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NEWSLETTER
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Volume 3, April 24, 2000
InfoWorx LOOKS TO LONG FORM FUTURE
By M.T. Waye
The infomercial is here to stay! The last decade has provided testimony to the overwhelming successes of the 30-minute infomercial.
"The long form commercial is fast becoming the staple of DRTV," said Ron Perlstein, Executive Producer and President of InfoWorx.
"When you're trying to introduce a product for the first time educating an audience is paramount to success."
The success of the 30-minute infomercial is best spelled out by the numbers.
By 1995, media billings had quickly soared to an unprecedented $800 million a year.
"That's qualified success," remarked Perlstein. "If you're looking to invest in DRTV, depending upon the product, I promote the long form commercial. Not only do you educate an audience but you capture them!"
By 1999 30-minute infomercial billings grew another $62 million. Steady consistent growth like that for any new industry is more than a mile marker, it's real promise.
Health and Fitness products cut the biggest piece of the media billings pie. In 1999 it saw over a $172 million worth of media buys.
"The millennium had a dramatic effect on people's lives. They began to look for opportunities to change and improve their lives like never before. DRTV provided an easy and educated forum to introduce people to new products, infomercials gave them informed choices," said Perlstein.
The Birth of New Networks Spells DRTV Opportunity
By M.T. Waye
The millennium is about choice. People crave choices. Nothing better illustrates that than the ongoing birth of TV channels catered to individual tastes and interests.
That's pure opportunity for DRTV advertisers. Matching products with a more narrowly defined target audience can have dramatic effects.
Equally important is that rate structures for media buys, be it 30-minute or 60-second commercials, are more flexible and in some cases offer bonus airtimes.
Advertising dollars can be stretched farther while new networks gain their 'sea legs'. It's a great opportunity for all parties.
Ron Perlstein, Executive Producer and President of InfoWorx, sees creative media buying as a result.
"Depending on the clients goals and budget, start-up networks are a phenomenal way to reach niche markets," Perlstein said.
InfoWorx DRTV GLOSSARY
Defining Direct Response TV concepts enables informed choices for investors
BONUS - An extra product or service added to the key infomercial product as an incentive.
CALL TO ACTION (CTA) - Segment of an infomercial that asks for the order. Each infomercial CTA is usually two minutes long and reviews the products main features and benefits, states the products' guarantee, price, toll free number, etc.
COST OF GOODS (COG) - The direct costs associated with the manufacturing and packaging of a specific product.
COST PER LEAD (CPL) - The average cost of television media to generate one lead or telephone request for more product information.
COST PER ORDER (CPO) - The average cost of television media to generate one product order. The figure is determined by dividing the cost of a specific infomercial telecast by the number of order received.
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