Response Magazine - September 2008

ments, expect to see more of them adding DR to the mix. As evidenced by the wide range of companies now using direct efforts to generate leads, reach new consumers and build their brands, the DR medium is effectively going mainstream and forcing agencies to come along with it — whether they want to or not.

“First and foremost, clients want to measure the success or failure of their DR advertising budgets,” says Hawthorne, whose firm has worked with dozens of major agencies during the past 15 years. “After that, clients’ goals fall into two categories: immediate profit on every spent ad dollar or some direct sale revenues plus branding and retail sales lift. Major brand advertisers, who recognize the value of investing in branding, are the clients who can afford to opt for the latter.”

According to Hawthorne, many traditional agencies still reach out to the specialized DR agencies, bringing them in as partners, sharing in fees and commissions and achieving success in the process. Whether the relationship works or not, he adds, “all depends upon whether the traditional agency staff can check their egos at the door and allow DR specialists to do their job. When they do that, everyone wins — especially the client.”

Hodor also sees more blending of DR and traditional agencies ahead. Television is changing rapidly with interactive applications such as Ensequence, video-on-demand (VOD) usage, mobile applications and addressable media taking shape in companies like Navic and the much-publicized Project Canoe. As the media/TV world becomes not only more targeted, but also more interactive, he says the growth of consumers’ ability to interact with brands directly from their remote controls is growing every day and will become the norm.

“Obviously, these interactions are a ‘direct response,’ and the DR industry is well positioned to take a leadership role within traditional agencies and clients moving forward,” says Hodor, “to help define what their value will be to a clients’ business.”

Aramaki also sees no end to the trend

that’s finding more and more traditional agencies pairing up with DR agencies and/or attempting to offer the latter’s services on an in-house basis. “I don’t think the tide is going to change on this front,” says Aramaki. “The trend is being driven by a mix of client demand and agencies’ attempts to respond to that demand.”