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
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.
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