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Per Inquiry DRTV and the Internet .pdf


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ffizohe
"Per-ln[uiry" DRIU and the lnternet
ithout a doubt, the advent of
the Intemet has certainly
complicated the nature of
per-inquiry DRTV.
Consumers responding to DRTV spots
and infomercials are now increasingly
opting to order via the Intemet instead
of the inbound number. This creates an
ominous problem for cable TV operators
who offer "per-inq.riry" DRTV media
because in most instances the only orders
being accounted for by the media agency
are orders via the inbound number.
To address this issue, many cable ry
operators require marketers to omit all
references to their Web address in their
"per-inquiry" DRTV spots and infomercials in order to drive responses exclusively through the inbound number. Howev-

er, this is contrary to consumer preferences that clearly favor online ordering.

Complicating matters even more hre
thousands of "As Seen On TV" storefronts littering the Intemet. Consumers
know that based solely on the company
or product name mentioned in a per-inquiry ad, an online ordering altemative
can easily be found, thus denying the
cable operator its percentage of the sale.
It's possible that cable TV operators
who currently air DRTV spots and infomercials on a "per-inquiry" basis without an online ordering altemative have
simply not yet embraced the relevance of
the Intemet. However, as a result, cable
operators are missing out on a large
source of revenue that they are primarily
responsible for and thus entitled to!

There's no disputing that online ornot credited to a cable TV operator
but generated because of its per-in4uiry
ders

spots or infomercials violate the spirit of
per-inquiry DRTV media. It also represents an unfair exploitation of this TV
advertising and marketing medium.
To easily solve this problem and re-

capture revenues that are cuffently and
increasingly being siphoned off online by

the thousands of "As Seen On TV"
storefronts, cable TV operators need only
insist on the following reasonable request, as a condition to running per-in-

quiry DRTV media:
AII per-in4uiry

DRry

spors and

in-

fomercials must be ngged with the web address of-a seclLre, E-coTTlT'rrerce ennbled onLine

storefront whose orders are mnnnged

ann accomtedfor by thnt adqternser's per-in-

lap Ads, Live or Taped

DVR Users

By Nicole Urso (nurso@advanstar.com)

quiry DRTV media agency,
Unfortunately however, many DRTV
marketers are understandably resistant to

this
Whether or not television
programs are live or taped makes no difference to digital video recorder (DVR)
NEW YORK

-

users. lf there is an opportunity to skip
an ad
consider it bleeped.
According to a new study conducted
by Havas' Media Planning Group, DVR
users skip ads on live programming just
as much as they skip ads on taped programming. The study shows that 90 per-

-

cent of the respondents claimed they
always or usually skip com-

$ *"ffi.

*,,,
,,:,j*)
,.,,*

#ftt

mercials when, w,atcli ns
DVR-recorded plo-,

rcfu

_

The survey was conducted last summer and included 310 participants who
were more ihan 12 years old and who
lived in DVR households.
Only 16 percent of the respondents
said that they watch commercials during

/-i/,r;* Besponse

DECEMBER 2004

live programming, and more than half
said that if a commercial is playing, they
will get up to do something else. Forty
percent said they will switch channels.
These statistics pose an immediate
threat to advertisers who are losing more
and more viewers and potential consumers to the world of DVRs and ad
skipping. Perhaps that's why, last month,
TlVo announced its plans to use pop-ups
when a viewer skips ads (see page 6).
"Advertisers are going to need to find

-

aposition that appears to validate

speculation that per-inquiry DRTV spots
and infomercials are in {act driving many
consumers online to locate the product
marketer's \7eb site. or an affiliate site
that may charge the marketer far less

than the 35-to-50 percent commission
charged by most cable TV operators,
even though the latter may have been
the procuring cause of the sale.
The position of DRTV marketers and
their media agencies is unlikely to change
unless cable TV operators issue a policy

a way to connect with consumers

letter effectively stating the following:

through different communication channels working in harmony, or what is cur-

Per-inquwy DRry media agerrcies who
provide tlteir clients with a sealre E-coTTr-

rently being called 'Total
Communications Planning,"' said Tonya
Deniz, executive vice president, ma naging director of MPG's research and modeling division, in a statement. "ln addition, clients deserve to see greater cre-

Trrcrce ennbled storefront to capkne online or-

ativity in terms of television advertising,
as well as an increase in targeted advertising that bull's-eyes specific demogra ph ics a nd interest grou ps. "

ders, willbe fawored oorcr those who do not,

With cable TV operators struggling to
generate new sources of revenue, the
greatest irony may be their unwillingness
to reco gnrze revenues already generated,
but just never collected. t
gi*ton Roark is a hanker and ElRTlf entreprensur
whs can be reached at (8S8) 79$-11S3.

www. res p0 n se magaztn e. c0 m


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