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MEDIA BUYING DIRECT RESPONSE TELEVISION (DRTV) ARTICLE ......

Q & A: Internet Plays a Larger Role in Infomercial Marketing
Published: 05/06 - DM News
 
Peter Koeppel is president of Koeppel Direct, a leading multi-channel direct response media buying firm. Koeppel Direct specializes in buying all forms of direect response media including DRTV, online, print, and radio. DRTV News Weekly's Sarah Littman discusses DRTV in an age of media convergence.
 
DRTV News Weekly: What elements make for a compelling infomercial?
 
Peter Koeppel: The product should be unique with mass appeal, with easily demonstrated features and benefits. It must be offered at an attractive price point for consumers -- ideally $19.95 and under for a short-form infomercial and $39.95 and above for a long form infomercial, and the call to action must be compelling.
 
A great example of successful infomercial marketing for a relatively big-ticket item ($400) is the Little Giant Ladder. They decided to employ stars of a PBS home improvement show as the show's host and hostess, which was a really good fit. The show does a terrific job of demonstrating the 25 different ways the ladder can be used, including how it's light enough to be carried by a woman.
 
How can direct response marketers best take advantage of the convergence of digital media and television?
 
It's really important for advertisers to have an integrated, multi-platform direct response approach, with a consistent look and feel from TV to the Web to print. People in the direct response industry are used to testing new forms of media, so they're willing to try out new and innovative ways to increase ROI such as podcasting, blogs and advertising on mobile phones.
 
The other day I was watching video on demand from Dish TV [and] there was a short-form Jeep advertisement with the option to click on to a long-form spot. By clicking on get more info I could bring up all the Jeep dealers in the area and find out more about the vehicle. Rupert Murdoch has been doing a lot of this in the U.K. and it's just starting to take off in the U.S. I think VOD will grow significantly over the next 5 years.
 
Clearly the Internet is playing a bigger and bigger part of infomercial marketing. Sixty percent of homes now have broadband, and between 15 and 50 percent of orders from a direct response spot come through the Internet. About 50 percent of viewers are online at the same time they're watching TV. Some marketers might decide to drive sales directly to the Web, bypassing telemarketing entirely.
 
Testing would allow advertisers to decide if they are losing upsell opportunities and if conversions are significantly lower with this approach.
 
What are DR marketers to do in an age of the DVR?
 
Infomercials are less affected by DVR than your typical 30-second spot. A direct response spot will take longer to fast forward through, and if the spot is visually compelling viewers might be tempted to stop and look. It's important to have the advertiser's logo up throughout the spot so the viewer will catch it even when fast forwarding.
 
Also, viewers don't tend to Tivo programming where DRTV spots air. DVR's are used most often to record top rated programs on the larger broadcast networks.
 
On the positive side, as big brand companies advertise less on TV and more on the Internet it could free up more direct response television inventory, with the potential of lowering media rates. We haven't seen this happen yet, but I'd expect to see it occur within the next five years.
 
 
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