02.22.07
Media Buying Trends
To get a handle on the trends affecting the direct response media buying space and solutions for making the most of this medium, Target Marketing Editor in Chief Hallie Mummert spoke with Peter Koeppel, president of Koeppel Direct, a Dallas-based direct response media buying agency that specializes in short-form and infomercial DRTV.
TM: What is the penetration of personal video recorders (PVRs) doing to how companies buy direct response TV spots?
PK: We haven’t yet changed the way we buy DRTV to counteract the penetration of PVRs, since the penetration is still relatively low. It’s estimated there are currently only around 6 million households with PVRs, so the effects aren’t apparent yet. However, by 2010 DVR penetration is expected to reach 40 percent of TV households. This will have a significant impact on the way people watch TV, and could result in a large segment of the viewing audience zapping through commercials.
I’ve seen some recent research that viewers of cable news and sports channels have the highest percentage of “live” viewers, so buying more of this type of programming is a way of counteracting higher PVR usage.
TM: What strategies should companies employ to find cost-effective time slots for their DRTV campaigns?
PK: Employ an experienced direct response TV media buyer. [These professionals] understand the value of inventory, they have leverage with the networks/stations due to the volume of time they buy, they know the networks/stations/dayparts that perform best, and [they] know how to effectively track and optimize their buys by moving money to higher performing media and dropping less responsive media vehicles.
TM: Are certain formats more flexible on inventory and cost than others?
PK: With short-form DRTV, there’s definitely more 60-second inventory available than 120-second inventory. There’s generally a set amount of inventory available for infomercials, so this limits the available inventory during periods of higher demand during the fourth and first quarters.
National cable has traditionally been the primary TV medium for direct response TV advertisers. However, short-form cable rates have increased as a result of more general advertisers moving into the medium. The growth of satellite TV has provided additional inventory for both short-form and infomercial direct response TV advertisers. In addition, we have seen more DRTV advertisers buying syndicated and network TV.
Peter Koeppel is Founder and President of Koeppel Direct
