infomercials : direct response tv industry

"Some Basic Facts about the Direct Response TV Industry"
reprinted with permission from Think Tek, Inc.

Publisher's Note: We've all seen infomercials on late-night TV, and you probably know of someone who has ordered one of the following products:

The Tony Robbins tapes
The "Buy Real Estate With No Money Down," tapes from Carlton Sheets
The Thigh Master TM, from Suzanne Sommers
The "How I Made Millions With One Tiny Classified Ad Working Out Of My One-Bedroom Apartment," tapes from Don LePre
The Tae-Bo Tapes TM, from Billy Blanks.

I'll admit, I've ordered several products from infomercials (but not a Thigh Master), and I would have been guilty of ordering another product, except that my Mom had already ordered the product that I was considering (the Tai-Bo tape series), so I just borrowed it from her. But the point is that these 28 minute infomercials -- with their "ads-within-an-ad" format -- can be very successful. They are carefully scripted, right down to the smallest detail, and their customer testimonials always sound so convincing.

If you've invented a product that might be appropriate for a TV infomercial, then here are some of the basic facts, as told by Think Tek:

THE INFOMERCIAL APPROACH:

The main goal of an infomercial is to turn passive watchers into active buyers. Here's how:

1. Capture the viewer's attention and keep it.

It's important to create a campaign that captures the attention of your target demographic as they are channel-surfing.
The images shown should be appealing to the customer you are targeting. Once the viewer has tuned in, a running story line and teasers will keep them watching.
Since a viewer can tune in anytime during the half-hour, a good infomercial is a series of 6-7 minute, self-contained segments, each with similar information told from a different angle and each with an embedded commercial known as a "CTA" - the Call To Action.

2. Keep them watching while you present the benefits with emotion. The mix of entertainment and sales pitch is the key to success. With no entertainment value, a viewer is likely to change the channel. Too much of a sales pitch could also turn away some viewers. A great infomercial has just the right mix.

A presentation made with emotion touches the viewers. Emotion is what turns passive TV viewers into active buyers. 3. Present the product and prove why this is a good buying decision for the viewer.
One of the great benefits of a half-hour campaign is that all of the information about the product can get presented. This is particularly useful for building excitement about owning this product.
We can get very specific in terms of what makes the product unique.

4. Close the sale by getting the customer to take action.

"Each of the show's segments is completed by an embedded commercial, commonly referred to as a "call to action" or CTA. In each CTA, the offer is presented and the viewer is invited to take action. There are typically 3 CTA's in the course of each infomercial. Because the CTA is the only place where the offer is presented, it allows for adjustments during the course of the campaign without the need to edit the body of the show. It also provides an opportunity to test different offers and prices to maximize return.

Again, the main goal of an infomercial is to turn passive watchers into active buyers.

OBJECTIVES OF A TYPICAL INFOMERCIAL:

Generate direct product sales through a dynamic effective long-form infomercial.
Create product branding and awareness to establish distribution through retail mass merchandisers and other channels.
Build a mailing list of qualified consumers Interested in the product for use in future out-bound direct mail and telemarketing campaigns.
Gather respondent date to confirm and/or modify the strategy and positioning of future marketing campaigns.
With 28.5 minutes, an infomercial allows you adequate time to demonstrate all of your product's features and benefits -- more than a 30-second spot can do.

MARKETING STRATEGIES:

There are several reasons why infomercials are successful:

Exclusive Offers: A DRTV campaign generates response if viewers believe that they can't get a similar product anywhere else. Presenting "Not Available In Stores" throughout the infomercial is very helpful.
Urgency to Purchase: Creating a sense of urgency to make the purchase is a critical factor in any DRTV campaign. This is accomplished this in a number of ways, including presenting the product as a limited-time offer and offering a premium for calling now.
Reinforcing the Product Value: Cost justification is also very important. Many viewers will instantly want the product, but will need to be able to justify the price in order to make the purchase.
Creating an Emotional Connection: Consumers buy products because of the benefits they will receive -- what it means for them in their lives. Enthusiastic testimonials and a show with great energy will compel viewers to stay interested.
Product Uniqueness: Emphasize what makes the product unique from anything else on the market. This can include product comparisons.

WHY DO PEOPLE BUY FROM TELEVISION ?

Over 51% of infomercial shoppers polled said there are two reasons they buy from infomercials: the same product was not available elsewhere and they received a complete demonstration of the product. Both reasons were equally weighted.
Over 40% indicated that the infomercial accurately described the product they were purchasing.
52% indicated that they were satisfied with the quality of the product and speed of delivery.
And a full 46% said they would definitely purchase from infomercials again.

WHY DO A HALF-HOUR INFOMERCIAL ?

More time with customers: A half-hour allows for enough time to educate the consumer and fully present all that your product has to offer. More time with your potential customer means more sales.
Pays for itself: A half-hour allows enough time to both advertise your product and generate instant sales. Revenues from your direct sales literally pays for your media costs. (In the New Product Search, Think Tek is footing the bill.)
Increases retail sales: It's been proven repeatedly that an infomercial dramatically boosts retail sales. Studies show that for every customer that buys from TV, there are 7-10 other viewers who will later buy the product at retail because of watching the infomercial.
Accurate and measurable: A half-hour infomercial is a very measurable format - and you can directly target the audience you are seeking. The flexibility of infomercials enables you to easily test a variety of offers and prices for maximum response. You can also update price points easily for region-specific campaigns.
A successful infomercial will instantly generate $2 to $3 in sales for every $1 spent on media.

"For more tips on getting your product to market and to receive their free newsletter, "The Online Inventor ," please visit: www.marketlaunchers.com."