Direct Response TV Boom Ahead

Direct Response TV Boom Ahead

 

I love direct response TV. And so do hundreds of direct response marketers.

Direct response television is still one of the most effective, cost-efficient ways to reach a large number of prospects, convince them of the value and benefits of your product or service, and convert them into buyers.

If you think television has changed, you’re right. People are watching more TV than ever—but most of it is on streaming television services. Although this presents an initial challenge to advertisers, this also creates an incredible opportunity for direct response marketers.

Today, major advertisers are far less likely to spend money on marketing their product or services on mass TV. Instead, they are likely to turn to advertising on streaming services. For example, Hulu and YouTube will give brands 15-second or 30-second commercial interruptions.

 

What does this mean for direct marketers?

Because the cost of advertising on cable television will go down, direct response marketers now have more opportunities to advertise on traditional television at a lower cost.

It may surprise you to discover that while viewership on cable and satellite TV has shifted, the direct response TV industry is stronger than ever.

In 2016, there were over 89,000 infomercial airings, with an astonishing 7.92 million spots, averaging from 39.65 seconds up to a maximum of 5 minutes in duration. This means that every hour, 6.49 minutes of Direct Response TV ads run—summing up to an inventory of $6.4 billion dollars. That’s a share you can have a piece in, through infomercials, 60’s, and 120’s.

In the same year, viewership on TV screens grew 90%, compared to the previous year. And it’s projected that in 2017, viewership will jump another 90%.

It may not be the millennial audience, but the “senior” market is traditionally responsive. And because major traditional advertisers are shifting their focus to streaming television, that leaves more space for direct-response marketers to advertise successfully on cable and satellite TV.

Direct response TV is still very lucrative. Take a look at these statistics from 2016, collected from across 92 national cable networks:

  • Short form products (call to order) were worth $315,559,760.19.
  • Lead generation (unique 800 or web/promo code tracking) was worth $1,214,017,066.86
  • Brand/DR (using vanity 800 numbers) was worth $2,093,214,168.94.
  • Brand/DR (straight web, SMS, and/or mobile app response) was worth $2,813,172,645.74.

The grand total amounts to $6,435,963,641.73.

And that doesn’t even include broadcast, satellite, local cable direct response expenditures or 28.5 infomercial valuations.

Clearly, the direct response TV industry is still very strong—and there’s still incredible opportunity to sell your products and services. If you’re interested in direct esponse TV, let’s talk.

We’ve helped marketers with over 300 DR commercials and videos including 13 infomercials. See our sample TV spots here.

We have worked with multiple clients to successfully market their products and services, including:

Learning for a Lifetime
Swiss Confidential
Fawn’s Secret Stock

 

Infomercials will help:

  • Increase sales
  • Generate leads
  • Gain retail distribution
  • Increase brand awareness
  • Keep your customers buying

I’ve seen direct response TV bring million-dollar success stories to businesses, and I believe they will continue to do so.

 

Why now is the ideal time to advertise on direct response TV

The truth is, there’s no better time for direct response advertisers to market their products and services on television.

As mentioned before, a massive shift in television has left a wide-open space for direct response marketers to step in and advertise their products and services at a lower cost than ever on cable or satellite television.

This shift can be attributed to the rising popularity of streaming services like YouTube, Hulu, and Amazon Prime, especially among millennials, who are far more likely to use streaming services than watch cable or satellite television. Although younger audiences won’t typically tune into cable TV, overall television viewership has skyrocketed—in fact, in 2016, viewership on TV screens increased 90%, and is projected to increase another 90% in 2017.

Young people still want to watch television—but they are using different platforms. Viewers are now able to watch what they want, when they want. They are no longer constrained to a set schedule—and no longer forced to watch multiple commercials while watching TV shows and movies.

By using over-the-top (or OTT) boxes that stream video to a large screen, viewers are able to watch what they might typically see on their mobile devices on their living room television sets (although 60% of YouTube is still viewed on mobile). Roku is the no.1 streaming device, followed by Google Chromecast and Amazon Fire TV stick.

Apps that were historically viewed on a laptop or phone are now moving to the television screen. YouTube viewers, for example, spend 30% more time watching NBC’s content when it’s on a TV screen than on a different device. And viewership is increasing—minutes watched were up 65% this past year.

The stats are surprising:

  • Today, there are 170 million people in the U.S. plugging into connected TV’s.
  • OTT boxes and connected TV’s now account for 32% of ads that run alongside premium content (high-value shows and movies).
  • Four years, ago, connected TV devices only accounted for 2% of these kinds of ads.

In the wake of this shift in TV viewership, cable and satellite TV are less expensive to advertise on—but still widely watched, especially by older audiences.

 

If you would like to discuss marketing on direct response television, call me at 310 212 5727 or email Caleb at caleb@cdmginc.com. We would love to help you strategize on breaking into this unique market and opportunity for direct response TV.

 

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