DVR Usage to Grow 70%

In order to make your advertising successful, you have to get people to watch it. So is the recent upswing in DVR usage a good or a bad thing for marketers? Seen in the right light, it can be an opportunity.

MediaPost recently reported that digital video recorder use is going to increase by 70% in the next five years. That’s 51.1 million people that no longer have to watch your ad spot – they can just fast-forward and get on with their show. A few more terrifying stats in the same vein – 43% of all U.S. consumers with TVs will use DVRs by 2014, and 56% of them will be using video-on demand.

So what’s an ad buyer to do? Product placement is on the rise. If the consumers are only watching the show, then make the ads a part of the show. Product placement and ad placements on the lower third of the screen while the rest of the show plays are two options for bringing TV advertising into the DVR age.

As Seen on TV – Our love for infomercials

Consumers are rediscovering their love for infomercials as the recession tightens budgets and brings more jobless people home at odd hours to get asked questions like “How much would you pay for – ?” Remy Stern knows how they feel – he’s been watching infomercials all of his life and been persuaded to buy quite a few of the products they’re shilling.

His new book on the infomercial industry, “But Wait . . . There’s More!” tries to uncover the appeal of infomercials, why people are often aware that something too good to be true probably is, but still reach for the phone to dial an 800 number. Maybe this time, it’s too good not to be true. In a dark time for everyone’s paycheck, we all need a little hope.

Stern deconstructs the infomercial down to its base parts with motives and methods clearly outlined down to their surprisingly simple bare bones. It’s a worthwhile read for anyone interested in drtv marketing techniques, especially those who know that the infomercial may be one of the most effective ways to reach an audience that’s down and out.

Consumer Behavior During the Economic Recession: What’s Changing?

Yes, this current financial crisis has really shaken the American economy to its core.

Consumer spending has been deeply affected, and the coming months indicate that consumers will become even more tightfisted when it comes to all those extras like eating in restaurants, traveling and purchasing cars and other big ticket items.

Consumers hunker down. With economic conditions worsening and the financial meltdown in the banking industry resulting in a massive tax-payer funded rescue package for Wall Street, recent surveys on consumer confidence revealed to us that all of the recent bad news will significantly alter consumer consumption in many ways as people cut back to brace themselves for what appears to be a long downturn.

Certainly, there will be more bagged lunches and time spent on cheap recreational activities like watching television, Internet surfing, more dinners prepared at home, fewer clothing purchases and even less text messages being sent.

Customers changing the way they spend. A recent poll conducted by WPP Group-owned Lightspeed Research for Ad Age showed that nearly 80 percent of those who responded have changed their purchasing habits within the past few weeks.

Seventy percent said they had reduced sending overall which affected holiday retail numbers significantly. And retailers aren’t the only ones affected. The auto industry is hurting as well. The survey shows only one-tenth of respondents purchased a car within the past three months. That goes for making car purchases in the following months as well.

Adjusting to the changes.  There is a bright spot for drtv media buyers trying to determine how to proceed during a time when consumers are focused on saving money more than spending it.

One recent consumer study showed that 81 percent of those surveyed said that advertisers should continue communicating about their products during the recession because they (the consumers) are more receptive during times like these to cost-saving messages and products that are considered worthy investments.

More Consumer Response to DRTV Means More Sales

Coca Colas’ decision to include DRTV into its marketing is a big indicator of how effective DRTV campaigns can be and how far the soft drink giant has come.

In 2006, the global soft drink empire first introduced “My Coke Rewards” program. During this time, Coke didn’t use much DRTV advertising to promote its products.

Adding DRTV to the mix.  But last year, Coke marketers decided to use DRTV to increase the reward plan’s visibility. Their DRTV campaign strategy was designed to redirect viewers to visit a special website where they could enter the codes obtained from Coke product purchases in exchange for merchandise.

Coke’s combined use of traditional and DRTV advertising was part of a marketing strategy to promote the program by encouraging visitors to visit the website to establish brand loyalty.

A popular marketing strategy. Many other big brand marketers have since followed Cokes footsteps. They recognize the benefits of including DRTV into their marketing strategy. In fact, according to TNS Media Intelligence, big brand marketers like Coke have started spending a lot more money and focusing more attention on DRTV advertising.

Media buyers appreciate DRTV because it’s inexpensive, provides measurable accountability and a higher percentage of consumer engagement. Also, direct response advertising offers more variety beyond the typical 1-800 number call center.

New, cutting-edge advertising options, such as web destinations and mobile sites, are now available. All of this is available at half the cost of traditional advertising spots.

No magic pill. The downside to DRTV advertising is this: No audience guarantee and direct response sellers have the authority to preempt spots without notice if a better deal comes along.

Still, increasing pressure on marketers to provide accountability and tightening budgets are making DRTV appear to be a viable media solution that provides measurable results.