Direct response marketing
Encyclopedia
Direct-response marketing is a form of marketing
designed to solicit a direct response which is specific and quantifiable. The delivery of the response is direct between the viewer and the advertiser, that is, the customer responds to the marketer directly. This is in contrast to brand advertising.
In direct marketing (such as telemarketing
), there is no intermediary broadcast media involved. In direct-response marketing, marketers use broadcast media to get customers to contact them directly. It is direct-response marketing because the communications from the customer to the marketer are direct, this differentiates it from simple direct marketing in which the communications from the marketer to the customer are direct, but do not allow for instant feedback.
Like direct marketing, direct-response marketing seeks to elicit action. It is inherently accountable since results can be tracked and measured. Furthermore, direct-response campaigns perform best if the underlying strategies and tactics are highly competitive.
. Due to affordable TV air time slots (e.g. late night), the infomercial had the potential to be successful for a comparatively modest up-front investment. Companies such as Kre8 Media, Inc., Euro RSCG Edge, GreyTV, Icon Media Direct, Script to Screen, Hawthorne Direct, Common Sense Direct, American Telecast Products, Waldorf Crawford, Guthy-Renker, R2C Group-aka Respond2 Cmedia, and International Shopping Network specialize in infomercials. Infomercials and the production companies are honored every year at the ERA Annual Awards at the ERA D2C Convention
Infomercials are also known as direct-response TV commercials. Short-form direct-response commercials have time lengths ranging from 30 seconds to 2 minutes. Long form infomercials are 30 minutes long. Infomercials try to achieve a direct response via television presentations. Viewers respond via telephone
or Internet
, credit card in hand.
Noted infomercial personalities include Anthony Robbins, Cher
, Chuck Norris, George Foreman
(with the George Foreman Grill), fitness guru Jack Lalanne
, inventor/salesman Ron Popeil
, Anthony Sullivan, Billy Mays
, Jim Ballas and Vince Offer
.
An offshoot of the infomercial
is the home shopping
industry. In this medium, a home shopping host
will showcase a product directly to the viewer, and encourage them to purchase the item. Noted pioneers in this industry include the first home shopping host
, Bob Circosta
; Bud Paxson
and Roy Speer
, founders of the first home shopping channel HSN; and Joseph Segel
who founded America
's most successful home shopping channel QVC
.
Other media, such as magazine
s, newspaper
s, radio
, and e-mail
can be used to elicit the response, but they tend to achieve lower response rates than television
.
Mail order
describes a form of direct-response marketing in which customers respond by mailing a completed order form to the marketer. Mail order is slow and response rates are low. It has been eclipsed by toll-free telephone numbers and the Internet.
While certain types of media, as mentioned above, have been commonly used in direct-response campaigns, direct-response marketing, as such, is media-neutral, provided the campaign includes the four main elements of direct response. Furthermore, direct-response marketing is organization-neutral, which is to say that it is practiced by organizations of many types and sizes, regardless of industry.
s can be contrasted with normal television commercials because traditional commercials normally do not solicit a direct immediate response from the viewer, but instead try to brand
their product in the market place.
Improving the appeal and uniqueness of an offer is a first step for improving response. An offer must be targeted such that its appeal is relevant to the wants or needs of the audience, so the choice of media or list carries similar importance as the perceived value of the offer. In case of an unsuccessful DRTV campaign, it is easy to adjust parameters such as price point or sales pitches to improve sales. It is assumed that only one in every ten infomercial actually makes money for the DRTV company.
There are many other best practices and techniques used to achieve results such as the use of urgency, clear and compelling copy, graphics and design which aim to reinforce the message. Lately, the viral potential of funny, hilarious or upbeat infomercials uploaded to YouTube for example has proven to be an important contributor to infomercial success. Apt individuals re-dubbing or ridiculing known infomercial hosts amplify the reach of this alternative (deliberate or involuntary) marketing channel and help to spread the word of the product, service or brand.
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
designed to solicit a direct response which is specific and quantifiable. The delivery of the response is direct between the viewer and the advertiser, that is, the customer responds to the marketer directly. This is in contrast to brand advertising.
In direct marketing (such as telemarketing
Telemarketing
Telemarketing is a method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.Telemarketing can also include recorded sales pitches...
), there is no intermediary broadcast media involved. In direct-response marketing, marketers use broadcast media to get customers to contact them directly. It is direct-response marketing because the communications from the customer to the marketer are direct, this differentiates it from simple direct marketing in which the communications from the marketer to the customer are direct, but do not allow for instant feedback.
Like direct marketing, direct-response marketing seeks to elicit action. It is inherently accountable since results can be tracked and measured. Furthermore, direct-response campaigns perform best if the underlying strategies and tactics are highly competitive.
Characteristics
Direct-response advertising is characterized by four primary elements:- An offer
- Sufficient information for the consumer to make a decision whether to act
- An explicit "call to action"
- Means of response (typically multiple options such as a toll free number, web page, and email)
Media
One common form of direct-response marketing today is the infomercialInfomercial
Infomercials are direct response television commercials which generally include a phone number or website. There are long-form infomercials, which are typically between 15 and 30 minutes in length, and short-form infomercials, which are typically 30 seconds to 120 seconds in length. Infomercials...
. Due to affordable TV air time slots (e.g. late night), the infomercial had the potential to be successful for a comparatively modest up-front investment. Companies such as Kre8 Media, Inc., Euro RSCG Edge, GreyTV, Icon Media Direct, Script to Screen, Hawthorne Direct, Common Sense Direct, American Telecast Products, Waldorf Crawford, Guthy-Renker, R2C Group-aka Respond2 Cmedia, and International Shopping Network specialize in infomercials. Infomercials and the production companies are honored every year at the ERA Annual Awards at the ERA D2C Convention
Infomercials are also known as direct-response TV commercials. Short-form direct-response commercials have time lengths ranging from 30 seconds to 2 minutes. Long form infomercials are 30 minutes long. Infomercials try to achieve a direct response via television presentations. Viewers respond via telephone
Telephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...
or Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
, credit card in hand.
Noted infomercial personalities include Anthony Robbins, Cher
Cher
Cher is an American recording artist, television personality, actress, director, record producer and philanthropist. Referred to as the Goddess of Pop, she has won an Academy Award, a Grammy Award, an Emmy Award, three Golden Globes and a Cannes Film Festival Award among others for her work in...
, Chuck Norris, George Foreman
George Foreman
George Edward Foreman is an American two-time former World Heavyweight Boxing Champion, Olympic gold medalist, ordained Baptist minister, author and successful entrepreneur...
(with the George Foreman Grill), fitness guru Jack Lalanne
Jack LaLanne
Francois Henri "Jack" LaLanne was an American fitness, exercise, and nutritional expert and motivational speaker who is sometimes called "the godfather of fitness" and the "first fitness superhero." He described himself as being a "sugarholic" and a "junk food junkie" until he was 15...
, inventor/salesman Ron Popeil
Ron Popeil
Ronald M. Popeil is an American inventor and marketing personality, best known for his direct response marketing company Ronco...
, Anthony Sullivan, Billy Mays
Billy Mays
William Darrell "Billy" Mays, Jr. was an American television direct-response advertisement salesperson most notable for promoting OxiClean, Orange Glo, and other cleaning, home-based, and maintenance products on the Home Shopping Network, and through his company, Mays Promotions, Inc...
, Jim Ballas and Vince Offer
Vince Offer
Offer "Vince" Shlomi , known as Vince Offer, the ShamWow! Guy, or Headset Vince, is an infomercial pitchman, writer, director, and comedian . Offer's first major work was the 1999 comedy film The Underground Comedy Movie, which was met with negative reception...
.
An offshoot of the infomercial
Infomercial
Infomercials are direct response television commercials which generally include a phone number or website. There are long-form infomercials, which are typically between 15 and 30 minutes in length, and short-form infomercials, which are typically 30 seconds to 120 seconds in length. Infomercials...
is the home shopping
Home shopping
Home shopping commonly refers to the electronic retailing/home shopping channels industry, which includes such billion dollar television-based and e-commerce companies as HSN, QVC, eBay, ShopNBC, Buy.com, and Amazon.com, as well as traditional mail order and brick and mortar retailers as Hammacher...
industry. In this medium, a home shopping host
Home shopping host
A home shopping host is the on-air host that partners with guests on television shopping channels, such as HSN, QVC, and ShopNBC. The job of a home shopping host is to introduce new presenters and guests to the television audience, and help these guests explain the values and features of the...
will showcase a product directly to the viewer, and encourage them to purchase the item. Noted pioneers in this industry include the first home shopping host
Home shopping host
A home shopping host is the on-air host that partners with guests on television shopping channels, such as HSN, QVC, and ShopNBC. The job of a home shopping host is to introduce new presenters and guests to the television audience, and help these guests explain the values and features of the...
, Bob Circosta
Bob Circosta
Bob Circosta is television's first ever home shopping host and has achieved over one billion dollars in personal product sales on live television. His offices are in Clearwater, Florida, just a few miles from the Home Shopping Network's corporate building...
; Bud Paxson
Bud Paxson
Lowell W. "Bud" Paxson is an American media executive.A native of Florida, Paxson began his career at a little 500 watt radio station in upstate New York, and later as the owner of a small AM radio station, WWQT 1470 AM, in Clearwater, Florida. There, in 1977, an advertiser had plenty of product...
and Roy Speer
Roy Speer
Roy Speer was the financial backing behind the Home Shopping Network. He was the first CEO of the company and saw its revenue from $1.9 million to over $1 billion annually...
, founders of the first home shopping channel HSN; and Joseph Segel
Joseph Segel
Joseph Segel is the founder of over 20 American companies, most notably QVC, an American television network, and the Franklin Mint, a producer of mail-order collectibles. He has been honored with a Lifetime Achievement Award from the Electronic Retailing Association and an honorary doctorate from...
who founded America
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
's most successful home shopping channel QVC
QVC
QVC is a multinational corporation specializing in televised home shopping. Founded in 1986 by Joseph Segel in West Goshen Township, Pennsylvania, United States, QVC broadcasts in five countries as QVC US, QVC UK, QVC Germany, QVC Japan and – QVC Italy to 200 million households...
.
Other media, such as magazine
Magazine
Magazines, periodicals, glossies or serials are publications, generally published on a regular schedule, containing a variety of articles. They are generally financed by advertising, by a purchase price, by pre-paid magazine subscriptions, or all three...
s, newspaper
Newspaper
A newspaper is a scheduled publication containing news of current events, informative articles, diverse features and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. By 2007, there were 6580 daily newspapers in the world selling 395 million copies a...
s, radio
Radio
Radio is the transmission of signals through free space by modulation of electromagnetic waves with frequencies below those of visible light. Electromagnetic radiation travels by means of oscillating electromagnetic fields that pass through the air and the vacuum of space...
, and e-mail
E-mail
Electronic mail, commonly known as email or e-mail, is a method of exchanging digital messages from an author to one or more recipients. Modern email operates across the Internet or other computer networks. Some early email systems required that the author and the recipient both be online at the...
can be used to elicit the response, but they tend to achieve lower response rates than television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
.
Mail order
Mail order
Mail order is a term which describes the buying of goods or services by mail delivery. The buyer places an order for the desired products with the merchant through some remote method such as through a telephone call or web site. Then, the products are delivered to the customer...
describes a form of direct-response marketing in which customers respond by mailing a completed order form to the marketer. Mail order is slow and response rates are low. It has been eclipsed by toll-free telephone numbers and the Internet.
While certain types of media, as mentioned above, have been commonly used in direct-response campaigns, direct-response marketing, as such, is media-neutral, provided the campaign includes the four main elements of direct response. Furthermore, direct-response marketing is organization-neutral, which is to say that it is practiced by organizations of many types and sizes, regardless of industry.
Principles & Techniques
Direct-response ads like infomercialInfomercial
Infomercials are direct response television commercials which generally include a phone number or website. There are long-form infomercials, which are typically between 15 and 30 minutes in length, and short-form infomercials, which are typically 30 seconds to 120 seconds in length. Infomercials...
s can be contrasted with normal television commercials because traditional commercials normally do not solicit a direct immediate response from the viewer, but instead try to brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
their product in the market place.
Improving the appeal and uniqueness of an offer is a first step for improving response. An offer must be targeted such that its appeal is relevant to the wants or needs of the audience, so the choice of media or list carries similar importance as the perceived value of the offer. In case of an unsuccessful DRTV campaign, it is easy to adjust parameters such as price point or sales pitches to improve sales. It is assumed that only one in every ten infomercial actually makes money for the DRTV company.
There are many other best practices and techniques used to achieve results such as the use of urgency, clear and compelling copy, graphics and design which aim to reinforce the message. Lately, the viral potential of funny, hilarious or upbeat infomercials uploaded to YouTube for example has proven to be an important contributor to infomercial success. Apt individuals re-dubbing or ridiculing known infomercial hosts amplify the reach of this alternative (deliberate or involuntary) marketing channel and help to spread the word of the product, service or brand.