Using DRTV to Drive Traffic to Retail, Catalogs, and the Web

Direct response television (DRTV) is best know for “as seen on TV” product offers that can generate immediate and significant product sales. But marketers often overlook the fact that the medium is amazingly adept at other forms of revenue building, including driving traffic to retail stores, catalogs, the Internet, and coupon circulation. In recent years, the role of DRTV has evolved to include increasing overall brand/product awareness, sometimes creating a market where there wasn’t one before.

DRTV reaches buyers of all shapes and sizes– those who will order online or over the phone, those that gather information from a variety of sources before making an informed decision…and those that feel most comfortable purchasing in a retail environment. The key is presenting your spot to the right audience at the right time for the right price.

Creating traffic for retail

Consider the classic example of a household cleaner/restorer that was sold exclusively via direct response television nearly a decade ago. After several successful years on the air – a program that began with an initial $10,000 DRTV test – product distribution was expanded to a group of retail stores while the DRTV campaign continued successfully.

Upon review of the results, it was determined that DRTV was not only responsible for generating close to one-half million direct orders at a cost-per-order that was 29% below the allowable goal, but the television campaign also generated very inexpensive brand exposure for the company’s retail effort. DRTV allowed the company to reach more 31 million women between the ages of 18 and 54, resulting in retail sales growth of more than 300%. In this case, DRTV created a need for the product at retail and has helped make the product a recognized household brand name.

Increasing coupon distribution and usage

The consumer products division of a Fortune 100 company was launching a new product line for consumers and needed to quickly and cost-effectively break through the traditional clutter. The company turned to geographically targeted direct response television to accomplish three goals: boost market share, reach targeted consumers with coupons, and increase redemption of the coupons.

To validate the impact of DRTV, the targeted markets were split in half. Half employed traditional brand advertising while the other half aired a 60 second direct response television commercial. Both commercials utilized the same creative execution. The direct response spot displayed a toll-free phone number throughout the last 30 seconds and an interactive voice response center was made available 24/7 to receive incoming calls.

The DRTV commercial delivered targeted respondents at an acquisition cost that was less than half of the allowable, exceeding the company’s stated goal by more than 100%. Coupon redemption rates averaged 5.5% – nearly double the national average of 2.5% to 3.0%. The use of direct response television increased overall sales by 50%, making this one of the company’s most successful campaigns.

Generating leads

One large cataloger in the home furnishings marketplace successfully uses direct response television to generate leads for its free quarterly catalog. The commercial offers the catalog via a toll-free number and through the Web. Two premiums were developed and tested with the ultimate goal of lifting response.

As a result of testing DRTV, the cost per lead came in more than 20% below goal, Web activity increased by nearly 30%, and monthly direct product sales and revenue increased by more than 55%. In addition to generating cost effective leads, the retailer continues to use DRTV because it not only allows for product demonstration and clearly shows the product’s ease of use, but the medium also provides strong support to the company’s retail business. In fact, the TV exposure brought two major retailers to the table, dramatically increasing the company’s distribution. In addition, and as important, the company achieved its overriding goal of increasing its customer file for cross-promotional purposes.

Driving traffic to the Web

With many companies using “.com” as a part of their name and brand, the Internet must work together with other media, forming a hybrid marketing style that supports both brand and action. EHarmony and eDiets are just two examples.

DRTV is a major force in driving consumers to pick up the phone, order on the Internet, and even take a drive to the store. Today, the message has evolved. Major advertisers in the pharmaceutical, automotive, telecommunications, and consumer electronics have caught up to what direct marketers have known for decades – there simply is no more cost-effective media to get the consumer’s attention, compel action, and create a new prospect or customer.

At the end of the day, direct response television is the ideal medium for directly reaching American consumers, generating cost-effective and measurable direct sales. Smart marketers have also learned that DRTV is just as powerful a tool for generating leads, building brand, and driving traffic to other direct marketing mediums to close the sale.

Maria Eden and Cary Scottoline are the co-founders of Direct Response Media, Inc., a Wayne, PA-based direct response television agency that works with some of the world’s leading direct response marketers.