Infomercial Media

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Infomercial Cycle

Infomercial Product Assessment Product AssessmentProduct Assessment
Identity Target Marketing Identify Target MarketIdentify Target Marketing
Marketing Assessment Marketing AssessmentMarketing Assessment
Profitability Analysis Profitability AnalysisInfomercial Profitability Anaysis
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Creative Process Creative ProcessCreative Process
Testing and Evaluating Testing and EvaluatingInfomercial Testing and Evaluation
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& Testing
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Infomercial Media Resources- Glossary

Informercial Media Support

Analysis - (a) After orders are sourced to their prospective airings, reports are generated in many formats to determine the financial outcome of individual airings. Follow up action includes determining budgets, rebooking and emulating profitable airings and canceling airings that are loosing money. (b) What one needs before entering the DRTV arena.

Avail - An infomercial or spot time period available for purchase.

Branding -Also known as building brand. A major wish by the advertiser is that the consumer thinks of THEIR product or name when making a buying decision.

Break Even - Calculated in CPO or Ratio. Revenues that must be generated by sales in order to recapture the hard cost of product, merchant charge, telemarketing, shipping, handling, customer service, administration, royalties and returns. 

Call To Action - see CTA below.

Continuity - Offers having the potential for continued sales, such as ingestibles or skin care, can be set up for "auto-ship" and payment on regular intervals that can be established on the initial inbound call or later with an outbound call. The income potential of this avenue should never be overlooked.

Contract - An agreement between an agency and a station that reserves a particular time period for the agency's use, usually from three months (1 quarter) to a year in length. 

CPO - Cost Per Order.  This is calculated by dividing the cost of media by the number of orders received  (for example:  $1000 airing divided by 20 orders equals a $50 CPO).

CPI - Cost Per Inquiry.  This is calculated by dividing  the cost of media by the number of inquiries received (for example:$1000 airing divided by 100 inquiries [people that call for a brochure or additional information] equals a $10 CPI).

CPL -  Cost Per Lead Same as CPI.

Cross Sell - When a direct marketer offers his customers (or targeted database) the opportunity to buy another product, typically as an outbound effort.

CTA - Call To Action: used throughout the commercial to implore the consumer to "call now" or "buy now."

Daypart - Refers to various multiple hour segments of a broadcast day:

Early Morning   6a-9a
Morning           9a-12p
Daytime          12p-4p
Early Fringe      4p-6p
Early News       6p-7p
Prime Access   7p-8p
Prime                8p-11p
Late News        11p-11:30p
Late Fringe       11:30p-1a
Late Night        1a-6a 

 

Discount Buyers Club - There are several companies that have assembled a variety of special offers, packages and discounts in a number of categories that are only offered to those who subscribe to a year of membership. It is structured in such a way that the members save enough money over the course of their membership to justify the annual fee. Typically offered as an upsell or outbound offer, the direct marketer is compensated each time the offer is read to the prospective buyer. This is a proven, no-hassle way to increase revenues.

DMA - Designated Market Area.  TV market area defined by Nielsen.

Dub - The tape on which the infomercial/spot is recorded and sent to the station.  Sizes range from: 1", 3/4", 1/2"; VHS or Beta.

Encode - A "code" is embedded into the master tape, which is picked up during it's airing by a monitoring service and downloaded to our order response department. Since direct response short form runs in broad rations, as opposed to specific half hours like long form, encoding increases the accuracy of media reporting. 

Feasibility (informal) - Initial consultation of your prospective DRTV project to determine if it meets basic DRTV criteria. 

Feasibility study, (formal) - An in depth compilation of all available sales and marketing information on competitive or similar products to that you plan on bringing to market.

Firesale - last minute avail purchased at a rate much lower than the normal rate (50% or more).

First Right of Refusal - an agreement granting an agency the right to renew or not renew a contract.

Focus Group (informal) - Our brutally honest in house DR professionals gather to evaluate feasibility, scripts, creative, or offer. Used most frequently to collect suggestions geared to increasing overall response. This service is typically free, or offered at a nominal fee. Try it. 

Focus Groups, (formal) - Groups of people who most closely resemble your target demographic are gathered in 2-3 cities across the country and offer their input on how they perceive your product and what you will need to do for them to embrace your project. They typically offer qualitative insights that can make the difference between a roaring success and obscurity.

Guarantee - an agreement between an agency and a station where the station promises to deliver a predetermined CPO or ratio, then airs as often as needed to reach the promised payout.

HUT- Households Using Television, the percentage of homes in a market that are watching television at any particular time.

Infomercial Prime Time - the most sought after times for infomercials to air: Sat & Sun 8am-12pm.

Lead In - The program that precedes a time period.

Lead Out - The program that follows a time period.

Makegood - A time period offered by a station at reduced or no cost to make up for poor past performance, station error, or other time period that is not available or been preempted.

Merchant Account In the case of DRTV, the processor that handles telephone credit card orders.  Merchant accounts are not created equal. 

N/A - Not available, an indication that a time period has already been sold or taken for regular programming or cannot be sold at a particular rate and is not available for resale.

Nielsen Week - Thursday through Wednesday.

Offer - (a) an attempt to purchase a time period usually at lower than asking price; (b) what the consumer gets and how much they pay by "calling now" is also referred to as "the offer."

Order Response - The department that is responsible for locating the source (station) of each order and inputting that information into the computer database.

Outbound Telemarketing - Either the direct marketer's in house telephone sales force, or a trained outsourced service provider, makes calls to their own, or rented targeted database. Typically for the purpose of introducing other products (cross selling), or offering the opportunity to join a club, it can be used for a variety of revenue generating or customer relation purposes.

Package - A group of time periods that could not have been purchased separately.

P/I - (per inquiry) An agreement between an agency and a station where the station agrees to charge for a single time period based on the number of orders received after the airing.

Pre-empt / pre-emption - when a time period is re-sold to another agency usually at a higher rate, or taken back by the stations programming department or network.

Price point The cost of the offer or product to the consumer.

Quarters - there are 4 quarters that comprise the broadcast year.  1st quarter runs from January to March, 2nd Quarter runs from April to June, 3rd Quarter runs from July to September, and 4th Quarter runs October through December.  Each has it's own viewer characteristic which is reflected in media rates.

Rate  - price paid for a time period.

Rate card - the published asking prices for a station's time periods, usually higher that what the time actually sells for.

Ratio - Gross sales divided by cost of media (for example: if you bought $1,000 in media and received 20 orders which yielded $2,500 in revenue, $2,500 divided by $1,000 equals a 2.5 to 1 Ratio).

Reps - Rep firm: a company that, under contract, represents stations from around the country with the intent of selling the station's advertising for a predetermined commission.

Source - In order to run the reports necessary to do media analysis, responses generated by a spot or infomercial must be "sourced" or associated with the airing that generated the response. Since our reports are only as accurate as the information we get from the inbound call center, it is important to use a call center that has to capability to capture the 800 number, time of the call and zip code. If the inbound information is inadequate the accuracy of the reports will be compromised. Also see "encoding."

Sweeps - Four times a year (in February, March, July, and November) Nielsen Media Research conducts its "sweeps."  This is where Nielsen measures audience viewership for stations and syndication programs across America.

Test - The first media run of any new creative.  Primary objective of a test is to determine the overall strength of the creative in terms of response. Testing also determines the best offer configurations, price points and telemarketing scripts.  Also a spot or infomercial  running in a new time period.

Traffic - department responsible for generating orders to tape duplication houses for creation and shipment of tapes to stations.

Upsell Once the inbound caller has placed the order, the telemarketer can offer the consumer additional opportunities to buy. This is called "upselling" the caller. A typical upsell is a related or companion product, express shipping or priority handling, additional units at a lower price or a discount buying club, to name a few. Upsells are a very important part of the offer as they generate significant additional revenues from already spent ad dollars, therefore they should never be overlooked. Since upsells are simply a part of the inbound script and not of the creative, they are extremely easy to modify and test.

Zero Order - An infomercial airing that received no orders, indicating that it might not have aired.

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