Television is considered the heavyweight champion of all advertising mediums because...
1. It reaches into more households and touches more people than any other medium.
2. It uses pictures, words, sounds, and music to emotionally move and motivate prospects to action.
3. It has the ability to capture the complete attention of your prospect.
Television allows you to demonstrate your product or service in a visual way so that your prospects can see the benefits without having physically experienced it.
Television alone has the ability to turn a small company into a big company in a very short period of time. It is the small business person's advertising dream that is now becoming a reality.
What Makes a Good Television Commercial?
The ultimate test of an effective television commercial is NOT how entertaining it was, but did it make the cash register sing?
Some commercials are made to be so entertaining and clever that you can't even remember what product or service it was promoting.
A good commercial should...
1. Motivates your prospect to DO something immediately.
2. Explicitly communicate your product or service's advantage over other choices.
3. It visually arouses your prospect. (You can test this by turning the sound off and if it still has the same visual effect then you're on to something)
4. It inspires trust, confidence, and believability.
5. It provides a single consist message that penetrates the prospect's mind and stays there for awhile.
Your Commercial vs. Remote Control
People are so jaded to television commercials that you're fighting a losing battle from the start. The remote control is your worst enemy.
We've been trained to flip the channel using the remote control as soon as a commercial comes on. A good commercial must grab the attention of viewers and force them to stay and watch your advertisement.
That's why the first three to five seconds of your commercial must grab your prospect's attention and compel them to stay and watch.
One of the best ways to capture a person's attention is to dramaticize the problem that your product or service solves.
For instance, do you remember the Alka Seltzer commercial that showed a person holding on to his stomach saying, "I can't believe I ate the whole thing." You could almost feel his stomach pain.
Another way is to splash your commercial with a known celebrity. Examples that come to mind are Michael Jackson in Pepsi commercials, Michael Jordan in Nike commercials, and Brook Shields in Calvin Klein commercials.
Is there a local celebrity that would be willing to endorse your product in a commercial? Local pro sports athletes always work well.
How Long Should My Commercial Be?
Most often you have options as to the length of your television commercial spot. The two most popular are 15 second spots and 30 second spots.
Some advertising experts claim that short spots in the 15 second range are 60% - 80% as effective as 30 second spots, in terms of prospect recall.
However, if you are rolling out a new product or are trying to establish your name, usually 15 seconds doesn't give you enough time to explain your benefits.
15 second spots are most effective when you have a well-known name and are trying to reaffirm your company's image and name brand.
But the bad news is that a 10 - 15 second spot might cost as much as 80% of a 30 second spot. In addition, some stations will automatically bump your commercial if a 30 second commercial comes along.
This pricing and bumping policy is sometimes used by stations to discourage short commercials.
Some studies have shown that a 30 second spot is up to 90 percent as effective as a 60 second spot. For most small businesses the 30 second spot is the best choice.
Five Types of Television Commercials
Depending on what you are selling, each of the five types of television advertisements either fall into a two-step selling format or a one-step "image" advertisement format. The following is a brief explanation of the five types of TV ads.
1. Two-Step Lead Generation Commercial
The two-step lead generation commercial's sole purpose is to generate qualified leads that can then be followed up on with telemarketing or direct mail.
The two-step selling process is used when you are selling a high-ticket item in which the benefits need to be explained.
Products such as pool construction, life insurance, automated beds, vacations, hot tubs, hair transplantation, homes, luxury cars, etc. are all good candidates for two-step lead generation using television.
2. Two-Step Short Form Infomercial
Another form of two-step advertising is using direct response short-form product selling. It's kind of like a mini-infomercial and is often use with consumer items. The commercials duration can be anywhere from 30 seconds to 2 minutes.
This type of commercial tries to sell you a consumer product using a short-form commercial and gives you a toll-free number to call and order.
Products such as kitchen items, music CD's, diet supplements use this form of commercial. The magic price for moving product using the short-form commercial is <$20 or usually $19.95.
Once you pick up the phone and call for the product there is a heavy upsell process for other complimentary products or services. So, in essence, it is a two-step selling process as well.
This type of commercial is "self-liquidating" meaning that the goal is to break even on the first sale so that you obtain a loyal customer essentially for free.
The goal is for these customers will continue to buy your products and add-ons long after their initial purchase.
3. Branding Image Advertisement
The image advertisement that reminds you of their brand name (i.e. Coca Cola, Nike, McDonalds). These types of commercials are usually done by national product manufacturers or national service providers to support their local branches, affiliates, or franchises.
National image advertising attempts to hammer their brand into your mind and differentiate themselves from their national competitors.
4. Retail Promotion Image Advertisement
The objective of the retail promotion image advertisement that retailers use is to drive you to their store. This could include the announcement of a limited time sale or promotional event. This type of commercial is usually done by a local merchant.
You'll notice local merchants advertising sales that correspond to holidays or seasons such as a Fourth of July sale, or a Veteran's Day sale.
5. Long-Form Infomercial
The grand-daddy of the television commercial advertisements is the long-form infomercial. If you've ever stopped to watch Ron Popeil's (Ronco) Pasta Maker or Showtime Rotisserie Oven then you've seen an infomercial.
Products and services that promise wealth (real estate courses) or beauty (weight loss) are the champions in this arena. However, other products such as videos on helping children make better grades in school have been very successful using long-form infomercials.
Developing Your Television Commercial
Producing a commercial is often a stumbling block for many business owners. It is seen as a high-cost creative nightmare that only professional TV commercial producers can do.
In fact, there are three ways to produce your television commercial:
1. Go to a full-service TV commercial production agency and have it completely done for you.
2. Write the script and direct the commercial yourself and then hire an agency to videotape the spot.
3. Do a homemade commercial yourself.
If you want to do your own commercial yourself you'll not only need to be a talented scriptwriter and director, but you'll also need access to the right equipment. It's doable, but not advisable.
Writing the script and directing the commercial yourself if a viable option if you, again, are a talented scriptwriter and know how to put together a compelling commercial (Been there and done that - - turned out "okay").
But for most of you, you'll need to find an agency that will produce your commercial for you. A good resource that lists agencies is:
The Adweek Source Book. Call Adweek at (800) 722-6658.
But my highest recommendation goes to a great new television production service called http://www.Cheap-TV-Spots.com
If you think that these are a bunch of college kids, they're not. In fact, they are a group of pros that produce excellent commercials for as little as $500!
Not only do they help you create your commercial but they also help you buy air time. Go to their site and check out some of the commercials they've done. (Tell them I sent you)
Direct Response TV Commercials
_____________________________________
Direct Response TV (DRTV) refers to commercials made for TV in which viewers are asked to place an order during the advertisement through a toll-free number.
The order may be to buy a product or to call for more information. This contrasts with commercials where the objective is to increase only the visibility of the brand name.
My favorite form of television commercial for small business is the direct response commercial. With direct response commercials you can...
1. Track your results.
2. Determine your advertising return on investment.
3. Get an immediate response.
4. Find out quickly if your commercial is a loser allowing you to make fast improvements.
5. Get prospect's contact information for further follow up.
Best Products for DRTV
Although most any product or service can use direct response mechanisms in their television commercials, it is best used new and innovative products that can be demonstrated and shown to make life easier and better.
Health and fitness products; cosmetics; skin, hair and other personal care; nutritional supplements; house wares and appliances have been among the most successful products marketed through DRTV.
Financial and business opportunities and some educational and personal improvement products have also done well.
The best products has mass appeal. The larger the potential market for your product, the better your product will do. TV reaches a very large and varied audience. If your product or service is specialized, direct mail would be a better media for advertising.
Product Price Points for DRTV
Traditionally, price points below $20 have done the best in the short format and products priced between $40 and $300 have done well in the infomercial (long) format.
Product Markup Requirements
The larger your markup ratio, the better your chance of success. Divide your retail price by cost of goods. A markup ratio of 5-to-1 offers your product the best chance or being successful in a DRTV campaign. A ratio of less than 3-to-1 is most likely too low for success in this medium.
The Importance of Upsells
To make your DRTV commercial profitable its important to have an upsell process in place when taking orders. In 1998, "upsells" added 15% to orders; in 1999, 20%; and in 2000 they added 29% to DRTV orders.
It is critical that your product has consumables or add-on's; or will spawn new, related products that can be sold to your loyal following. These "back end" sales will continue to justify the costs of a DRTV campaign.
Other Important DRTV Success Factors
Other important factors that will help to make your DRTV commercials successful are:
1. Does your product have additional back-end products and service or aftermarket products that can be offered after the sale?
2. Can your product be reliably and easily demonstrated on TV with impressive results?
3. Does your product (or products like it) have a proven track record of retail or direct sales?
4. Does your product solve a real, pressing problem? The more emotional the problem the more potential for success.
5. Does your product make life easier and better?
If your product has wide appeal and solves a nagging problem it's probably a good candidate for direct response television.
Simple, Inexpensive TV Commercials
Recently, I've been watching a commercial that has really grabbed my attention. It is a direct response commercial for car loans. The entire commercial showed white text on a black background with a booming voice reading the text.
The commercial drives viewers to an automated voice message system to capture their contact information and to quality them for a car loan.
It is almost like watching a short Powerpoint presentation on TV with a voiceover. It couldn't have cost them more than $200 to produce and it is effective.
Motel 6 Commentary
Motel 6 once did a commercial that showed a black screen the entire commercial with Tom Bodett's commentary. Tom's final comment in the commercial was, "This is what your room looks like when you're asleep."
Very ingenious.
Tax Preparer That That Saves You From IRS Penalties
A tax preparer in Houston shows the flashing red lights of a police car with sirens roaring and a booming voice telling people that they need to get their taxes done before the deadline to avoid IRS penalties.
The lights and siren sure gets people's attention and I'm told that the switchboard lights up when their commercial airs.
A Tough Personal Injury Lawyer
A personal injury lawyer in Houston uses a similar tactic with sirens and flashing lights and has a shot of him looking mean. He looks right at the camera and says in a rough and tough voice, "Look at me! I'm Jim Adler, the tough, smart lawyer! I will get you..."
Jim Adler has built a reputation as a street-smart fighter that will get you every penny you deserve with his rough and tumble commercials.
The Chainsaw Mattress Salesman
A very memorable commercial airs in Houston showing a young man who sells mattress. He holds a chainsaw in his hands and says in a loud voice, "Oooooo, we are cutting prices (while he cuts the mattress in half with the chain saw) and ends with all his staff jumping up and yelling, "And that's a fact...jack!"
The Infamous "Gallery Furniture Saves--You--Money"
And then there's Jim MacInvale, the most successful single store furniture retailer in the world. His commercial ends every time the same way. He pulls a wad of money out of his back pocket and says (almost yells), "Gallery Furniture saves - - you - - money!"
That one phrase is perhaps the most memorable phrase on Houston television (he does a lot of advertising).
Ads That Run For Years
Now I'm not telling you that any of these commercials work, however, each of these commercials airs frequently and has been running for years.
To me, it indicates that it has to be working or else they would have been taken off the airwaves long ago. You don't have to spend a bundle on a television ad. With a little creativity you can create an effective, attention getting, memorable commercial.
Never Forget to Use Your Suppliers Resources
In the pool and spa industry, where I consult, it is a standard practice for a retailer to use video footage from manufacturers to create commercials.
Your suppliers and manufacturers can be excellent sources of raw footage that you can use to create commercials for pennies on the dollar.
In addition, don't forget to max out any co-op funds you might have available from your supplier or manufacturer.
Using co-op funds usually requires you to show the logo or name of the manufacturer, but its a small price to pay to fund your media buy.
Advertising on Cable Television
Yesterday I spoke with a client who is a small business owner in Missouri who was complaining how expensive it is to advertise in the newspaper.
In fact, he mentioned that he can run 200 cable TV ads for the same price as one ad in the local newspaper!
Options for advertising on TV have opened up to the small businesses of America with the explosion of cable TV. Cable has become the direct mass marketing tool of the new century.
Although less people watch cable TV, the ability to target your message to your specific market is an advantage.
Would you want your marketing message going to 30,000 teens or to 1,000 adults between the ages of 35 and 55 with incomes $60,000 and up?
It’s not the size of the audience, it’s the quality that counts and that’s what cable TV can do for a small business owner.
Choosing the Right Channel
Because of its tight programming, cable TV can focus in on a large population of a tight demographic group.
Unlike traditional television, when you think about your strategy for cable television advertising you need to think, channels rather than programs. Which channel is my target demographic group watching?
For example, when you are selling to the affluent, a useful tool to help you determine which channel to advertise with is the Mendelsohn Media Research’s annual Affluent Cable TV Study.
This study is based on heads of households with annual incomes $75,000+, who watched cable network in the past seven days. You can find a copy of the full study from 2001 at this website http://www.mmrsurveys.com/mhomefr2.htm.
Cable Television is Affordable
Most media buying experts recommend cable TV advertising to their clients. Prime time spots on broadcast TV cost $2,000 to $3,000 in the southeast like Raleigh, North Carolina.
Prime time cable spots go for $175 in the same area. Commercials on cable systems in the suburbs outside New York City are cheaper. Your 30 second spots run on CNN and ESPN for $25.
Nick goes for $20 and TNN, BET, and VH-1 are $15 per commercial. Expect to get better rates when you buy packages of multiple spots.
Small town cable prices are even lower. It is not unusual to buy commercials for $2 to $3 in a town of 40,000 people. While most of the commercials on cable TV programs are national spots for major companies, four to six commercials per hour are made available to local advertisers.
New digital technology allows many cable systems to easily and accurately schedule your commercials on specific channels to be seen in chosen communities and neighborhoods.
Secrets to Purchasing Television Time
Television is one of the most negotiable of all advertising media. Ad Age magazine performed a study that found a full 44 percent of buyers say only 20% to 59% of all media buys are made at stated rates.
Only 5.4 % of those pooled say all media buys are made at published prices. A general rule is that the smaller the area (small towns) the more likely they are to negotiate.
There are several different ways to buy television media:
1. You buy your own time.
2. You buy through a media buying service.
3. Both buy your own time and work with a media buying service.
Pricing for television media time is based solely on what you can negotiate, and supply and demand. If a station has a lot of open slots then they will probably price is low to get their slots filled and visa versa.
Buying on a National Basis
If you are buying on a national basis the first resource you want to get is the Television and Cable Factbook and TV DataTrack from Media Market Resources Inc. in New York.
Once you decide on what markets you want to do business in you go to the Factbook and get its rank and call letters. You can also use DataTrack to find the videotape size requirements and audio and video wattage.
In addition, which channel you advertise on makes a difference. You'll notice that the lower channels are where you'll find the national broadcasters NBC, ABC, CBS, and Fox. Ideally, you'll want to shoot for a channel below 13 with a high weekly circulation ("net cume).
Every Commercial is a Test
If you are running direct response commercials for lead generation or infomercials you can quickly determine the performance of your commercial.
Every commercial you run should be a test. You should collect statistics from each and every commercial to determine it's comparative profitability.
It's always smart to have a two-week cancellation clause so that you don't get stuck with a losing commercial and a long commitment for the commercial to run.
Programming is the Key
To target your market when buying media for radio its important to select the right radio station that has a listening audience in your target demographic.
When targeting your market for television you need to select the right "program" that has a viewing audience in your target demographic.
Logic tells you if were selling an arthritis relief cream you wouldn't advertise it during a Saturday morning cartoon program.
Conversely, if you were selling a child's toy you wouldn't advertise it during Meet the Press.
Understanding who your target demographic market it and matching that to a "program" that has the same target demographic market is the key.
All TV and radio time is rated by independent polling companies. Two of the most used are Nielson and Arbitron.
Arbitron and Nielson have rating services that list every single time slot, and give several numbers, such as "rating points," indicating the viewership that each slot attracts.
Note: "Rating" is the percentage of TV’s tuned to a particular program compared to the total number of households in a given market that have televisions. A "rating point" represents one percent of TV households.
Although these numbers are not perfect, they give you a sense of how many people, by demographics, are watching specific programs.
Reach and Frequency
Reach and frequency are important to understand when buying TV time. Reach is the percentage of a target demographic that sees your ad at least once. Frequency is the number of times your average viewer sees your spot.
Beware the media rep that tries to sell you more frequency than is needed. Your media rep will always try to convince you by logic and by offering volume discounts to buy frequency.
The media rep might give you a great buy on a 100 spots that will run at the station's discretion. That means they could run your commercial from 2:00am to 4:00am during some odd program when your target market is sleeping.
You might be better off paying for one spot during your peak target market viewing program that 20 spots during odd programs and times.
The fact is, if you're running a direct response lead generation commercial or an infomercial, frequency is less of an issue. If your target demographic didn't respond the first or second time, they will probably not respond the fourth or fifth time.
However, frequency is important. Some experts say that your target demographic should see your ad at least three time over a two week period in order to have a significant impact on the viewer.
With this in mind it might be wise to negotiate with your media rep on a schedule that presents your commercial to your target demographic three times a week over a two week period.
Warning: If you're not getting the response you want, it might have nothing to do with frequency (contrary to your media reps opinion), you might just have a bad commercial that doesn't motivate your prospects to do anything. That would be the first thing to look at to improve your response rate.
Forget About Reach and Frequency!
I'm going to share a media buying secret with you that a fellow marketing genius, Brad Anton, (http://www.commonsensemarketing.com) shared with me about buying television (or radio) media.
Brad should know. He and his brother owned a string of electronic stores and spent thousands of dollars on media every month. Here is his secret...
Forget about reach and frequency. When you're spending a lot of money on TV all you care about is how many
of your best potential prospects are actually seeing your spot. So follow these steps...
Step 1 - Decide on your target demographic.
Step 2 - Determine how much of your marketing budget you want to spend on television advertising.
Step 3 - Determine a fair price for a rating point based on your target demographic and negotiate your airtime based on rating points only. DON'T PAY A PENNY FOR A RATING POINT THAT IS NOT IN YOUR TARGET DEMOGRAPHIC.
Step 4 - Allow the television station to run your commercial whenever they want with the understanding that they will have to prove that the times they pick for your commercial are being watched by your target prospects based on rating points.
Step 5 - Audit each spot against the rating points delivered as shown in the most recent rating book.
That's it. The Brad Antin method for buying media time. According to Brad, he paid almost half of what he normally would have paid for the same airtime and reached the same amount of target prospects.
Television Commercial Resources
http://www.Cheap-TV-Spots.com
Produces high quality, economical television spots and offers media buying services.
http://www.adcritic.com
Fee-based website that includes a huge archived database of the best (and worst) television commercials.
http://www.adweek.com
News and research about advertising.
http://www.commercial-archive.com
Contains an archive of television commercials that you can access for $2.00 a month.
http://www.usatvads.com
A massive library of over 1 million ads. You can order competitive ads for as little as $75. For $9.95 you can purchase two hours of the best commercials from the 50's, 60's, 70's, and 80's.
http://onlinecareercourses.com/com.html
A course on writing your own television commercials.
http://www.infoworx.com
Producers of infomercials. Infoworx evaluates your product. If accepted, you pay to cover their costs and they share in royalties on the revenues.
http://www.nielsenmedia.com/
Nielsen Media Research is the leading TV Ratings company. Nielsen offers television audience measurement and related services.
The Advantage that TV Has Over All Other Mediums - To learn more about this author, visit David Frey's Website.
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David Frey
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David Frey is the author of the
best-selling manual, "The Small Business
Marketing Bible" and the Senior Editor of
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