 |
 |
|
"Koeppel Direct's media buying expertise has played an integral role in making my company successful. Koeppel generated so much business for our company, occasionally we have to limit their media buys, in order to handle all of the new business." | |
| - R. Gregg Marketer of Senior Products |
|
MEDIA BUYING DIRECT RESPONSE TELEVISION (DRTV) ARTICLE ...... |
Exploiting New Niches for Direct Response Marketing
By: Peter Koeppel
Published: 06/02 |
| |
I read an article recently in a housewares industry publication about a bidding
process that has been established by major retailers called a reverse auction. The way it works
is that suppliers are required to submit bids, typically online, and the lowest bidder gets to
sell its product line to the retailer. This bidding practice has further squeezed the already
thin profit margins realized by the suppliers.
If you think about it, this creates a great opportunity for the direct response industry. Household
product suppliers that manufacture products suited for direct response should now be more open
to marketing their products directly to consumers, in order to increase profit margins. And
the proliferation of new cable television networks, such as HGTV and The Food Network, allows
marketers to more precisely target their message to specific audiences.
Explaining the Latest Technologies
Another industry that could benefit from utilizing direct response advertising is technology. There
are many new, high-tech gizmos being introduced that are confusing to consumers and, as a result,
fail.
An infomercial is the perfect platform to explain how these new technologies work, how easy they
are to use and how they can make your life easier and save you time and money. AOL, Windows 95 and
TiVo all had varying degrees of success utilizing infomercials to introduce new technologies. And
technology oriented audiences can now be effectively targeted through networks such as Tech TV and
the Sci-Fi Channel.
Rehabilitating an Industry Under Siege
The accounting and CPA profession certainly need some help with its image in the wake of the
Enron/Andersen fiasco. An infomercial could provide them with the opportunity to educate the public
about how ethical the profession is and explain that the Enron/Andersen situation was an aberration.
The National Rifle Association (NRA) employed a similar approach in its infomercial campaign. This
target audience might be most effectively reached through more upscale networks, such as
CNBC.
Another thing to keep in mind when seeking out new products or services to market through direct
response is that retailers and products that target the high and low end of the marketplace are
currently having the most success, according to a recent article in The Wall Street Journal .
That's one of the reasons why Wal-Mart is now the largest company in the world. Value-oriented
consumers who shop at Wal-Mart are also likely to purchase DRTV products that meet their needs
and are effectively positioned.
There's still plenty of opportunity to further expand the direct response category through
creatively exploiting potential new market niches. And the media environment for direct response
advertisers should remain favorable in the short term, since the general advertising market is
not expected to rebound until 2004, creating more inventory for direct response
advertisers.
Peter Koeppel is a Wharton MBA and president of Koeppel Direct, a direct response media-buying
firm founded in 1995. He can be reached at ( 972) 732-6110 or via E-mail at
pkoeppel@koeppelinc.com.
|
| |
|
|
|
