Response Magazine - September 2008

What was the most significant accomplishment in the past year for the DR industry? Stan Bruckheim, Latino Media Services: In Latin America, there has been a significant growth in sales generated from the use of previously peripheral means of distribution, including retail, print, catalog, Internet and even some radio.

Brian Fays, MTV Networks: Overall, the economy was a tremendous challenge for all DR in 2008. Inventory is always the name of the game, and all cable networks have done a better job recognizing where the inventory is and placing it in the client’s hands at the best price to maintain an efficient ROI.

Doug Garnett, Atomic Direct: This one is really tough. After all, it was a year when the infomercial airwaves were filled with “get-rich-quick” schemes and programs for buying repossessed homes. Perhaps the most significant thing to learn from the past year is that the traditional industry is still all-too-alive — with its focus on taking consumer money while giving little (or nothing) in return.

Tim Hawthorne, Hawthorne Direct: DR is strong and a haven in a rough economy. Despite all signs pointing to recession, DR expenses continue to grow. In fact, more traditional image advertisers are using accountable DRTV now than ever. The Direct Marketing Association (DMA) reported in late 2007 that direct marketing ad expenditures topped 50 percent of all ad dollars spent for the first time.

Toni Knight, WorldLink: Despite the soft market, our industry’s greatest accomplishment has been its ability to weather the current economic storm. Similar to every marketing area, DR certainly has been impacted by market conditions. However, thanks to the growth of new media’s role in reaching consumers, it was able to hold up well. New technology’s seamless fit with the DR model has made what could’ve been a horrible year into a respectable one.

Fern Lee, DRTV consultant: The two biggest stories are mobile marketing taking steps forward and online marketing taking a bigger piece of the pie from DRTV.

Mike Medico, E&M Advertising: The continued growth of online as it applies to direct response is a major move forward.

Digby Orsmond, ARM Direct Ltd.: In the United Kingdom, the growth of infomercial airtime across an increasing number of cable and satellite TV channels remains the big story. This could increase further if OFCOM (the British Office of Communications, which regulates broadcasting) changes the existing rules and allows advertisers to use infomercials for generating leads instead of just home shopping. While relatively few U.K. marketers have discovered the power of the half-hour show, U.S. companies, such as Guthy-Renker, Thane, JML and Time-Life now dominate the long-form sector in Britain.

David Savage, Cmedia: The continued growth of truly integrated and cross-channel media campaigns undertaken by DR marketers is the big story. More and more companies are maximizing the efficiencies that can come with optimizing the opportunities that come from simultaneously investing in DRTV, online, DR radio, direct mail, DR print and alternative print media.

What do you believe the hottest topic will be in the coming 12 months? Maria Eden, Direct Response Media Inc.: For the balance of 2008, the political environment will dramatically impact short-form DRTV efforts through Election Day and possibly mid-November. The No. 1 factor impacting the next year is the state of the economy. Consumers’ disposable income has been dramatically reduced by increased gas prices, mortgage rates and food costs.