Archive for direct to consumer advertising – Page 2

Will DRTV Advertisers Cut the Cord in 2022?

Will DRTV Advertisers Cut the Cord in 2022?

After two years of double-digit rating declines, many in the industry are questioning the longevity of traditional television advertising in all lengths, both long and short form DRTV. If there’s one thing everyone in the DRTV industry can agree on: 2020 changed everything. During the pandemic’s first waves, advertisers, like so many others worldwide, were uncertain or scared about the future. The pandemic may have led to unprecedented change, but many underlying trends began long before COVID-19.

Today, the gap between those who view streaming services as an addition rather than a replacement and those who only use streaming services is quickly closing. According to an MRI-Simmons study, the two percentages went from 55% and 45%, respectively, to 51% and 49%. 5.5 million households also canceled pay-TV services offered by the top five providers last year, compared to 5.8 million in 2019. More than 4 in 5 households subscribe to at least one video-on-demand service. Respondents who made the switch to streaming only or plan to do so report that their main reason for doing so is to watch streaming services instead. A quarter of the respondents said that their TV packages are too costly and blamed prices. More than 43% of respondents claim streaming is the more cost-effective option.

Ad spending on smart TVs and streaming devices saw massive growth in 2020. | Image: IAB

These shifts are causing similar waves within advertiser spending, with companies beginning to allocate more to streaming. For the time being, traditional tv remains, along with many questions surrounding its future within the media world that remain unanswered, for now.

DTC Marketers: Don’t Ignore TikTok ROI

DTC Marketers: Don’t Ignore TikTok ROI

Hand holding iphone with TikTok opened

Tiktok has been named the fastest-growing social media platform of all time, by Forbes. And no, it’s not just for teens. The app has over 1 billion users of all ages across the globe, making it the most explosive social media app to use and advertise on. 

In fact, according to Backlinko, 31.3 % of TikTok users are over 40.

(Source: Backlinko.com)

Tiktok works using a personalized algorithm, which updates as you view, like, and save content. The app learns your preferences and feeds them directly into your “For You” or home page.

Like Instagram and Facebook, paid content is placed within your feed based on its relevance to you and how the advertisers refine their audience.

TikTok trends can be followed, allowing the potential for advertisers to connect with this massive potential audience in a way that feels authentic to users. Smart use of creative as well as hashtags allow for targeting both behavioral and geographic.

The difference between paid and organic content can be difficult to determine, which is especially great for advertisers. And with less competition than Facebook, clicks can cost up to a third of what they are on other platforms.

This makes TikTok an excellent vehicle for DTC advertisers. Because of Tiktok’s massive reach, ads utilizing lead generation for high ticket items or services allows clients marketing those products or services huge ROI. 

Avalanche CEO Ava Seavey says, “The huge return on TikTok advertising for our clients (one is seeing a 30 to 1 return) are stats I have not seen since 1980’s infomercials. It is the most exciting platform for DTC ROI I’ve seen.”

Here are some helpful tips to consider before utilizing TikTok to advertise:

Don’t only make ads. Make TikToks – This is crucial. If you’re going to make the leap into TikTok, you must be ready to produce content that feels native to the platform. Don’t just use existing content from Facebook and Instagram Stories. Slideshows, static images, and slick content are automatically detected as advertising and decrease viewer interest.

Song/sound selection – The use of songs and sounds matters more on TikTok than on any other platform. Another great benefit as opposed to Facebook/Instagram where most users view with the sound off. TikTok users watch with sound.

(Source: Backlinko.com)

Regarding influencer culture on the app, TikTok has an engagement rate of 5.30% on accounts with over 100,000 followers, compared to 1.10% for Instagram and 0.30% for Twitter. It has quickly become one of the main avenues for influencers and micro-influencers to recommend products through testimonial-style videos, Amazon Marketplace affiliate link programs, as well as trendy, creative, or niche videos of any kind.

(Source: Backlinko.com)

The app’s fast-paced nature keeps its users engaged for relatively long periods. With an average session length of 10.85 minutes, it has become the most engaging social media app out today. (Source: Backlinko.com)

For DTC marketers who may be experiencing declining ROI on Facebook, TV, radio, Amazon or other avenues, TikTok can bring you immediate sales and leads and if you get out there before your competition does, you will have even better results.

Buy Now, Pay Later Levels Playing Field

What BNPL is, and how it affects DRTV and DTC

BNPL Buy now pay later online shopping concept.Hands holding mobile phone

The explosion of e-commerce has not only changed the way we buy but how we pay. When the pandemic hit and millions of users flooded to online retailers, several already-existing businesses and ideas were thrown into full gear as they gained popularity. Buy Now, Pay Later, or BNPL, is an installment loan utilized by many online retailers today. With Klarna, Afterpay, Affirm, or simply retailers offering their own plan, BNPL allows consumers to make a purchase and receive it immediately while paying for it over time through a series of installments.

Some plans can come with interest and late fees, but some charge neither. Pricing and plan information varies from company to company.

Allowing a consumer to pay over time can dramatically alter the consumer landscape for marketers. It will give those with poor credit or lack of credit card funds an opportunity to purchase impulse products advertised to them. It also gives marketers a chance to close more sales at minimal risk.

Data shows that consumers buy more when they can pay over time. BNPL gives companies a much wider reach and the ability to expand their target audiences further.

BNPL Buy Now, Pay Later Written on Green Key of Metallic Keyboard. Finger pressing key.

A recent survey found that 1 in 5 U.S. consumers used a BNPL service in the 12 months ended Aug. 20, 2021, and only 1 in 6 of them regretted doing so. 

While this is a boon for marketers with higher price point items, full disclosure of terms is mandatory. In December 2021, the Consumer Financial Protection Bureau announced an inquiry into BNPL, expressing concern about “debt accumulation, lack of regulation, and data harvesting.” The regulator is concerned that borrowers are accumulating too much debt and that consumers’ personal data could be misused.

Last month, the agency demanded information from a handful of the industry’s most prominent players, including Klarna and Afterpay. 

This inquiry notwithstanding, the BNPL option has opened up an excellent opportunity for higher price point items and allows credit-challenged consumers to have an equal playing field for products that otherwise may have been out of reach.

Importance of Omni Channel Marketing for DRTV products

Importance of Omni Channel Marketing for DRTV products

The pandemic and its economic impact have entirely changed the way businesses is done. With many consumers and working professionals working remotely and spending so much time online, it’s clear how important digital channels are becoming and how critical it is for marketers to reach consumers where the eyeballs are.

For DRTV, Direct-Response, Infomercial, and Direct-to-Consumer Marketers, this change proves just as meaningful. It is vital to be mindful of what happens within each platform and utilize as many channels as possible. By using omnichannel marketing and tracking ads, you can successfully create high-converting campaigns, and all can work with the halo effect of reinforcing ads seen on other platforms.

DRTV can bring you excellent results when used as part of an omnichannel strategy and can be among the highest converting platform.  

Creating Ads on Google or Bing that build on your DRTV ads can yield great results and help conversion rates. Facebook, Instagram and TikTok can yield extremely high results as well, especially when geo targeted. Both lead generation and product specific ads can work well on these platforms.  

When considering DRTV, be sure to maximize your results by having all digital tactics in place.

The Amazon Effect

The Amazon Effect

Direct-to-consumer, social media, and DRTV marketers and brands have had their share of challenges driving consumers to purchase, either through a web site or phone number. But with the events of the pandemic, consumers changed their online shopping habits and helped push a massive shift occurring over the past decade. The insight into how the retail experience is different today in 2021 can be expressed in one word: Amazon.

Various studies have demonstrated very strong consumer trust in Amazon. According to a FeedAdvisor study, 89% of consumers are more likely to buy products from Amazon than other e-commerce sites. 78% say that they trust big corporations such as Amazon or Walmart.com over other online retailers.

Customers often look to Amazon first when it comes to quickly purchasing name brand products, as well as unknown brands. They are putting less and less trust into smaller DTC websites and brands, which is why it is critical to also sell on Amazon in today’s world.

Amazon has undergone various investigations into fake products and says it blocked over 10 billion counterfeit listings in 2020. Despite this, Amazon continues to soar in subscriber numbers, with over 150 billion Prime members, and takes its place as #1 in the U.S. e-commerce market with net sales of $386 billion in 2020, followed by Walmart.com.

But direct response, infomercial, social media, digital, and DRTV marketers should not despair, as all media purchases can also drive supplemental Amazon sales in addition to sales on their brand sites and at the call centers. Thus, attribution of Amazon sales should be included when analyzing and reporting on revenue from media spend.

How to Advertise Sustainability

How to Advertise Sustainability

It is becoming increasingly common for companies to have sustainable elements within either their products or services. Sustainability is something that people are considering more and more critical, so it benefits a company to explain and share how they are saving energy, recycling materials, and engaging in green marketing in general. Green marketing refers to advertising products or practices that promote sustainability.

Sustainability is fundamental to younger people looking to make a change by giving money to companies with their interests in mind. Companies need to share this information in a format that will resonate with young people, such as social media.

There are some key elements to creatively advertise how your company or product promotes sustainability to the public.

First, it is always important to understand the audience. According to a Fast Company survey from 2019, 40% of millennials have picked one job over another because of the companies’ dedication to sustainability. Millennials value companies that value sustainability. Once you understand your audience and how to use green marketing, you can begin to explore effective ways to reach them.

In cases where a company is trying to target a younger audience, social media ads specifically should be used more than something like direct response television (DRTV) ads just because of the levels of engagement of each age group. If a company has created an infomercial or something similar, they can post clips of it to social media for more direct advertising to younger audiences.

Second, the explanation should be clear and specific with background information about how the research was gathered. Companies should be environmentally savvy and able to explain precisely how their products or practices go about achieving what they say they are. Nestle did this exceptionally well in this area when they announced a press release in early 2020 that explained how they would begin using recycled plastic for their packaging. Their thorough description of this process gained a lot of attention, and they received about ninety-thousand direct responses to this announcement, according to ListenFirstMedia.com.

Third, it is helpful for companies to explain their plans for achieving a more sustainable way of working in the future so that audiences can understand its goals even if they haven’t quite reached them yet. Conveying this type of information over social media is effective because it serves as direct-to-consumer advertising where people feel directly addressed and, therefore, more engaged with what the company is saying.

How Do You Advertise to a Divided Country?

How Do You Advertise to a Divided Country?

As advertisers and marketers in DRTV and E-Commerce, we are in the business of speaking directly to people who may not think like us. We make efforts to understand their wants and needs as we pursue direct to consumer advertising.  

Today, there’s a growing demand for brands to speak up on societal issues, whether sustainability, racism, or gender equality. But there’s caution on the political side due to the scale of possible negative repercussions. Leaning towards one way or another can make or break a company’s optics. Advertisers have a tough job of navigating the deeply divided political, social, and ideological landscape of the United States. Now more than ever, it’s a challenge to promote products and services to a diverse group of consumers in the TV and digital landscape.

One possible route to take is creating variations in advertising, thus speaking separately to each group. But this is not always the most pragmatic approach.  So what are advertisers supposed to do when faced with the tension between trying to align with various causes and navigating a divided –and often hostile– public?

The answer to this question remains unclear, but the best way brands can advocate for causes they stand behind without causing a divide amongst their audience is by sending a message of unity and positivity. Americans are so divided from of all the negative messaging they’re exposed to. If you use positive messaging in advertisements and seek ways to bring people together, regardless of their beliefs, the chance for unified messaging and positive customer response remains strong.

Advertising to Gen Z

Advertising to Gen Z

When executing direct to consumer advertising to Gen Z,  some of the tactics used for other demographics, such as DRTV and Facebook advertising, may not fit the bill.  It is important to consider the best ways to reach them and catch their attention.
There are some key differences from other generations that will determine how effective certain types of marketing are. Here are some specific points to consider:

TV and broadcast radio are losing popularity as well as certain social media sites like Facebook. Audio streaming is quite popular, as are podcasts. For social media, popular Gen Z sites are platforms such as Instagram, TikTok, and Snapchat. So advertising there could grab attention.

Importance of Ethical Consumption and Brand Image:
Gen Z is more likely to be reached by a company they feel is ethical, so it is crucial to explain how a company or product is not harmful to the environment, how they help the community, who produced it, etc. It is not enough anymore to be a company whose only goal is to sell to them. They want to feel that the company is also helping the planet and its people.

Keep advertisements brief and honest:
Gen Z is used to consuming a lot of visual, digital, and social media in short periods of time, and they value authenticity and transparency. It would be helpful to clearly explain the product or company and its history using those involved in the company rather than paid actors and sets.

Advertising on TikTok

Advertising on TikTok

TikTok has become one of the biggest social media platforms in recent years, with no sign of its popularity declining anytime soon. Using different social media platforms to advertise is an effective way of adapting to modern culture, since people today consume so many different media types. It is essential to understand the specific platform you’re using in order to create the most effective ad campaign. TikTok is unique to other platforms, so advertising on the app requires special attention to the way that it’s used.

Understanding the Platform’s Structure

Ads will need to be short videos (15-60 seconds), including engaging audio elements. The app thrives off trending hashtags, sounds, and challenges. It is less formal than other platforms like Instagram, so users are used to seeing relatively unpolished content. Creating too polished and ‘fake’ ads that do not convey authenticity will likely not be well received.

Consider Using Popular Users on TikTok to Promote Products/ Services 

Some people have found fame on TikTok and cultivated a large following on the platform. There are popular creators in many different genres, from vegan cooking to special effects makeup. It would be helpful to either feature these people or create content referencing them because TikTok users recognize these people as being influential on TikTok specifically. 

Consider Using Trends and Sounds that are Specific to TikTok 

In addition to creators, there are specific trends and audios (called sounds) that are distinctly popular on TikTok and not on other platforms. It would be helpful to tap into these trends/ challenges/ popular audios to catch the audience’s attention and create something similar to the content they are already seeing and enjoying.