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Strategic insights into the direct commerce industry, including ecommerce, direct marketing and related fields

Growth in DRTV Advertising

Direct Magazine published an article entitled “Direct Response Rare Bright Spot in Nielsen Report.”

The gist of the report is that DRTV advertising spending has increased recently, while other categories have declined.  That is great news for the industry — and includes many of my friends.

But let’s also keep it in context.  Spending in most advertising media is declining.  Newspapers are thinner.  Magazines are thinner.  Radio is less interrupted.

In this economy, any expense that a business cannot clearly measure it’s ROI is under review, if it hasn’t already been cut.

The reduced demand for most forms of advertising is leading to lower rates.  DRTV companies can buy network spots like never before.  Good for them.

But ultimately, the real test is whether, when the economy comes back, will general advertisers adopt the direct response type model to clarify and perfect the measurability of their TV / Radio / Newspaper / Magazine advertising?

Obviously, it’s too soon to tell.  So, in the mean time, enjoy the ride … all the way to the bank.

Advertisements

Filed under: Direct Commerce, News,

Direct Mail Fades As Mass-Marketing Channel: Winterberry

This is a headline in Direct, here’s a link to the entire article.

I pretty seriously disagree with the implications of the headline.  The jist of the article highlights how the total direct mail volume is declining — which has nothing to do with the headline.  There are fewer advertisers on TV these days — fewer on radio — fewer in newspapers.

The decline in advertising activity relates to the general decline in the economy, and has little to do with the impact of the medium itself.

While general TV advertising is down, direct response television is increasing pretty dramatically.

What is changing is the economics of the marketplace.  Companies who have not been managing themselves well are fading or disappearing.

On top of that, if anyone sees direct mail as a “mass marketing” channel, they probably should not have been using the medium in the first place.  Every competent direct mail person I’ve every known would have loved to eliminate every non-responsive name they could.

Jacking up mail volume, just to get big numbers is always a losing proposition.

Filed under: Direct Commerce, News, , ,

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