Online Businesses Discover

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Online Businesses Discover Direct Response Te
levision (DRTV)

• Online Businesses Discover
• Direct Response Television
• (DRTV)
• March 15, 2007

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Online Businesses Discover Direct Response
Television (DRTV)

The 2006 e-shopping story
Kurt Peters, Editor in Chief, Internet Retailer
Online sales (billions)
Rate of increase Up 24 over 2005 Compare to t
otal retail sales
Up 6.6
Sources comScore Networks Inc. U.S. Department
of Commerce, Census Bureau Internet Retailer
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Online Businesses Discover Direct Response Te
levision (DRTV)

• Marketing landscape has changed
• in 10 past years
• Four major marketing methods barely
• existed 10 years ago
• Search engine marketing
• Affiliate marketing
• E-mail
• Comparison shopping engines

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Online Businesses Discover Direct Response
Television (DRTV)

• Extremely competitive
• search marketing landscape
• Keyword prices continue to rise
• Competition for results getting stiff
• Marketers are figuring out how to game the system

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Online Businesses Discover Direct Response
Television (DRTV)

• Importance of multi-channel
• 84 of retailers sell in more than one channel
• Most think of catalogs and stores, but merchants
  should seriously consider DRTV

Source Aberdeen Group
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Online Businesses Discover Direct Response
Television (DRTV)

• Todays Presenters
• Bob Tomlinson, CEO, uBid.com
• Paul Soltoff, CEO, SendTec
• Irv Brechner, EVP, SendTec
• Steven Morvay, EVP Managing Director, SendTec

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Online Businesses Discover Direct Response Te
levision (DRTV)
DRTV OVERCOMES PROBLEMS FACING MARKETERS
Fragmented media due to the multiplicity of chan
nels Heightened consumer skepticism about adverti
sing Online advertising clutter Increasing cost
of online media lower conversions
Digital Video Recorder commercial skipping
Low brand awareness Search inventory is finite
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Online Businesses Discover Direct Response Te
levision (DRTV)
PONTIAC PHENOMENON SMART INTEGRATION


Dont take our word for it, Google Pontiac.
Pontiac captured 68 of online traffic from this
breakthrough tactic.
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Online Businesses Discover Direct Response Te
levision (DRTV)
CONSUMERS NOW RESEARCHING ORDERING
IN THREE WAYS MAKING TRACKING CRITICAL
Telephone very trackable using existing techno
logy DRTV to Web URL very trackable using servi
ce like iFactz Search consumers type company or
product name in search engine very difficult
to track allowances for this DRTV-driven
search must be made
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Online Businesses Discover Direct Response Te
levision (DRTV)
DRTV IMPROVES BOTH ORGANIC AND PAID SEARCH
The rise of the Search Engine Proxy where
consumers use the search box instead of typing
in your URL Consumers only search when they are
aware of a product or service
TV drives awareness which in turn drives search
Consumers more likely to click on TV-advertiser
search links than those who dont advertise
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Online Businesses Discover Direct Response Te
levision (DRTV)
A WIDE RANGE OF PREMIER ONLINE COMPANIES HAVE
DISCOVERED THE POWER OF DRTV

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Online Businesses Discover Direct Response Te
levision (DRTV)
WHY DRTV WORKS SO WELL Long messaging and robus
t communications Emotional advertising tactic Qu
adruples ad budget Tracking/analytics similar to
online tracking analytics Offer driven and strong
call to action Drives consumers to multiple chan
nels
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Online Businesses Discover Direct Response Te
levision (DRTV)
DRTV MULTI-CHANNEL BENEFITS Dramatically improv
es online metrics Drives volume new scalable lead
s / customers Turns window shoppers into buyers
faster Enhances brand and loyalty Positive effec
t on employees, customers, investors
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Online Businesses Discover Direct Response Te
levision (DRTV)

• The uBid.com Success Story
• Harnessing the power of DRTV to build a brand and
  drive new bidders and buyers.

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Online Businesses Discover Direct Response Te
levision (DRTV)
UBID.COM BACKGROUND OBJECTIVES
Build a brand largely unknown outside the Intern
et Drive new visitors from an offline channel Im
prove conversions of visitors to bidders to
credit card buyers and buyers in general
Find new source of bidders within allowable
metrics Track bidders to individual media placeme
nts to optimize media efficiencies
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Online Businesses Discover Direct Response Te
levision (DRTV)
UBID.COM DRTV STRATEGY Test 1- and 2-minute DR
TV spots Buy DRTV time at deep discounts Use tra
ckable URLs and observe search activity
Benchmark results to determine multi-channel lift
on business Optimize and roll out See the spot
s at ubid.learndrtv.com
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Online Businesses Discover Direct Response Te
levision (DRTV)
UBID.COM RESULTS
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Online Businesses Discover Direct Response Te
levision (DRTV)
UBID.COM INITIAL RESULTS Expanded our channels
of customers Driving a reasonable cost per visit
or Increased visibility outside core customer bas
e
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Online Businesses Discover Direct Response Te
levision (DRTV)
UBID.COM SEARCH RESULTS Searches on branded te
rms up 45 Clicks to uBid.com up 62 Bidders o
n branded terms up 58 Bidders on non-branded te
rms up 18
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Online Businesses Discover Direct Response Te
levision (DRTV)


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Online Businesses Discover Direct Response Te
levision (DRTV)
GETTING STARTED IN DRTV Analyze your business a
nd sales model to determine if DRTV is
applicable Determine if you have a strong offer t
o promote Determine if you can track results onli
ne Engage a DRTV marketing services company with
extensive multi-channel offline and online
experience
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Online Businesses Discover Direct Response Te
levision (DRTV)
GETTING STARTED IN DRTV DEVELOP
A MARKETING BLUEPRINT State sales and marketing o
bjectives Articulate unique selling proposition
Define the target audience List key benefits and
features, and use in-person and online methods to
determine the most important to the consumer
Determine trigger messages Determine brand mandat
ed elements Create offer and pricing structures,
including guarantee Delineate up-sell opportuniti
es Construct sales model with PL for test and ro
llout Sketch out both consumer and professional t
estimonials Benchmark multi-channel sales
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Online Businesses Discover Direct Response Te
levision (DRTV)
DRTV MAXIMIZES ONLINE BUSINESS
Smart DRTV media buying Buying DR time at 75 to
85 off means youre actually quadrupling the
effect of your budget. Its remnant and
pre-emptable. Broadcast TV pricing going down in
price means big opportunity if you can track
Cable TV pricing going up tracking means the
difference between success and failure
Leads to phenomenal benefits Impacts your entire
enterprise Every dollar of DRTV yields 2 to 10
in cross-channel benefits Raise conversion costs
by 5 to 15 Improve brand awareness
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Online Businesses Discover Direct Response Te
levision (DRTV)
TRACKING IS EVERYTHING Without tracking, advert
isers cancel TV spots that are profitable,
because they cant allocate orders that come in
on web URLs and via DRTV-driven search
Web URL tracking is accurate using one URL
DRTV-driven search requires benchmarking search
and formulating pre-DRTV baseline
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Online Businesses Discover Direct Response Te
levision (DRTV)
CONCLUSION DRTV IMPROVES ONLINE BUSINESS
Reverse online downward trends Compensate for e
xpensive online media Bring new consumers to your
website Differentiate your company from competit
ive offerings Parlay offline experience to onlin
e success Technologies available now to track off
line to online Because DRTV is accountable like o
nline, the chances for success are high its
not blind faith
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Online Businesses Discover Direct Response Te
levision (DRTV)
AUDIENCE PARTICIPATION QUESTION 1
What percentage of DRTV commercials are
successful? Less than 10 10 to
25 More than 25
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Online Businesses Discover Direct Response Te
levision (DRTV)
AUDIENCE PARTICIPATION QUESTION 2
Do you know how to accurately track online
orders and leads driven by DRTV?
Yes No Not sure
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Online Businesses Discover Direct Response Te
levision (DRTV)
QA