During these tough economic times, direct response marketers are doing anything but sitting on their laurels. Instead, they are looking at ways to reach more consumers by embracing other mediums such as the Internet.

By Pat Cauley

From Wall Street to Washington to Wal-Mart, we’ve recently been plagued with uncertainty. Still, in all this uncertainty, there’s one marketing outlet that will not only remain strong, but will also continue to evolve.

That’s due to the accountability found in direct response. DR marketers are sharpening their e-commerce skills daily, figuring out best practices for implementing videos and converting sales. Yet, with YouTube and DVR technologies solidifying their media presence, DR marketers will need to rely on their creative ingenuity to keep afloat and remain relevant in these relatively uncharted waters.

For an industry sometimes viewed as stuck in the past, certain marketers and producers have positioned themselves for the future. Economic woes aside, it’s increasingly hard to hold consumers’ attention. In order to remain the go-to marketing vehicle for accountable ROI in a constantly changing media marketplace, the direct response industry has had to embrace the web in ways that many didn’t see coming only a few years ago.
Before examining how direct response will move forward, it’s pivotal to understand how far it’s come.

“I think that many underestimated the role the web would play five years ago. With 30, 40 and 50 percent of revenues being derived from web sales, making certain your Internet assets are as strong as your TV is critical.

More attention is being paid to making certain that all web elements are dialed in as you go to test–and then beyond as you roll out,” says Bruce Dworsky, executive producer of Jordan Direct, LLC, in St. Petersburg, Fla. Collette Liantonio, president of Concepts TV Productions based in Boonton, N.J., has her clients’ web orders coming in as high as 60 percent of all total orders. “Before, I would just put an 800 number at the end of the spot, now the URL is running throughout the whole spot,” she says.

In fact, some campaigns are beginning to forego 800 numbers completely. “Several of the campaigns I’m doing now use only a web address to drive sales, bypassing the telemarketing avenue altogether,” says Jeff Meltzer, president of Meltzer Media Productions in New York, N.Y.

Unlike taking up a telemarketer’s time with consumers calling to ask questions about the price or product they’re being shown, there’s negligible cost involved in directing them to a website. In addition to marketers’ changing tactics for promoting sites, the sites themselves have undergone numerous changes over the past few years.

“Five years ago, websites were merely an electronic, promotional brochure that provided additional information,” says Joan Renfrow, president of Onyx Productions in Los Angeles.

Geraldine Newman, president of NEWTHYNK/Geraldine Newman Communications in New York, N.Y., takes that thought a step further, describing some DR websites as a yellow pages listing, with a lot of flat information. “Websites can be just as engaging as TV. What people love about the Internet more than TV is that it’s a partnership, a relationship, a dance between the viewer and the screen,” says Newman.

Sites have continued to mature by becoming conversion centers rather than just information portals, according to Ava Seavey, “queen bee” of Avalanche Creative Services in New York, N.Y.

While discussing the shifting attitudes in DR toward the web, Sean Fay, president of Envision Response in Seattle, was at first hesitant to explain how the industry has been adjusting. “We’re looking at it as a primary response vehicle rather than an afterthought. I don’t think anyone would say it was an afterthought, but it was just a place to collect orders,” he says. Another difference that Fay sees with DR sites today is that they’re not treated as a corporate site focused on the company, but rather solely on the product, offer and other appropriate brand elements.

Guthy-Renker, LLC, in Santa Monica, Calif., takes an integrated approach with the web and TV. “Before the web would have been supplemental to a television campaign; today it’s about campaign integration. The web gives you the ability to complete the story that you tell on television,” says Elliot Segal, senior vice president of production. “In the past, the web was a support mechanism for ancillary sales. Today, it’s really about building customer relationships and going deeper into the product and the story.”
While speaking with various direct response leaders, the use of video on the web seemed to be the key way that they’re continuing to tell their story.

MASTERING THE WEB DR STYLE
To maintain a successful direct response campaign today, using video on the web is a no-brainer. But what was once simply re-purposed content taken directly from a TV spot has evolved into a separate, distinctive part of the creative and production process. Segal always tends to overshoot segments so that they’re able to use the content in a variety of different ways. “If we’re shooting a testimonial for an infomercial, you can only use so much of it on TV. But you could go into great depth and clarity if you had more time. The web allows you to go beyond the sound bite. The customer will be able to understand the expectations a little clearer, how the product is going to deliver for them. They can go on the site and have a sense of customer community,” he says.

An August 2008 report from eMarketer research found that the number of online video advertising viewers rose from 59.2 percent of Internet users in 2007 to 66.8 percent in 2008, and is expected to rise to 80.6 percent by 2012. This drives home the point that consumers are watching and expecting video advertising on the web. And who better than DR marketers to convert those viewers into customers?

“More consumers can stream videos at home and this has completely transformed how we can promote a client’s product outside of the TV campaign. Compelling video footage can double the conversion of a given website,” says Ken Hunt, president of Cesari Direct in Seattle.

Likewise, Meltzer has been shooting “webmercials,” which he describes as mini on-camera messages personalized for the web viewer at the same time that he’s shooting his DRTV campaigns. “Ninety percent of all TV watchers have a computer in the same room with them ready to log on to a website if they see something that interests them,” says Meltzer.

Dworsky explains that Jordan Direct’s strategy involves adding web-specific elements such as green-screen shoots with the host where web-specific copy is utilized, re-edited CTAs for the site made shorter so that they stream more effectively or even making the offer a little more generic for A/B testing.

The process at Cesari involves editors sifting through footage during post-production to help decide what’s best suited for web versus TV. “We also have a still photographer take shots during the video production, such as product shots or the talent with product, and we’ll incorporate those photos on the website,” says Hunt.

While further data reveals that the average percentage of online video viewers over the age of 55 was only 16.3 percent, there’s still money to be made there. A recent campaign by C Spot Run Productions supports this data. “The biggest surprise came to me when I did the Red Skelton Unreleased DVD collection this year for Timeless Media Group Inc. Even though the demographic was proven to be over 65 years of age, the Internet is where the majority of the product was sold and is still selling. So don’t believe it when you hear that

Generation Ike does not use the web,” says Wendi Cooper, president and CEO of the El Segundo, Calif.-based company.

If anything, it’s imperative to have a web plan prior to beginning the creative process so that there’s ample time to take advantage of the crew while they’re on set. “If I have a guest host or spokesperson, I recommend right up front that my client contract with that host for their web appearance, as well. I like to shoot the web host in the environment of the commercial as a separate entity so that they can upsell the customer on the website,” says Liantonio. Seavey addresses campaigns at Avalanche in a similar manner, saying that the TV commercial is almost becoming a cold call with the web acting as the closer.

Yet unfortunately, with budgets tight in a substandard economy, some DR clients still don’t see the wisdom in all of this. “Some just see it as an incremental cost. They need to think about the long term–it’s so much more expensive to bring people back in after the fact,” says Liantonio. Spending a little bit of money to build up web-specific content now will pay off. Once a spot is finished running on TV, its website will still be live, generating sales. “The Internet allows our client’s product to be marketed 24/7,” says Hunt.

In fact, Fay sees so much potential here that he’s begun experimenting with microsites prior to launching TV campaigns. “We’re shooting rough footage for a relatively inexpensive microsite. You can get a feel for how people like the creative–if they’re responding to the visuals and offers. Based on that feedback, you can take what you learned and then make a commercial,” he says, demonstrating the potential for sites to test creative and offers on the cheap.

CATCHING CONSUMERS IN THE ECONOMY’S WEB
Consumers, retailers and even most advertisers are in an economic bind. However, direct response is different, and those DR marketers with a strong web presence are in an even greater position to capitalize on the industry’s fortunes.

Figures from Nielsen reveal that ad spending has dropped significantly. The Wall Street Journal reported that both Viacom and CBS cut their 2008 profit forecasts, citing weakness in ad sales and the slowing economy. eMarketer projections show a significant move toward digital media, as marketers across the board wrestle with smaller budgets. Today, it’s crucial that every marketing dollar is spent wisely.

“This is our time to shine. More attention needs to be paid to direct response because for one, consumers are staying away from retail. There’s an opportunity for consumers to be home hunkering down watching direct response. Brands and companies get to experience accountable advertising when they use direct response to reach those customers,” says Fay.

Staying away from retail is right. The New York Times has reported that sales at some of the nation’s best-known retailers fell by double digits in September, highlighting the rapid deterioration of the economy. But this is where messaging becomes key. Newman describes production as the expression of the message. In this economy, the typical DRTV messages need to be even more clear and persuasive.

“Are we truly giving the consumer a product and a promise that is clearly value-driven and uniquely differentiated? We need to put the product and the ‘what’s in it for me as the consumer’ first,” says Segal.

A recent DRTV example that incorporates this messaging is Shamwow. One of its better selling points is comparing the eight Shamwow towels with a 10-year warranty for $19.95, with spending $20 a month on paper towels. In this economy, a message like that can really gain traction in the consumer’s mind.

Direct response productions are especially valuable in a slumping economy because the industry was built and thrives on a business model of cutting costs and saving clients money at every vantage point possible. Direct response campaigns are also advantageous given their ability to track effectiveness of different messages and offers, which can thus be changed to reflect the most lucrative aspects of a campaign.

“It’s not ‘we think a lot of people are going to watch this and may buy a product,’ but ‘we know this many people bought the product at this cost per order,’” says Liantonio, comparing Madison Avenue campaigns to DR. By leveraging online video on websites in conjunction with TV efforts, direct response is a truly ROI-based route for any product or brand looking to save money in this economy.

“In the end, DR is a better avenue overall for advertisers who get quantifiable results and sales instead of the more generic branding approach,” says Dworsky. But as overall television ad spending falls, direct response professionals are continually exploring other alternatives.

THE YOUTUBE OPPORTUNITY
“The benefit of being able to post clients’ work on YouTube is a way to have another amazing network of distribution that does not come from the website or television. I’m surprised that I’m not seeing more separate numbers assigned to spots on YouTube. While people are posting videos more for reference, I’m not really seeing people make use of it for consumer outreach,” says Seavey. When working for clients she now asks them, “What’s the YouTube version going to be?”

Likewise, whenever something exciting happens for a product Newman is working on, she’ll have clients shoot extra content and repurpose it in newsworthy fashion for YouTube. According to comScore, Google sites ranked first in the top 10 online video site properties among U.S. Internet users in July 2008, raking in 92.1 million unique viewers and an average of 54.7 videos per viewer. Compare that with second place Fox Interactive Media, which had 54.8 million viewers and an average of 8.1 videos per viewer. Clearly, an opportunity lies with Google’s YouTube that direct response marketers should pursue.

Additionally, YouTube’s search traffic has passed Yahoo, making it the second place search engine behind Google.com. YouTube is experimenting with search advertisers that include the movie “W,” Simple Shoes and University of Phoenix. The New York Times gives the example that when a user types “Tina Fey” into YouTube’s search box, he or she will receive a somewhat relevant ad for Oliver Stone’s “W.” This fits, given Fey’s recent characterizations of Vice Presidential Candidate Sarah Palin. Google has developed multiple analytics tools to help get the right messages in front of users. Direct response marketers are growing savvier when it comes to utilizing these tools.

“We optimize every client’s DR site to ensure it is highly ranked through organic search and develop search engine marketing campaigns that capitalize on the awareness and search activity that the DRTV creates,” says Hunt.

Hawthorne Direct in Fairfield, Iowa, implements a similar approach for its sites. “We immediately work on search engine optimization and marketing for every site from day one of the campaign. Each site will have extensive video assets and more emphasis on multiple upsells and cross-sells,” says Tim Hawthorne, founder, chairman and executive creative director.

If direct response marketers can find a way to fuse their search tactics with their expertise in video, outlets like YouTube begin to resemble large, green dollar signs.

“Most of the YouTube videos you see are fun and entertaining, but they’re not asking for the order. That’s where the professionals in this business know how to make it work,” says Liantonio.

Moreover, YouTube has recently begun running full-length TV shows from CBS. Its advancements in all of these areas underscore its determination to remain the top spot in consumers’ minds for online video and to incorporate more advertising revenue into its business model. In short, consumers will likely spend even more time on YouTube as it continues to broaden its entertainment scope.

DVRs AND BEYOND
More than one-quarter of U.S. TV households surveyed have at least one digital video recorder, and 30 percent of those households have more than one DVR, according to Leichtman Research Group. An eMarketer report took that research further, indicating that nearly nine out of 10 households surveyed said they would recommend their DVR service to a friend. Furthermore, a recent survey from Integrated Media Measurement Inc. found that 20 percent of consumers are now watching first-run episodes delivered via broadband. Steve Robinson noted in Video Insider that TV as we know it isn’t changing, the delivery method is.

The question for DR marketers becomes: What does this mean for us? Renfrow believes it will have a positive impact. “With DVRs or TiVo, viewers have the ability to instantly record the infomercial for future viewing at a more convenient time. The technology allows them to review product and selling points, as well as easily access the phone number or website to place an order,” she says.

Most of the marketing experts that Electronic Retailer spoke with agree that these technologies wouldn’t have a devastating effect on long form given that long-form infomercials are in and of themselves shows with entertainment value, but many feared that DVR users’ tendency to skip through commercials could be the death of short form.

Seavey takes a more opportunistic approach. “I think we’re going to start seeing a proliferation of other lengths–three-, four- and five-minute spots that I hope are going to be more prevalent. I think if people see lengths that they’re not use to, it will stump them–kind of how it use to stump them when they saw an infomercial and they didn’t know what it was,” she says. Seavey’s been talking with several clients about unusual lengths for TV spots; she sees no need for a clear differentiation between long form and short form anymore. “I’m hoping those terms go away. Of course, the media folks will go crazy, but we’ll have a lot of fun and clients will laugh all the way to bank,” she notes.

Direct response marketers need to be creative, yet practical, when incorporating their messaging into these mediums–whether it’s an option on TiVo to click on an infomercial for a product that’s relevant to a viewer’s programming, or even partnerships with the different shows that integrate paid programming seamlessly within recordings. “Using multichannel integration is one way to combat the fact that people are using TiVo and DVRs. The good thing about long form is that there will still be those channel surfers. We’re seeing more and more people who are buying keywords on their guide so that they can see ‘Guthy-Renker Presents’ or a specific benefit-driven message point when they’re scanning through guides.

When they do stumble across your message, it needs to be as focused as possible,” says Segal.

At the end of the day, no matter how consumers choose to be entertained, they still have problems that need to be solved. If marketers aren’t able to get their messages directly in front of consumers in a traditional sense, that doesn’t mean consumers won’t want to make informed buying decisions. “Good long form will migrate to on-demand formats, including infomercials on the web. People watch long form because they have a true interest in the product. It’s a great way to answer questions,” says R2C Group Founder and CEO Tim O’Leary. Direct response may lose some of its impact with spontaneous TV channel surfers, but it stands to gain with spontaneous web searchers. After all, according to Veoh Networks, browsing and site search were the two methods most frequently used by active online video viewers to find videos.

“We’re educators and I think if we do a good job of it, people will seek us out whether it be Google, YouTube or other methods. It’s changing as far as the delivery, but people are still going to be looking for good advertising,” says Liantonio. Let’s hope so.