fall dma ‘09 the new drtv frontier how to do successful ...televentas directas tronix country...

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A. Eicoff & Company11

Fall DMA ‘09 The New DRTV FrontierHow to do Successful

Hispanic DRTVOctober 20, 2009


• How to tap into the Hispanic direct response television market and integrate in with the client’s existing brand

• Anglo/Hispanic Integration, the difference and similarities of these to channels and how to maximize both

• Developing Hispanic creative as part of the integrated mix & maintain appeal to the Hispanic community

• Effective Hispanic media buying in and out of station, networks and telemarketing

• Discover clients best practices in cluing a key case history of an Anglo & Hispanic campaign for the same product

Key Points to Cover Today


Facts on Hispanic Growth & Demographics in the U.S.

• Hispanic growth & demographics in U.S. • Hispanics totaled 15% of the U.S. population in 2007 (47

million individuals), up more than 25% since the 2000 U.S. Census

• The U.S. Hispanic population will triple by 2050 and account for approximately 30% of the U.S. population

• In 2007, Hispanics spent over $845 billion. By 2011, buying power will hit $1.2 trillion, representing 9.5% of all U.S. buying power

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Facts on Hispanic Growth & Demographics in the U.S.

• The Hispanic market is a younger one, 1/3 are younger than 18 and 88% of them were born in the U.S.

• The Hispanic market is highly segmented, there are 25 different groups that could be called “Hispanic.” There are distinctions that must be understood between the different groups in order to market effectively


Hispanic DRTV Growth

Movement from General to DR


Hispanic DRTV Growth

• 25% of Hispanics spent more than $500 on their Direct Response purchases in the past year

• 45% of Hispanics cite “convenience of shopping” as a reason for making a DRTV purchase

• 64% of Hispanics shop on the internet • Finally, for the most part Hispanics want to be spoken to

in their own language. Any study that has looked at this issue of English vs. Spanish language ads, have found that in the case of the older generation Hispanics, they value those advertisers who speak their language

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Hispanic DRTV Growth (cont’d.)

• In media placement, buying and planning, we must be extremely diligent about being sensitive to language and cultural influences

• Hispanics more likely than Non-Hispanics to purchase banking services, credit cards and insurance from direct response


DR Advertisers Spent Over $63 Million in Spanish Language TV in 2008

Sources: TNS Media Intelligence FY2008 (3‐17‐09 Stradegy)

2008 Direct Response AdvertisersTop 100 Spenders in Spanish Language Spot Television

Top 100 of 304 DR Advertisers in 2008

Dr Pacheco NaturalamenteProactiv

Bluehippo FundingOro KitGold KitFiltramaxCrema IntlPotensex

Academia LatinoamericaVanidades Magazine

HongosanBuxton

Golden MemorialTime‐Life

Selecciones MagazineTv Y Novelas Magazine

Te ChinoAlfa

Cosmopolitan MagazineNutriliteDieta Intl

National Geographic MagProsvent24 KilatesWalk Fit

Computacion Sin BarrerasExtenze

Super PlacerRiddex Plus

Qualified HealthSuper Vigor

Oropordinero.ComFocus Factor

Mirta De PeralesHongotrim

Ingles Sin BarrerasMujer VitalTvatlas.Com

Erectomax & SexomaxGerber Life Grow‐Up Plan

WellcareUS English

Whites ElectronicsGuaranteed Con Funding

Bosom MaxTelebrands

Miracle Blade 3ESPN Magazine

Musicspace.com StoreTeleventas Directas

Tronix CountryNational Geographic/EsplHablando Ingls Lynd/ESPN

Air ClimberOlympia

CardiovitaminsAdvance Marketing Plus

Mundo De InglesEl Nuevo Herald Newspapr

Phase 4Botulex

Renuee EternelleComfort TiltFired UpCre‐CDell

Senior Life InsuranceMaravillasJack Lalanne

Cra Consumer Resource AssnHablando Ingles

Nutri‐MaxNatural PowerCash4Gold.comCircuit Country

RigotonVideo Professor

CellulessMiracle Blade

Immigrant Times NwsprMolding Control PlusSlim Control Powernet

Debbie MeyerAmerica DirectoAqua Globes

Landmark VideosSchuler

Church/Latter‐Day StViglutesFlex Relief

JustilanguageColorado Drug CardPerfect Pushup

Medenvios HealthcareRoyal PrestigeWetline Pro

Girls Gone WildIngles Ya

Dpr MarketingSauna Twin


Copyright ©Univision Communications Inc. All rights reserved.

In the Past Year, Hispanics Spent an Average of $330 on DR Purchases

Over Two‐Thirds of Hispanics are Paying for

DR purchases with Credit/Debit Cards

Amou

nt Spe

nt

Source: Simmons NCS/NHCS Fall 2008. Base= Made any mail/phone/internet order in past 12 months

21%

17%

10%

11%6%

8%

6%

5%

3%$500+

$200‐$499

$150‐$199

$100‐$149

$75‐$99

$50‐$74

$30‐$49

$20‐$29

LESS THAN $20

Source of P

ayment

CREDIT CARD 46%

DEBIT CARD/ELEC. TRANSFER 23%

CASH/CHECK/MONEY ORDER 22%

OTHER 4%

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A. Eicoff & Company1010Source: Simmons NCS/NHCS Fall Surveys, 2004‐2008.

7,952,0008,729,000

10,714,00011,524,000

11,921,000

2004 2005 2006 2007 2008

50% increase in Direct Response Shopping Among

Hispanics since 2004

Today, 40% of Hispanics shop via Direct Response

Made any Mail, Phone, Internet Order in Past YearAmong Hispanics

Direct Response Shopping Among Hispanics Increased 50%

vs. only 16% growth among Non‐Hispanics


11%

15%

11%

Purchased Direct Responsefrom Television

Hispanics are More-Likely to Buy Direct Response

Your ConsumerYour Consumer


Total Hispanic Non‐Hispanic

1,827,0001,827,000Hispanics Made DR Purchases from Television Advertising*

*Includes television infomercials and other television


Hispanic Direct Response Shoppers have Almost Doubled in as Little as 3 Years

Source: Simmons NCS/NHCS Spring Surveys, 2005‐2008.

8,228,000

9,791,00010,840,000

11,932,000

2005 2006 2007 2008

Today 40%40%of Hispanics

Shop by Direct Response!

30%30% 36%36% 38%38%

Made any mail, phone or internet order in past year

Direct Response Growth

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Buying Power Projected to Nearly Double in Ten Years

Hispanic Disposable Income Projections (In Billions)

Source: Global Insight, 2007 Hispanic Market Monitor



Creating & Producing Effective Hispanic DR Television


Defining the Hispanic Market

• Family oriented• Younger – ½ market under 13• Highly segmented -25 different Hispanic Groups• 25% spent more than $500 on their direct response

purchases in the past year• 45% of Hispanics cite “convenience of shopping” as a

reason for making a DRTV purchase• 64% of Hispanics shop on the internet • Hispanics more likely to purchase banking services, credit

cards, insurance, doctors, dentists from TV• Maintain a positive outlook in the current economy

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Hispanic Viewing Options

• TV – Over-the-air, satellite, digital cable• Internet TV – Windows media flash, Quicktime• Other – Live on-demand, i.e., YouTube, I-Phone, etc.


Hispanic Creative Strategies

• Use hard sell tactics to create immediacy• Use highly visual demonstrations• Use Hispanic Talent/Spokesperson• Use credible customer testimonials• Use Celebrity/Athletic Endorsements• Keep it simple• Emotional appeal


Long-Form/Short-Form Overview

• 30-Minute infomercial: focus on product demonstration, product features, consumer benefits, etc., while utilizing customer testimonials, experts and special offers to maximize consumer response

• 2-Minute spot: historically pulls in strong volume at a lower price per lead: typically converts higher than other spot lengths

• 1-Minute spot: strong for lead generation programs, necessary for clearance on network, cable and certain broadcast spot stations. Tends to be a workhorse

• :30-second spots: Allows for increased frequency in tight markets and opens door for opportunistic inventory

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Internet Creative

• 3-seconds to capture customer’s attention• Creative elements must:

– Position (who’s your target?)– Product (what are you selling?)– Pitch (why should customer buy?)

• Use teasers, offers, discounts, etc.


Why Hispanic DR?

• Effectively reaches buyers in a growing market• Inherently measurable• Creative approach is critical• Builds brand awareness while creating revenue


Challenges - Telemarketing

• While DRTV is growing by leaps & bounds in the Hispanic marketplace, telemarketing remains a key challenge to the future success and growth of DRTV

• Highly trained bilingual telemarketing people are critical to the success of a Hispanic DRTV campaign

• There are now key centers that handle the higher spikes from cable. Eicoff oversees the entire telemarketing RFP process

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The Network Perspective

A. Eicoff & Company2323Geoscape. American Marketscape DataStream 2008 Series. Produced by the Geoscape ® Intelligence System (GIS) “The data herein contained will be used exclusively for advertising/media decisions related to

Univision. Any other use must be explicitly licensed from Geoscape. ” Individual locations are overlapping; aggregate is unduplicated

WESTWEST

2008‐2013 Hispanic Percent of Total Growth by Census Region

MIDWESTMIDWEST

SOUTHSOUTH

NORTHEASTNORTHEAST

32%32%

32%32%

58%58%

Chicago: 100%

53%53%Los Angeles: 83%

San Francisco: 100%

Houston: 50%

Hispanics are Fueling the Population Growth Across the U.S.

53% of the Total Population growth in the West is Hispanic



LA47%

SF24%

PHX31%

Source: Nielsen NSI 2009 TV A18‐49

2009 Hispanic Share of Total A18‐49 Population Total U.S. = 17%

CHI22%

NY23%

MIA49%

SAC27%

The Future is Now!

HOU36%

DAL29%

SA55%

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With Increased Viewing Options, U.S. Hispanics are Watching More Spanish-Language TV

Primetime Percent Share of Adults 18-49 Viewing

28%25%

72%75%

49%

44%40%40%41%

38%

48%50%

56%

27%31%

34%34%

60%60%62%

44%

50%52% 51%

56%59%

66% 66%69%

73%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

English Stations Spanish Stations

Launch of TF

in 2002

Source: NHTI, Adult 18-49, 1993-2006 Full Year; 2007 Weighted Average of NHTI 01/01/07-08/26/07 & NTI-H 08/27/2007-09/30/2007, Monday to Sunday, 7PM-11PM; All Network Programming Included. ABC, CBS, NBC, FOX, UNI, TEL: 1993-2007; TF: 2002-2007


Among Largest Audiences On TV

#1 Network 63 Nights In YTD 2008 Among A18‐34

#1 Station in the Country’s Top 10 Markets Belongs to KMEX (LA) Among A18‐49

A18‐34 Prime Combo Live+SD AA(000)

1

2

3

5

9

8

6

7

10

2,046

1,460

1,293

1,146

1,071

674

632

632

548

518

4

Source: Nielsen Media Research, NTI (09/24/07‐09/21/08) Mon‐Sat8‐11pm/Sun 7‐11pm Live+SD. Based on Top Rated Cable Networks


Personal Items Entertainment

Items for the Home Business/Financial

OTHER

Hispanics are Buying DR Products in a Variety of Categories % Hispanic Who Bought Direct Response Item in Past Year


4%Educational Programs

6%Other Health/Medical Items

7%Automotive Products

8%Prescription Drugs

14%Footwear

31%Apparel/Accessories

6%Collectibles

6%Sporting Goods/Equipment

8%Tickets For Movies

10%Travel Services/Packages

12%Tickets For Events (Not Movies)

12%Toys/Games

31%Books/Music/Video

4%Gardening

4%Hardware

6%Food/Perishables

7%Home Furnishings

8%Housewares

9%Electronics/Appliances

2%Real Estate/Real Estate

4%Office Supplies

6%Insurance

11%Banking Services

11%Computer Products

12%Credit Cards

4%Religious Products

7%Giftware

24%Other Items

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Credit Card Use Among Hispanics Has Increased

Source: Simmons NCS/NHCS Spring Surveys, 2005‐2008. Base= Shopped via mail/phone/internet order in past year and have/use credit cards

Direct Response Shoppers Who Used Any Credit Card in the Past Year

Today, 84% 84% of Hispanic Direct Response Shoppers Have Used a Credit Card in

the Past Year

4,352,000

6,497,000

2004 2008

49% increase in credit card use

among Hispanic DR shoppers since 2004

vs. only 11% growth among Non‐Hispanics


Hispanic Online Market: Today and Tomorrow% Growth from 2007 to 2008* Total Hispanic Online Profile

Have Internet Access at Home or Work**

Have a Computer in the Household

Have Broadband Access at Home***

Source: Simmons Fall 2008 & 2004 Full Year, NCS/NHCS, Adults 18+; *“Online” defined as websites/search engines used past 30 days – yes. **”Internet Access at Home or Work” defined as where used most or also. ***”Broadband Access at Home” defined as cable modem, DSL, Internet TV or satellite.


Exclusive Audience Among English Language Sites % of Univision.com users who have NOT

visited the following English‐language sites

Source: Simmons NCS/NHCS Fall 2008 Adult Full Year (Oct07‐Dec08)

E‐L Website Univision.com E‐L Website Univision.com E‐L Website Univision.comFriendster.com 95% Webcrawler.com 94% Time.com 93%Bottomdollar.com 95% Zdnet.com 94% Hp.com 92%Lowermybills.com 95% Lycos.com 94% Sportingnews.com 92%Imdb.com 95% PGAtour.com 94% Nytimes.com 92%Dogpile.com 95% NHL.com 94% Freecreditreport.com 92%Cwtv.com 95% Tripadvisor.com 94% Citysearch.com 92%Go.com 95% Cbs.Sportsline.com 94% Familyfun.com 92%Marketwatch.com 95% Bizrate.com 93% Altavista.com 92%Eharmony.com 94% Real.com 93% Nascar.com 92%Classesusa.com 94% Courseadvisor.com 93% Washingtonpost.com 92%Excite.com 94% Evite.com 93% 1800Flowers.com 92%Juno/Netzero.com 94% Experian.com 93% WSJ.com 92%Date.com 94% UFC.com 93% Shopzilla.com 92%Creditexpert.com 94% Latimes.com 93% Weatherbug.com 92%Ea.com 94% Ivillage.com 93% Earthlink.net 91%Hotbot.Lycos.com 94% Geocities.Yahoo.com 93% Msnbc.com 91%Coolsavings.com 94% Cnet.com 93% Columbiahouse.com 91%Infospace.com 94% Classmates.com 93% Travelzoo.com 91%Pricegrabber.com 94% Edmunds.com 93% Netflix.com 91%Mynetworktv.com 94% MLB.com 93% Moviefone.com 91%Myway.com 94% Gamespot.com 93% About.com 91%Netscape.com 94% Kelleybluebook.com 93% Fandango.com 91%Americansingles.com 94% Priceline.com 93% Shopping.com 90%Match.com 94% Superpages.com 93% Realtor.com 90%Reuters.com 94% Teleflora.com 93% NFL.com 90%

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More advertisers are using both English and Spanish in their DR campaigns

Estimated Expenditures on Spot TV2003 & 2007 Calendar Year Dollars by Category (Spanish Language Spot TV available in 26 markets; English Language Spot TV available in 101 markets)

Source: TNS-MI Stradegy Jan-Dec 2003 & 2007 (Retrieved: 4-17-08)

Spanish Language Spot TV Advertising Expenditures

English Language Spot TV Advertising Expenditures

Dollars by Category 2003 2007 % Change

Direct Response $22,169 $60,767 +174%

Dollars by Category 2003 2007 % Change

Direct Response $108,190 $68,494 -37%



Despite Current Economy, Hispanics Maintain a Positive Outlook

Hispanic Non‐Hispanic

Expect to spend a lot more on household essentials

10% 9%9%

Think the American economy will be better off in the next 12 months

(somewhat to significantly better off)

21% 15%15%

Among Direct Response Shoppers

Likely to buy a big ticket item in the next 30 days

(somewhat to extremely likely)

20% 16%16%

Likely to buy a medium ticket item in the next 30 days(likely to extremely likely)

12% 11%11%


The Media Perspective

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DRTV Media Buying to Reach Hispanics

Similarities• Negotiate lowest possible spot cost whether local or

national• Commercial delivery dates are similar to Anglo stations,

however that depends on where the station is located (i.e., Puerto Rico requires longer lead time to get through U.S. Customs)

• National cable & satellite buys are most efficient for the Hispanic market vs. spot


Key Differences in Hispanic Media Buying

• Regionally, individual DMA concentrates where Hispanic populations are exploding

• DRTV spot costs are much lower for Hispanic media vs. Anglo, particularly on national cable networks

• Hispanic media representatives are much more willing to negotiate bonus and lower rates

• Some additional education may be necessary at station level on DRTV, expected preemption levels


Prosvent Spot

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Proliferation of Hispanic Networks

• Expanding at tremendous pace, similar to early Anglo cable

• Hispanic counterparts to CNN, Discovery, MTV etc., have been in existence for at least the last 5-7 years and are established in the marketplace

• New Hispanic networks find niche audiences-segmenting similar to Anglo, however just the beginning


Hispanic national cable network & satellite opportunities include:

• Bandamax• CNN en Espanol• De Pelicula & De Pelicula

Classico• Discovery en Espanol• ESPN Deportes• Fox Sports Espanol• Galavision

• GOL TV• History en Espanol• MTV Tr3’s • Mun2• Pasiones• Teleformula• DirecTV and Dish both offer

Spanish-TV clustered networks


Established Hispanic Networks

• Galavision– The leading Spanish-language cable network for U.S. Hispanics

in both distribution and viewership

• CNN Espanol– The only 24-hour Spanish-language global news network

• Discovery Espanol– Launched in 1998, offers premier non-fiction entertainment for

Spanish-speaking viewers; upscale; high conversions

• Fox Sports Espanol– 24-hour sports coverage - #1 sports destination for Hispanic

consumers

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Established Hispanic Networks (cont’d.)

• History Espanol– 24-hour network, delivering upscale Hispanic consumers; top-

notch programming focusing on Latin American heritage

• MTV Tr3s– Distributed in 6.2 million U.S. Hispanic households and nearly

32 million total households, MTV Tr3s is the number one destination for today’s Latino youth


New & Different Hispanic Stations

• Bandamax– The only channel in the U.S. exclusively dedicated to the most

popular Latin music category: Regional Mexican

• De Pelicula– #1 rated movie channel in Mexico, has the largest library of

Spanish-language films in the world

• De Pelicula Classico– The only channel in the world dedicated exclusively to films

from the 1930’s, 40’s and 50’s, a period known as Mexico’s “Golden Era” of filmmaking


New & Different Hispanic Stations (cont’d.)

• Pasiones– Just launched in the U.S. January 2009, the 24-hour telenovela

network is the perfect destination viewing for the Hispanic female viewing audience

• SUR– Transmits live daily newscasts from the most popular shows in

Latin America in the U.S. and keeps viewers informed of newsworthy events

• Teleformula– News, sports and variety channel, the #4 rated TV network in

Mexico, content is pulled from the highly successful Radioformula radio network

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Client PerspectiveHispanic Case Study


Case Study BackgroundHispanic DRTV Test Overview

Natural Health Supplements• Objective

– Evaluate how Hispanic consumer responds to the brand (an all natural health supplement) and the specific DRTV promotional offer

– Test product in the Hispanic market in national and local markets– Achieve an effective ROI/MER that equals or exceeds Anglo

market (1.7 ratio or better)

• Strategy– Utilize direct response long and short form TV, Spanish language

Web, Spanish-language fulfillment materials, and a dedicated Hispanic call center to maximize campaign success


• Measurement– Evaluate call volume (cost per call), call to order close rates

(conversion) and media investment to return (ROI) to determine campaign effectiveness

Case Study BackgroundHispanic DRTV Test Overview (cont’d.)

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Case Study BackgroundHispanic DRTV Test OverviewMessaging to the Hispanic Consumer

Hispanic consumer insights and market research data used to determine if existing Anglo creative positioning would resonate among Hispanics:

• Anglo campaign variables considered:– Affinity for natural remedies/alternative medicine– Lack of medical insurance/access to education about health concerns– Family positioning of product claims– Preference for loyalty/retention programs-sense of belonging/membership– Responds well to high perceived value offers and discounts – Last minute tendencies/higher response rates in DR


Case Study BackgroundHispanic DRTV Challenges and Solutions

• Creative– Challenges-Offer Confusion

• Risk Free Trial for 30 days• Perception-first bottle was free (confusion that bottle had to be paid for at end of

trial period)• Order acceptance of free trial (consumer would receive 2 bottles, 1st bottle as trial

and if not canceled within trial period, both bottles charged to credit card)– Solutions-Creative Versioning/Testing/Monitoring/Reworking

• Reworked creative to identify offer explanation in more detail• Emphasized in call-to-action

– Have credit card handy– Alternative payment/acceptance of checks by phone

• Capitalized on creative visuals/educational material• Used proven creative strategies

– Celebrities, education/demonstrations/original talent etc.– Developed alternative creative with dedicated Hispanic customer testimonials



• Media– Challenges-Hispanic Media Universe

• Limited Inventory for Paid Programming/Faster Burnout• Less Cable Networks Available than Anglo Market

– Solutions• Kept Creative Fresh with New Versions to minimize burnout• Tested multiple stations/formats/lengths/dayparts to expand

reach/increase acquisitions of new customers

• Telemarketing/Operations– Challenges- On Many Many Fronts

• High TM Costs/Low Conversions• High CC Declines/Returns• Method Of Payment Issues• Low Stick Rates

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– Solutions• Developed efficient TM scripting to address cultural credit card

issues/trust• Used TM Training and New Scripting to Assure Continuity

Understanding• Created Offers to Acquire Upfront revenues (eliminating delayed

declines)• Instituted alternative Method of Payment Systems and CODs • Established Customer Service Business Practices to improve

rapport/loyalty and save the sale by creating procedures tailored to Hispanic Market Cultural Needs


Case Study BackgroundMedia Strategies• Utilize direct response media strategy to build immediate

response & track results– Utilize long-form infomercials as the primary medium:

• Longer length allows for greater product education and offer explanation

– Utilize short-from spot as the secondary medium:• Generates maximum leads at lowest cost• Builds immediate reach and frequency building which provides

maximum impact • Extends reach with greater media inventory • More flexible- easier to refine media to dayparts/station mix

– Utilize Web and Spanish-language fulfillment to support the other mediums:

• Provides opportunity to display detailed messages on continuity offer/auto ship program

• Establishes customer relationship and touch points


Case Study BackgroundCreative Strategies

• Create a customized Hispanic creative campaign that uses direct marketing hard sell tactics to create immediacy/ qualified call generation– Develop DRTV, Web and fulfillment materials that use the relevant

Anglo campaign variables that resonate among Hispanics• Highly visual demonstrations• Doctor’s educational tools • Information/guidance about daily dosage/regime• Alternative health options• Hard sell offer structure

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Case Study BackgroundCreative Strategies (cont’d.)

– Integrate proven strategies for Hispanic DRTV• Use of Hispanic spokesperson• Original commercials with Hispanic doctors• Use credible expert testimonials• Integrate celebrity/athlete endorsements• Produce original testimonials of satisfied customers


Addressing ChallengesTelemarketing Strategies

• Utilize dedicated Hispanic/bilingual call centers and customer service centers with expertise in handling key Hispanic specific TM issues – Assign dedicated team to develop best practices to address

Hispanic cultural consumer purchase decision behaviors:• Longer talk times• Credit aversion• Methods of payment

– Build a customer service infrastructure with efficient models/software/programming to offset:

• High customer service demands/talk times• Lack of product/order process understanding• Greater need for offer education explanation


The Bottom Line-ResultsProsvent DRTV Short-Form Campaign

Ongoing Creative Modifications and Media Buy Management is what it takes to succeed

Hispanic campaign resultsWeek-1 CPO vs. Week-37

– Campaign CPO week-1 • $98.02

– Campaign CPO week-37• $22.27

• Success comes only after:– 11 versions– 4 offer changes– 4 distinct creative concepts/tests– Significant media investment– High outlay for telemarketing and

customer service– Additional resource allocation to

manage 12 TM scripts and training sessions

– Significant media station and daypart testing

CPO Quarterly Trend Report

$57.28 $54.87$45.33

$30.12

$0.00$10.00$20.00$30.00$40.00$50.00$60.00$70.00

Q1 08 Q2 08-09 Q3 09 Q4 09

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The Bottom Line-ResultsShort Form Campaign

Ongoing Creative Modifications and Media Buy Management is what it takes to succeed

CPC

Aug Sept Oct Nov Dec Jan Feb Mar April

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

Dubbed with Original lTestimonials

Media Spend: $75,500/Week

Hispanic Dubbed

Media Spend: $15,000/Week


The Bottom Line-ResultsHispanic Campaign Indexes vs. General

Market Long Form Comparison

2008 DRTV Case Study• Media Spend • Cost per Call • Cost per Order • Media Equivalency Ratio

Hispanic Performance Index• 71 (29% Less Invested)• 50 (50% Lower CPC)• 80 (20% Lower CPO)• 127(27% Greater ROI)

First, the Good News……….

Less InvestedGreater Efficiency

Better Front End

ROI!


The Bottom Line-ResultsHispanic Campaign Indexes vs. General

Market Long Form Comparison

2008 DRTV Case Study• Telemarketing Costs• Conversion Level • Customer Service Costs• Lifetime Value

Hispanic Performance Index• 130 (30% Higher TM Costs)• 140 (40% Lower Conversions)• 133 (33% Higher Customer

Service)• 86 (14% Less LTV Revenue)

Now, the Bad News……….

High BackendCosts

Diminishes Perceived Profitability

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The Bottom LineHispanic Campaign Indexes vs. General Market

Short Form Comparison

First, the very good news……….

2008 DRTV Case Study• Media spend • Cost per call • Cost per order • Media equivalency ratio

Hispanic Performance Index• 383 (5x higher media spend)• 30 (70% lower CPC)• 76 (24% lower CPO)• 167 (67% greater ROI) Higher

investment and muchhigher

front-end ROI!


The Bottom LineHispanic Campaign Indexes vs. General Market

Short Form Comparison

Now, the bad news……….

2008 DRTV Case Study• Telemarketing costs• Conversion level • Customer service costs• Lifetime value

Hispanic Performance Index• (30% higher TM costs)• (40% lower conversions)• (33% higher customer service)• (14% less LTV revenue)

High backendcosts

diminishes perceived profitability


Challenges for SuccessThe Hispanic DRTV Puzzle –Factors that Influence the Success of Hispanic DRTV

CreativeOffer Clarity

More education on Risk Free Trial Offers

Measurement:Lower Conversion

More Variables to Manage

TelemarketingHigh Call Center Costs

Talk time longer

MediaSmaller Media

Universe/Wearout/More

Buy Management

OperationsCredit

Aversion/Alternative Payment

MethodsRequired

OperationsHigher CC Declines

Returns

FulfillmentAddresses IssuesLower/Delivery

rates

Product Hispanic Market

Consumer ResearchCritical to Success

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Case Study RecapDRTV SWOT Analysis

Strengths• Product Category –over-indexes among

Hispanics• Compelling offer configuration-resonates

among consumer• Media-cost efficient, reach larger audience

with lower spend• Creative-highly educational, visually driven,

universal appeal

Weaknesses• Long window for measurement• Telemarketing adjustment infrastructural

requirements/long timelines• Creative station FDA restrictions• Operations (call center/operations)

– Hispanic lack of familiarity with risk free trial offers/high cancel, declines and returns)

– Creditworthiness/hesitancy to provide CC (higher CC declines)

Opportunities• Market size and fast growth rate• Hispanic preference for alternative

medicine/natural remedies• Product’s competitive advantage • Lower incidence of health insurance• Large array of Hispanic media targeting male

skewing audience

Threats• Competitive environment

– Market entrants price cutting • Fulfillment/continuity-low stick rates• Economic instability


• Longer length spots have proven to be more efficient:– :120 Historically pulls in strong volume at a lower cost per lead;

typically converts higher than other spot lengths– :60 Strong for lead generation programs. Necessary for clearance

on network, cable and certain broadcast spot stations. Tends to be workhorse

– :30 Allows for increased frequency in tight markets and opens door for opportunistic inventory


GRACIAS

• Generating results in the DRTV Hispanic Market• Requires dedication, financial commitment• And ongoing Media testing and Modification• Creative Versioning and Offer Testing• Infrastructural and Operations Oversight • And you will achieve• Success!

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fall dma ‘09 the new drtv frontier how to do successful ...televentas directas tronix country...

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