Direct Response Television (DRTV) can be a very powerful and profitable tool in a manufacturer's marketing arsenal.  DRTV has the ability to create demand, and hasproved over and over to be a very effective method for driving ready-to-buy customers to retail stores.

 

For example, a well known brand placed a unique and versatile hand mixer in national retail chains. Sales were slow due to the consumer’s lack of understanding of how the product could be used. The company launched a kitchen-demonstration Infomercial to familiarize consumers with the blender and how it could be used in their own kitchens to save time in meal preparation. Not only did the Infomercial pay for itself through direct sales, but in two months retail store sales increased by 1,100%!

In another case, two major home product manufacturers went head-to-head with similar floor care products sold at many of the same national retail chains.  Company A enjoyed a 30% national market share with Company B a distant second at 12%. After launching an Infomercial campaign to drive retail traffic, Company B reversed market share from 12% to 35%, while Company A dropped from 30% to a 13% share. The campaigns focused message was successful in communicating Company B’s product superiority. When polled by an independent consumer survey company, buyers of Company B’s product felt ‘better informed’ to make their own decision on which product to buy instead of feeling like they were ‘being sold.’ Again, DRTV created demand by demonstrating the product’s superiority.

Lastly, a manufacturer of consumer outdoor products was faced with two of their large national retail accounts dropping their entire line due to lagging sales. After only two months of a DRTV campaign, sales increased 20% and both retail chains committed to continue carrying the product line.

There are several key reasons why DRTV succeeds at driving profitable retail sales when other advertising formats fail. DRTV allows manufacturers to educate consumers about their product. Good DRTV creative 1) shows a series of “WOW” demonstrations; 2) articulates how the product will change the consumer’s life; 3) creates strong perceived value or a “good deal,” with a strong call to action; 4) educates consumers on their current problems and how the product solves them; and 5) explains how the product is better than competition.

As for profitability, DRTV’s media buying process is based on flexibility, allowing manufacturers to reap significant cost benefits. Unlike general advertising, where TV time is purchased within specific programs at an exact specified time, DRTV "rotators" are placed at the station’s discretion, within specified dayparts based on supply and demand. It is this flexibility in scheduling that makes this type of television marketing so comparatively inexpensive and profitable.