Response Magazine’s 16th Annual State of the Industry Report

Response Magazine, September 1, 2011

Members of the magazine’s Editorial Advisory Board speak out on the current state of the direct response marketing industry.

Continued economic troubles. The expansion of regulation, especially the possibility of a “Do Not Track” list that could hamper online marketing. And a combination of social media, mobile media and retail changing the face of the business. As 2011 heads into its final quarter, these are among the many issues facing direct response marketers.

For the past 15 years, Response has asked members of its Editorial Advisory Board to analyze current trends and make predictions about the future of the direct response space. Once again in 2011, their thoughts represent a cross section of the industry: from DRTV legends to technology experts; from the international perspective to that of the cable networks. According to these leaders, this is the state of our industry.

Take a look through the following answers from David Savage, R2C Group Partner and Executive Vice President for Cmedia.

What do you believe the hottest topic will be in the coming 12 months?
Leveraging the media dollar beyond television — the more front-end results are challenged from category to category, the more marketers have to create efficient ROI online, from continuity, at brick-and-mortar retail, or through other consumer response channels.

How crucial to the DR business is the industry’s fight against a rumored “Do Not Track” list. If enacted, how it could affect the online portion of DR campaigns?
It’s good for our industry to work to protect its ability to market to consumers. But we also think that transparency with our clients’ customers is very important. A lot of media partners have already adopted voluntary opt-out from behavioral targeting. However, once consumers understand why they are being served a specific ad, very few still choose to opt out. A relevant ad is usually more desirable than an irrelevant one. To date, it has not affected our campaigns.

How is the up-and-down economy treating marketers in the DR business? What effect is the current economy having on campaign success rates, media rates and other areas?
It’s making us walk the walk on our core direct response abilities. We’ve had to be more creative and more flexible in finding marketing, offer, media and backend solutions to client challenges. Consumers are willing to purchase direct or at retail if there is an innovative product whose value is communicated in an effective and targeted way.

How has technology changed the way your company does business in the past 12 months? How will it in the next 12 months?
Mobile advertising and the technologies that surround it will grow leaps and bounds. The huge surge of smartphones and tablet devices now in consumers’ hands, combined with an increase in the frequency and average duration of Web access to these devices, has driven us to evolve our digital services and strategies so we can leverage the mobile universe for our clients. Improvements in data capture and analytics have enabled smarter decisions that improve the performance of our campaigns. Looking forward, we’re excited about new opportunities with digital media. We’re creating interactive video experiences that optimize conversion by delivering consumer-specific content.

How will the improved upfront market in the cable and broadcast world affect DR advertisers in late 2011 and throughout 2012?
The upfront market may be improved this year, but if the economy continues to struggle and marketers pull back on their general ad budgets, direct response advertisers could see advantageous marketplace dynamics — more inventory and more attractive rates.

The DR-to-retail game plan now seems to be a must for every campaign that hits television? What are the three most important things a marketer must do to have the right retail plan in place?
You’ve got to have the basics: 1) A great product with a compelling, value-driven offer; 2) The appropriate timing for making the product available at retail; and 3) The right DR media strategies over the course of the campaign — whether it’s a traditional direct strategy, hybrid plan or awareness-driving impression-based buy.

What are the three biggest effects the growth of social media is having on the DR marketplace?
The three R’s: reviews, referrals and retargeting. Social networking sites are providing consumers the ability to publicly report what they honestly think of a product or service with no holds barred. This requires companies to be on their toes to either manage public fallout or reward loyal customers in a much more nimble fashion than ever before. Consumers are also being encouraged to share special offers with their friends and families, which can add a completely new audience to a campaign. And because Internet retargeting efforts give a passive consumer another chance at a DR offer, this can greatly affect a campaign’s long-term results. The life of a DRTV campaign can be greatly extended by making appropriate use of social media.

Has the influence of mobile marketing on the industry grown in the past 12 months? How will the expansion of mobile affect DR in 2012?
We’re seeing the percentage of our DR mobile visitors increase in proportion to traditional desktop users. It’s becoming clear that people are starting to reach for their cellphones to engage with direct response campaigns without leaving their couches. Smart marketers are providing users with a mobile-optimized Web experience. In addition, as consumers continue to become more comfortable with QR codes and SMS campaigns, mobile will continue to open up new avenues for direct interaction.

How is the trend away from immeasurable branding ads and toward measurable campaigns affecting multi-channel campaigns? Would you consider a marketer not using a measurable, multi-channel strategy in 2011 product/brand suicide?
“Branded” ads can be measurable, as long as the marketer is committed to providing a DR-tracking mechanism and committed to basing media decisions on those tracked results. But there’s no doubt that more and more “brand” marketers are leveraging measurable strategies to drive efficiency of their advertising dollars.

What vertical markets are best equipped to survive — and even thrive — in 2012?
Financial services, educational services, online businesses, beauty products aimed at Baby Boomers, kitchen products and — you guessed it — health and fitness.

Does today’s consumer respond better to short-form or long-form DRTV? Which of these two formats are best supported by other media, including online, mobile, print and radio?
It depends on the product category and the consumer you’re targeting. We have client campaigns where the time to educate provided by long-form is essential to drive consumer response, and we have short-form campaigns where the targeted nature of the media makes all the difference in generating successful ROI. Both formats are supported by other media channels.

Given the current state of the DR industry, what would you change to ensure its continued health and growth?
What needs to change? Consumer confidence and the nation’s unemployment numbers.

For the entire article, please visit: http://www.responsemagazine.com/direct-response-marketing/response-magazine-s-16th-annual-state-industry-report-3794