media

blog

More Companies Turned To Short-Form Drtv In 3Q 2009 As Advertisers Benefited From Downturn In Rates

14 Apr 2010
Posted by Market and Main Media

According to Response Magazine, the third quarter of 2009 saw a moderate decrease in media billings for short-form DRTV. Though the quarter brought in $23.3 million less than the same quarter in 2008, the downfall only amounted to a decline of 2.1% compared to recent quarters. This decline comes on the heels of four consecutive quarterly losses but is considered only a modest drop.

Of the five media outlets, only cable TV posted positive billings, with a gain of $36 million. This is a marked rebound from 3Q 2008 when it lost $135.5 million. To see how this compares to the remaining four channels, note:

  • Syndication lost 33% (-$28.4 million)
  • Network TV was down 18.1% (-$12.6 million)
  • Spot TV lost 15.2% (-$9 million plus)
  • Hispanic network TV lost 6.3% (-$9 million plus)
  • Cable TV’s gains amidst the rest of the outlets’ losses bring its overall market share to more than 72% of all short-form DRTV billings.

Though the number of TV campaigns aired actually increased by 9% (an improvement of 100 when compared to 3Q 2008), the falling media rates meant fewer dollars overall. Because 2Q 2009 also posted an increase in TV campaigns aired, it’s possible that this predicates a turnaround for the market.

Response Magazine reports the five brands that spent the most on short-form DRTV during this time period were:
a.    Nutrisystem, Inc. ($40,483.3)
b.    Dell Inspiron ($32,624.2)
c.    Bowflex Exercise Equipment ($30,878.4)
d.    Proactiv Solution ($30,623.1)
e.    Cash4Gold ($29,431.5)

WHAT DOES IT MEAN TO ME?
DRTV is alive and well. In fact, this media buying discipline showed growth in recent years while others were declining. Direct Response rates are still favorable, despite new advertisers using this tactic. If you aren’t allocating at least a portion of your television budget to DRTV, perhaps you should consider doing so. It is a proven way to extend your budget and ring in sales.
RELATED
“3Q 2009 Short-Form Media Billings Slide a Modest 2.1 Percent,” Response Magazine, 2/4/10 www.responsemagazine.com/research/short-form-drtv/3q-2009-short-form-media-billings-slide-a-modest-21-percent-2448

no comments yet

(will not be shown)