DRTV RESOURCES / GETTING STARTED

Some Frequently Asked Questions about Direct Response TV marketing.

Familiarize yourself with the following information and you will be able to evaluate your product's likelihood of success in a direct response TV campaign.
  1. What is Direct Response TV?
  2. Are there different types of DRTV commercials?
  3. Why Is TV a good medium for advertising products?
  4. What are the benefits of a Direct Response campaign?
  5. What kinds of products do best with DRTV infomercials?
  6. What kinds of products do best with Radio infomercials?
  7. Does my product need to have mass appeal to be appropriate for DRTV?
  8. Is there a particular price point for successful infomercial products?
  9. Will my product do better selling over the Internet, through DRTV, or in retail stores?
  10. Is there an optimal markup ratio for successful products?
  11. How important are add-on products (called "upsells" in DRTV OR direct response lingo) for DRTV?
  12. What other factors do I need to consider in evaluating my product's chances on DRTV?
  13. What is the cost of an Infomercial, Direct Response or DRTV campaign?
  14. Describe the marketing arrangement between a DRTV producer and the entrepreneur.
  15. How can I learn if my product or offer has what it takes for a successful infomercial?

1. What is Direct Response TV?
Direct Response TV (DRTV) refers to one to two minute commercials or half hour paid programming made for TV in which viewers are asked to place an order during the advertisement through a toll-free number or web address. This contrasts with commercials where the objective is to increase only the visibility of the brand name. Lead generating commercials also are considered DRTV. This form of television is fully accountable as far as effectiveness because the marketer can measure the response.

2. Are there different types of DRTV commercials?
There are two forms of DRTV: the short form which is 1-2 minutes in duration and the long form which is about 30 minutes long. The long form is commonly referred to as an "infomercial." In recent years all forms of DRTV have been referred to as "infomercials."

3. Why Is TV a good medium for advertising products?
TV is by far the most powerful medium available to advertisers. TV can reach mass audiences, show dramatic visual demonstrations, and air emotional testimony. DRTV uses this unrivaled power of TV to create the "impulse to buy" and drive sales to retail, Internet and other distribution channels.

4. What are the benefits of a Direct Response campaign?
Through DRTV and Direct Response Radio, for that matter, a marketer has the quickest, most cost effective method to introduce new product on a national basis. DRTV has created overnight sensations and tremendous demand for products. Both long and short form Direct Response Television and Radio provide companies with immediate information about the effectiveness of their ads. This instantaneous feedback is available only through direct response techniques. If it's not working, you can change the ad immediately to get an improved response. And with a successful DRTV campaign you are building a loyal customer base of people who will continue to buy your products and add-ons long after their initial purchase.

5. What kinds of products do best with DRTV infomercials?
DRTV is the best advertising format for new and innovative products that can be demonstrated and shown to make life easier and better. Health and fitness products; cosmetics; skin, hair and other personal care; nutritional supplements; house wares and appliances have been among the most successful products marketed through DRTV. Financial and business opportunities and some educational and personal improvement products have also done well.

6. What kinds of products do best with Radio infomercials?
Radio Direct Response is hot. There are literally thousands of stations and many opportunities for remnant airtime, including pay for performance deals. The cost to get started and the speed to market are two other benefits of Direct Response Radio Infomercials. Dietary supplements, all lead generating programs, financial offers, business opportunities and many other products can be successfully marketed through Radio Infomercials in either long form or short form.

7. Does my product need to have mass appeal to be appropriate for DRTV?
Yes. The larger the potential market for your product, the better your product will do. TV reaches a very large and varied audience. That's the benefit of a Direct Response infomercial campaign. The more specialized or targeted the market is for your product, the better it would do with a targeted Direct Mail campaign rather than Direct Response Infomercials.

8. Is there a particular price point for successful infomercial products?
 Traditionally, price points below $30 have done the best in the short format and products priced between $40 and $300 have done well in the infomercial (long) format. In today’s environment, the lower the price, the sexier and more powerful the offer, the more success. Short form products with trial offers, $19.95 two for one offers and $10 offers are doing very well.

9. Will my product do better selling over the Internet, through DRTV, or in retail stores?
"As seen on TV" success provides shoppers with the reason to find you, the desire to find you and the way to find you. Many successful products are available in two or three venues. Because of the unique power of TV to create consumer desire, your DRTV campaign will result in immediate sales as well as drive buyers to your Internet site and to retail outlets. 65% of DRTV buyers are also Internet buyers. DRTV can be the driving force behind all your sales -- in whatever venue. And a successful DRTV campaign means great placement in retail stores.

10. Is there an optimal markup ratio for successful products?
The larger your markup ratio, the better your chance of success. Divide your retail price by cost of goods. A markup ratio of 5-to-1 offers your product the best chance or being successful in a DRTV campaign. A ratio of less than 3-to-1 is most likely too low for success in this medium.

11. How important are add-on products (called "upsells" in DRTV OR direct response lingo) for DRTV?
In the latest studies, "upsells" added 15% to 29% to DRTV orders. It is important that your product has consumables or add-on's; or will spawn new, related products that can be sold to your loyal following. These "back end" sales will continue to justify the costs of a Infomercial / Direct Response DRTV campaign.

12. What other factors do I need to consider in evaluating my product's chances on DRTV?
One of the greatest potentials of DRTV is its ability to create loyal, lifetime customers. Your product must have a way to capitalize on this potential through "back-end" or "aftermarket" products that can be offered at the point-of-sale and after the sale is made. Other important factors are:

  • Can your product be reliably and easily demonstrated on TV?
  • Does your product have proven retail or direct sales?
  • Does your product solve a real problem?
  • Does your product make life easier and better?
13. What is the cost of an Infomercial, Direct Response or DRTV campaign?
There are four major components to an Infomercial / Direct Response campaign. InfoWorx provides both TV and Radio production services and advanced, targeted, researched media buying services in house. InfoWorx also offers a full suite of other services through trusted strategic partnerships for telemarketing solutions and fulfillment. For a short form project (1 minute): InfoWorx offers a package for $20,000.00 that includes:

  • TV Production
  • TV Airtime (about 300 airings nationwide in over 5 million homes)
  • Telemarketing and Fulfillment (consulting)
  • Total Project Management (an optional service)
  • Distribution (consulting)
For a long form project (30 minutes): Infoworx offers a nice demo show package including media at $60,000.00 that includes:

  • TV Production
  • TV Airtime (about 10-20 airings including nationwide cable)
  • Telemarketing and Fulfillment (consulting)
  • Total Project Management (an optional service)
  • Distribution (consulting)
14. Describe the marketing arrangement between a DRTV producer and the entrepreneur.
These can vary in the industry. In some arrangements, the product owner gives up all rights for a small royalty and no investment. In others, a TV producer may ask for a royalty on the back end in addition to the full production fee upfront. With InfoWorx, the client maintains control, funds the project up until media rollout. InfoWorx success depends on client success and roll out. With a successful Infomercial test, InfoWorx can assist with media funding from outside sources.

15. How can I learn if my product or offer has what it takes for a successful infomercial?
That’s easy! The InfoWorx Team offers a free Product Evaluation and a free InfoMetrics ROI Forecaster. Just click here for the Product Evaluation or here for free financial analysis of your product. Also, please click through to one of our blogs to learn about the current state of the media biz or the latest buzz in the wacky, wonderful world of infomercials. http://drtvmedia.blogspot.com/ and http://infoworx.blogspot.com/



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