Direct Response Advertising

Goals of Direct Response Marketing Advertising

  Direct orders

  Lead generation

  Traffic generation

Direct response advertising has exploded with the spread of the Internet.

By 2010, ad agencies expect to shift 20% of current TV advertising budgets to online video.

Direct response has been around for centuries, but has grown rapidly in recent years.

 
Pros of Direct Response:

Targeted, Measurable, Personal

Because if is a "cross platform" strategy, it can reach almost anyone, anywhere, anytime through the 'Net, radio, TV, telephone, mail and other vehicles.

Is measurable.

Allows for personalization and niche targeting

Great for cross-selling and upselling.

Allows advertiser to build an ongoing relationship.

Customer Relationship Marlketing or CRM

Allows for data mining and database marketing

Great for couponing, sweepstakes, special/seasonal sale pitches

FTC advocates standards related to privacy

Disclosure of data being collected

•  Opt in/Opt out
•  Consumer access to their information
•  Security standards

Cons of Direct Response

Sometimes there's a high cost per contact.

Prospect lists may require frequent maintenance and updating.

Privacy concerns, especially with the Internet.

•  Identity theft
•  Spyware
•  Spam

TV and Direct Response Advertising

Lots of advantages and possibilities.

  Targeting through cable channels

  Infomercials and TV shopping networks are a great example

  Can be done on paid, PI (Per Inquiry) or per sale basis

  Great for driving traffic to a website

  Also good with toll free numbers

Radio and Direct Response Advertising

Not as effective as TV

  Can be good for driving traffic to a website. Less effective with phone numbers.

  There are some infomercials, but not like TV.

  Infomercials always sound like news interview programs.

  Good for PI income when advertising time inventory is high

Direct Response Advertising and Magazines

Can be a good match because magazines are often tightly targeted

Offer a variety of ad vehicles: classified's, displays, "rip-outs" and "drop outs"

Often viewed as "quality" publications by consumers

Catalogs as Direct Response Advertising

Have been around since the 1500s

Traditional "bathroom reading" role is lessening, more and more online

Expensive to produce and distribute

Direct Mail Advertising

20% of all advertising spent in US (55 billion in 2006)

Sheer volume of "junk mail" makes it hard to get an edge.

List brokers provide names and phone numbers

  Prospects and categorized for targeting

Response lists: only customers who have already responded to an offer.