genre of TV advertising called BRTV (Brand Response TV).

These are 30-second spots that promote a URL to drive viewers with Laptops, tablets or smartphones to visit a website and make an immediate purchase. With BRTV the focus is less on name recall and more about driving online traffic. This type of ad qualifies as “direct response” and allows the clients’ media agency to purchase airtime that can cost as much as 50% less than fixed-position brand inventory in which a guaranteed TV audience level is purchased.  With BRTV there is usually a more effective viewer engagement via the advertiser’s website and this more than makes up the difference in spend levels. Additionally, the airtime discount minimizes risk and allows first time advertisers to safely test TV.

At ARM Direct our experience is that a hefty 20% of additional online response is generated within 10 minutes of a well-made BRTV spot being transmitted.  Nielsen research tells us that some 60% of television viewers watch the box and surf the internet simultaneously and we find that the multi-tasking 18-35yr age group react positively to BRTV ads – especially if these are highly creative and slightly edgy. Younger viewers especially are happy to immediately visit a BRTV advertiser’s website and just as importantly share what they’ve found with their friends on Facebook & Twitter. Results are even more powerful when the BRTV ad offers a free sample or special discount.

We’re on a mission to make BRTV advertising more affordable and one of our recent successes has been to help a dynamic young online company to significantly grow sales of their hero brand.

What do you believe the hottest topic will be in the coming 12 months?

The hottest topic in the UK continues to be the way major fashion & cosmetic brands have finally woken up to the power of BRTV and how smaller companies are now adding TV to their marketing mix.  ARM Direct is focused on helping several young consumer brands test TV and one of the most successful continues to be Barry M (the UK’s most successful teenage cosmetic brand) who by switching to a BRTV style campaign has persuaded huge numbers of young British girls to tweet, go online and join their fun Facebook + Instagram pages or visit their local Boots or Superdrug stockists. The result has been a substantial uplift in retail sales and Barry M has succeeded in taking market share away from the much larger cosmetic brands who at very considerable cost have used fashionistas like Kate Moss and Georgia Jagger (the glamorous daughter of Rolling Stone Mick Jagger) in their TV ads. On the flip side we’ve made highly successful BRTV ads for under £8,500 and the results to the client’s ROI have been really dramatic, in one case increasing retail sales by over 800%.

How can you better reach out to brands who are looking to integrate DR (Direct Response), digital and data-driven efforts within their overall marketing plans?

In the UK we’ve succeeded in doing this by offering more clients the opportunity to test VoD (Video on Demand).  Whilst not exactly new, the first commercial service was launched in Hong Kong in the early 1990s, the great advantage of VoD is that substantial numbers of UK smartphone & tablet owners are now choosing to download their favourite TV programs and then view them later. Some years ago Channel 4 claimed a “world first” to make the bulk of its schedule available on demand and the majority of their 18-35yr old consumers are now choosing to watch time-shifted programs.  This gives brand advertisers a unique opportunity to test in the DR zone and be able to closely target their ads to viewers’ program choices.

What are the three biggest no-no’s for a marketer using a measurable, multichannel strategy?

We have seen several well-known DR clients switch to an online only strategy as the internet can deliver lower CpRs.  In some cases the making of the DRTV ads has also been given to the online agency as a way of further savings costs.  We believe this is a short sighted tactic as we have many years of experience using DRTV to generate new leads (or immediate sales).  Once the DRTV ad is switched off the advertiser loses the positive “halo” effect that a regular television presence produces.

Our experience is that a migration to strictly online marketing will hurt a DR advertiser in the long term and we believe it is best to keep a wider consumer presence by using a combination of DRTV spots or VoD or Infomercials in addition to ongoing social media activities.

In addition, other no-no’s for me are when I find a DR advertiser appointing a media buying agency that:

• Is tied to TV station deals instead of buying avails on a client by client basis
• Does not have a deep understanding of what makes a BRTV or DRTV ad work harder
• Has no online PPC expertise in-house
• Cannot offer bespoke campaign tracking & analysis reports on a weekly basis

How is the UK economy treating marketers in the DR business and what effect is the current economy having on campaign success rates?

British consumers are now devoting almost half (47%) of their waking hours watching TV and using their smartphones & tablets according to the UK broadcast communications regulator Ofcom. The accepted wisdom is whilst these same consumers may be spending less at retail the dedicated TV viewing remains a central part of their lives throughout the day.
 
The divide between younger and older people’s use of technology, however, is starting to narrow as more in the 50+ sector are watching home shopping channels looking for a bargain purchase or going online and finding that this is so much easier than ordering from a traditional print catalogue or going down to the mall.

How has technology changed the way your company does business in the past 12 months?

We recognized several years ago that the best way to help our DR clients keep ahead of their competitors was for ARM Direct to invest in creating the “Armada” software program, a bespoke analytical tool which allows all our DR clients remote online access to their daily sales data (password protected) from wherever they are in the world.

Several of our DR clients are multi-national companies and they can now log on and view their sales data – everything from daily response per TV channel per telephone number to airtime and budget reconciliation per DRTV or Infomercial creative.  The world is a global village and as one of the UK’s busiest ad agencies offering creative & media buying services we needed to offer our clients daily & weekly campaign tracking & analysis reports supported by easy-to-understand presentation graphics.

Ofcom confirms that smartphones are increasingly being used for multi-media, but “live TV” still remains the main entertainment within the home.  Younger people have shown the biggest changes in how they use media – particularly using different kinds of media at the same time.  But the divide between younger and older people’s use of technology is starting to narrow as more middle aged people (40+) are getting online and finding this is so much easier than ordering from a traditional print catalogue.

How are media rates affecting DR marketers?

The UK economy is being affected by BREXIT, however, retail sales are showing steady growth. The TV advertiser is benefitting from this especially if they have a good direct to retail presence. Many TV channels are lowering their rates as they continue to be challenged by brand advertisers switching their spend to online only strategies.

This means some savvy BRTV & DRTV advertisers are now paying less for 30sec & 60sec spots than 4 years ago and if they have the budgets will be able to substantially increase their OTS (opportunities to sell).

The direct-to-retail game plan now seems to be a must for every DR campaign that is on TV. What are the three most important things a marketer must do to have the right retail plan in place?

The three most important things a Direct Marketer should do is have a great customer relationship management system so that you know who they are, how often they shop online, what they like and when they last visited your website as the consumer wants to buy on-trend products at great values.

Next make sure you capture relevant data about your customers when they visit your website by offering them a newsletter or coupon to encourage their next purchase online or to visit a particular retailer where your products are on sale. Make sure you are constantly looking at new ways to engage with your customers via social media. 

What are the three biggest effects the growth of social media is having on the DR marketplace?

Every DR business should include a social media strategy to attract potential buyers or increase product/service interest. Recent research by ARM Direct confirms that media savvy UK consumers (after seeing your BRTV or DRTV ad) will key in the URL and check out what you have to say on your website then next open your Facebook page to see what others are saying about you!
   
We’ve been especially successful combining VoD + Twitter + Facebook + YouTube + Instagram on campaigns for the 18-35yr old demographic, however, for the 50+ sector a much more subtle approach is needed as print & posters are still very important.
 
In the UK research suggests that the majority of DR companies are still not committing sufficient budget to social media which is like saying “it’s important but can we just leave that until after the product/service has started selling using our normal channels like DRTV and Infomercials?”  We believe strongly that mature DR marketers need to hire CRM professionals to take care of this side of their business and not just concentrate on short term sales.

Has the influence of mobile marketing on the industry grown in the past 12 months and how will the expansion of mobile affect DR?

The number of UK smartphone users continues to grow rapidly in the UK:

• 47 per cent of adults and 78 per cent of teens are ‘highly addicted’ to them
• Smartphones are definitely affecting consumer purchasing behaviour

In the UK shopping on a tablet or smartphone is more popular than ever with 72% of owners admitting to making a purchase from their device. More interesting is that research has shown online shoppers purchase multiple products with a higher price tag.
 
What does this mean to the Direct Response marketer? Despite increasing use of the internet and an explosion in the choice of mobile devices available to access media and communications, regular TV still remains the UK’s most watched media and viewing figures have increased with the average UK viewer now watching nearly 5 hours every day!

Surfing the internet via mobile phones is the fastest growing UK media – Direct Response marketers who ignore this trend will be left behind as the UK rushes towards BREXIT.