How Will Streaming Ads Benefit DTC Campaigns?
As the economy worsens and inflation rises, the relationship between audiences and the media they consume has begun to erode and continues to change. Despite the success and growth achieved by some streaming services, US consumers remain unsatisfied when it comes to the perceived value of the services.
A new report from Tivo reveals that 65% of the US public is willing to tolerate commercials on streaming platforms in exchange for free TV services. This number has risen from a previous 43% in 2020 and provides a valuable insight into the consumers’ relationships with video advertising. This increase contradicts the previous actions of many streaming services, such as creating new platforms altogether or adding a ‘premium,’ ad-free service subscription at a higher price. Statistics show that customers are less interested in paying a premium price for ad-free entertainment and would rather pay lower costs with commercials.
What does this mean for advertisers? Well, it’s good news for those utilizing video ad content or those looking to expand their marketing mediums, as the increase in ad space could mean lower costs and higher accessibility and more eyeballs viewing the direct to consumer video advertising. DRTV and infomercial marketers have yet to leap in with both feet on the streaming side, but the more platforms offer advertising options, the higher the chances that the still-high average CPM of $40 to $50 will drop.
This drop would provide direct to consumer marketers with much-needed TV reach that has been continuously eroding on linear TV networks. OTT allows for individualized advertising content on different viewers’ TVs while they watch the same content, ensuring targeted ad delivery and much more efficient ad spend. OTT advertising accounts for 51% of OTT marketing revenues already, and any advancements could contribute to more revenue for both the streaming platforms and advertisers.
Video content consumption is rising in all age ranges and target markets, and streaming platforms are more able to adjust their advertising capabilities to meet the changing needs and trends. The most significant projected increase in streaming video consumption is predicted to be among the 45-54 age group, a prime demographic especially for the DRTV products and services.
Netflix seems to remain in the loop with the ever-changing needs of its audience and has announced that it plans on running ads soon, confirming what many media and TV analysts have been predicting for some time now. This addition could open the doors to many innovations and opportunities for advertisers and streaming platforms alike and continue to shape the direct to consumer advertising industry.
Facebook, Instagram, SnapChat and YouTube are the ultimate direct response marketing vehicles. The opportunity to speak directly to prospects and customers on a personalized level has never been greater. Yet, mediocrity abounds in all medium, a desire for sameness, and a hesitancy to stand out.
Creativity does not need to be a dramatic shot of someone dangling from a mountaintop, an arty and stunning, exotic visual, a cheap shot at humor, or an effects filled voyage into fantasy. Creativity can be subtle and powerful, with meaning and purpose. The turn of a phrase, a compelling offer, donations to special causes, something just a bit different, but most of all, humanity. Compelling someone to pay attention because you’ve struck a chord in their head, their heart, or their soul, and they can relate. And they identify.
Creativity can be found whether it is a Facebook ad, a blog post, a subject line in an email campaign, or a super bowl ad. It can be found everywhere, in every nook and cranny. In every form of media, either digital or traditional. Give them content; don’t just ask them to buy something. Give them value. Give them something to believe in.
Push the envelope and create something unexpected. Something that makes someone smile, think, or feel alive, is what drives our modern communication. Too often we get caught up in data, analytics and formulas, and we forget that we are communicating with human beings that can think, feel, laugh, weep and be inspired.
To think out of the box is risky. It makes people afraid. It tests the boundaries of their belief systems and of everything they thought was comfortable and proper.
To not think out of the box is far riskier. To risk being invisible is a far greater risk.
Stand up. Speak up. Take risks. You might strike out, but you tried. Babe Ruth struck out a lot as he broke records hitting home runs. If you can get up to the plate, take that big swing.
So why are advertising spends in traditional TV growing instead of shrinking? And why is Amazon, Google, Netflix, Facebook, and Microsoft growing their spends on TV? In fact, some of them are spending more than 50% of their ad budgets on TV!
The answer? TV is engaging, entertaining, and informative. And TV is still mass. Getting your brand out there on TV produces a power like no other. And TV has a halo effect for all other media. 
Spend away on Amazon, Facebook, Google, but if you are not on TV, you will miss a big opportunity to share your story, and connect with your audience using real emotion, which is hard to beat in other media. Also, good luck slugging it out with those increasing digital spends and the click fraud, bots and crazy attribution mazes.
The infomercial and DRTV approach may seem old fashioned to some, but for products or services that require explanation, demonstration or emotion, there is nothing better than television to get that point across. Whether it is a: 30 brand message or a half hour infomercial, the power of television is not going anywhere. Just ask Amazon, who spent more money on TV in 2016 than Wal-Mart.
By Ava Seavey, Queen Bee, Avalanche Creative Service, Inc.
As both network and cable TV viewership continue to decline, and market fragmentation becomes an ever-evolving conundrum, how has all of this impacted the infomercial marketplace? A lot.
So what is a marketer to do who has a complex product or service, an expensive price point or a continuity item? The dilemma had always been choosing between executing a two-minute spot or a half hour. Well, not any more. Enter the five-minute infomercial, the perfect hybrid of long and short form, with many of the advantages of both and few of the drawbacks.
Five-minute infomercials, also called mini mercials, mid form spots, medium length spots, have been around since at least 1997. In the early days, there was a more limited amount of stations and day parts that fives were available on.
Now, these mini mercials air on over 60 national cable stations in almost every day part.
A few years back, the average time a viewer would spend watching an infomercial was eight minutes. Today, it is down to five minutes, making the five minute format an information packed, muscular feat of marketing perfection for this You Tube generation of viewers.
The beauty of this hard working and mighty format is that the response rates greatly out perform two-minute commercials and the close rates are more consistent with half hours.
The mini mercials don’t need the same disclosures as long form and don’t need to be close captioned. In that sense, they fall more into the short form category, yet packing the information punch of a long form infomercial.
Another advantage to the five-minute format is that they can be created from scratch as originals, expansions of two-minute formats, or cut-downs of long forms. Any existing assets that the marketer currently has can be evaluated for use in a five-minute show. 
Since 2008 when Avalanche produced their first five-minute show, we have seen some of the lowest cost per calls and highest close rates ever. And this mighty format is huge for differentiation of a brand as a stand-alone format.
Five minute shows work well for categories including nutritional supplements, beauty, personal care, surgical, not for profit, diet, fitness, bedding, housewares and more.
So the next time you are grappling with deciding between long and short form, consider the mighty might five minute. You’ll be glad you did.
If you’d like to learn more, please have a look at the Masters Series video below from the ERA September 2016 D2C Convention I took part in. Ava Seavey is president of Avalanche Creative Services, Inc., a creative shop that produces long, short and midform 
Infomercials are a great way to sell a variety products and services. They’ve been used successfully to sell toys, vitamins, fitness equipment, pet products, cooking utensils, beauty products, financial services and pretty much anything else you can imagine. While taking the initiative to launch and sell a product can sometimes be daunting, many marketers begin their process by seeking to invest in products or services that have shown to stand the test of time. Here are a few categories that are often able to bring in fruitful returns even when times are economically challenging.
Beauty is a booming industry. Whether it be for hair, makeup, skin care or otherwise, the obsession to look healthier and younger is overwhelming. And while this segment used to be primarily focused on women, today in the US, men make up 43% of the market. Products such as moisturizers, anti-aging creams, facial cleansers, concealers and hair growth supplements & solutions, present a massive opportunity that is likely not going away anytime in the near future. If you see an opportunity to make your way into the beauty niche, be sure to take a closer look. 
DIY is a major trend. More specifically bringing out your inner home-maker is an obsession that’s been sweeping the nation. People are adding their own unique personality to their homes and are using it as a way to not only show off their skills and creativity, but also to increase the value of their property. The DIY niche can be successful at generating revenue targeting both the creative types as well as the frugal and It can bring in substantial financial returns for those that implement it wisely. As long as real estate remains a leading investment among those seeking to build their nest egg, the DIY market isn’t going anywhere. To put some numbers behind the notion, Home Depot’s 5 year trend has continued to climb upward every year by a minimum of 3 billion per year. Got an idea for a DIY? Do it yourself!
Whether we like it or not, taking care of one’s health is a part of life. No one likes getting sick or having health problems but we’re all forced to deal with this throughout our journey on this planet. With this in mind, products such as vitamins, supplements and herbs have huge potential. And unfortunately people that are facing health challenges have no choice but to seek proper solutions. This presents a tremendous opportunity. Additionally, as people are less frequently visiting doctors, due to a large percentage of the population being uninsured or underinsured, topicals, ingestibles and other types of natural solutions are growing in popularity at an incredible pace. According to the CRN (The Council for Responsible Nutrition) as of 2014 over 68% of Americans take some sort of vitamins or supplements and over 80% express overall confidence in the safety, quality and effectiveness of dietary supplements. Be sure to examine the health supplement niche closely when you’re ready to get your bank account in shape. 
And with the numerous channels for engagement as well as distribution, there has not been a better time to take advantage of the entertainment niche. Music, movies, TV shows, apps, games… the opportunity is seemingly endless. Just be careful that whatever moves you make are well thought out. One wrong move can put you in the land of misfit toys with the ever so unpopular “BetaMax”.