By Harold Becker, Direct Response Marketing Strategist
Here's what you'll learn in this article:
1. That Direct Response Television is a specialty best left up to experts;
2. That it's very easy to blow hundreds of thousands of dollars if you're not working with people who know what they're doing.
I was recently contacted by a very nice man who had invented a golf training device and his goal in life was to make everyone a better golfer. His first phone call to me went something like this – “Hi, I was referred to you by a colleague who said you’re really good at analyzing DRTV products and media and I thought you might be able to help me successfully market my golf product. I was wondering if you would take a look at my product, the video and the media and tell me if this is a good deal.” I agreed to review the materials and product.
After studying the media plan it became apparent that the media planner/buyer had put $250k of the client's $500K budget into one station. There are so many flaws with that model, it's mind-boggling. How much would you spend to test a new product? Who would you get expert advice from before spending $250k in TV media? How would you qualify the advice?
When I asked him when the campaign was going to run he paused and said “it already has and we sold 50 products at $129 each.” A $6,450.00 return on $250,000 in media, I asked? Needless to say, after I explained to him how TV media works and why you should never work with only one so called “excellent fit” TV channel he was saddened and said he had to tell his investors that they made a huge mistake.
This nice man actually made two critical mistakes:
1. He obviously took advice from someone who was not an expert in marketing products on TV or,
2. He didn’t spend enough time seeking advice and/or expertise from a qualified industry professional or company who have already “been there-done that."
Unfortunately, I was not able to help this nice man. The money had already been spent and there was no more money. The obvious moral to the story is that you should seek advice from qualified professionals who truly understand marketing products and services and don’t be afraid to challenge them with questions. If you get push back or are not satisfied call or email someone else. $250,000 lost on media is a lot of money to waste-learning a valuable lesson.
One side note – after careful review of the product, the financial metrics did not work for TV and after reviewing the TV commercial there were several key elements missing. So, even if the media money had been spent properly, other business elements would have been responsible for the product’s failure. Sadly, the problems could have been fixed.
What this man did was like going to a drug store for a heart transplant. The people working in the drugstore are simply not qualified to perform that level of care.
You’re asking yourself, if the total budget was $500,000, where did the other $250,000 go?
• $200k for the TV commercial
• $50k for product manufacturing and various supporting services like the call center, fulfillment, customer service, etc
Always seek advice from professionals who understand your business better than you do. Keep looking until you find the right fit at the right price. Otherwise, you could make a $500k mistake, too.
Harold Becker is a Direct Response and Media Strategist. He specializes in Marketing, Media, Interactive and Product Development and can be reached at beckerh@gte.net.
