8a business white paper

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1 Myths about Direct Response Television 8a business white paper

2 Myth # 1 TV is strictly a branding medium. Although arguably the best branding medium, TV is also a significant traffic source. With major brand advertisers like Ford, Apple, and Johnson & Johnson accounting for a majority of the multibillion dollar TV advertising market, it is easy to perceive TV as primarily useful for raising brand awareness. However, even major brand advertisers recognize TV s immense potential as a response driver, as indicated by the growing inclusion of brand URLs and hashtags in branding spots. Not surprisingly, many online advertisers have turned to TV as a source of qualified traffic. TV is an effective response-driver for the same reason it is a great branding medium it provides immense, national reach. The difference between brand advertisers and response advertisers, however, is that response advertisers pay much less for the same inventory. It is the equivalent of a Yahoo homepage buy versus an ad network buy: both have their role in the digital marketing ecosystem, but each has a very different purpose. Although direct response television (DRTV) advertisers pay much less than brand advertisers, they enjoy the same brand equity built by TV. TV advertisers appear credible by virtue of receiving strong TV network endorsement, so consumers are more comfortable transacting on a website advertised on TV. As reported by Nielsen, 29 % of people trust ads on TV, a considerably higher percentage than most digital advertising (which ranges from 13 % to 21 % ). Ask us how we increased weekly conversions for nomorerack by 756 %. 2 To learn more visit

3 Myth # 2 TV advertising isn t measurable. We can attribute every website visit or conversion. While drive-to-web TV advertising doesn t allow the granular tracking of a click or a unique phone number, Kre8 Media has developed a proprietary tracking methodology that identifies spikes in response above established benchmarks following the airing of a TV commercial. When applied to commercial costs, it is possible to derive cost-per-response metrics for optimization purposes. By restricting the observed response set to direct brand URL navigation and branded search, we avoid erroneously attributing traffic generated by trackable digital marketing channels. It is our goal to attribute conservatively so that accurate results are reported and optimization decisions are based on valid information. Our methodology has been used to fuel massive growth for the world s largest online poker site, PokerStars.net; the premier penny auction website, QuiBids.com; the leading daily deal site for moms, babies and kids, zulily.com; as well as many others. Ask us about our proprietary TV-Driven ecommerce Tracking methodology. 3 To learn more visit

4 Myth # 3 TV advertising can t be optimized. We have insight into every single spot that airs and make daily optimizations. The DRTV marketplace is extremely dynamic due to supply and demand, so our buyers closely monitor rates, inventory, and market trends daily to ensure that the lowest possible rate is being paid in the most productive dayparts on the most productive networks. The inventory available to direct response TV buyers is remnant media that is not purchased by brand advertisers who are willing to pay premium rates. As a result, networks sell the remaining inventory at a discount in order to maximize their revenue. Direct response advertisers compete for this remnant inventory by bidding for the ad space. How much they are willing to bid depends on their unique cost-per goals. Creative A/B tests are also conducted regularly to ensure the most productive offer and messaging is in market. A highly optimized campaign will not only have closely managed media, but also frequently refined creative messaging. Ask us how we make granular, frequent adjustments to deliver aggressive cost-per goals. 4 To learn more visit

5 Myth # 4 TV advertising costs millions. We can run a test for a lot fewer zeroes. Whereas major brand advertisers spend a small fortune on what amounts to a 30-second Hollywood movie, direct response advertisers can produce polished, compelling creative for as low as $30K. At Kre8 Media, we work with costconscious producers who appreciate direct response advertisers need to maintain efficiency throughout the campaign process. In addition, because direct response TV inventory is highly discounted, a typical direct response campaign can be executed with very low entry costs. At Kre8 Media, we typically recommend a $25K per week, 4-week test campaign, which allows enough time for momentum to build, trends to surface, and optimizations to be executed. Without fail, ecommerce clients like zulily and nomorerack have extended and scaled up their TV activity following their initial 4-week flight due to better-than-expected results. Ask us how a $ 25K weekly test budget turned into a self-sustaining $ 15 million TV advertising budget. 5 To learn more visit

6 Myth # 5 DRTV will hurt my brand image. Our Brand Response approach ensures a high standard of brand equity. Although we work with costconscious producers, we only work with those that deliver polished, high-quality creative. In order to derive the full branding benefit of TV, it is essential that the creative communicate credibility and quality, both of which ultimately lift response. Unlike what some infomercials would lead you to believe, it is not necessary to yell and scream in order to drive response from TV, especially if the product or service is truly useful and delivers value for consumers. Johnson & Johnson, projecting bluechip status by association. Combined with high-quality, yet affordable messaging, this placement elevates online brands from relative obscurity to cultural relevance. Ask us to show you the spots for some of our clients like zulily and Julep. At Kre8 Media, our client spots air next to the likes of Ford, Apple, and 6 To learn more visit

7 Myth # 6 It would take a year to get a TV spot into market. Depending on production time, it could take as little as two months to get into market. An effective direct response TV campaign requires a surprisingly short amount of time to develop. From media buy execution to creative production, we can launch a new advertiser on TV in less than 2 months. At Kre8 Media, we are very active in the marketplace and have rates for all TV networks, so we can develop a media plan with relative ease. Once the competitive and target research is conducted, we will develop a strong plan that reaches the target audience and delivers efficient response. This process can take as little as a week. process is often more time consuming. Many moving pieces and divergent schedules must align to deliver a final, high-quality commercial. That said, we work with producers who appreciate the urgency with which advertisers approach their first TV test, so aggressive timelines and frequent communication are the norm. Ask us how we launched nomorerack s DRTV campaign in under 2 months, from soup to nuts. In terms of creative, the production 7 To learn more visit

8 Myth # 7 DRTV is only appropriate for products with a lower price point. Our clients price points range from Free To Join to tens of thousands. At Kre8 Media, we have had success with clients whose price points range from free to thousands of dollars. In our experience, price point is not nearly as important to a campaign s success as creative quality and targeting. With the right creative execution, product price point becomes less relevant. Advertisers with higher price points often utilize alternative offers (such as Free Brochure or Free Consultation ) to prevent promotion of a price point that may cause sticker shock without the necessary context. With the right targeting, advertisers can reach audiences more likely to purchase high-ticket items. Although TV is known for its mass reach, DRTV buyers are experts at optimizing campaigns to the audience most likely to buy an advertiser s products or services. For instance, at Kre8 Media, we conduct campaigns for clients with highly unique target audiences, such as adults over 65 with mobility issues, moms with kids under the age of 8, and adults aged who own a dog. All of these clients have unique products that appeal to specific audiences. If the audience is reached with the right message, at the right time, and in the right environment, the audience will respond. Ask us how we customize buys to deliver great results no matter the price point. 8 To learn more visit

9 Myth # 8 DRTV spots all drive to a call center. Many of our clients only promote their brand URL on TV. While many direct response TV advertisers promote unique phone numbers to drive calls to a call center, more and more advertisers recognize the strength of TV in driving online response. With consumers becoming increasingly connected via smartphones and tablets, it has never been easier for them to interact with a brand and respond to TV advertisements. The decision to drive to a call center or website (or both) should be a byproduct of the campaign goals and audience composition. Each response mechanism has its own set of benefits and limitations that should be addressed prior to any decision. Target propensity to call or visit, complexity of product or offer, and back-end fulfilment systems should all be considered. Fortunately, via our response attribution methodology, Kre8 Media can capture response regardless of the medium used. Ask us how our media has driven thousands of registrations on zulily s website. 9 To learn more visit

10 Kre8 Media The 24/7 Direct Response Agency About Kre8 Media Kre8 Media got started with a radical approach for a London-based online gaming client who was willing to take a chance. We told them there was a better way to buy media and drive traffic to their website. And we were right. The results of that first campaign proved that by asking tougher questions and being more demanding we could yield significantly better results. Soon that client became their category leader. From there, Kre8 Media simply grew and grew. We signed new accounts, added new talent and moved into a bigger space. But you know what hasn t changed? That attitude that landed us the first big account. We still feel like we have to prove ourselves every day. We still feel like we have to come to the table with a better approach. What brought us success when we first opened our doors is what brings us success today. Sound strategy. Tough negotiators. Great listeners. That s the formula for our success. You deserve transparency At Kre8 Media, we know our methodology is second-to-none, and we have the results to prove it. That s why we re happy to provide our clients with frequent reporting, analytics and complete transparency. If your current media agency doesn t provide the same, contact us now. Call today or visit kre8media.com to learn more. 200 East New England Ave Suite 300 Winter Park, FL USA p e. info@kre8media.com