Category: Blog

DRTV in the UK

“The more you tell the more your sell!”

    “ WHEN I SAW HOME SHOPPING WAS STARTING ON
    TV IN CHINA I KNEW IT WAS ALL OVER.

    THERE’S NO WAY COMMUNISM CAN COMPETE WITH
    THE POPEIL SALAD SHOOTER AT JUST $9.95”

    GENERAL COLIN POWELL

    DRTV HISTORY – USA
    • Started late 1940’s
    • ‘Live’ TV commercials selling products of limited value mainly for use in the home
    • Usually fronted by a fast talking salesmen
    • First specialist ‘DRTV’ ad agencies formed in late 60’s
    • DRTV successes in US allowed specialist ad agencies to expand into longform ie. 30minute Infomercials
    • Today 87% of all US TV ads after 10pm are transmitted with a response mechanism ie. 0800 + URL
    • Many major US “Brands” now use a mix of traditional 30sec TV ads + longer DRTV Spots & Infomercials

    These include:

    APPLE – AT&T – BRAUN – CLUB MED – COCA COLA – DISNEY – GM – HOOVER – KODAK – KRAFTS – MCDONALDS – NISSAN – PEPSI – PROCTER & GAMBLE – TIME-LIFE – TOYOTA

    And a growing list of others…

    Why Direct Response Television?

    Companies producing brand-building + awareness advertising campaigns have used TV as the major element in their marketing mix for decades.

    Quite simply television still works

    Traditional TV ads increase awareness & demand for a product or service – so much so that it’s changed consumer behaviour drastically over the last 60+ years.

    Many famous TV commercials – from “A Mars a Day” to “I bet he drinks Carling Black Label” – have become part of popular culture as much as pop songs or leading entertainers. Nationwide we still continue to recognise the same products & brand names.

    Television is generally seen as a mass medium, frequently attracting peak audiences of more than 10 million. It also reaches almost the entire UK population, including those who are not regular readers of newspapers or magazines or frequent users of social media.

    The growth in the number of TV channels and the spread of minority interest programmes, means that much smaller sectors of the community can now be targeted via television.

    The advent of DRTV (Direct Response Television) changes the relationship with the consumer. It also changes the nature of an advertising campaign, from one with long-term objectives which are notoriously difficult to measure – such as “building awareness” and “changing perceptions” – to one providing “measurable results”. Simultaneously DRTV can generate an accurate database, profiling consumers by their needs and responses, and by geographical locations.

    US TV Ads are more Direct Response focussed

    According to recent US media reseach, 68% of all TV ads in the States carry a URL or telephone number and this figure rises to around 87% after 10pm. Given the proven ‘Power of TV’ advertising it’s surprising that more UK consumer brands (and start-ups) are not testing a TV response mechanism as an integral part of their marketing mix.

    CH4 research discovered that only about 48% of UK TV commercials currently offer a response mechanism – compare that to the US!

    The cost of creating a conventional 30sec TV commercial, paying for peak air time and achieving an appropriate number or OTS (opportunities to see) will put a strain on most marketing budgets.

    The good news, however, is that creative production costs have been slashed in recent years and ARM Direct is now making highly successful DRTV + BRTV ads for budgets from £5k to £18k – many of these run for 18 months or more helping to amortise creative costs.

    Use cheaper daytime TV slots

    The UK TV media landscape offers a wide choice of affordable TV channels – and DRTV works best in off-peak ie. the cheaper daytime slots.

    For DRTV we make sure your product or sales message is seen more often on more TV channels at lowest media cost.  

    DRTV generates an immediate response – however, both response & brand strategies can be incorporated into the same DRTV ad.

    This strategy depends on the ability & experience of the creative team and the type of product or service on offer.

    Common sense in any case suggests the creative treatment of a DRTV ad should not contradict or undermine any ‘brand positioning’ carefully and expensively developed through previous awareness-building campaigns.

    Providing that all the parties involved in the development of a DRTV campaign are aware of this, there is no reason why it should be a problem.

    Even a casual perusal of off-peak TV will reveal that DRTV advertising is being used to an increasing extent in the UK by both product & service based companies – high street & online retail.

    As with all forms of advertising, some DRTV is performing remarkably well, and some is disappointing.

    Use a specialist Direct Response agency

    In our experience failed DRTV campaigns result from two important factors:

    1. Poor media planning & buying – meaning that failure would be likely however good the DRTV ad

    2. Or a misunderstanding of the sales & script writing techniques that should be used for making all successful DRTV ads

    Your next move to ensure success

    Clients thinking of embarking on a Direct Response campaign should always select a DRTV specialist agency – ideally one like ARM Direct with years of dedicated DRTV media planning & buying + DRTV creative production in-house.

    Using a Brand agency to undertake a DRTV campaign often leads to poor results or outright failure.

    In the USA it is the specialist Direct Response agencies that rule this sector for good reason – they are DRTV experts.

    TV Drives Online Traffic

    TV Drives Online Traffic

    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.

    DRTV Generates Leads

    DRTV is now used by leading Brands

    DRTV is often considered to be the poor relation of other media aimed primarily at daytime viewers with debt problems or those seeking compensation claims of some sort. Companies offering solutions to these problems use DRTV because they know it works and can generate many thousands of good leads at an acceptable cost-per-response.

    Among the leading brands now adopting DRTV and helping to improve DRTV’s credibility, are Apple, Braun, Coca-Cola, Disney, Weight Watchers, Nissan and numerous charities looking for donors – proving that if a company gets its DRTV campaign right then thousands of TV viewers will pick up the phone or visit a website within the first 10 minutes of their DRTV ad appearing on screen.

    For DRTV success you need a specialist DRTV Agency

    It has, arguably, been the emergence of specialist DRTV agencies which has promoted this growth. In the UK, ARM Direct provides its clients with DRTV creative plus DRTV media planning & buying. It also offers a bespoke DRTV campaign tracking & analysis software system so that client’s can monitor which TV channels are generating the most response, and at what times of day in what programmes. After many years of DRTV experience ARM Direct are experts in helping clients generate measurable results profiling customers by their needs & responses as well as geographic location.

    Typical DRTV consumers

    Recent research reveals that DRTV consumers do not necessarily fit the demographic profile many of its critics might expect. Around 79% of DRTV buyers are homeowners aged between 25-45yrs, 53% are professionals and 68% are graduates. Some 53% of consumers respond to DRTV ads in the afternoon, compared with 23% in the morning and 24% in the evening.

    First-time DRTV respondents usually have to watch an ad two or three times before they are prompted to act, which means it’s vital Brand advertisers follow ARM Direct’s proven rules when making their first DRTV ad.

    Making a successful DRTV ad

    All DRTV ads must generate an immediate response so it is crucial to use simple language to express a solution that viewers can respond too. The DRTV ad must also be the right length – 60sec works best according to CH4 Research – the creative must be sincere, use an 0800 number & URL plus display these within 5secs from the start.

    At ARM Direct we’ve made highly successful DRTV ads with budgets from as little as £12,500 and we achieve this without sacrificing any creativity believing that the commercial must be original and clever whilst at the same triggering a high response from targeted TV viewers. The product or service should be made clear, any music or sound must complement the message, and viewers need to be reminded several times to call the number on the screen or to visit the website.

    Ultimately, for your DRTV ad to work effectively, the creative idea must be simple and the DRTV campaign should form part of an integrated marketing strategy which includes other activities such as VoD, Online,Press and Sponsorship.

    DRTV is perfect for established Brands

    ARM Direct has proven that DRTV is the perfect partner for Brand advertisers who want to encourage consumer participation. For example, in the USA several major Brands use DRTV for generating additional interest especially during product launches. 30sec Brand ads run in peak and are costly whereas 60sec DRTV ads work best off-peak which means responders are more likely to have a genuine interest in the product or service.

    Several ARM Direct clients have used DRTV ads to actually launch their Brands and generate immediate business – then later they have added more traditional Brand ads to their marketing mix at selected times of year eg. pre-Christmas or school holidays or before a major sporting event.

    DRTV helps drive Online success

    The importance of online & smartphones is another reason why there is a growing interest in DRTV as Brand advertisers realize the advantages of adopting a duel approach by dovetailing their regular campaigns with DRTV ads. DRTV drives online and mobile response especially as consumers now appreciate they have alternative methods to browse before purchase.

    Infomercials and the power of the half hour show

    ARM Direct has many case studies of DRTV having been responsible for substantially growing business especially in the financial services sector. Some advertisers, however, have developed longform Infomercials. Started in the 80s in the USA, usually between 15 & 30 minutes long, Infomercials are used by clients selling items such as kitchen gadgets or cosmetics and many have achieved multi-million dollar successes. Today the Infomercial format is appealing to a wider range of Brand advertisers and Lexus, Nissan, Dell, CitiBank and others have regularly used Infomercials to launch new products and attract new fans & buyers.

    At ARM Direct we believe Infomercials work for two reasons: anyone who sits through an entire 30min commercial show will afterwards have a very good understanding of the brand and high propensity to buy the product or service. Whilst creative production costs will be higher the upside is that UK Infomercial airtime costs are very low.

    Key DRTV Facts

    DRTV continues to grow because it can generate an immediate return on investment (ROI). Many Brand-owners are now setting aside separate budgets for DRTV campaigns helping to support their social media & online campaigns as well as generating thousands of new sales & enquiries.

    • Total TV advertising expenditure has remained strong in recent years, in spite of newer forms of media competing for consumer attention.
    • The proportion of DRTV ads carrying a URL has risen significantly, largely due to the growth of online sales.
    • SMS has also become a more important since the launch of smartphones and many DRTV ads now include this response mechanism.
    • Over the past 4 years DRTV ads featuring a URL only have increased.DRTV ads now account for over 28% of all ads on UK television.
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    Now let’s talk about what we can do for you!
    Call Digby Orsmond or Shane Murphy on +44 (0)20 7224 3040
    or email info@arm-direct.co.uk

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