Posts Tagged ‘paid programming’

Cost Effective TV Advertising

Saturday, August 28th, 2010

You can pay thousands of dollars for a locally aired, 30-second TV commercial, and reach a regional audience of thousands.

Unfortunately, most of this audience is so deeply focused on its favorite programming that when the commercial break (and your 30-second ad) comes on, they are going to dash to the bathroom for a badly needed break, or to the kitchen for a snack.

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Direct Selling through TV Infomercials

Wednesday, July 28th, 2010

Product that help consumers get sexier, healthier, or wealthier sell well on infomercials.

After midnight, 60%-70% of TV networks switch to infomercials – fodder for many jokes and a nine-billion dollar industry.  Paid programming offers a very small cost per impression because even during overnight hours, 106 million potential customers could elect to watch paid programming.  And networks are hungry for programming simply because there are so many of them; because infomercials fill that gap, they are very cost-effective for advertisers.  On some networks, a half-hour TV show can air on national television for as little as $1000.

Television is an invasive advertising medium; commercials appear on television whether we want them to or not.  Thirty-second TV commercials are an interruption to programming, however, and receptivity is not guaranteed – in fact, it’s only about 20%-30%.  However, television advertising costs are based on how many people are watching the program that the commercial interrupts; it includes viewers who don’t watch your expensive 30-second commercial because they are throwing a load of clothes into the washing machine or using the remote to check out what other networks have to offer.  In contrast,

because viewers choose to watch infomercials, receptivity is 100%.

Most infomercials market products that enhance one of only three things: sex, health, or wealth.  This covers a wide range of products, however, from books and counseling to real estate and vitamin supplements.  Viewers choose to tune in to paid programming because they are interested in the information being offered.  And who isn’t interested in being sexier, healthier, or wealthier?  Nearly any product that enhances one of these items can be successfully marketed with an infomercial, and success can even be predicted with testing.

An infomercial company can arrange of a test of your company’s product via a small network of around two million households for about four months; the data from the test can be used to determine whether a regional or national rollout will be successful.  This type of testing underscores the results-driven nature of paid programming; success is predicted based on the number of phone calls and website visits, not the number of impressions.  Testing minimizes costs while maximizing ROI, since the data can also be used to fine-tune the program and its markets.

Spending fewer dollars on production and more on airtime also helps maximize ROI; in many cases, a $10,000 program will work just as well or better than a $100,000 program.  It pays to invest the extra dollars in properly placed airtime – and in determining how all those extra orders will be filled!

Increase Revenue by Starring in Your Own Infomercial

Sunday, July 4th, 2010

TV ProductionStarring in their own infomercials is a somewhat frightening prospect for many people, but it has so many benefits for your business that you’ll want to get past your fears.  The fact is that your customers want to see you in person – in fact, they are excited to see you in person!  Earning recognition will help you sell your product or service because customers will grow to know, trust, and appreciate the face behind the name.

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Tune in to the Value of Infomercials

Tuesday, June 29th, 2010
Infomercials give you immediate feedback on your advertising campaign in the form of increased sales.

Infomercials give you immediate feedback on your advertising campaign in the form of increased sales.

Infomercials have a long history in the US and while they have their detractors, the fact is that they still exist and thrive because they work. Within the advertising industry, infomercials are not just accepted, but celebrated, because those with expertise in the field know that infomercials use a time-tested method to create a need for products or services and then push consumers towards making that purchase. Due to their longevity in the television industry, infomercials also have the benefit of proven time slots that allow that method to be used to maximum effectiveness.

The pins-and-needles feeling as you wait for data that will tell you whether or not your advertising campaign is effective is agonizing. Who doesn’t want instant feedback on whether or not their advertising is working? Infomercials give you that and more.

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How to Evaluate the Effectiveness of Paid Programming

Tuesday, June 15th, 2010
Receptivity means more than the number of viewers in paid programming.

Receptivity means more than the number of viewers in paid programming.

When faced with TV advertising options, the question at the forefront of the minds of most business owners and managers is, “How many people will see my ad?”  While the answer to this question is paramount in many media advertising opportunities, it is beside the point when companies buy paid TV programming in their markets.  The primary determinate of the success of infomercials is how many potential customers call the company or visit the organization’s website because they are moving towards a buying decision.  There will be fewer viewers than for a series of expensive thirty-second commercials, but those who are watching a paid programming spot have 100% receptivity to the message.  Here’s how that works. 

Viewers who click away from thirty-second commercials stop to watch infomercials because they see something worth watching.  Paid programming is edifying and entertaining.  It offers something of interest to the viewer and the viewer chooses to watch it – meaning viewers of the program are 100% receptive to its message.  This concept has been illustrated with the Video on Demand (VOD) phenomenon; informational and how-to programs are extremely popular.  And people believe what they see on TV, more so than any other media, so consumers take a solid residual message from paid programs. 

The other key aspects for business owners and managers to consider when beginning a paid programming campaign are the frequency and longevity of the show, and this requires a certain level of commitment on the part of the organization.  Put ‘n’ take advertising doesn’t work for paid programming because it doesn’t allow time for the advertising to reach critical mass in terms of what it will achieve.  This doesn’t mean there’s no place for 30-second commercials in today’s advertising; those work beautifully for top-of-mind awareness of special events, such as holiday sales, when pushed with high density over a short period of time. 

Paid programming is great for small-to-medium businesses with local markets because it is inexpensive and creates an awareness of the company within the community.  Owners and managers featured on local infomercials enjoy “I saw you on TV!” recognition within their communities and when customers come into their stores.  They also enjoy the fact that their buying public feels at ease with them – this person has been in their homes, they know and understand the product or service, and they’ve come to believe in this person’s sincerity and trustworthiness.  They know they can come to this person with any problems or concerns; the fact that there’s a face behind that product or service gives consumers confidence.  Local TV advertising lets you own your local market and avoids wasting advertising dollars. 

When viewed from the proper perspective – receptivity versus number of viewers – paid programming is a fantasic, economical choice for television advertising.