In many ways, the early evolution of direct response television (DRTV) foreshadowed the initial days of digital, when attribution was given solely to the last ad clicked. Today, many advertisers are still stuck in the DRTV Stone Age.
In its early development, DRTV was designed to sell gadget items, which were not available through traditional retail channels, directly to the consumer. Early DRTV successes such as the Chop-O-Matic and Popeil Pocket Fisherman, were purchased on impulse based on an unknown level of exposure that motivated the viewer to act. Response was tracked through a unique toll-free number that represented the only way to order the product. Credit for the sale was given to the media vehicle from which the number was associated (i.e., the “last number dialed”), regardless of the frequency required to generate the response. Schedules were optimized from this data to produce a positive return-on-investment (ROI) based on the available product margin or media allowance.
Eventually, the DRTV model expanded to include services such as vocational schools or home siding (think Sears) targeted to lower- and middle-income audiences watching daytime television. The model remained the same, even though there was often a long purchase or recruitment funnel after a lead was sourced.
Read MoreIn many ways, the early evolution of direct response television (DRTV) foreshadowed the initial days of digital, when attribution was given solely to the last ad clicked. Today, many advertisers are still stuck in the DRTV Stone Age.
In its early development, DRTV was designed to sell gadget items, which were not available through traditional retail channels, directly to the consumer. Early DRTV successes such as the Chop-O-Matic and Popeil Pocket Fisherman, were purchased on impulse based on an unknown level of exposure that motivated the viewer to act. Response was tracked through a unique toll-free number that represented the only way to order the product. Credit for the sale was given to the media vehicle from which the number was associated (i.e., the “last number dialed”), regardless of the frequency required to generate the response. Schedules were optimized from this data to produce a positive return-on-investment (ROI) based on the available product margin or media allowance.
Eventually, the DRTV model expanded to include services such as vocational schools or home siding (think Sears) targeted to lower- and middle-income audiences watching daytime television. The model remained the same, even though there was often a long purchase or recruitment funnel after a lead was sourced. Inbound calls that were driven to a main number, generally acquired through directory assistance, were not given media attribution. Instead they were credited to yellow pages, referrals or other.” Eventually, many of these service providers realized that these types of leads increased when a DRTV schedule was on air. Some made adjustments to their performance models, but most did not.
Over the years, traditional advertisers have even shifted to DRTV campaigns during times of economic downturns in hopes of saving money on their TV placements. They included a toll-free number on their spots to sell the concept to the networks. Unfortunately, many simply ended up diminishing the impact of their campaigns and negatively impacting brand equity. They did not have a DRTV business model and were simply fooling themselves by attempting to use the concept of DRTV as a cheap-reach negotiation tactic or distribution push.
Today, media fragmentation and the ability to generate sales and leads through online channels have totally marginalized the traditional DRTV model. Many campaigns will source less than 20 percent of leads through unique television numbers. Optimizing to this data will ultimately inhibit reach by focusing solely on a biased sample of those least likely to conduct an online search: individuals who are often without the resources to afford home connectivity. Such optimizations end up making performance worse and drive placements to longer-length copy where the unique number has more screen time.
Although most DRTV advertisers continue to utilize unique numbers with a corresponding non-effective URL, a smaller set has begun to use a single vanity number or eliminate the number altogether in order to drive consumers directly online through a brand or product search. Those still using multiple numbers often employ attribution software to their online activity to estimate the full value of a single DRTV spot, which is a very unscientific process that does not address response lag time. The reality is that for considered products and services, branding still and will always apply. Long-term advertising exposure builds brand equity, brand preference and brand results across all online, retail, referral and direct sales channels.
Whereas the early days of DRTV promoted impulse items through a linear short-cycle call-to-action process, today’s smart marketers utilize DRTV in conjunction with web and social media. When a TV campaign begins, digital response increases immediately and the generated awareness must be actively coordinated with a robust search effort to realize the full value of the advertising. Cross-channel attribution modeling can be employed to validate demonstrable improvements in media ROI. A DRTV lead is generated at multiple points of the consideration process. In addition to driving early-funnel leads, television increases search and web activity and provides solid reinforcement to individuals already in the research and purchase consideration phase. As the reach of a campaign expands, the umbrella impact of television against all direct-to-consumer and business-to-business marketing and brand efforts will also grow stronger.