Producing Effective DRTV in a Recession
By Gene Silverman

The National Bureau of Economic Research proclaimed early last December that the U.S. has been in a recession since December 2007.

Of course, people on Main Street have known for some time that their neighborhood was in a recession. All they had to do was look down the block at the For Sale and Foreclosure signs. The housing downturn, which started in 2006, was likely the primary cause of the broader economic downturn.

So now, the big question facing our country is how in the world do we get out of this economic mess and back to a more prosperous state of affairs? One way that we in the electronic retailing industry can facilitate the broader recovery is to help stimulate the economy with great products at affordable prices, which solve real problems. In other words, we need to market products and services that people on Main Street really want and actually need.

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Once those highly desirable products and services are invented and developed, it is now, more than ever, our industry’s challenge to create DRTV commercials (as well as advertising for other direct marketing channels) that will not only be economical to produce, but highly effective when placed in media. Let’s examine some ideas of how we might accomplish this:

1 Lower production costs. Who says that an infomercial has to cost $400,000 to $500,000 or more to produce? Let’s get creative and find formats that are less expensive and more effective. How about talk show or demonstration formats and single-location shoots, instead of high-cost, multi-location shoots? By simplifying the creative, a typical long-form or short-form DRTV budget may be able to be cut in half, saving the direct marketer precious dollars, which can be repurposed for media tests and rollout budgets. Talent may also be willing to take less upfront money for their performance in return for a larger backend royalty, in order to ease the investment burden on the direct marketer.

2 Media efficiencies. In terms of media, there are numerous ways that DRTV media can be purchased and managed so that it is more efficient, and therefore, more effective. In some cases, media rates will come down to more reasonable levels on their own, as DRTV media is a supply-and-demand commodity. However, many stations and cable networks may be open to negotiating further with buyers and media managers. It does not do anyone much good–the direct marketer, the TV outlet, the consumer or the agency–if media rates are just too high for the times we find ourselves in.

If clients have to pay too much for their airtime, their commercial may not generate a reasonable return and they will not want to buy the time again on that venue. The station may have trouble selling the time again and the consumer will not gain access to the product. That loss of cash flow fuels the recession. On the other hand, everyone wins when media rates are more reasonable and we can stimulate sales and cash flow on every level.

3 Better customer relations practices. In tough economic times, it is more difficult to initiate a relationship with a new customer. People are less inclined to part with their money for something not considered to be a necessity. So, once someone does respond to our TV spot, website, direct-mail piece or print ad, we must cherish that customer and treat him or her with tender care.

As part of our best practices procedures, our staff routinely places test calls to all of our DRTV, web and other direct marketing ads, in order to observe how well the inbound calls are being answered by the telemarketing representative, report how smoothly the order is fulfilled and scrutinize how all the customer service contacts are being handled. These days, an emphasis on professional and friendly communications is imperative in order to make the sale, keep the sale and develop a longer-term relationship with the customer, which all direct marketers should be striving for in this environment. This may require better training for telemarketing reps, better incentives for purchasing–such as free gifts just for trying or free-shipping offers–and great follow-through from each and every customer service rep.

Managing DRTV campaigns and client expectations during a recession is really an opportunity for those of us in the business to go back to basics, apply our experience and skills, and be creative with our resources. These are the things we should be doing all the time, but are relevant now more than ever before.

This recession will eventually pass, and then we’ll be even more prepared as an industry to serve our clients and create great and successful DRTV campaigns in the future.

Gene Silverman is vice president, marketing services/account management at Hawthorne Direct in Fairfield, Iowa. He can be reached at (641) 472-3800.