component of direct response marketing
at this point. Coming from the position
of being a purely DRTV agency just a
few years ago, Hawthorne Direct is now
predominantly an integrated DR agency,
utilizing DRTV, radio, digital and mobile
solutions for many of our clients. Social
media is also quickly becoming an integral part of the mix.
Medico: Our agency takes maximum advantage of technology as it relates to our
media management software. Technology has also had a substantial effect on
our business as we continue to develop
new ways to purchase, analyze and report
media campaigns across multiple platforms. We are currently developing a program to integrate both online and
offline response.
Savage: We’re continuously adapting our
service capabilities to help clients meet
consumers where they interact with their
brand. This means ad integration for
smartphones, advertising within Facebook
to build fan bases, and other leveraging of
social media to help support offline me-
dia’s driving of interest in a brand.
How will the improved upfront market in
the cable and broadcast world affect DR
advertisers in late 2010 and throughout
2011?
Fays: This question remains unanswered
based on the fluctuating economy, which
will dictate scatter strength/weakness
along with upfront options where general
clients can cancel upfront commitments,
putting inventory back into the marketplace to be utilized by DR advertisers.
Savage: We have to be smarter and work
harder. We’re buying hundreds of mil-
lions of dollars worth of media, so we’re
working with networks, stations and syn-
dicators on a daily basis to negotiate the
appropriate rates and clearance levels that
will work for clients. This is accomplished
regularly, but it takes flexibility and a
willingness to shift strategy and create
win-win situations.
Stacey: In the 2010 upfront market, advertisers committed between $8.1 billion
and $8.7 billion to the five U.S. broadcast
networks’ coming program schedules
compared to $9.2 billion in 2008 and
$9.3 billion in 2007. The five U.S. broadcast networks were able to charge more
for their airtime and sell more of it despite
eroding ratings and competition from
computers and iPods. This is quite good
considering money is still strongly shifting into cable, while some cable channels
have also been able to increase prices.
Yallen: This past year saw a very strong
scatter market in TV, both cable and
broadcast. With more money being
placed upfront and the uncertainty in the
economy — as reflected by declining con-
