Oftentimes, a company creates a great infomercial, but neglects the other equally important aspects of the campaign.  These can  include media placement, product manufacturing and fulfillment, duplication, payment processing and telemarketing. Every facet is important and just one weak link could jeopardize an otherwise solid campaign.   A great product with a good infomercial can be very lucrative, however it is important to be prepared.  Do the necessary research and make sure your product meets the criteria of DRTV.

Many of the initial questions companies ask are straightforward, and most of the answers can be found on our FAQ pages.   However, some questions are more complex and require an in-depth discussion with someone who specializes in a specific field of DRTV.  At On The Mark Productions we have a tremendous circle of trusted DR vendors, and have decided to put these questions to them to give you a leg up on your DRTV research.  Over the next few weeks we will post our experts thoughts and comments on some of those questions.  For our first installment we will explore setting up a merchant account for an infomercial or DRTV spot.

“How do we get paid and why shouldn’t we just run the CC charges through our local bank, I mean they can set up with a merchant account right?” 

Well the answer is not quite that simple. The other day, while having coffee with Mick Rispolli from APG, I asked about the potential benefits of setting up a DRTV Merchant account versus using your local bank.  Mick offered the following advice:

Why shouldn’t I just use my local banks merchant account? 

• The merchant account from your local bank will usually have a smaller cap on the amount of monies offered. A specialized DRTV CNP account will usually have a higher processing limit. The higher limit is attributed to the underwriters in the industry being familiar with start-ups having weak or no financials and the partners being used in the industry. (Call centers, fulfillment centers, media agencies) Years of sharing clients together and knowing each other’s functionalities brings confidence and trust, knowing all the PCI guidelines are being followed. Raising the limits in the DRTV industry usually involves submitting new financials and media buy projections along with reviewing the current processing history, returns and charge-backs.
•  Local banks don’t understand the spikes in DRTV transaction volume. Spikes will raise red flags about the account and sometimes freeze the account or funds. Spikes and lows are caused by good media buys or times while waiting for product to be manufactured or shipped to the US.
• A DRTV merchant account will have a charge-back monitoring department that specializes in fighting charge-backs, and will assist you in lowering your charge-backs to stay within the card association guidelines.
• Most local banks don’t have an internal gateway and will need a third party gateway to pass the transaction.
• Using a third party gateway will add extra transaction and monthly fees
• Using a third party gateway such as Auth. Net will add another layer of process for your transactions to be passed through, opening the door for potential failure or problems.
• A local bank won’t have a seamless connection to the call center or fulfillment house. A seamless connection is important while passing consumer information, especially with the new PCIDSS requirements.
• Utilizing a merchant provider whose account executives have close ties with your call center and fulfillment house can overcome an opportunity for failure quickly and efficiently to minimize the potential for a catastrophe.
• A DRTV merchant account has specific reporting for card not present transactions, also allowing the ability to customize reports for specific needs.
• The local bank will receive the funds in 24-72 hours and will still have the money for their float.

The Oreck Graphite Infomercial

In addition, On The Mark either exhibited or attended virtually every major industry trade show throughout the year. We even traveled to China to gain first hand knowledge of the DRTV sourcing and manufacturing process. Even with 20 years experience in Direct Response marketing and promotion, the DRTV landscape continues to evolve and move in new directions.  Attending these trade events helps us stay on top of our market’s changing trends and strategies, ultimately providing greater consumer reach for our clients.

One of our most enjoyable challenges this past year was creating complete marketing strategies for several high-profile clients.  We also put together some of our best DRTV teams ever, ensuring an infomercial has a greater chance for success.  But to be sure, there is nothing we enjoy more than the actual process of creating the infomercial: the writing, the casting, the location scouting, the shooting, and the post-production. Our production team is one of the best in America; we are very proud of them.  If you are considering creating an infomercial or short form DRTV production for your product or service, pick the phone up and give us a call. We love to talk DRTV.  So as we get ready for 2012, we look back and say thanks to our clients, our staff and our vendors.

Wishing you continued success in the New Year,

Mark Solley

President and CEO

On The Mark Productions

Let’s set the stage a little.

You’re a marketer with an infomercial on the air and you’re on the phone with your media buying agency and they’re telling you to start spending media dollars in other channels that they buy, like SF spot, Print, Direct Mail, Radio or the internet.

You ask “Why?”

They say because your infomercial results will improve because it will have a synergistic effect through these other channels and visa-versa. That means getting more leverage out of your advertising dollar.

You ask “How can you tell?”

They say it’s not something that can be outright tracked back to the channel but they know it happens because they see the results go up with other clients that have done this.

You’re skeptical. I don’t blame you. I was too.

First off, I’ve always had a healthy amount of skepticism for media agency recommendations that require me to spend more money that they will make a commission on. I’m not saying media agencies are unethical and it doesn’t mean it’s not good advice, but I always want to keep in mind that that recommendation is to their best interest. Secondly, I’m in direct response and I see the proof in the results in everything I do. So, this leap of faith to spend money without tracking where every dollar spent comes back to me, is uncomfortable.

It is a leap of faith and you will probably not have real proof that synergy is happening. I can tell you that synergy can happen and I’ve seen the numbers. I’ve been part of some very large media spending campaigns for all channels and when you get to big spending, you get to see bigger indictor spikes that may be rationalized away to other effects at lower spends.

What I’m going to do is tell you the two best alternative media channels where you should decide to invest to increase your results and increase the lifespan of your product in the marketplace through increasing your market penetration in other channels.

Short Form

Print

Online (Ok, I guess I can’t leave this one out)

Now, I’ll take them one at a time.

 Short Form – DRTV Short Form is a great way to get penetration into larger audiences and more specific demographics then you would with an infomercial, which is usually banished to the outskirts of known TV space where viewerships are too small for stations to sell general advertising. My experience with short form and synergy is that it’s the single best driver of web traffic that I’ve seen. Even better the brand spots. I’ve seen, while spending healthy levels on other channels at the same point in time, web traffic levels match almost exactly to the short form media spending levels week by week. This is huge for marketers that have a good online selling site and should be taken advantage of.

Print – Print media is an interesting channel because typically, you will get a better type of customer for backend sales then you normally would through long form or short form. As for synergy, it’s another great web driver. I’ve not seen a lot of proof that it helps elevate infomercial results though, but these days, online sales are generally integrated into every marketing campaign.

Now, let me talk a little about Online advertising. Online advertising seems to only work if you are advertising in other channels. So, while it works to help support an infomercial campaign, I have not seen a lot of Online advertising work by itself while as an added benefit, help support other channels. To me, while it’s not making money on it’s own, it’s still a consideration for my media dollars if at the end of the day, what I’m spending on Online advertising is making more money then I’m throwing at it.. whether it’s in that channel of another.

If someone out there wants to share a different opinion, I’d love to hear it.

The Great Ideas Summit is another fantastic opportunity to confer with industry colleagues and stimulate new business.  With an industry as closely knit as Direct Response, national meetings like Great Ideas are integral to building and nurturing important business relationships.  These personal connections can provide perspective on professional matters that would be unavailable through any other means.  We can learn great things from each other’s experience, and do even better things with each other’s help.

All of which is why attending New Orleans is the perfect opportunity for someone looking to get into Direct Response Television. Walking the floor, making connections, and striking up conversations are great ways to gain insight and advice into the welcoming world of DRTV.  Is it right for you?  How does it work?  What are the benefits?  All of these questions can be easily answered by a large number of experts, all located in one place. Every participant is eager to help!

So before the beads fly and the floats cruise down Bourbon St., pop on over to the Hilton New Orleans Riverside for Great Ideas 2011… and keep an eye out for On the Mark CEO, Mark Solley!

Problem is, a celebrity spokesman isn’t a guarantee of success. It’s a factor, sure. But there have been plenty of celebrity DR shows that fizzled out.

What’s the reason?  There are as many theories as there are shows on TV. Our experience tells us that the most successful shows have one thing in common: The celebrity’s image fits with the product. Sometimes that’s an intangible thing—and sometimes it’s enough to know that the spokesman’s image doesn’t fit with the show.

When enlisting a celebrity host, an experienced DR production company will meet with the celebrity beforehand, gauge his or her interest in the project, and help you determine if it’s a good fit. The company will account for your brand’s personality and who your audience is when assessing the situation.

Obviously, contracting with a celebrity to be the host and endorser of your DRTV campaign is going to affect your bottom line. First of all, it’s expensive. For the celebrity, attaching his or her name to a product is a calculated move—he or she is the one whose face is going to be plastered all over the airwaves.

But while the spokesperson gets paid no matter what, the project owner is taking the financial risk. Sometimes, a celebrity will take a lower initial fee in order to participate in the equity of the project. Some celebrities won’t get out of bed without an equity position. And if you give away points, you are eating into your profits.

There’s no doubt a celebrity can bring that added sales boost you’re looking for with their name and face recognition as well as a built-in fanbase. But it pays to weigh that against the investment and the image you’re trying to project.

Key questions to ask yourself:

1.     Does the celebrity’s image fit with your project?

2.     How does the celebrity approach the project (with reluctance or enthusiasm)?

3.     Does your budget support such an investment?

As always, On The Mark stands ready to answer your questions and give you any advice you may need on this or any other DRTV topic. We’re among the most experienced in the industry—so give us a call or drop us a line today.

Call 732-686-1144 or e-mail info@onthe-mark.com now for a free consultation.

These professional successes are only matched by his feats of strength and endurance.  His life began with a struggle but his unending determination let him break through all the way to the top, and he never stopped.

Take a look at just a few of the physical milestones he achieved throughout his life:

1954 Age 40: Swam the length of the San Francisco Golden Gate Bridge underwater with 140 pounds of equipment, including two air tanks… an undisputed world record.

1958 Age 44: Maneuvered a paddleboard 30 miles, 9-½ hours non-stop from Farallon Islands to the San Francisco shore.

1974 Age 60: Swam from Alcatraz Island to Fisherman’s Wharf, for a second time handcuffed, shackled and towing a 1,000-pound boat at the age of 60.

1979 Age 65: Towed 65 boats filled with 6,500-pounds of Lousiana Pacific wood pulp while handcuffed and shackled in Lake Ashinoko, near Tokyo, Japan.

1984 Age 70: Handcuffed, shackled and fighting strong winds and currents, towed 70 boats with 70 people from the Queen’s Way Bridge in the Long Beach Harbor to the Queen Mary, 1 ½ miles.

Cheers, Jack. You will not be forgotten.

How? For many reasons, including the simple fact that media is much more affordable now than it has been. Timeslots that were previously unavailable or unaffordable have been abandoned by traditional advertisers to cut costs. This leaves stations with far too many slots to fill, forcing them to offer you reduced rates, better timeslots and better channels. In this climate, your negotiating power is stronger than ever. Sound like a DRTV dream? The reality is you have never been in a better position to get significantly more value out of your money with DRTV than during a troubled economy.

Another reason current hard times make it easier for campaigns using DRTV to introduce a product and connect to the right audience is that, no matter what shape the economy is in, people WANT to spend money. Even when things are tight, this desire to spend never changes. If you can tap into that impulse with a great product, presented well, consumers will act. They will spend. They will purchase what you are selling them. Right now, even as consumers are relentlessly counting pennies and comparison-shopping, the advantage of DRTV is even clearer, providing a fresh opportunity to connect.

As always with DRTV, the amount of time your message is in front of a captive audience, demonstrating and detailing the benefits of your product, is why this type of advertising is so effective in the first place. And now that you can afford more airtime, better timeslots, preferred channels, all with increased frequency, reaching more consumers quickly has never been easier.

While you pour over your budgets and decide what projects will see the light of day and what will stay shelved, keep in mind your plans for DRTV are unlike anything else on your spreadsheet. What other campaign offers you intense and immediate measurable market feedback? From phone responses, click thrus and real time sales, you are in the driver’s seat to know exactly what works.

All of these factors combined means that DRTV is a great opportunity for investors to make a significant return on their investment.

Want to learn more? Call us today at 732-686-1144 or send us an email at admin@onthe-mark.com

Of course, everyone wants return on investment. But this doesn’t mean you simply shop for a production company with the lowest rates. You can keep your costs down by a good front-end negotiation, but be careful that what might seem like savings in the early stages, turns into costly mistakes during implementation.

Even the Direct Response Academy tells you that putting together the right Direct Response team with the right level of experience is often difficult. If your production company knows production but not DRTV, they can only take you part of the way.

When evaluating production companies that you are reviewing, ask yourself a few questions:

• Are they winners with a track record?
• Is 90% of their business from DRTV?
• Do they have strong, solid relationships in the key marketing channels on a national and international level?
• Do they have production, campaign, media, back-end, and fulfillment experience in DRTV specifically?

At On The Mark, we offer you all of the creative, back-end and analytical experience necessary in navigating and succeeding in the Direct Response TV arena.

On The Mark Productions is an established DRTV marketing agency with over 20 years of experience. Our team can take your company and your product through the necessary steps to get you fast tracked to building a successful campaign. We will help you craft and produce the most effective infomercial or spot possible, including securing a celebrity spokesperson if needed. In conjunction with the production, our team will help you coordinate setting up a call center to process your phone orders, as well as establish a fulfillment center who will pick and ship your product. We can even assist in securing media funding.

The On The Mark team has years of experience, providing sound television media advice, strategy input and development, and will guide you through the process of producing your commercial, and purchasing television media in order to reach your projected goals. We work with each account to highlight the features and benefits of the product in order to promote the movement and sale of the item.

On The Mark was founded in 1995, our corporate headquarters are located in Deal, NJ. We have a wealth of experience in production, strategy, marketing, and media, and within the direct response and home shopping channel industries. On The Mark provides this expertise to new and established businesses to ensure that our client partners get the most from their direct response and other direct-to-consumer initiatives.

International distribution is a huge part of the DRTV business. and is well represented at the Las Vegas show. Often this very profitable area is overlooked by companies just starting out. On the Mark has a strategic partnership with Vision TV, which has solid relationships with almost every overseas buyer. If you want to learn how to maximize your profits with international distribution, you can contact On The Mark or Vision TV, who will be glad to give you advice.

Attendance broke all previous ERA records at 3,900 participants. The show floor was packed with exhibitors, vendors, and inventors, and business was being done all over the show. DRTV as an industry is clearly enjoying a resurgence.

The educational sessions were a must for first time attendees. The sessions took three different tracks, including production, electronic marketing, and product invention. A highlight was “The Hitmakers,” hosted by Forbes Riley and featuring a panel discussion with three top industry executives.

The event was was closed by the Moxie Awards Dinner, which featured good food and a festive atmosphere as dozens of industry professionals received recognition for outstanding work.

The venue, Wynn Las Vegas, was a beautiful oasis in the Las Vegas desert. Surrounded by an 18-hole golf course punctuated by 40-foot waterfalls, the Wynn boasts dozens of crystal clear swimming pools, a world-class casino, and the best dining Las Vegas has to offer. It was clear to everyone present that ERA chose the perfect setting for its most productive conference in history.

On The Mark wants to thank everyone who took the time to meet with us at the show.

Every event always has a low point though, for us it was mechanical failure at the airport and a five hour wait while they fixed the plane! But now we are back and ready to work hard for our clients.

Of course, you already know that direct-to-consumer commerce is big business. Whether you are an innovative new inventor or a seasoned direct response success story – your attendance at ERA can become a launching pad for the next phase of your success.

If you’ve never attended ERA, be sure to arrive with your goals in focus so you can make the most of your time connecting and engaging with the industry’s best contacts. Try to talk to as many people as you can and know they are there to make valuable connections as well. While some people can find their first trade show experience a little intimidating, we can tell you first hand that DRTV professionals are some of the nicest and most accessible people you may ever meet. In fact, don’t be surprised if you actually schedule a few meetings during the show. Make it a goal to confirm as many as your schedule allows and let the energy of each meeting fuel your confidence that you are building an empire. Remember that you can also seek out one-on-one meetings for sales leads or expert advice.

No matter where you are in the supply chain, you will be in the room with some of the industry’s major players and newest competitors. Take advantage of this opportunity to have direct access to qualified leads, strategic relationships, senior-level advice, innovative new products and a variety of service providers. Making connections is time well spent. Just be sure to take away from the show exactly what You need.

And by all means, please introduce yourself to our team at ERA. Mark Solley and Steve Trimble from On The Mark will both be attending. On The Mark is one of the nation’s leading infomercial production companies. We have been producing winning shows for over 15 years. Numerous shows produced by On the Mark have generated hundreds of millions of dollars in sales. Choosing an infomercial company is often one of the first steps made in a DR campaign, which is why this choice is so important. At On The Mark we understand the philosophy and the strategy of creating an Infomercial that has the best chance of succeeding. On The Mark is much more than just a production company, we will assist you in every aspect of creating your Direct Response campaign.

But first, take a deep breath. There are three important questions you need to ask yourself:

1. How will I know that my infomercial campaign is providing me maximum return on investment?

2. How will I track the performance of my program?

3. What will I do if my program underperforms?

Of course, On The Mark can help provide those answers to you before you spend a penny.

On The Mark has strategic partnerships with vendors who use some of the most sophisticated analytical metrics available to determine your ROI. An example is “maximum profitable media cost per order (CPO).” This is the most you can spend on media per each individual order you receive and still expect to make a reasonable profit.

Another tool used to measure your program’s performance is the Media Efficiency Ratio (MER), which is simply total sales divided by media cost. And these are just two of the many metrics we have at our disposal.

Of course, in order to get a good answer to question 1, we need to address question 2. On The Mark has built relationships with some of the most sophisticated call centers in the industry; they provide real-time call statistics and Web analytics. That data helps inform our performance tracking, so we know instantly if your program is doing well or poorly on a particular station and/or timeslot.

And that’s how we address question 3. If your infomercial doesn’t get the response we expect, we analyze the data to determine why. Then we work with our long-time media buying partners to adjust your airtimes and channels accordingly, making sure that your product or service reaches the maximum amount of potential buyers in your target demographic. And that translates to more orders and a higher ROI.

On The Mark has been running winning DRTV campaigns for more than 20 years—and we never forget the most important creed of our business:

Your success is our success.

A great looking, professionally produced infomercial is, of course, a central component to any winning direct response television campaign. Everyone knows the great “Vince,” for instance—that infomercial put that unnamed absorbent cloth product on the map.

But a great program isn’t the only component of a winning campaign. In fact, you can have an excellent product and a top-notch infomercial and your campaign could still fall flat on its face.

Read this article from the Direct Response Academy—the leading source of knowledge and training surrounding the DRTV industry.

If your DRTV company doesn’t have the total campaign experience or knowledge to oversee your campaign from beginning to end and ensure all of the various elements are working together in harmony, you could be in for disappointing—and costly—results.

For instance, suppose you’re marketing a physical product that must be ordered, packaged, and shipped in a timely manner to each customer. Does your DRTV company have a call center ready to implement your specific directions at a moment’s notice? Does it have a fulfillment center ready to package and ship your product to all of the eager callers watching your infomercial?

If the answer is no, you might be using the wrong DRTV company. And that’s where On The Mark comes in. With more than 20 years experience in the DRTV industry, we have the expertise not only to create a winning infomercial program that will pull in viewers and sales, but we also have the relationships and expertise to cover all of your bases—so you’ll know everything is being done to capture every possible sale and make your customers happy.

Even if you’ve already got an infomercial you’re happy with, you could be losing customers because the other elements of your campaign aren’t as efficient as they could be.

Could this be you? Call us today at (732) 741-7225.

It’s a fixture in Direct Response Television—the exercise or diet plan show with compelling testimonials from supple young men and women who have used the offered product and gone on to lose a hundred pounds and develop Olympic-quality bodies. They’re very effective, not to mention fun to watch. The marketer flashes a disclaimer: “Results not typical” to show that not everyone will look like the testimonials.

But now, the Federal Trade Commission (FTC) is voicing its disapproval over the practice. It’s released a series of “Guides” designed to force marketers to more clearly state what a product’s “typical” results will be. A recent article in a popular trade magazine breaks down the FTC’s Guides.

Read the article here.

On The Mark is all for solid regulations that create a level playing field for everyone. But this latest Guide—we’re not so sure. It seems to tilt the field against DRTV and in favor of traditional commercials that build brand awareness or achieve other marketing goals.

Think about it: When was the last time you saw an overweight person in a 30-second fast-food commercial? Or an intoxicated person in a beer spot? Should the marketers behind those ads be forced to run disclaimers in large type, stating that “People who consume our product will not typically look like actors depicted in this commercial?”

Of course not. That would just be silly. But the bottom line is that advertising—ALL advertising—is about creating optimum conditions and using them to promote a product or service. It’s not about what’s “typical.” And what’s good for DRTV should be good for all television marketing. If we start to go down this path, where will it end?

Now, having said that, On The Mark is ready and able to work within these regulations to create winning DRTV programs for our clients. We thoroughly understand all the new guidelines and know exactly how to comply. We’ve been producing high-quality programs for 20 years—and we’ve adapted successfully to every change in the regulatory landscape. We’ve often found that things change for the best. DRTV is still one of the best ways to gain wide exposure for terrific products and services, and we’ll be here far into the future to help make your offering a productive one.

What’s more, if you’ve already created a DRTV program with another production company, and you’re not certain it meets these new FTC guidelines, feel free to give us a call at
(732) 741-7225. We’ll be happy to take an objective look at your program, and fairly evaluate it for compliance.

In the meantime, picture this on your TV screen: Big-box discount store commercials starring actors who look like the people who really shop there.

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