What is Direct-Response Television? DRTV-101

Direct-response Television is a form of marketing which companies use to generate a response from prospective customers, as a “direct” result of a marketing campaign. Direct-response marketing can take place through a number of media channels, including television, radio, mail, and outdoor advertising, such as billboards. Direct-response is different than direct marketing, where the marketer contacts the customer directly, which typically involves a salesperson making phone calls or visits in person to the prospective customer. The benefits of direct response advertising are that it can be applied across a wide audience, is highly quantifiable, and on a cost-per-lead, or cost-per-sale basis can be very affordable if done correctly. Additionally, direct-response campaigns offer data which can be used to test and modify existing campaigns for even better results.

Direct-Response television, the format that GreyTV specializes in, is typically broken down into three sub-categories: lead generation, and direct sales, either product or service. In recent years, lead generation has become increasingly popular with direct-response television marketers, who have complex, yet highly profitable products. The benefit of lead generation for these clients is that they can present a targeted offer in a powerful and simplified way, to generate a qualified lead, which can be closed later by a sales person, or through providing more detailed information through mail or the Internet. Though this DRTV sales process involves two steps, selling the big picture first and then providing more details to prospects who have shown interest can increase sales rates, and reduce direct-response costs dramatically. Examples of products and services that fit well with this process are: Auto Insurance, Financial Products, Educational Services, Healthcare Insurance, Vacation Packages and Medical Procedures. In the case of lead generation, call centers play an important role, as call center operators must be trained with detailed product information, as opposed to simply taking an order. Traditional direct-response, where an offer that leads to an immediate sale is presented, works best for products, that present a simple and logical benefit and which can be ordered with payment and delivery information.

GreyTV uses many practices and techniques to achieve results and improve response, such as the use of urgency, clear and compelling copy, graphics, and design, which aim to reinforce the message. With the recent growth of Direct Response through the internet, the viral potential of well written, or entertaining infomercials, uploaded to YouTube for example, has proven to be animportant contributor to a campaign’s success.