The words Direct Response Marketing can instantly create apprehension from most marketing executives and business owners. It is easily the most difficult form of advertising to master, but the one with the greatest potential rewards. If done correctly, it can transform your entire company. As president of The Random Agency, I have had the pleasure of generating tens of millions of dollars for our clients through direct response. Our products have ranged in price from $19.95 to over $30,000, in a huge variety of categories. From tourism marketing to kitchen gadgets, there are few businesses that could not benefit from DR. Today, I’d like to share five reasons why every business should use direct response advertising.
- Direct Response Advertising can be incredibly effective. Direct response marketing can be one of the only ways a tiny company can grow to millions of dollars in sales in a few short months. Through DRTV, we establish an MER, or media efficiency ratio. Simply put, the MER is gross sales divided by media costs. Generally, if that ratio is over 1.75, your campaign is successful and can use profits to expand rapidly. If the MER is high enough, your business can easily qualify for media funding, which allows your company to expand advertising at an even faster pace, and create a major presence in the marketplace.
- Direct Response Marketing provides immediate results. If you’ve ever spent millions of dollars in brand advertising, you know that results of that campaign are gauged in months or even years. With direct response television, we know in days. By appealing directly to consumers, we receive immediate feedback, and can quickly gauge response. While our test periods are usually 1-2 weeks, and drag orders can continue for months, we know immediately if we have a hit.
- Picking a Direct Response Agency is easy. Actually, we should say that picking a direct response agency should be easy. You can ultimately narrow down direct response agencies by one simple question: “What is your success rate in direct response?” Why is this so important? The industry average is between 5-10%, while The Random Agency’s success rate is over 90%. As I mentioned, direct response is one of the most difficult forms of marketing to master, and only a few agencies do it well. Do your homework, and your chance of success is over 1000% greater.
- Direct Response advertising is much less expensive. Did you know that DRTV rates are sold at a fraction of the cost of normal advertising rates? Television stations sell this time at special rates, provided there is a specific call to action to consumers. All you need to have is phone number or a website address, and let us handle the rest.
- Direct Response advertising pays for itself. Most companies have an annual advertising expense budget. With direct response, those advertising dollars can instantly be returned in revenue. Our typical media test ranges between $10,000 and $15,000. If you have a positive return, you expand the campaign. Suddenly, your advertising isn’t an expense… it’s a profit center.
If you’re ready to get started on a potential direct response campaign, do your homework! Selecting the right agency to help you is the most important decision you will make. If you have any additional questions, please feel free to contact me directly here. We wish you the best of luck in your future endeavors!