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.”
“Agencies and clients are
starting to see the positive
light that DR brings, which
is why it’s the fastest-growing piece within the
TV sector.
— Mark Hodor, Carat
”
ENGAGING
THE NEXT GENERATION OF M A R K E T I N G
For sponsorship opportunites and to exhibit contact :
JOHN YARRINGTON 714/338-6722 ADAM CARRILLO 714/338-6723