1. What is Direct Response Television?

Direct Response Television, or DRTV for short, includes any television advertising that asks consumers to respond directly to the company --- usually either by calling an 800 number or by visiting a web site. This is in contrasts with commercials where the objective is to increase only the visibility of the brand name.

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2. Are there different types of DRTV commercials?

There are two formats of DRTV: Short-form and Long-form

• Short-form is a 1-2 minute spot (60 / 90 / 120 seconds)
• Long-form is a 30 minute production (28:30 to be specific). The long form is commonly referred to as an "infomercial".

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3. What are the benefits of a DRTV campaign?

Television reaches the mass market and is by far the most powerful medium available to advertisers. DRTV uses this unrivaled power of television to create the "impulse to buy" and drive sales. Historically, DRTV has proven it can create overnight sensations and tremendous demand for products and services. Both short-form and long-form DRTV advertising provides companies with immediate information and metrics about the effectiveness of their marketing spend. This instantaneous feedback and focus on ROI is available only through direct response marketing. DRTV also has a multiplier effect on retail, Internet and other distribution channels.

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4. Must my product have mass appeal to be appropriate for DRTV?

Simply put - Yes. The larger the potential market for your product, the better chance a DRTV campaign will work. Television reaches a very large and varied audience. That's the benefit and power of a DRTV campaign. Targeting individual purchaser demographics is more difficult with television. The more specialized or targeted the market is for your product, the better it would do with a targeted campaign leveraging mail or Internet.

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5. Who watches DRTV spots and infomercials and who buys the products they promote?

Typically, females represent about 75% of DRTV buyers. Homeowners represent about 73%. Lower income to middle income buyers are the majority of respondents.

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6. What kinds of products do best with DRTV infomercials?

DRTV is the best advertising format for new and innovative products that can be demonstrated and shown to make life easier and better. See our Typical DRTV Product Categories and Criteria for more detail. Also, some Corporate Product Categories work very well.

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7. What is the single most important reason why people buy products through a DRTV spot or infomercial?

Television is without question the most effective marketing medium for reaching and persuading vast numbers of people. Television is able to generate an emotional impulse that leads to a purchase.

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8. Is there any particular price point for successful DRTV products??

Yes. There is strong historical evidence that keeping your price point in the following ranges is extremely important factor in the success of a DRTV campaign:

• For short-form price points under $49.95 work best and the lower the price point (ideally $19.95 or $29.95) the better.
• For long-form products priced between $49.95 and $295 have had the most success. It is also typical, that a payment plan (i.e. 3 easy installments of $39.95) are developed to better position the product price.

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9. Is there a minimum markup ratio (retail price as compared to cost of goods) for successful DRTV products?

A 3 to 1 mark-up ratio is typically the lowest ratio that should be considered. The larger your markup ratio, the better your chance of success. A markup ratio of 5-to-1 offers your product the best chance or being successful in a DRTV campaign.

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10. How important are product up-sells in the success of a DRTV campaign?

The DRTV industry is relying more and more heavily on the ability to generate incremental revenue from up-sells. Over the last several years, the average percentage increase in per order revenue that product up-sells generate has continually risen from 15% to 30%. It is becoming increasingly critical that your product have add-on's or has the ability to spin-off new, related products that can be sold to your customer list.

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11. How can I take my product to the mass market through a DRTV campaign?

Typically, the owner of a product licenses his product for a royalty fee. This is the most common path to DRTV success given it reduces execution risk and minimizes the huge financial risk associated with a DRTV marketing campaign. Joint ventures and self-funded campaigns are also options available to you.

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12. How does a typical licensing agreement work?

Licensing is the buying of the rights to intellectual property (your invention/product) with the intent to produce and market it for profit. The inventor who licenses his or her invention receives a percentage of sales in the form of a monthly or quarterly royalty check from the licensee who is responsible for taking the product to market. Thus, you make money by simply giving the permission to produce and distribute your product.

Such an agreement that both parties abide by is called a Licensing Agreement. It is signed by all of the parties involved after negotiation and has various clauses that provide the parameters of the agreement. It deals with such issues as the rate of royalties, how and when the inventor will be compensated, the length of time of the agreement, the territory of the agreement, insurance in case of injury to the customer, etc.

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13. What is the first step for Lenfest Media Group to consider my product?

The first step to working with Lenfest Media Group is to complete the Submission Form, so that we can perform our initial evaluation and contact you if your product meets our criteria.

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