01/11/2007: "Is DRTV a Good Way To Advertise? Maybe not . . ."

There is a class of advertiser who thinks DRTV (Direct Response Television) is the very best place to advertise. The truth? Not necessarily so, my friend.

Studies are showing that television as an advertising medium is dying. Oh, it still has a place. But viewership is way down and people are tuning out advertising.

As measured in share, the percentage of just those television sets that are on at the time, the three newscasts earned a 37 share in November 2005, a drop from the 38 earned in November 2004. And that are just the news shows.

Networks with NO ADS, however, look promising. When viewed alongside the declining overall viewership of the three commercial broadcast television networks, the health and stability of “The NewsHour with Jim Lehrer” on PBS is impressive. Data provided by the NewsHour indicate that viewership of the program continues to remain close to 3 million each night, with some 8 million unique viewers watching at least one night a week.

Trouble is, you can't advertise on these channels. You can, however, sponsor some of the programming.

SOME OLD INFORMATION OF VALUE TODAY

Out of the total adult population of Americans, 63% watch some form of DRTV advertising, translating to a customer base of 136.2 million viewers, according to a study by the Electronic Retailing Association.

And while this is strong participation, overall DRTV viewership has declined 11% points since a previous 1996 study. "Not all the news it brings is good news as the data reflects challenges faced by all marketers for consumer attention in an increasingly fragmented and overcrowded media landscape," ERA CEO, Elissa Matulis Myers, said in a statement.

People are spending more time with video games, cell phones and the Internet. What does that mean to you? It means you should spend most of your advertising budget on Internet marketing. Use television and radio to push people to your Web site. Sell them on your site. The important money is going to the Web.

That means your Web site should be a sales tool --- not a brochure. It means that amateur days are over. You have to grow up. Make your Web site a fantastic, fast-moving sales tool that works!

Following is a press release that proves my point:

INTERNET ADVERTISING REVENUES SURPASS $4 BILLION FOR Q3
Latest IAB/PwC Survey Finds 2006 Record Industry Growth and Largest Quarter Ever

NEW YORK, NY (November 14, 2006) – The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP today announced that Internet advertising revenues reached an estimated new record of $4.2 billion for the third quarter of 2006. The 2006 third quarter revenues represent a 33 percent increase over $3.1 billion in Q3 2005 and a 2 percent increase over the Q2 2006 total of nearly $4.1 billion.

"The consistent growth of online advertising is a clear indication that marketers continue to embrace the true power of interactive advertising," said Sheryl Draizen, SVP, General Manager, IAB. "Marketers are experiencing how this medium enhances their ability to target and engage the audience that matters to their brand and then measure its effectiveness in ways no other medium provides."

"Interactive advertising, with its eighth consecutive quarter of growth and the largest single quarter ever, is on pace for its biggest year. This growth follows the trend of where consumers are spending their media time and the unique ability of Interactive advertising to effectively target and monitor ad campaigns," said David Silverman, Partner, Assurance, PricewaterhouseCoopers.

An advertising agency such as Digitas, a Boston based firm, is on the move and growing dramatically. Why? Because they know how important the Internet is and they're using it to benefit clients. (Disclaimer: I own stock in Digitas.)

So yes, DRTV has its place. But the Internet is the place to be.