DRTV Media Rates – Remnant Media Buying

November 3, 2012

DRTV Media Rates, DRTV Response Rates, Pay Per Call Advertising and powerful media buys for tiny little costs. DRTV Media Rates in the post-election aftermath are stable. In fact, during this never ending election cycle, our media buyers have found numerous opportunities to buy remnant TV and remnant radio all over the country. We’ve said it before, and I will say it again – your media buyer must be a bulldog with a robust rolodex and many deep, long standing relationships in the direct response media world. But make no mistake, DRTV media is unsold media that goes to the highest bidder. The skill set necessary relates to the buyer’s sense of value and the unending quest to make money for our clients.

Last week, a lot of publicity came out regarding the cost of a :30 second ad on Sunday Night Football ($545,000.00). It’s actually a good value with a CPM around $25 compared to other top rated shows like The Voice or The Academy Awards at CPM’s hovering around $35 – $37. But DRTV media rates require single digit CPM’s and lower. Where do you find remnant media at $5 CPM and lower? We have several clients buying national airings in 26 million homes at CPM’s under $1! And these are top tiered networks like ESPN, Lifetime, and Fox News.

Remnant media buys require a specialist. And if your offer is a lead generating offer or if you simply crunch your customer acquisition numbers – pay per call TV advertising, per inquiry TV, pay for performance – whatever you want to call it is viable. We are expanding our DR digital reach into Mobile with click to call campaigns, too.

Please subscribe to this blog for the latest updates on DRTV Response Rates, DRTV Media Rates, Pay Per Call Advertising and big media buys for tiny little costs.

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Pay Per Call TV – Per Inquiry TV

October 20, 2012

Pay per Call TV is often called Per Inquiry or PI because this methodology pre-dates the internet and “pay per click” or “pay for performance.” Marketers using a Pay per Call TV strategy only pay for qualified leads. At our agency, we have been running Pay per Call TV advertising for our clients since 1998, generating millions of leads across many categories like inventor leads, tax resolution leads, foreclosure defense, medical tourism, insurance, legal and others.

There is mounting evidence that Pay per Call is gaining momentum across many channels as marketers slowly come to the realization that a web hit is a long, long way from a conversion. Forbes Magazine recently reported that in the online world of advertising Pay per Call could become even bigger than pay per click as advertisers understand the value of a live call versus a casual click. Pay per Call TV (Per Inquiry TV and Radio) has been around in our world since the advent of the toll free number.

Direct Marketing News recently interviewed me for a DRTV feature they were doing, and I explained that we are using more direct response short form spots and long form infomercials with no URL and a toll free number only. Why you ask – because web hits on their very best day convert at less than 10% and sometimes less than 2%, while telephone calls convert on a bad day at 20%, and we have one offer running all year that converts at 64%.

Pay per Call TV offers advertisers with lead generating offers a format that can mitigate media expense, get your sales force the hot leads they need, and the benefits of TV branding as well. Remember, it’s all about the payout and the length of a call. Some of the legal offers can pay thousands for one qualified lead.

Per Inquiry TV and Radio Agency Expands Per Inquiry Specialization

March 3, 2012

DRTV Agency and Infomercial production company, InfoWorx Direct has expanded its capabilities as a per inquiry advertising specialist in short form and long form television and radio. The TV infomercial production company and media buying agency has developed a proprietary platform that can deliver :30 second or :60 second lead generator calls using the client’s 800 numbers or by providing clients with toll free 800 numbers forwarded directly to the client’s call center or in house consultants.

“Our newly developed per inquiry advertising system empowers the marketer to dictate the amount they are willing to pay for a response and also controls the number of responses they are willing to handle.  We have been specializing in pay for performance TV and Radio programs since 1999,” Ron Perlstein, Executive Producer and Media Director at InfoWorx Direct explained. “Our new system allows the client to choose if they want to run spots 24/7 or custom tailor hours to conform to call center operations.”

 In per inquiry TV and Radio advertising, the advertiser can specify how many calls or orders they want and set a price or “payout” for those results. This allows them to use their performance metrics to maximize the potential of their campaigns. 

“We designate one toll free number per campaign, per media outlet, and can answer valid calls which can be :30 or :60 second qualified leads. We can also instantly redirect the calls to any call center or to the marketer’s live consultants,” Perlstein continued. InfoWorx Direct has relationships with hundreds of TV stations, many cable networks, and thousands of radio stations. “The beauty of per inquiry deals is that the client can work within their allowable cost per order and maintain profitability while controlling media costs.  Our proprietary platform and media management systems provide complete tracking information, and can even specify call center hours for valid, qualified leads.  This allows clients and media to partner with a revenue sharing media campaign,” Perlstein added.

Per inquiry campaigns work especially well for legal, tax relief, insurance, mortgages, reverse mortgages, diabetic recruitment, health care and many soft product offers. 

 For 20 years, InfoWorx has established itself as a pioneer in direct response TV advertising, and has generated billions of dollars of major “as seen on TV success” for clients including Emerson Electric, Innovation Direct, SnorEnz, Rubbermaid, and iRobot’s Roomba.  For additional information on InfoWorx, contact Ron Perlstein, or visit http://www.InfoWorx.com.

 InfoWorx Direct, LLC, is a full service direct response agency and media buying service with an evolving infomarketing business philosophy. The InfoWorx scientific approach has led to profitable results and success for established companies and newcomers alike.

DRTV – How to Calculate Cost Per Order or CPO

February 11, 2012

CPO, Cost Per Order, Allowable Cost Per Order. These are the key metrics for successful direct marketing. And for 20 years, I have been educating my clients, potential clients and members of this great industry. I’ve been blogging about the DRTV and Infomercial business for 4 years and the keywords usually center around the cost to produce or air an infomercial or Direct Response TV commercial. But make no mistake, you can’t make money or break even or execute any direct marketing strategy without knowing your Allowable Cost Per Order. Let’s define the terms for this blog or click here for an Infomercial Glossary.
Cost per Order (CPO): The average cost of television media to generate one product order, determined by dividing the cost of a specific infomercial telecast by the total number of orders received from it.

Ad Allowable: Your ad allowable tells you how much you can afford on a cost per order basis. The ad allowable is the dollar amount determined to be the maximum media expense for each unit sold in order to generate a legitimate profit. Also referred to as Allowable Cost Per Order.

In order to calculate your cost per order, you must be able to track response and sales by media airing, week, month and so forth. DRTV and DR Radio are accountable forms of advertising (unlike branded advertising), and your DRTV Media Agency must have a media management system that tracks calls, web hits, and orders for each airing, broadcast week and broadcast month. Handled properly, the direct marketer should receive data daily that estimates the CPO and receive data weekly with reconciled reporting that tracks the CPO to the penny.

We provide our clients a report called an Allowable Report. Upon setting up a campaign, we crunch the numbers, consult with the client and establish an Ad Allowable or Allowable Cost Per Order. Our custom report shows the client at a glance all of the stations, networks and airings that are below the Allowable and all of the media that is above the Allowable. A savvy and responsive media buyer cancels all media that is under performing the allowable and reorders the media that is working.

To learn more about DRTV Media Rates and Rollout strategies – click here. Don’t forget to subscribe so you receive all of the latest info on the DRTV Media business.

DRTV Media Rates and Rollout Strategies

January 29, 2012
Direct Response TV Rates are based on supply and demand.  After the upfront quarterly media buys are made by the largest corporate advertisers, media companies have inventory that may be used for spot branding buys (scatter media buys) and DRTV or Direct Response Television.  Check back here often because we also cover radio which works a little differently.
 
Media rates flatten in the early part of the first quarter and slowly rise as we move closer to the important second quarter with many Spring and outdoor activities starting up again such as lawn maintenance, outdoor recreation, and Easter.
 
HOW TO ROLLOUT YOUR PRODUCT
 
 
Direct to Consumer:  If your product is a Direct to Consumer product such as a supplement or skin care product that will rely on DRTV or DR Radio sales, a rollout can start slow and simply build and ramp up slowly based on sales and budget capability.
Lead Generation: Lead generation rollouts may be impacted by your call center or inbound telemarketing capacity issues.  Once your lead generating DRTV commercial or short form infomercial is tested and you are within your allowable, a slow but steady ramp up can take place like Direct to Consumer.  But if your phone room is small, steps must be taken to make sure all calls are answered and all leads responded to in a timely fashion. Also lead generating spots are well suited for Per Inquiry or PI distribution once the creative has been tested.
 
Direct to Retail: Many of the best known direct response products are consumer products that solve a problem and cost $19.95 or less. In the Direct to Consumer model often continuity sales or auto ships or reorders keep the backend very profitable so the marketer can afford a decent allowable cost per order. Check here for more on the allowable concept. The Direct to Retail model uses retail sales to complete the “backend” sales which are crucial to success.  DRTV commercials drive retail sales.  The retailers are looking for robust media plans in order to give you their precious shelf space.  Direct to Retail rollouts should start with budgets of $25,000 per week and a strategy to be rated as an up and coming product. Often media funding companies are brought in to help with this type of rollout.
 

Infomercial Budgets – Cost of Infomercials 2012

January 14, 2012

Infomercial budget questions? Are you trying to understand the costs of producing an infomercial? My name is Ron Perlstein, and I started producing infomercials in the early 1990’s and run a very successful Direct Response Infomercial Production and Media Agency called InfoWorx Direct. Part of our client base includes many marketers and product developers who are new to this unique and profitable form of Direct Marketing. Please bookmark or subscribe or follow me on Twitter.

TV Infomercial Production Costs:
Short Form TV Infomercials run in 5 minute; 2 minute; and 1 minute lengths depending on your product, goals and TV media availability. Many producers charge a fee plus a royalty on the back end based on performance. There are a few DRTV Agencies (like InfoWorx) that not only produce winners, but provide media buying services. TV Production costs for these short form TV infomercials or DRTV commercials range from $5,000 to $75,000 depending on many factors.

Long form TV infomercials are about 30 minutes (most are 28:30 minutes). Again here costs can vary greatly. Do you want a production with a spokesperson sitting at a table with a black curtain or do you want to produce a TV show that is convincing with great talent, custom sets, animations and high end graphics? Take a look at these TV Infomercial production packages to get a better idea of production values.

TV Infomercial Campaign Costs:
In addition to production costs a TV campaign must include media. I recommend that a marketer test their offer or several offers. A media test on a limited national basis costs about $15k to $20k per test. These tests produce sufficient data to determine if you have a winner, moderate success, or …..ugh….a loser. The backend of a campaign or test is also imperative. Inbound telemarketing in the form of an IVR or live agent call center has setup fees ($1,000 and up) and ongoing transactional fees. A non swipe merchant account is required and nowadays a landing page e-commerce site is recommended. Also a DRTV friendly fulfillment shop is recommended to handle inventory management, pick and pack services, payment processing, and returns and exchanges. Like inbound telemarketing, there are setup fees and ongoing transactional costs associated with this aspect and having a world class fulfillment partner helps.

Check back here often. Also check my DRTV Media blog. We’re working on one now regarding rollout media budgets.

DRTV Response Rates-Allowable Cost Per Order

January 3, 2012

DRTV Response Rates. $50 per spot DRTV. According to my research these two key words come up in many searches. So let’s talk it about because if you are looking for the latest 2012 DRTV Media information, The DRTV Media Blog is the place to get it. Please mark it or subscribe.

For those of you just getting started, DRTV is an acronym for Direct Response Television, which is a method of advertising on TV on a National or Local level in which the advertiser pays low, low rates which are pre-emptible or, in other words, remnant media. Savvy marketers and advertiser establish an allowable cost per order to reach sales goals that should be preset.

DRTV Response Rates are usually tracked via metrics known as Media Efficiency Ratio or Media Ratio or MER. Let’s define a few of these terms:

Media Efficiency Ratio (MER): The total number that decides an infomercial’s overall success or failure. The ratio is derived by dividing total sales by the media cost. Sales/Media Cost = MER. This term is also sometimes referred to as Media Ratio or simply Ratio. You can track your TV commercial media buying efficiency on a single airing, a group of airings by station or a week, month or quarter.

Ad Allowable: Your ad allowable tells you how much you can afford on a cost per order basis. The ad allowable is the dollar amount determined to be the maximum media expense for each unit sold in order to generate a legitimate profit. To calculate your allowable add all of the revenue per unit including postage and handling and then deduct all of the expenses including cost of goods, telemarketing, etc. Here is a tool that may help you determine your Ad Allowable.

Cost per Order (CPO): The average cost of television media to generate one product order, determined by dividing the cost of a specific infomercial telecast by the total number of orders received from it. Compare this number to your Ad Allowable and you will know if you are reaching your goal or not.

Media rates ease up significantly in the first few weeks of a new year then gradually move back up as the winter nears its thaw. First and third quarters are the best TV media buying quarters as far as rates with second and fourth quarters having the most demand from corporate and branding advertisiers who pay higher rates.

Infomercial Airtime Cost

December 6, 2011

Infomercial Airtime Cost

 
Thanks for visiting the DRTV Media blog for the latest updates on infomercial airtime costs. Everyday our telephones ring with marketers looking for straight talk and information on TV and Radio airtime.We’ve been helping entrepreneurs, large corporate clients and product developers for almost 20 years now.So let’s talk Direct Response TV and DR Radio.Short Form TV or DRTV:
Each year it’s the same story.  Rates go down in the first quarter, and it’s easy to clear. There are many opportunies with TV viewing at it’s highest levels of the year (think weather).  Then rates begin inching up. Second quarter rates always jump because of the push for Spring and Summer activites.  Now I know you think the economy is bad – but you can’t sell anything unless you advertise.  Check the financial news – the media conglomerates are all making money!Long Form TV Infomercials:
A lot of marketers think this format is old school – but not the smart ones! And many companies with great products well suited for long form TV, want to test with short form to see if the investment is warranted. Not the smartest strategy either. I suggest you flip through the channels late at night or on Saturday and Sunday morning.  You will see that the format is alive, that many great products are being introduced, explained, pitched and sold. So what’s happening to rates?  Long Form TV Infomercial Rates are flat!There are many opportunites here, and with a smart bulldog of a media buyer, you can make money with your product.  Remember – the more you tell, the more you sell!Short Form Direct Response Radio:
This format works great with soft offers, dietary supplements, and lead generation.With good inbound telemarketing you can convert soft offer leads into $400 sales!  We know, because we’re doing it! They key to DR Radio is finding remnant time at depressed rates.  It takes a lot of work, but it pays off for the client. For example, if a station sells “retail” time at $150 a minute – we expect to pay $25-$40 per spot. If a national radio network is selling their programming at $1000.00 per minute, we expect to pay $200.00!Long Form Direct Response Radio:
The more you tell, the more you sell!  For nearly 20 years we’ve been explaining this and the smart clients make money! This is a tricky format to buy because the stations like to work long term deals.  But savvy media buyers know that a product must be tested one or two weeks at a time. We call it Direct Response for a reason.  What do these time slots cost? Anywhere from from $25 to $2500.00 per half hour.  If your product does not demand visual demonstation or could work in a talk show format, give long form radio a try.Thanks again for visiting, and, as you can see, this blog is a lot more than just DRTV Media. I’ve been buying, negotiating, planning and researching media for over 30 years, and I’m happy to share my knowledge and experience with everyone interested.

DRTV Response Rates

August 13, 2011

Looking for info on DRTV Response Rates? Well, you’ve found straight talkers and the right place to look — right here at the DRTV Media Blog. So guys what are you looking for – exactly? I urge you to subscribe, follow, like, etc because this blog is for you to learn the latest trends in Direct Response TV, timely updates regarding DRTV Media costs (including how to find $50 DRTV Spots) and short form and long form Direct Response Infomercial costs.

DRTV Response Rates: (The cost of short form TV advertising) Media rates across the cable network landscape are holding up and rising as large brand advertisiers have not cut back, even in slow growth 2011. In fact, political advocacy TV advertising is on the rise, in a non national election year. Nonetheless, there are many soft spots to discover opportunites where cable networks or cable aggregaters are holding lots of unsold inventory. Your media buyer needs to be connected, smart, tough and have your allowable cost per order in mind when placing your broadcast orders. DRTV media costs must be low in order to achieve a profitable cost per order. Stay tuned here and learn how to buy 60 second national DRTV spots at $5 per spot. Up to 8 million households, prominent national networks – and these are NOT overnights – $5 DRTV Spots!

Last week we had a new client call us and ask for media rates and a test campaign while comparing us to another “marketing company.” Folks – beware of any company that does not give you the rate for each spot and just gives you impressions or general information. We have seen this lately with some firms offering thousands of spots as part of a seemingly heavy media campaign promising millions of impressions as part of the package deal for the TV Production. Professional DRTV Media Buyers and Direct Response TV Agencies show the rates and those rates are supported by invoices and affadavits from the stations with the exact same rate. We researched these so called massive media campaigns and were able to determine that the client was paying a CPM over $28, which is more than Amercican Idol or Dancing With The Stars cost on a CPM basis. DRTV rates need to be very low to pay out. We created a plan for that client with a CPM of $0.52 and national coverage using our vast media relationships.

Make no mistake. DRTV, Direct Response TV, and TV Infomercials are a specialty that takes experience, savvy and a hard nosed approach to media negotiations. Direct Resonse TV rates change week to week and the media markets changes week to week based on supply and demand and most of all performance. Click here to learn more about allowable cost per order (CPO) and how DRTV really works.

Per Inquiry Radio-Direct Response Radio

July 31, 2011

There are over 10,000 commercial radio stations in the USA. Radio direct response advertising is on the rise. Think hands free cell phone use! Many stations do not sell out and accept per call or per sale advertising to fill out their inventory. Smart direct marketers are using radio to expand their offers, test their offers, and as a standalone medium. Radio works best for lead generation or a risk free offer. One of our clients uses radio as their primary media, and has sold over 2,000,000 units of one of their popular products. Callers respond to a risk free offer and reach live agents who close the deal and upsell into continuity or a larger unit package

Payout: This is the dollar amount that the marketer pays when a call is placed and lasts for say 30 seconds. Marketers often prefer a “per sale” deal, but media outlets always prefer a “cost per call” deal since they are running the ads and generating a response. Think about it for a moment. You have a dietary supplement in skin care or men’s health. The radio station may have several offers in those categories. Which offer will generate the most revenue for the station and be the easiest sell to the station? Cost per call, of course! A smart direct response media buyer can help crunch the numbers to determine the marketer’s revenue per call. Remember, you are competing with other Per Inquiry (PI) offers, and the stations will jump on offers that give them the best revenue for their unsold inventory. Savvy direct response marketers determine a payout that is competitive in their category and costs less than the cost per call or order of their cash radio buys.

Telemarketing: Per inquiry radio advertising drives calls, and the call center or IVR must have the software and systems to track and source calls to each media outlet. Some Per Inquiry agencies may direct their own toll free numbers to point at a call center for better, more integrated tracking. If your tracking or call center is questionable, forget about per inquiry. Again, a good media buyer or per inquiry radio direct response agency will help with the setup to track the telemarketing.

Per Inquiry direct response radio advertising offers a low cost and scalable marketing strategy. Unlike TV, there is less cost in duplicating and customizing the direct response commercials for proper tracking. Check back here soon to learn more about TV Per Inquiry campaigns.