DRTV and Radio: Think Outside the Book, Part II

As traditional catalog prospecting for new customers gets more and more challenging, consider two proven media channels that have been steady workhorses for other types of marketers for more than 50 years: television, and radio.

Direct Response Television (DRTV):

If a typical catalog has 150 to 200 products, there usually are one or two hit products that are worthy of elevated promotional efforts. Perhaps the most famous example is Sharper Image’s Ionic Breeze® Air Purifier. This product started in the catalog with strong sales, but sales exploded after the product was promoted via an infomercial. Not only has the airing of the infomercial helped product sales, it’s been an excellent resource for building Sharper Image’s brand as well as its customer file.

A catalog can be an excellent tool for finding products that are worthy of DRTV treatment. After all, your customers tell you which products they’re most interested in. If one product is unique, has broad enough appeal and has a five times mark-up or better, a DRTV test may be worth considering.

Short-Form vs. Long-Form: The first thing to determine is how much time you’ll need to effectively sell your product. If it’s a fairly straightforward item, then short-form (typically a 60- or 120-second) spots will be most appropriate. Spots that are 120 seconds long often are more cost-effective from a media efficiency standpoint, but they are also harder to come by.

If the product lends itself well to telling a story, then a full-length 28-minute infomercial (also know as long-form) may be a better approach to take. Sometimes a product will start out with an infomercial; then as it builds in notoriety, a short-form spot is developed.

Product price is another key determinant in choosing between short-form and long-form. A price of $19.95 is typical for short-form, with the price rarely going above $29.95 (unless it’s also on long-form). Higher-priced products and continuity products are better candidates for an infomercial.

Creative / Production Costs: In the short run, production costs are where the bulk of your expense will be. Long-term, if you have a successful DRTV campaign and are in rollout mode, media costs will comprise the lion’s share of your expense.

A short-form spot can be produced for as low as $30,000; but $50,000 to $150,000 is more typical. To do an effective job with an infomercial, consider a budget of $150,000 to $250,000. These figures can go up if you throw in a celebrity endorsement, however.

Media Costs: A test of $15,000 to $30,000 often is enough to get an initial read on whether a given product has potential for success on TV. Once you have some momentum, keep in mind that it’s not uncommon for some of the top DRTV marketers to spend more than $40 million annually to promote a single product or service.

Additional Considerations: Another benefit for catalogers moving into the DRTV market is that the infrastructure already exists to handle much of the various back-end expenses (e.g., inbound call centers, product fulfillment and credit card processing).

While venturing into DRTV isn’t cheap, it can be a very profitable media channel for catalogers. It can potentially move your brand and business to the next level. Just remember: As with all new media channels, be sure to work with experienced production and media experts who can help guide you through the process.

Radio:

One last frontier to consider when thinking “outside of the book” is radio. While radio advertising isn’t right for many catalogers, it can be effective if you have a category where seeing the product visually isn’t important. Gift catalogs, such as those that sell flowers, popcorn and food baskets, are logical candidates for radio.

Vermont Teddy Bear is a frequent user of radio advertising. With promotions focused around specific holidays, such as Valentine’s Day, Mother’s Day, Father’s Day and graduation season, it’s not unusual to hear someone like Don Imus plugging teddy bears on the radio.

Formats: Choose between 30-second or 60-second spots and whether you plan to have a pre-recorded commercials verses “live reads” from radio personalities. More often than not, DR radio marketers will have a pre-recorded spot to use as the base promotion to have control over the message, but will use live reads wherever possible to capitalize on the implied endorsement from the radio personality.

Media and Production Costs: You should be able to produce a radio spot for around $5,000 and test the media channel with another $15,000 to $20,000 to get a read on whether radio has any promise for your catalog.

DRTV and Radio both represent potential new prospecting channels for your business. If you believe in the idea that multichannel marketing is effective, and that each channel builds off of others, then these media channels can be incremental new sources for customer acquisition and can help build your brand. The majority of catalogers still think “inside the book” when it comes to customer prospecting, so there’s a lot of potential waiting for the catalogers that expand their marketing horizons.

Dave Smith is a former senior vice president of marketing for the Direct Marketing Association. He’s the founder and president of Incremental Media, a media brokerage firm. He can be reached at dsmith@incrementalmedia.com.