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The Secrets of

Selling via Social


Technology Drives
Changes in
Support Services
1Q Short-Form DRTV
Billings Hold the Line
www.responsemagazine.com
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E
A
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S
C
ELE
B
R
A
T
I
N
G
Shade
Jonathan Hershberg says
DRTV not only built the
SunSetter awnings brand,
but an entire category.
Made
in the
4 Response AUGUST 2012 www.responsemagazine.com
COVER STORY
22
DR Shines Bright for SunSetter
Jonathan Hershberg says the
retractable awnings manufacturer
used direct response to create both a brand
and a market.
By Thomas Haire
SOCIAL SPOTLIGHT
28
Making Social a Sales Outlet
Marketers and vendors alike seek out
the secrets of turning fans and followers into
buyers.
By Kirsten Saladow
SUPPORT SERVICES GUIDE
34
Playing the Supporting Role
The back end of DRTV campaign
continues to play
a critical role
in a products
cumulative
success both
on and off TV.
By Bridget McCrea
TableofContents
Vol . 20, No. 11 August 2012
Cover and cover story photography
by Jesse Goff
News
8 Barry Becher of Ginsu Knives
Fame Dies at 71
8 As Seen On TV Finishes Purchase
of AsSeenOnTV.com; Plan for
Promotion Unveiled


9 DirecTV, Viacom End Spat, Agree
on New Carriage Deal
9 FTC Ends Deceptive Prepaid
Calling Card Scheme Targeting
Immigrants
10 News Corner
Page 28
Page 34
Features
Efficiently and
Cost Effectively
Well Fulfill
With Due Speed
No Matter
the Sales Channel
In todays multichannel world
buyers choose where to
conduct business - over the
telephone, online, or at retail.
At Fosdick Fulfillment we
fulfill orders across all
channels with our true
bi-coastal advantage.
To learn more contact
George Fanolis at
800-759-5558 or
george@fosdickcorp.com.
Meet Us At The
www.fosdickfulfillment.com
Reno, NV
Toronto, Canada
Wallingford, CT
www.responsemagazine.com Response AUGUST 2012 5
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Page 18
Research and
Analysis
12 Jordan Whitneys Program
Rankings
14 The IMS Categorical Cable
Rankings
16 Nielsen DMA Local Cable
Rankings: Total DR Spots
17 SciMark Report
18 1Q Short-Form DRTV Media
Billings Hold Steady
Analysis by Thomas Haire
Departments
44 Classified Directory
46 But Wait, Theres More
Response ... On the road
Columns
6 Editors Note
Controversy Over NBC Olympics Coverage Gives Marketers
a Golden Message
By Thomas Haire
40 Support Services
Who Needs Multiple Merchant Accounts? Probably You
By Curtis Kleinman
42 Net Gains
Digital Age Stimulus/Response: Are You There When They Respond?
By Irv Brechner
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ADT Security Systems
6 Response AUGUST 2012 www.responsemagazine.com
Editors Note
D
uring the first few days of the London
Summer Olympics late last month,
controversy raged on social media
outlets especially Twitter about
NBCs coverage of the worlds pre-eminent
sporting event. The network was bashed repeat-
edly for its tape-delayed coverage of key events,
its fawning over American athletes at the ex-
pense of other competitors, and the feeling that
the network was treating the event more like a
poorly executed reality TV show than a series of
wonderfully compelling sporting events.
At the same time, however, NBCs first weekend of primetime broadcasts aver-
aged nearly 36 million viewers, the best first weekend for any Olympics in history
according to Nielsen, with the opening ceremony drawing more than 40 million
viewers the best result ever for a Summer Olympics held outside the U.S.
With numbers like that, its no wonder that NBC was treating its negative social
media reviews with disdain, while at the same time pointing out that online live
viewership of events was exploding at NBCOlympics.com. The network is offer-
ing 5,500 hours of coverage across its TV networks and online platform, twice the
amount of coverage hours as it had for the 2008 Beijing Olympics. On the first full
day of competition alone, 10 million U.S. fans streamed events online through
NBCOlympics.com, double the number of those who streamed on Beijings opening
day four years ago.
You might be asking yourself, though, What does this information mean to mar-
keters? Well, aside from making NBCs advertising partners pretty happy, the early
days of Olympic coverage also provide marketers an intriguing look at how TV, on-
line video and social media have combined to create a powerful, multilayered story.
While the complaints about NBCs coverage on Twitter were extensive (just
check the Twitter hashtag #NBCfail for examples), many sports journalists (and
would-be sports journalists) also drove key narratives (and, thereby, viewership) by
watching live streaming coverage online and providing consistent updates about
events that viewers could see later on the networks taped primetime shows.
For many marketers, the story here is about seeing the power and importance
of television exhibited for many whove begun to doubt it (what are all those com-
plaints on Twitter, after all, except a plea for NBC to better use television to cover
key events), while at the same time gaining a look at the growing importance of
online video and social media. In direct response, any well rounded campaign today
still starts on TV, but also includes expansive online video and social media drivers.
Thanks to NBC and the Olympics, that point is being driven
home in a different way.
Thomas Haire, Editor-in-Chief
Twitter: @THrants
Controversy Over NBC Olympics
Coverage Gives Marketers a
Golden Message
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EDITORIAL
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The Only Independent Source for
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Field Reports
8 Response AUGUST 2012 www.responsemagazine.com
WEST PALM BEACH, Fla. The pioneer
behind perhaps the best-known
knives ever died July 6. Barry Becher,
the marketing genius behind Ginsu
knives one of DRTVs pioneering
products was 71 and had reportedly
been suffering from kidney cancer.
He passed at a hospital after compli-
cations from surgery.
Becher brought many other prod-
ucts to market, including
the Miracle Slicer and
Armourcote Cook-
ware with his business
partner Ed Valenti.
Together they added
urgency and value
to the sales proposi-
tion with limited
supplies and
But wait,
theres
more!
verbiage. They also
guaranteed satisfac-
tion always.
Becher was
born in Brooklyn
and left for Rhode
Island after high
school. His rst venture was in auto
repair, but he then met Valenti, who
was selling ads for local TV and over-
seeing Bechers auto shop advertising.
The Associated Press reports the two
drove the same Datsun 240Z, had
wives who were schoolmates, shared
a passion for sales and became fast
friends.
Eventually they began a search for
a product they could market through
TV spots, the way some records were
sold. One of Bechers rst products
was a mohair-bristled paint pad that
prevented splatter and cut work
times. After Madison Avenue rejec-
tions, they produced the ad
themselves through Dial
Media, a joint company
they ran out of Bechers
garage. Their rst two-
minute commercial ended
up selling more than a
million units and they repeated their
winning formula with products others
created.
Over the course of a decade, the
duo sold $500 million in products.
Armourcote was the most protable,
but Ginsu remains the most widely
known. Ginsu debuted in 1978 and
ran into the early 1980s, replete with
demonstrations cutting through cans
and chopping wood.
Bechers funeral was held July
9. His family is considering etch-
ing But wait, theres more on his
tombstone.
Barry Becher of Ginsu Knives
Fame Dies at 71
By Doug McPherson
CLEARWATER, Fla. Now that As
Seen On TV Inc., the direct response
marketing giant, officially owns As-
SeenOnTV.com, the company plans to
promote the site more to garner mil-
lions of new users.
Its a site that already has a cult
following of more than 2 million,
and we plan to grow it to many mil-
lions more, says Kevin Harrington,
chairman of As Seen On TV Inc.
Harrington says sales on the site have
been up by 65 percent since As Seen
On TV Inc. announced a year ago
that it planned to buy the website.
The site has been doing well, but
we plan to start a campaign in the
fourth quarter to grow it even more,
Harrington says. Well be launching
30- and 60-second TV ads, a lot of so-
cial media and public relations.
Harrington says that because of
his three seasons on ABCs Shark
Tank, public relations was a natural
and logical move. He says hes already
appeared on the daytime talk shows
The View and The Wendy Wil-
liams Show.
In addition to its 2 million-plus
customers, AsSeenOnTV.com boasts
700,000 E-mail registrants and hun-
dreds of thousands of unique visitors
monthly. The site reportedly gener-
ated $5.45 million in gross revenue in
2011. In the first half of 2012, the site
generated approximately 40 percent
gross revenue growth year-over-year.
As Seen On TV Inc. will assume
the license agreement with Delivery
Agent, the entity that operates the
website. The license agreement calls
for a 7.5-percent royalty of gross rev-
enue to As Seen On TV Inc.
As Seen On TV Inc. paid $2.7
million, using cash, stock and war-
rants. Originally it was announced
that the acquisition price would be $5
million.
As Seen On TV Finishes Purchase of AsSeenOnTV.com;
Plans for Promotion Unveiled
www.responsemagazine.com Response AUGUST 2012 9
ATOMIC DIRECT
creat i ve
product i on
management
st rat egy
503. 2 96. 6131
The Brand
DRTV Agency
I nnovati ve marketi ng through
di rect response tel evi si on.
Por t l and, Oregon
www. atomi cdi rect. com
DirecTV, Viacom End Spat, Agree on New Carriage Deal
NEW YORK Viacom and DirecTV
reached a new carriage agreement in late
July that ended a two-week standoff that
led to MTV, Comedy Central, BET and
Nickelodeon being blacked out in about
20 million DirecTV homes.
Financial and other terms werent
shared, but the deal will last for seven
years. The satellite giant will carry all 26
Viacom channels, or 17 when excluding
HD feeds, but said it is not required to
carry Epix movie channel, the premium
TV joint venture of Viacom, Lionsgate
and MGM, according to Hollywoodreport-
er.com.
In addition to the channels return,
DirecTV customers will be able to watch
Viacom programming on tablets, laptops,
handhelds and other personal devices via
the DirecTV Everywhere platform, says
a DirecTV state-
ment.
A settlement
was in the best interest of both parties, so
Im not surprised they worked out a deal.
I think that DirecTV leveraged the black
out to their advantage to pressure Viacom
to settle, said Peter Koeppel, president of
Dallas-based Koeppel Direct and a mem-
ber of the Response Advisory Board. Nei-
ther Viacom or DirecTV was benefiting
from the negative publicity, and I believe
they realized that a protracted fight could
damage their businesses, their reputations
and ultimately their income, so its likely
they were both forced to compromise in
reaching a settlement.
Despite the deal, hard feelings appar-
ently still exist. Derek Chang, an ex-
ecutive vice president at DirecTV, told
Hollywoodreporter.com that the attention
surrounding the blackout by Viacom
serves notice to all media companies
that bullying TV providers and their cus-
tomers with blackouts wont get them a
better deal Its high time programmers
ended these anti-consumer blackouts
once and for all and prove our industry
FTC Ends Deceptive Prepaid Calling Card
Scheme Targeting Immigrants
CONTI NUED ON PAGE 10 >
WASHINGTON The Federal Trade Com-
mission (FTC) stopped advertising from
a prepaid phone card company DR
Phone Communications that allegedly
lied about the number of minutes cards
actually provided and failed to divulge ad-
ditional fees.
The FTC bought and tested 169 of
the companys cards and alleged none of
them delivered the number of minutes
advertised. The worst performing card
gave less than 1 percent of the advertised
minutes.
The FTC charged the companys ac-
tions violate federal law and also named
the companys website, drphonecom.com,
and David Rosenthal as defendants.
The company has agreed to temporar-
ily stop its claims before a trial where the
FTC will reportedly seek to permanently
halt the claims and force the company to
give up profits made during the ad cam-
paign.
The FTC has taken part in a series of
ongoing efforts to stop deceptive market-
ing in the pre-paid calling card arena,
which reportedly sells billions of dollars
of cards annually often to immigrants
who use them to call friends and family in
other countries.
The FTC claims this scheme targeted
immigrants with brand names such as
Beautiful Asia, Vietnam Best and
Pearls of Africa. The cards were sold in
convenience stores, grocery stores, kiosks
and on DR Phones website.
The FTC said point-of-sale posters
touted consumers could buy 70 minutes
for $5 to call the Philippines, for example.
Verbiage claimed, No Fees, No Con-
nection Fee and No Maintenance Fee.
But small print referenced fees without
explanation of what those fees would be.
One disclosure simply stated, Interna-
tional calls made to cellular phones and
calls via toll-free numbers are billed at
higher rate. without adequately disclos-
ing what those higher rates would be.
Field Reports
10 Response AUGUST 2012 www.responsemagazine.com
is about enabling people to connect
to their favorite programs rather than
denying them access.
Viacom said in a statement that it
is extremely pleased to get its pro-
gramming back to DirecTV subscribers
and thanked all affected for their pa-
tience during the disruption.
Tim Hawthorne, founder of Fair-
field, Iowa-based Hawthorne Direct
and a member of the Response Advisory
Board, said of the squabble, Its like
being ringside for Frazier vs. Ali: two
megastars whose confrontation is all
about money, with no question of the
outcome. We all knew Viacom would
win in the 12
th
round, taking the tro-
phy of a 20-percent increase. The real
losers are the subscribers.
During the skirmish, Comcast
ran radio commercials, while DISH
Network added key Viacom images of
SpongeBob and Dora The Explorer on
its website to lure consumers. Cablevi-
sion Systems bought keywords from
Google to add consumers. A Cablevi-
sion ad read: Direct Dropped MTV,
Nick, CC & BET. Get Them Back
With Optimum. (Optimum is Cable-
visions digital video service).
And DirecTV put this message on
its website: Switching isnt the answer.
Every TV provider has disputes with
networks. By getting you to switch,
Viacom hopes they will get the 30-per-
cent increase they have demanded.
DirecTV, Viacom End Spat
> Hawthorne Direct, the full service
direct response television agency, has
hired August Tesfasilase as account
executive in its Los Angeles office.
> Customer acquisition agency Acquirgy
and real-time E-commerce shopping cart
recovery leader SeeWhy co-published an
eBook today, titled How Shopping Carts
Kill DRTV Campaigns And What To Do
About It. The book addresses astounding
abandonment rates and can be down-
loaded here: http://SC11.acquirgy.net
> AVC Corp.
has moved its
headquarters
office to Rancho
Dominguez, Calif.
The company also
announces its
new Envirobox,
a 100-percent
plastic-free packaging option that has
already been well received by repre-
sentatives of such major retailers as
Wal-Mart and Sams Club. Finally, the
company has added Nathan Heidrich to
its sales staff.
> Chef Krystle
Velasquez
joins
Hearthware
Inc.s NuWave
culinary team.
> Infomercials
Inc. has relocated to: 2115 W 1150 N,
Springville, UT 84663.
> Meritus Payment Solutions names
Jon Lindhjem vice president of business
development.
> Steve Warnecke joins Newton Media as
director of new business development.
> The Inter/Media Group of Companies
adds Gavin B. Ballas as vice president of
marketing and sales.
> Weigel Broadcasting Co. and Hearst
Television agree to carry Me-TV in five
additional Hearst markets, including
Boston, Sacramento, Calif., Baltimore,
Oklahoma City and Greensboro, N.C. This
brings the total of Hearsts Me-TV affili-
ates to 13.
NewsCorner
Nathan Heidrich
Chef Krystle Velasquez
< CONTI NUED FROM PAGE 9
Response Magazine
Need your research fix? Visit
our historical media billings
research information today.
With long-form DRTV collected
and analyzed by Response
staff, and short-form DRTV
and DR radio collected by
Kantar Media all broken
down by quarter
Responses media billings
research is your one-stop shop
for the best DRTV media re-
search. Just scan the QR code
below or enter the following
Web address now: http://
www.responsemagazine.
com/list/research/media-
billings-141
Response Expo
Now that Response Expo 2012
is history, you can take a look
at a selection of the events
Educational Sessions online,
with both downloadable PDFs
of the PowerPoint decks and
audio! Just scan the QR code
below or enter the following
Web address now: http://www.
responsemagazine.com/
response-expo/2012-
conference-program-
presentations
DRMA
The DRMA Spotlight will return
after a two-month hiatus in
September with another in
a line of compelling stories
about some of the DR indus-
trys leading companies. To
check out all of our recent
DRMA Spotlights, scan the QR
code below or enter the follow-
ing Web address now:
http://www.response
magazine.com/drma/
drma/spotlight
r
EXPO
DR
MA
This Month
on the Response Group Websites
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Research Jordan Whitneys Program Rankings
RANK LAST MONTH PROGRAM HOST PRODUCT PRICE PRODUCER/DISTRIBUTOR
1 1 Insanity Shaun T. Exercise DVDs $119.85 Beachbody
2 8 Meaningful Beauty Cindy Crawford Skincare system $39.85 Guthy-Renker Corp.
3 NR Luminess Air Heather Boswell Airbrush makeup $29.99 (trial) Luminess Direct
4 NR Body Revolution Jillian Michaels Fitness DVDs $119.80 GAIAM
5 NR Tapout XT Mike Karpenko Fitness DVDs $119.85 TFit
6 3 My Pillow Tonja Waring Pillow Lead-generating LifeBrands Inc.
7 5 Total Gym Christie Brinkley/Chuck Norris Home gym $14.95 (trial) Total Gym Fitness LLC
8 NR NuWave Induction Cooktop Bob Warden Electric cooktop $119.85 Hearthware Inc.
9 4 Lift-Around Amy Rosen Handheld vacuum $159.80 Euro-Pro
10 6 Wen Alyssa Milano Haircare products $29.95 Guthy-Renker Corp.
TOP 1 0 I NF OMERCI AL S
RANK LAST MONTH PROGRAM PRODUCT PRICE PRODUCER/DISTRIBUTOR
1 5 Proactiv Solution Acne treatment $19.95 Guthy-Renker Corp.
2 1 no! no! Hair-removal device Lead-generating Radiancy
3 NR Flex Seal Rubber spray sealant $19.99 Swift Response
4 3 Stretch Genie Shoe stretching kit $12.99 Hampton Direct
5 7 Gray Away Hair-coloring spray $19.99 QB Labs
6 NR Perfect Tortilla Tortilla pan $10 ASPG
7 NR InstaBulb Battery-operated light bulb $10.99 TELEBrands
8 4 Dream Lites Plush toy with night light $29.95 Ontel Products
9 NR Bright Light Pillow Pillow w/built-in lights $19.99 IdeaVillage Products
10 NR Stompeez Animal slippers $19.95 Infomercials Inc.
TOP 1 0 S P OTS
Source: The Direct Response Monitoring Report Greensheet published by Jordan Whitney Inc. in Tustin, Calif. These are the top 10 infomercials and direct response spots
based on confidential media budgets and Jordan Whitneys monitoring of national cable and broadcast markets for the week ending June 29, 2012.
Copyright 2012. All rights reserved. Publisher is not responsible for errors or omissions in this chart.
For information about the Green Sheet Direct Response Monitoring Report and Jordan Whitneys consulting and tape library services, contact John Kogler at Jordan Whitney
Inc. Phone: (714) 832-3353; Fax: (714) 832-4422; E-mail: greensheet@cox.net; Web site: www.jwgreensheet.com.
12 Response AUGUST 2012 www.responsemagazine.com
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SHORT FORM: TOP 5 VERTICAL MARKETS
IMS spot rankings are based solely on Frequency of programs
aired on national cable and satellite networks monitored.
RANK PRODUCT NAME MARKETING COMPANY PRICE OFFERED S&H
HEALTH & FITNESS
1 Lipozene Obesity Research Institute $29.95 $0.00
2 Super Beta Prostate SebaClear $29.95 $6.99
3 Ruby Reds New Vitality $19.95 $0.00
4 Nutrisystem Success Nutrisystem Inc. $77.49 $0.00
5 P90X Beachbody $14.95 $0.00
BEAUTY
1 Proactiv Solution Guthy-Renker Corp. $19.95 $0.00
2 Gray Away QB Labs $19.99 $6.99
3 no! no! Radiancy $284.90 $14.95
4 Twist N Clip Harvest Direct $10 $6.99
5 Tria Laser Tria Beauty Inc. $89.99 $0.00
ENTERTAINMENT
1 California Psychics Outlook Amusements Inc. $0.00 $0.00
2 Hollywood Psychics Hollywood Psychics $0.00 $0.00
3 Dream Lites Ontel Products $29.95 $0.00
4 Psychic Source Expert Link Inc. $10 $0.00
5 Now Country Push Entertainment $0.00 $0.00
HOUSEHOLD/KITCHEN
1 InstaHang Hampton Direct $14.99 $7.95
2 Flex Seal Flex Seal $19.99 $9.95
3 Kobalt Multi-Purpose Lowes $19.98 $0.00
4 Super Clean Super Clean $19.95 $0.00
5 Grout Bully Harvest Direct $10 $7.95
PERSONAL
1 Ageless Male Ageless Male $29.95 $0.00
2 Cyvita Cyvita LLC $19.95 $0.00
3 ZQuiet ZQuiet $9.95 $0.00
4 Vibrating Twister Church & Dwight Co. $59.99 $0.00
5 Total Pillow Hampton Direct $19.99 $7.95
Research The Top DRTV National Cable and Satellite Rankings
LONG FORM: TOP 5 VERTICAL MARKETS
IMS infomercial rankings are based solely on Media Spending for programs
aired on national cable and satellite networks monitored.
RANK MARKETING COMPANY PRICE OFFERED
HEALTH & FITNESS
1 Insanity Beachbody 3 payments of $39.95 plus $24.95 S&H
2 Body Revolution GAIAM 4 payments of $29.99 plus $14.99 S&H
3 Total Gym Total Gym Fitness LLC 30-day trial for $14.95
4 Tapout XT TFit 3 payments of $39.95 plus $19.95 S&H
5 Nopalea Trivita Free bottle plus $9.95 S&H
BEAUTY
1 Meaningful Beauty Guthy-Renker Corp. $39.95
2 Murad Resurgence Murad Inc. $39.95 plus $8.95 S&H
3 Wen Guthy-Renker Corp. $29.95 plus $5.99 S&H
4 Luminess Air Luminess Direct LLC 30-day trial for $29.95
5 Tria Laser Tria Beauty Inc. Lead-generating
ENTERTAINMENT
1 Teen Years Time-Life Music 5 payments of $29.99 plus $1.99 S&H
2 Golden Age of Country Time-Life Music 4 payments of $29.99 plus $12.99 S&H
3 Singers & Songwriters Time-Life Music 5 payments of $29.99
4 Psychic Source Psychic Source $10 reading
5 Music of Your Life Time-Life Music 6 payments of $26.99
HOUSEHOLD
1 NuWave Precision Hearthware Inc. 3 payments of $33.33 plus $29.95 S&H
Cooktop
2 Shark Navigator Euro-Pro 4 payments of $49.95 plus $49.90 S&H
Lift Away
3 NutriBullet NutriBullet LLC 5 payments of $19.99 plus $19.95 S&H
4 Shark Lift Around Euro-Pro 4 payments of $39.95
5 My Pillow LifeBrands Inc. 60-day risk-free offer

BUSINESS OPPORTUNITY
1 Trudeaus Free Money Free Money $29.95 plus $11.95 S&H
2 Social Media Profits Success TV LLC $19.95 plus $9.95 S&H
3 Trudeaus Free Money 2 Free Money $29.95 plus $11.95 S&H
4 Brainetics Brainetics LLC 30-day trial for $14.95
5 Total Transformation Legacy Publishing Co. Lead-generating
Copyright 2012 Infomercial Monitoring Service, Inc.

All rights reserved. IMSTVOnline.com. Satellite 2, 810-812 Park Way, Philadelphia, PA 19008. Phone (610)-328-6902.
Fax: (610)-328-6791. E-mail sam@imstv.com. Rankings for June 2012. IMS is a research and publishing company that tracks both long-form infomercials and short-form
DRTV spots on nation cable, broadcast and satellite networks. Rankings for each month are based on long-form infomercial media and short-form spot frequency of programs
aired on networks monitored. IMS database and video library services involve all aspect of the DR industry. IMS provides weekly and month report, rankings, verifications, evalua-
tions, research, consulting, film and video production and post production.
No part of any IMS reports may be reproduced or transmitted in any form electronic or mechanical, including photocopy, or any information storage and retrieval system without permission in writing from IMS. IMS is not
responsible for any loss due to errors or omissions in information provided, or for any loss of service due to technical or other difficulties. Please visit IMSTVOnline.com for more information.
Our
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16 Response AUGUST 2012 www.responsemagazine.com
RANK MARKET (DMA RANK) DR SPOTS LAST MONTH
1 New York (1) 3,550 1
2 Boston (7) 3,067 3
3 Pittsburgh (23) 2,908 2
4 West Palm Beach, Fla. (38) 2,338 15
5 Chicago (3) 2,095 9
6 Phoenix (13) 2,094 8
7 San Diego (28) 1,957 4
8 New Orleans (51) 1,870 7
9 Atlanta (9) 1,763 12
10 Las Vegas (40) 1,714 6
11 Mobile, Ala./Pensacola, Fla. (60) 1,683 5
12 Washington (8) 1,643 10
13 Columbus, Ohio (32) 1,564 42
14 Grand Rapids, Mich. (42) 1,506 14
15 Denver (17) 1,484 11
16 Knoxville, Tenn. (61) 1,445 13
17 Miami-Fort Lauderdale (16) 1,427 17
18 St. Louis (21) 1,414 24
19 Indianapolis (26) 1,393 20t
20 Nashville (29) 1,364 29
21 Detroit (11) 1,292 16
22 Memphis (49) 1,270 22
23 Hartford-New Haven, Conn. (30) 1,254 19
24 Seattle-Tacoma (12) 1,240 26
25 Cleveland-Akron (18) 1,236 25
RANK MARKET (DMA RANK) DR SPOTS LAST MONTH
26 Philadelphia (4) 1,207 27
27 Raleigh-Durham, N.C. (24) 1,203 23
28 Portland, Ore. (22) 1,183 33
29 Greenville-Asheville, N.C. (37) 1,074 20t
30 Milwaukee (34) 1,051 32
31 Sacramento (20) 984 37
32 Minneapolis-St. Paul (15) 955 18
33 Louisville (48) 947 31
34t Kansas City (31) 875 38
34t Little Rock-Pine Bluff, Ark. (56) 875 36
36 Tampa-St. Petersburg (14) 856 35
37 Dallas-Fort Worth (5) 820 45
38 Cincinnati (35) 819 41
39 Charlotte (25) 771 43
40 Oklahoma City (44) 753 30
41 Houston (10) 711 40
42 Greensboro, N.C. (46) 685 28
43 Fresno-Visalia, Calif. (55) 643 34
44 Austin (47) 635 50
45 Los Angeles (2) 629 46
46 Orlando-Daytona Beach, Fla. (19) 552 48
47 Jacksonville (50) 547 47
48 Tulsa (59) 541 39
49 San Francisco Bay Area (6) 514 44
50 San Antonio (36) 477 49
DES I GNATED MARKET AREAS
Research DMA Local Cable Rankings: Total DR Spots
Nielsen operates as an information and measurement company worldwide. It offers critical media and marketing information,
analytics and industry expertise about what consumers buy and what consumers watch on a global and local basis. The above
data is from Nielsen Monitor-Plus

, a provider of competitive advertising intelligence. Rankings from June 2012. Nielsen Monitor-
Plus

delivers timely and insightful data necessary to assess advertising effectiveness across 18 media, including television
in all 210 DMAs and Spanish-Language measurement across a growing number of media. Monitor-Plus

Local Spot Cable


data includes 50 DMAs and 15 cable/regional networks in each DMA. For more information on Monitor-Plus

, please E-mail:
sigma@nielsen.com.
www.responsemagazine.com Response AUGUST 2012 17
By Jordan Pine
Copyright 2012 SciMark Corp. These reviews represent the opinions of the author. Any inaccuracies are unintentional. To report an inaccuracy
or provide other feedback, E-mail: jordan@scimark.com. The SciMark Report is also a blog at scimark.blogspot.com. SciMark Corp. is a firm that
specializes in short-form DRTV advertising. For more information and a full description of the S7 scoring system, visit www.SciMark.com.
Research SciMark Report
NEAT KEEPER
Description: A wallet for women
Main Pitch: The incredibly elegant,
crocodile-embossed wallet thatll give you
an organizational edge
Main Offer: $10 for one in green, pink
or red
Bonus: Second one (pay a separate fee)
Marketer: TELEBrands
Website: www.GetNeatKeeper.com
Rating: 2 out of 5
Heres what I know about the wallet category: Unique wallets for men sell,
unique wallets for women do not. On the mens side, there are several hits to
talk about going all the way back to the Magic Wallet from the Golden Age of
DRTV. More recently, Ontels Slim Clip was a solid hit in 2009. On the wom-
ens side, however, its all failures. For example, at the same time Slim Clip
was taking off, Allstar was making a smart attempt to expand the Buxton
line with a cell phone holder/wallet. It flopped and so did
every other attempt at a womans wallet thereafter. In
fact, the only wallet women have purchased from DRTV in
recent history was the Aluma Wallet (also a TELEBrands/
Sullivan collaboration), but that had a unisex positioning.
Thus, my current theory is that once a wallet gets too
female and this one certainly fits the bill with its pink
crocodile styling it becomes unlikely to succeed. The
reason, no doubt, is the glut of wallet options available to
women from every brand imaginable. Its much like trying
to sell a purse on DRTV (also not recommended).
Copyright 2012 SciMark Corp. These reviews represent the opinions of the author. Any inaccuracies are unintentional. To report an inaccuracy
or provide other feedback, E-mail: jordan@scimark.com. The SciMark Report is also a blog at scimark.blogspot.com. SciMark Corp. is a firm that
specializes in short-form DRTV advertising. For more information and a full description of the S7 scoring system, visit www.SciMark.com.
DUELING EGG COOKERS
EZ EGGS
Main Offer: $10 for two with lifters,
separators
Bonus: Two more, holder, separator and
EZ Bacon Maker (just pay separate S&P)
Marketer: SAS Group
Website: www.GetEZEggs.com
Rating: 3 out of 5
EGG GOURMET
Main Offer: $10 for two with recipe guide
Bonus: Two more, holder, separator and
Bacon Gourmet Tray (just pay a separate fee)
Marketer: TELEBrands
Website: www.GetEggGourmet.com
STICK N CLICK
Description: An LED strip light
Main Pitch: Just peel, stick and
click and have all the light you
need
Main Offer: $10 for two
Bonus: Two more (pay separate P&H)
Marketer: Ontel Products
Website: www.StickNClick.com
Rating: 2 out of 5
In 2006, Ontel had a good run with an item by this same name except
back then, it was a mini puck light instead of a strip light. Thats right:
This is a recycled name, which raises several interesting questions. Is it a
good idea to recycle the name of a successful item? If so, how long should
you wait to do so? The answer to these questions and many more
depends on what you believe about branding. Some believe that the amount
of advertising put behind the average DRTV product is sufficient to create a
brand. Others argue that DRTV doesnt generate nearly
enough impressions to hit that high bar. I subscribe to
the latter belief. Years ago, I did a brand recall study of
the best-selling item at that time. We estimated that the
average woman had seen the commercial for the female-
skewing product at least seven times. Yet when we
showed a group of women a picture of the product and
asked them to pick the correct name from a list of four or
five names, a frighteningly small minority chose the right
answer. So my view is: Recycle away! Why the poor rating
then? Because, as I have demonstrated on many occa-
sions: the lighting category is dead (at least for now).
Rating: 3 out of 5 Rating: 3 out of 5
Rating: 2 out of 5
WHAT MAKES UP THE
SCIMARK SEVEN (S7)?
The PRODUCT should be:
(1) needed; (2) targeted; and
(3) different.
The CATEGORY should be:
(4) un-crowded.
The COMMERCIAL should be:
(5) engaging; (6) motivating; and
(7) clear.
On my blog (scimark.blogspot.com), I have a regular
feature titled Old Gold? Thats where I usually
write about resurrected items like these. But this is
the first Old Gold Duel, so it makes the magazine.
The original hit was TriStars Egg Wave, No. 11 on
the Jordan Whitney annual for the year 2000. Will
history repeat itself? Im not so sure. On one hand,
not much has changed in 12 years. Families are
still in a rush and dont have time to make a good
breakfast. The microwave still features prominently
in most kitchens. And eggs are as popular as ever,
as witnessed by the recent success of Allstars
Eggies (No. 31 on my True Top 50 for 2011). On the
other hand, fast and healthy breakfast solutions
abound these days, and making delicious eggs
in the microwave just doesnt sound as credible
as it once did. This one could break either way. As
for who will win the duel if its a success: I give
the edge to TELEBrands. No DRTV company is as
aggressive as they are when it comes to maximizing
a hit at retail.
Rating: 2 out of 5
Research 1Q Short-Form 2012 Media Billings
1Q Short-Form DRTV Media Billings Hold Steady
Total spending falls less than 1 percent, while average campaign spending jumps more
than 18 percent.
Analysis by Thomas Haire
> > Fig. 1
Total Quarterly Short-Form
Media Billings
> > Fig. 2
First-Quarter 2012 Short-Form
DRTV Media Distribution
Syndication:
$49,757,400
4.7%
F
irst-quarter 2012 short-form DRTV media billings
results provided by Kantar Media were nearly iden-
tical to 1Q 2011 results, totaling $1,061,044,900.
The decrease of $8.9 million dollars registers as just
a 0.8-percent loss, and the total spend is the second-highest
in the past five first quarters.
First-quarter 2012 also reflected a rise of $23 million when
compared to 4Q 2011, a 2.2-percent increase from the final
quarter of last year.
Comeback for Collectibles
Just seven of the 17 categories claimed gains this quarter
when compared to the same period from 2011. Drug and
Toiletry showed the highest dollar gain with an astounding
$79 million increase (18.1 percent). This came on the heels
of the categorys 1Q 2011 performance that saw it gain $40.7
million. In complete contrast to 1Q 2011 when it suffered a
weighty 72.6-percent dip, Multiple Category Ad made a
complete comeback in the first quarter of this year, earning
top percentage-gainer honors by far boasting a 90-percent
increase of about $800,000, bringing its first-quarter 2012
total to more than $1.6 million. The Home and Building
category finished second in both total dollar ($12.5 million)
and percentage (77.4) gains in 1Q 2012.
The General category did not fare as well, suffering the
greatest dollar loss (and second greatest percentage loss) in
1Q 2012, dipping $41.6 million (30.1 percent). Collectibles
and Art saw the greatest percentage loss 69.5 percent a
dollar loss of $3.7 million. The Crafts, Hobbies, Sporting
Goods and Toys category also suffered through a dismal
quarter, losing 26.4 percent, or $21.9 million.
Network, Hispanic Make Solid Gains
Network TV and Hispanic Network TV fared far better in
first-quarter 2012 than they did during the same time period
the prior year, becoming the only two outlets to enjoy gains.
While cable TV remained the dominant media outlet this
quarter (boasting 77.2 percent of market share), it lost $16.6
million when compared to 1Q 2011 spending. However, Net-
work TVs $12.6 million rise helped it gain back a percentage
point of market share, as did Hispanic Network TVs $8.4
million jump.
Faltering after a solid first quarter a year ago, Syndication
lost $11.5 million in spending (nearly 20 percent) in 1Q
2012. Spot TVs 7.4-percent decrease left it floundering in
fifth place among TV outlets.
Proactiv Outspends Others to Claim No. 1 Spot
The total number of short-form DRTV campaigns aired
in first-quarter 2012 1,138 signified a 16.3-percent
decrease when compared to the same period in 2011. Sub-
Total: $1,061,044,900
Network TV:
$42,456,000
4.0%
Hispanic
Network TV:
$114,936,000
10.8%
Cable TV:
$819,024,600
77.2%
Spot TV:
$34,870,900
3.3%
CONTI NUED >
0
$100 million
$ 200 million
$ 300 million
$400 million
$ 500 million
$600 million
$700 million
$800 million
$900 million
$1 billion
1Q 2005
Short-Form
1Q 2004
Short-Form
$
7
2
3
,
3
7
4
,
9
0
0
$
5
7
0
,
1
9
1
,
8
0
0
$
7
4
1
,
4
8
1
,
1
0
0
1Q 2006
Short-Form
$
9
3
0
,
6
3
2
,
1
0
0
$
1
,
1
7
3
,
5
7
0
,
0
0
0
$
1
,
0
2
2
,
9
9
7
,
6
0
0
1Q 2007
Short-Form
1Q 2008
Short-Form
1Q 2009
Short-Form
$
9
9
5
,
7
5
0
,
3
0
0
$
1
,
0
6
9
,
9
0
9
,
8
0
0
1Q 2010
Short-Form
1Q 2011
Short-Form
$
1
,
0
6
1
,
0
4
4
,
9
0
0
1Q 2012
Short-Form
18 Response AUGUST 2012 www.responsemagazine.com
1Q Short-Form DRTV Media Billings Hold Steady
> > Fig. 3 First-Quarter 2012 Short-Form DRTV Categorical Distribution
Proud To Serve
e Direct Response
Industry
Targeted consumer publicity can play
an important role in your DR campaign.
SSA specializes in achieving product-based
editorial coverage to compliment your
media by reinforcing consumer awareness.
To discuss how publicity can help generate leads and drive sales, contact:
Steve Syatt, (818) 907-5929 or email at Ssyatt@ssapr.com
Apparel: $32,224,600
Audio supplies and equipment: $24,154,800
Automotive and travel: $5,422,300
Business: $55,665,600
Collectibles and art: $1,622,900
Computers, software and home ofce: $43,488,400
Correspondence schools: $9,000,600
Crafts, hobbies, sporting goods and toys: $61,138,200
Drug and toiletry: $515,886,400
Food and beverage: $6,898,200
General: $96,616,000
Home and building: $28,378,400
Household, furniture and appliances: $134,003,800
Lawn, garden, seeds and bulbs: $2,030,000
Multiple category ad: $1,649,300
Publishers and book clubs: $15,651,400
Video suppliers and equipment: $27,214,000
Total: $1,061,044,900

www.responsemagazine.com Response AUGUST 2012 19


Research 1Q Short-Form 2012 Media Billings
> > Fig. 4
Top 40 Brands in First-Quarter 2012 Short-Form DRTV
Reported Time Period: Jan. 1-Mar. 31, 2012
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
BRAND CATEGORY Dollars
Proactiv Solution Drug and toiletry $93,180,100
Nutrisystem Inc. Drug and toiletry $77,724,200
1-800 CONTACTS Drug and toiletry $32,031,400
Scooter Store Drug and toiletry $31,654,100
Colonial Penn Business $22,887,900
Tempur-Pedic Household, furniture and appliances $22,686,700
Select Comfort Direct Corp. Household, furniture and appliances $21,281,000
Lipozene Drug and toiletry $19,052,800
Concha Nacar Drug and toiletry $17,241,300
OrGreenic Kitchenware Household, furniture and appliances $17,013,100
SENSA Drug and toiletry $16,963,500
no! no! Drug and toiletry $15,111,100
Rosetta Stone Computers, software and home office $14,878,500
Bowflex Crafts, hobbies, sporting goods and toys $14,366,100
National Collectors Mint General $13,962,500
Dell XPS 13 Ultrabook Computers, software and home office $12,862,300
Flex Seal Household, furniture and appliances $12,088,600
P90X Extreme Home Fitness Video supplies and equipment $10,363,500
Arriva Medical Drug and toiletry $9,141,300
Onetouch Ultramini Drug and toiletry $9,067,700
InstaHang Home and building $8,728,900
Penn Foster Career School Correspondence schools $8,708,800
Space Bag Household, furniture and appliances $8,423,900
Hoveround Drug and toiletry $8,396,900
Slim Away Apparel $8,331,500
Rogaine Foam Drug and toiletry $8,063,600
Atkins Drug and toiletry $7,933,100
Liberator Medical Supply Drug and toiletry $7,923,700
Vistaprint Business $7,170,700
Zquiet Drug and toiletry $7,148,900
Gerber Life Grow-Up Plan Business $6,949,900
Ageless Male Drug and toiletry $6,903,500
Magic Mesh Home and building $6,887,100
Super Beta Prostate Drug and toiletry $6,751,800
Trendy Top General $6,599,200
Bosley Drug and toiletry $6,473,500
Sticky Buddy Household, furniture and appliances $6,291,500
Razor & Tie Audio supplies and equipment $6,039,000
Encore Dental Business $5,772,200
Grout Bully Home and building $5,601,800
Total: $582,105,300
20 Response AUGUST 2012 www.responsemagazine.com
sequently, the average money spent on a campaign
based on the total this quarter jumped 18.5 percent to
$932,377, while the average money spent on a campaign
outside the top 40 followed suit, rising 24 percent to
$436,193. Both of these figures were the highest since
the pre-recession first quarter of 2008.
At $582.1 million, the top 40 campaigns accounted
for 54.9 percent of total 1Q 2012 short-form DRTV
media billings. The top 10 campaigns totaled $354.8 mil-
lion or 33.4 percent of the quarters total spending.
The top three campaigns in 1Q 2012 remained
the same as a year ago, with Proactiv Solution ($93.2
million), Nutrisystem Inc. ($77.7 million) and
1-800-CONTACTS ($31.6 million) leading the
way. The top 40 campaigns of 1Q 2012 included an
impressive 21 new campaigns compared to first-quarter
2011, with the Concha Nacar enjoying the highest debut
at No. 9.
Kantar Media is the leading provider of strategic media and marketing information. Utilizing highly innovative tracking technolo-
gies, the company collects expenditure, occurrence and creative intelligence on millions of brands across 20 media. These
gures are based on Kantar Medias multimedia ad expenditure database across the following measured media: Network TV,
Spot TV, Cable TV, Syndication and Hispanic Network TV. Figures do not contain public service announcement (PSA) data.
For information about Kantar Media, call (212) 991-6000 or visit www.kantarmediana.com.
> > Fig. 6
Total Short-Form
DRTV Campaigns
0 500 1,000 1,500 2,000
1Q 2005
Short-Form
1,166
1,221
1Q 2004
Short-Form
1,221
1Q 2006
Short-Form
1,086
1Q 2007
Short-Form
1,183
1Q 2008
Short-Form
1,160
1Q 2009
Short-Form
1,486
1Q 2010
Short-Form
1,359
1Q 2011
Short-Form
1,138
1Q 2012
Short-Form
> > Fig. 7
Average Money Spent on a
Campaign Based on Total
0 $100,000 $200,000 $300,000 $400,000 $ 500,000 $600,000 $700,000 $800,000 $900,000 $1,100,000
$787,277.26
1Q 2011
Short-Form
$932,376.89
1Q 2012
Short-Form
1Q 2005
Short-Form
1Q 2004
Short-Form
1Q 2006
Short-Form
1Q 2007
Short-Form
1Q 2008
Short-Form
1Q 2009
Short-Form
$670,087.69
1Q 2010
Short-Form
$881,894.48
$992,028.74
$856,935.64
$635,373.69
$592,444.64
$466,987.55
> > Fig. 8
0 $100,000 $200,000 $300,000 $400,000 $ 500,000 $600,000 $700,000 $800 million
1Q 2005
Short-Form
$264,051.78
$209,232.68
1Q 2006
Short-Form
$351,821.30
1Q 2011
Short-Form
$436,192.71
1Q 2012
Short-Form
$301,156.02
1Q 2010
Short-Form
$425,323.97
1Q 2008
Short-Form
$432,923.75
1Q 2009
Short-Form
$335,029.16
1Q 2007
Short-Form
Average Money Spent
on a Campaign Out-
side the Top 40
> > Fig. 5
First-Quarter 2012 Short-Form DRTV: Dollars Spent by Media Type
Reported Time Period: Jan. 1-Mar. 31, 2012
Hispanic
Network TV Spot TV Network TV Cable TV Syndication Total
Category Dollars Dollars Dollars Dollars Dollars Dollars
Apparel $1,236,700 $1,225,200 $6,754,600 $21,942,800 $1,065,300 $32,224,600
Audio supplies and equpiment $1,795,900 $428,900 $1,768,300 $19,658,300 $503,400 $24,154,800
Automotive and travel $27,600 $3,129,200 $0 $2,265,500 $0 $5,422,300
Business $2,803,200 $3,342,900 $3,660,700 $44,939,200 $919,600 $55,665,600
Collectibles and art $86,300 $0 $1,536,600 $0 $1,622,900
Computers, software and home office $10,179,600 $2,501,200 $2,581,600 $27,293,500 $932,500 $43,488,400
Correspondence schools $0 $293,100 $0 $8,707,500 $9,000,600
Crafts, hobbies, sporting goods and toys $778,300 $1,071,600 $1,473,100 $56,946,400 $868,800 $61,138,200
Drug and toiletry $21,702,800 $13,563,500 $70,634,600 $380,713,900 $29,271,600 $515,886,400
Food and beverage $0 $61,300 $0 $6,836,900 $0 $6,898,200
General $1,078,500 $2,822,500 $8,685,500 $79,831,400 $4,198,100 $96,616,000
Home and building $420,800 $812,900 $4,161,200 $22,422,400 $561,100 $28,378,400
Household, furniture and appliances $1,065,700 $3,137,500 $4,510,600 $117,165,200 $8,124,800 $134,003,800
Lawn, garden, seeds and bulbs $0 $78,100 $0 $1,292,500 $659,400 $2,030,000
Multiple category ad $120,800 $292,400 $0 $684,700 $551,400 $1,649,300
Publishers and book clubs $1,089,800 $1,543,200 $5,676,400 $6,317,400 $1,024,600 $15,651,400
Video supplies and equpiment $156,300 $481,100 $5,029,400 $20,470,400 $1,076,800 $27,214,000
Grand Total $42,456,000 $34,870,900 $114,936,000 $819,024,600 $49,757,400 $1,061,044,900
www.responsemagazine.com Response AUGUST 2012 21
22 Response AUGUST 2012 www.responsemagazine.com
DR Shines Bright
for SunSetter
COVER STORY
www.responsemagazine.com Response AUGUST 2012 23
D
irect response means everything to us. Its the driver for our busi-
ness, says Jonathan Hershberg, founder and co-CEO of SunSetter
Products, a Malden, Mass.-based marketer of retractable awnings for
homes. We could not have created our brand our category
without it. It was a very niche category and product in the U.S. No one had pro-
moted retractable awnings and what they could do for a homeowners lifestyle.
Since 1989, weve spent more than $200 million in DR advertising to build our
brand and business, and theres no way we would have been as efficient or as ca-
pable of educating consumers without it.
CONTI NUED >

Jonathan Hershberg says the retractable awnings manufacturer


used direct response to create both a brand and a market.
BY THOMAS HAI RE
24 Response AUGUST 2012 www.responsemagazine.com
Experience Makes
a Difference
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Your success is our number one priority.
The Value of DR
That consumer engagement was cru-
cial and remains so for a company
selling a product that many homeowners
may think of as a luxury, if at all.
What DR advertising allows us to do
is to popularize not only the concept of
retractable awnings, but also explain how
they could improve how people used their
outdoor space in a very efficient way,
Hershberg says. It also helps our efficien-
cy, in that we measure the effectiveness of
every ad placed.
The ability to explain the product
to show it in action has been crucial.
This is a product that needs TV to help
consumers visualize the problem an
underutilized deck or patio area and
how it is an affordable solution, Her-
shberg contends. Selling directly to
consumers via TV provides an excellent
value opportunity for us. Many of our cus-
tomers didnt know there was a solution
to their problem before they saw our ads,
and even if they knew about retractable
awnings, they thought they were more
expensive.
Having a product line that remains
fairly standard even as it has expanded
during the past two-and-a-half decades
with few accessories has helped SunSetter
keep its pitch easy to understand. People
saw the simplicity and the pricing, and it
made awnings more attainable, something
they could easily visualize in their own
homes, Hershberg says.
As DR advertising has added more
of a Web-response mechanism in recent
years, Hershberg says that has created
even more opportunities for SunSetter to
explain its products to likely customers.
The Web is not only a great way to get
people to contact us, but weve seen more
people becoming comfortable using it as
a true research tool, he adds. In fact, in
many of our TV ads, we prompt consum-
ers to go online and do their research.
Most of our customers still order on the
phone, but use the Web to educate them-
selves at their own pace.
COVER STORY
www.responsemagazine.com Response AUGUST 2012 25
Moving Into Dealer Space
The company is not only utilizing TV,
its response mailers, telephone sales and
the Web, but it has also put together a
network of local dealers 600 around
the United States that
help the company sell
to consumers who
are uncom-
fortable
with self-installation. So whats the result
of SunSetters expanding marketing uni-
verse?
Were having our biggest year in
history, Hershberg says, crediting the
DRTV efforts, along with the dealer
program. For a number of years, we were
serving only do-it-yourself customers
via our DR advertising, and it was suc-
cessful, while helping us build a strong
brand name. The name got so strong
that dealers started calling us, wanting to
sell our products at about the same time
we noticed a growing base of consumers
who were looking to have the products
installed for them.
About six years ago, SunSetter began
SunSetters DR campaign drives
consumers to request an information kit
about the various retractable awning
products that can fit in almost any home
with an outdoor deck or patio.
CONTI NUED >
26 Response AUGUST 2012 www.responsemagazine.com
selling via retail dealers at the same
prices. We found it was ideal for some
consumers, Hershberg says. Now, we are
applying some of those DR skills weve
learned over the years to recruit more
dealers, since dealer sales are right
now the fastest growing part of our
business.
SunSetter has also helped those deal-
ers utilize direct response marketing to
better reach their local customers. Were
using what weve learned through DR to
advertise on a local level for those dealers.
We help them analyze campaigns, utiliz-
ing the same tools as we use on our na-
tional direct campaigns, Hershberg says.
SunSetter works with dealers on
local TV campaigns and also on inserts
for shared mail programs like Valpak or
Money Mailer (Response, June). Cer-
tainly, most of our dealers offer a number
of different products, but as weve become
more involved in their marketing and
helped them manage their businesses bet-
ter, our product has become more impor-
tant, Hershberg says. We have a dealer
locator on our website, we help them
know if the different marketing programs
are working with our analytics expertise
its a win-win for all. Being a SunSet-
ter dealer pays!
Less About Look, More About Results
All of this sunny talk doesnt mean the
SunSetter team hasnt run into its share
of difficulties over the years. But Hersh-
berg says those campaigns that havent
panned out so well are really the best
learning opportunities theyve had.
For us, the campaigns that have been
least successful tend to be when weve
concentrated on a glossier, more refined
look, he says. Those campaigns dont
seem to resonate as much as the more in-
formational, real-world DR look.
He recalls one campaign, specifically,
from 2006. We decided to try a larger,
more traditional agency, Hershberg says.
It was not DR-oriented, at all. And,
while the campaign looked beautiful,
it didnt resonate with consumers. The
agency simply didnt speak the same lan-
guage as us, and they were not as promo-
tionally oriented.
That prompted the SunSetter team
to seek out an agency with which they
could have a close and open relation-
ship, according to Hershberg. And the
company found that in media buying
agency DRM Partners. DRMP really
understands where we want to go and has
worked hand-in-hand with us, Hersh-
berg says. We share all of our informa-
tion with them, and they have access to
our sales by channel. Together, we look
at everything creative, station choice,
spot or show length. And they worked
with us to create algorithms to target our
allowables in every combination.
Though the company went through
a period late in the last decade where,
Hershberg says, We thought we werent
going to be able to grow anymore, Sun-
Setter, with DRMPs help, dug deeper.
Now, were more profitable than
ever, Hershberg contends. Were on
calls with DRMP every week, tweaking
the plan. Our media manager works with
them, looking at our campaign on both
a station-by-station and creative basis.
They know when we want to renegotiate
rates or redirect spend. Its a very respon-
sive relationship.
Cover story
Jonathan Hershberg
Founder and Co-CEO, SunSetter Products, Malden, Mass.
Born: 1942
Hometown: Boston
Resides: Boston, San Francisco
Family: Married, one son, two grandchildren
Education: B.S., business, Syracuse
University
Defning Moments: When you grow a
business, nurture it and eventually sell it as
I did with my business prior to SunSetter, it
gives you the confdence and the experience
that you can, in fact, do that. But, to be
able to do it once and again you
need to be willing to learn and adapt as the
market changes. With SunSetter, we needed
to fnd the element that would make it work
when we started the business. Having the
experience and confdence I gained helped
us fnd the kind of pinpoint advertising
direct response to make it a success.
Greatest Career Accomplishment: My frst
business was an individual effort, but Sun-
Setter turned out to be much larger and that
came from building a great team of people.
The accomplishment of building SunSetter
was the accomplishment of fnding a group
of like-minded, entrepreneurial, analytical
and business-focused people. The team is
the reason the business has grown.
Jonathan Hershberg says a trip to
Europe, where retractable awnings were
more prevalent in homes in the late
1980s, prompted him to help create the
SunSetter brand to serve the untapped
U.S. market.
Contact Andy Arvidson
310.217.4610 | E-mail: AndyA@imaginefulfillment.com
20100 S. Vermont Ave. Torrance, California 90502
www.imaginefulfillment.com
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Response Expo 2012
28 Response AUGUST 2012 www.responsemagazine.com
Marketers and vendors alike seek
out the secrets of turning fans and
followers into buyers.
SOCIAL SPOTLIGHT
www.responsemagazine.com Response AUGUST 2012 29
BY KI RSTEN SALADOW
B
y now, it should be obvious that social media channels
are not a passing fad, and that social media is continuing
to grow at an exponential rate. This is not really news,
considering everybody from Fortune 500 companies to
small mom-and-pop shops use social media in one form or another.
However, many businesses still strug-
gle with determining how to leverage
social media to directly impact their bot-
tom lines. While some companies see so-
cial networks as merely another channel
for building awareness, there are many
direct response marketing companies
seeing social media having incredible
impact on their online sales.
According to polls conducted by
Mashable, companies are increasing their
social media budgets slowly but stead-
ily. Most large companies are increasing
their social media budgets by at least 5
percent every year. But, is growing your
companys social media budget every year
going to produce sales results? Unfortu-
nately, this seems to be the question of
the decade, and there seems to be plenty
of gray area when executives try to come
up with a solution for their companies.
How to Engage With Consumers
Consumers have gotten more social
media savvy. Its clear when a company is
spamming them on Twitter with nothing
but advertisements; its also clear when a
company does nothing but self-promote
on their social media channels.
Many people speak about the 80/20
rule when describing the way to grow
your social media networks. Meaning, 80
percent of what you do on social media
should be interacting with your custom-
ers and 20 percent of what you do should
be about your business. People want to
feel like they are part of the conversa-
tion. I see many companies make the
mistake of constantly self-promoting,
says Becky Sarwate, social media market-
ing manager for Hearthware Inc.
Hearthware (the 2011 Direct Re-
sponse Marketing Alliance Marketer
of the Year) has two different Facebook
pages one for its NuWave Oven and
another for its NuWave Precision In-
duction Cooktop and it has earned
1,000-percent growth in the past year.
Hearthware treats its Facebook pages as
an extension of its infomercials, brand,
customer service and community.
Many times, when a new customer
has a question about our product before
we can answer it for them internally,
one of our brand loyalists will answer the
question for us and most of the time,
they are right. Thats what social media
is about for us: it allows our customers to
form a community over their shared love
of our product, says Sarwate.
Taking the time to figure out who is
following you on Twitter, liking you on
Facebook, watching your YouTube videos
and repinning your pins on Pinterest is
key to learning how to engage and grow
your networks. Just like in traditional
sales methods, a little market research
goes a long way in social media.
The very best programs start with an
understanding of the needs of the com-
munity members or people and seek to
provide unique value to those members
in each channel, says Michael Della
Penna, senior vice president of emerging
channels for Responsys. We subscribe
CONTI NUED >
30 Response AUGUST 2012 www.responsemagazine.com
to the Forrester POST methodology
that requires brands to do a bit of work
upfront and understand the P (People),
O (Objectives), S (Strategy), and T
(Technologies) best suited to support the
social media program. If a program is not
yielding engagement, its likely the brand
needs to spend more time understanding
its audience. Channel audits that look
at the community demographics and
interest, as well as competitive audits and
listening programs that understand what
conversations are taking place across the
industry as well as around the brand and
its competitors across social and Web are
helpful.
Arguably, the best part of social media
is positive word-of-mouth. A positive
review, a great Tweet or an engaging
conversation on social media is more
impactful than an advertisement from a
company singing its own praises.
When consumers talk about a prod-
uct such as PajamaJeans online, it often
sparks threads that can impact product
sales. Several celebrities tweeted about
PajamaJeans and spoke about the brand
on other social channels, generating
endorsements that generated an upward
tick in online sales, says Steve Heroux,
founder and CEO of Hampton Direct
Inc., and a member of the Response Advi-
sory Board.
If all else fails, social media can be the
perfect place to conduct a very large mar-
ket research experiment.
Ask your communities outright
what they want to see from you on social
media. Theyll respond. Its easy. If you
arent thinking about the customer first,
you are bound to fail, says Chad Warren,
senior manager of product marketing for
Adobe.
What About Shy Customers?
Companies like Dell and Amazon
have seen a huge ROI as they have
grown their social media networks, but
not all companies have products that
people want to broadcast their love for
which creates a trickier social media
landscape.
We use social media to drive con-
versation about womens health; its not
a direct line for sales for us, says Rachel
Braun Scherl, president of Semprae
Laboratories Inc. Women that use Zestra
for female sexual enhancement love our
product, but they want to be anonymous.
SOCIAL SPOTLIGHT
www.responsemagazine.com Response AUGUST 2012 31
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CONTI NUED >
We use our social channels to be a voice
in female sexual health that is comfort-
able and while customers may not engage
with us on social media, we know they
are following and listening.
Other popular direct response
products fall into the same category as
Zestra. Bosley, a hair restoration prac-
tice, has been in business for 38 years,
has performed 230,000 procedures, and
continues to perform 11,000 procedures
per year.
We are still experimenting with
social media. Honestly, we have yet to
figure out the best way for us to use it.
Men that have hair restoration proce-
dures are extremely private about this
and they dont exactly want the world or
all of Twitter to know. So our approach is
different: Bosley tries to be a resource on
social media, fully knowing that people
arent going to engage with us openly, but
they are paying attention to what we are
saying, says Steven Aquavia, marketing
manager for Bosley.
Bosley and Zestra both rely heavily on
understanding their customers when it
comes to social media. Our approach to
social media is successful if we understand
how the consumer wants to engage with
the brand and engage with each other
about the brand. If Bosley plays by the
consumers rules, then our social media
campaign is successful, says Aquavia.
The Latest and Maybe Greatest
Pinterest is the newcomer on the
social media landscape and is already gar-
nering a lot of attention for how quickly
its numbers are growing and catching up
to Facebook and Twitter. The numbers
tell the tale around users appetites for
these new interest-based social networks.
Pinterest, an increasingly popular virtual
pinboard, crossed 10 million monthly
unique users in the United States in
January 2012, achieving 8 digits worth of
monthly uniques faster than any site ever
according to TechCrunch. If that isnt
compelling enough, according to Silicon
Valley investor Ron Conway, Pinterest is
growing like Facebook was growing five
Hearthwares pair of Facebook pages
for the NuWave Oven and the NuWave
Precision Induction Cooktop have
enjoyed 1,000-percent growth in traffic
and activity during the past year,
according to the company.
32 Response AUGUST 2012 www.responsemagazine.com
years ago.
Pinterest is a powerful and visual plat-
form that should be part of every retailers
community efforts. In fact, in just a short
period of time, Pinterest has become the
No. 1 driver of traffic to websites and
therefore should be part of the fabric of
the conversation around the brand and its
products, says Della Penna.
Companies dont have to do anything
to be a part of Pinterest. As soon as a
consumer pins your product and other
consumers start repinning, you are part
of the landscape. However, there is more
opportunity with Pinterest than just being
passively involved.
Pinterest is also layered on top of
Facebook. So, if people are pinning your
stuff, they are driving more traffic to your
Facebook page. Considering Pinterest
drives more traffic to your website than
any other social media channel, this is a
substantial opportunity for businesses,
says Warren.
Sarwate agrees, adding, We created a
Pinterest profile and our engagement and
sales exploded. People started repinning
and having conversations based around
different ways to use our product, differ-
ent things you could do in the NuWave
Oven. Food and healthy recipes are huge
on Pinterest, we found it to be a really
natural fit for us.
Measuring Your Impact
If youve invested money, time and
energy into your social media channels,
its important to measure your
impact on these networks as
well as find ways to continue
to grow and connect with
your customers. With how
quickly social media is grow-
ing, there are now experts that watch
trends and are able to pinpoint if a social
media campaign is going to be success-
ful. In addition, its helpful to be able to
anticipate social media trends before they
take off.
The No. 1 trend is around data,
Della Penna contends. We are moving
beyond likes and comments, and increas-
ingly brands are looking to leverage the
data from interactions across the social
medium to build more relevant and pow-
erful relationships. An apps acceptance
from a social sign-up or from a brands app
allows that brand to gain access to robust
social profile information like interests,
and social graph data via a permission-
based acceptance that can now be used
to power highly personalized and targeted
communications.
Adobe conducted a recent study that
shows that social media impact is un-
dervalued by nearly 100 percent. Adobe
Social Suite combines social publishing
and engagement with monitoring, social
ad buying and analytics that can attribute
social activity to business results.
Adobe is giving those with social
marketing responsibilities digital
marketers, community managers,
customer service, public relations,
ad buyers, analysts and others a
single platform to align and collabo-
rate around the management, meas-
urement and optimization of their
social media strategies, and does so
in the context of all other digital
marketing efforts.
If you arent measuring and tak-
ing your social media impact and analyt-
ics seriously, you are already behind the
trend. Companies need to understand
that social media data can tell you so
much more about your customers than
ever before. Companies can segment
their customers into different categories
now, says Warren.
Combining Traditional and Social
Media
As popular as social media has be-
come, it still needs help from traditional
advertising and marketing channels to
have a significant impact on sales.
Some of the more successful social
media programs are sequences and coor-
dinated with other marketing efforts such
as E-mail and/or display. This orchestra-
tion of messaging often leads to an incre-
mental lift in overall performance and
conversion or sales for online marketers.
It is critical these individual initiatives
be tagged and tracked so marketers begin
to understand individual channel con-
tributions, as well as the impact of their
orchestration, says Della Penna.
Advertising on Facebook is no longer
seen as a poor use of budget. In fact, a
Facebook ad could reach more consum-
ers than posting a status update or link to
your community of fans.
There is a natural marriage between
paid media and social media. While at
one time, it was considered blasphemous
to have paid ads on Facebook because
it was bastardizing the integrity of social
media, now, paid media is helpful to
social media when used properly and in
conjunction with grassroots efforts. For
example, on Facebook, only 16 percent
of status update posts actually reach a fan
but a sponsored post or advertisement
is like rocket fuel since it goes to your fan
base and beyond to reach a broader audi-
ence, says Warren.
Hampton Directs PajamaJeans
Twitter feed (@PajamaJean)
has been a driver of great
word-of-mouth marketing for
the DRTV sensation.
Bosleys social media effort include this
special Pinterest offer, which helps keep
the brand top of mind for consumers
who may be shy to publicly discuss hair
restoration.
SOCIAL SPOTLIGHT
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SOCIAL MEDIA AGENT:
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And Much More
BY BRI DGET MCCREA
34 Response AUGUST 2012 www.responsemagazine.com
The back end of
a DRTV campaign
continues to play
a critical role in a
products cumulative
success both on
and off TV.
SUPPORT SERVICES GUIDE
www.responsemagazine.com Response AUGUST 2012 35
Supporting Supporting
T
here was a time when the back end of a DRTV campaign was a pretty
straightforward animal. To support their short- and/or long-form direct re-
sponse shows, marketers relied on a fulfillment provider, a payment processor
and a telemarketing service, all of which rallied around the success of a prod-
uct (or line of products), which in turn was given a specific price point and shipped out
when payment was made in full.
Fast forward to 2012 the back-end services de-
signed around DRTV products are as complex as the
offers themselves. There are so many different offers
on the market right now, compared to just a couple
of years ago, says Hal Altman, president and CEO
at Motivational Fulfillment & Logistics Services in
Chino, Calif. Were seeing shipping-and-handling
only, bill you in 30 days, and myriad other offers. One
product may be packaged, handled and billed 10 dif-
ferent ways.
The hybrid-offer trend has added complexities for
back-end providers, many of which have undergone
their own changes during the past few years. Some
are taking a more vertically integrated approach by
providing services that may not have been under their
domains just a few years ago. These moves were made
in answer to clients needs for an under-one-roof op-
tion and also in response to economic pressures that
are pushing companies to do more for their clients.
In this annual look at whats new in support serv-
ices, well examine the three main facets individually,
show you whats going on in those areas, and turn
to some of the industry pros for hands-on advice for
marketers looking to leverage the back ends of their
campaigns to the fullest extent.
Fulfilling Their Needs
In todays information age, its no surprise that
marketers are asking their fulfillment houses for more
and more detailed reports and feedback. Thats
pushed more of the latter to integrate real-time (or, in
some cases, near real-time) reporting capabilities into
their operations. Theres a continued need and desire
for information from media buyers, clients and other
parties, says Altman, whose firm offers a 24/7 online
program that clients use to check their numbers.
Where we used to supply five or six reports a week,
were now doing 25.
In highest demand are reports that highlight infor-
mation about marketing, finances, media, projections,
installment and receivables (in particular, cancella-
tions, returns and refusals). In many cases, having that
information at their fingertips helps marketers combat
the negative effects of the economic downturn and the
drop in DRTV response that came with it.
In order to stay in business, marketers have to get
a bigger bang for their buck, Altman explains. The
way to do that is by getting quicker, more accurate and
extensive information about customers and costs.
As Altman mentioned earlier, fulfillment compa-
nies are also being asked to manage a wide range of
new offer formats. We have one product right now
that customers can buy 10 different ways from half-
a-payment now, to payment in a month, and every-
thing in between, says Altman.
Where customer service departments once focused
on when to ship the product, many spend their time
explaining to confused customers exactly how much
they paid for what and when. The customer who
pays only shipping-and-handling for a product can get
confused when $15.95 shows up on a credit card state-
CONTI NUED >
36 Response AUGUST 2012 www.responsemagazine.com
ment a month later, Altman says.
To deal with that confusion, compa-
nies like Motivational Fulfillment run
continuity and traditional programs as
two separate entities, knowing that the
former will likely generate the
highest number of customer
inquiries. That strategy
also helps the fulfill-
ment house more
effectively manage
the ongoing pay-
ments, receivables
and reporting associ-
ated with continuity
programs.
Outside forces are
also impacting the way
fulfillment firms operate inter-
nally and deal with DRTV marketers.
Of particular interest right now, accord-
ing to Altman, is the growing attention
being paid to the Payment Card Industry
Data Security Standard (PCI DSS) re-
quirements. Designed to ensure that all
companies that process, store or transmit
credit card information maintain a secure
environment, PCI was developed in 2006
to manage the ongoing evolution of these
security standards with focus on
improving payment account
security throughout the
transaction process.
PCI applies to all
organizations or mer-
chants regardless
of size or number of
transactions that
accept, transmit or store
any cardholder data. PCI
is the Golden Rule, says
Altman. A lot of fulfillment
houses scoff at it and say its not
part of what they do, while others ship
as if they were PCI compliant. Altman
points to the recent multimillion dollar
T.J. Maxx PCI compliance settlement as
a sign of things to come. Its only going
to get worse, says Altman, particularly
for those processors who wont spend the
money to be compliant.
Patrick Moulton, director of new busi-
ness development at Moulton Logistics
in Van Nuys, Calif., says that the most
important trend developing is the shift
toward an expectation of free shipping by
consumers on the DRTV products that
they order. We are seeing more and
more marketers using this offer to increase
their sales, says Moulton, who points out
that much like there is no such thing as a
free lunch, there is also no such thing as
free shipping.
The key is being able to make that
offer is to make sure that you have imple-
mented the lowest possible cost to get the
product from the manufacturer/distributor
to the consumer, says Moulton, within
an amount of time that doesnt have a
negative that is, increased impact
on customer service activity.
At Moulton Logistics, that goal was
SUPPORT SERVICES GUIDE
www.responsemagazine.com Response AUGUST 2012 37
CONTI NUED >
parlayed into the development of the
companys new SmartShipping prod-
uct. The system analyzes hundreds of
variables on every individual package
to identify the smartest delivery option
for that specific package to meet the
required time in transit. Moulton says
the firms clients are seeing an additional
savings of 10 percent (and in some cases,
40 percent) on their already-discounted
shipping charges. Theyre also able to
ascertain their true S&H costs before the
campaign launches, says Moulton, as op-
posed to finding out more than a month
after the campaign has already been live.
Social media has also impacted the
DRTV campaigns backend, according to
Andy Arvidson, owner of Imagine Fulfill-
ment Services (IFS) in Torrance, Calif.
He says marketers are closely monitor-
ing their social media feeds for constant
feedback on customer service in areas
like timely deliveries, order accuracy,
shipment presentation, overall customer
service
and prod-
uct satis-
faction.
Arvidson
sees social
media
outlets
like Twitter and Facebook
as easy ways to achieve customer support
and service goals. Many DR marketers
have subscription-based models, Arvid-
son says, which means its critical to
keep customers happy and ensure repeat
purchases are made.
Expect to see more technology mak-
ing its way into the fulfillment arena
throughout the rest of 2012 and into
2013. But remember that all the technol-
ogy in the world cant replace what fulfill-
ment houses have historically done best:
get the products to the customer in a
timely manner and then track the related
sales and continuity data for sharing with
the marketer. Listen to your fulfillment
provider, Altman advises. You may be
surprised at the wide range of advice and
accurate information that it can provide
and that will save you money, time
and hassle.
On the Hook
Busy consumers dont do a lot of talk-
ing on the phone these days at least
not with product and service vendors.
During the past few years, in fact, a grow-
ing number of people have been using
E-mail, chat sessions and mobile devices
to buy products, submit payments and
ask questions. This trend has pushed
traditional call centers to invest in new
technologies and develop business models
that factor customer-preferred communi-
cation into the mix.
At OCurrance Inc., a Fusion BPO
Company in Draper, Utah, Adam Miller
says the companys newest and hottest
addition is the ability to conduct online
38 Response AUGUST 2012 www.responsemagazine.com
chat with customers who would rather
avoid person-to-person phone calls. This
has helped drive Web sales for clients,
says Miller the companys director of
sales and it also opens up the online
sales channel in ways that the telephone
cant touch. It also helps on the lead-nur-
turing side of the equation, particularly if
the customer has questions and isnt ready
to hit buy yet. Online chat also reduces
long-distance telephone charges a sav-
ings that companies like OCurrance pass
along to their customers.
Also new in telemarketing this year is
the ability of affiliate marketing (defined
as performance-based marketing where
a firm rewards one or more
affiliates for each visitor or
customer generated by the
affiliates individual market-
ing efforts) to drive account-
able inbound phone traffic.
Marketers are using affiliate
marketing to drive inbound
phone calls that were able to
track back to the individual
affiliate marketer, Miller
explains, adding that in the
past, multiple marketing
partners were impossible to
track. During the past 12
months, weve seen several
campaigns that used this strategy to gen-
erate insane volumes of traffic.
On the flipside, Miller is seeing more
marketers grappling with payment release
issues particularly when the offers
include multiple payments over time.
They have a hard time getting all three
or five payments, and total payments
made usually drops out somewhere in the
1.5 (payments) range, says Miller. To
combat that problem, he says OCurrance
tracks orders by agent to figure out which
one is getting two payments versus three,
four, or five. Script changes and other
tweaks are made to ensure that the high-
est number of payments is released for
each order.
We hold ourselves accountable and
track it on the back end, says Miller,
whose firm has used its triage approach
successfully with clients like Rosetta
Stone. If its an agent issue, well listen
in, address the problem, and then imple-
ment a solution for the team.
And speaking of script changes, Miller
believes marketers should loosen up a bit
and allow their telemarketing provid-
ers the leeway to modify and/or write
their own scripts, when warranted. This
doesnt always happen. As a call center,
we know what works, says Miller. One
of the mistakes we see all the time is that
marketers dont utilize us as a partner.
What many of them dont realize is that
we can work with them on tests, scripts,
offers and other critical campaign ele-
ments.
Justin Kilgore, director of cli-
ent services at Evolve Teleserv-
ices Inc., in East Lansing,
Mich., says that to get
the most out of
their campaigns,
marketers need
to set realistic
expectations that
go beyond just saying,
Everyone is going to
want this product.
A lot of companies assume
that their call volume is going
to be high and that theyll need
additional centers to support that,
but they wind up complicating things
before they even determine the demand
levels for their product, says Kilgore, who
advises marketers to keep things simple
on the telemarketing front. If you dont
know what your call volume is going to
be like, then dont muddy the waters.
Getting Paid
Fraud, chargebacks and high return
rates are just a few of the perils that DR
marketers are facing right now, accord-
ing to Curtis Kleinman, vice president
of business development at Swipe Pay-
ment Solutions in Los Angeles. Affiliate
marketing traffic is also impacting how
and when payments are processed for
campaigns, says Kleinman, who points
out that such deals look like cant lose
proposals on the surface, but in reality
are anything but.
So you have a consumer who bought
a similar product, or is ready to buy yours
right now, and you pay a bounty for every
closed sale an affiliate marketer can bring
you, says Kleinman. The downside is
that the consumer may have been offered
a free iPad for accepting a trial offer of
your product or outright purchase. Leads
like this are much more likely to be re-
turned or completely charged back by the
consumer.
Figuring out how to securely accept
mobile payments is another industry chal-
lenge right now, says Kleinman. What is
convenient for the consumer is a logisti-
cal security challenge to mobile provid-
ers, he explains. Because mobile devic-
es are constantly on the go, determining
the location of the purchaser compared
to a home address, isnt as sure a safeguard
as using a desktop computer. To offset
that challenge, Kleinman expects to see
more use of fingerprint and face recogni-
tion technology as a way to ensure mobile
processor security.
Right now, DR marketers have varied
payment processing choices, depending
on their product, price and promotional
methods. Whether their billing model
is a one-time sale, split payment, or has
repeated continuity payments, there are
many processors and banking institutions
friendly to the DR world, says Kleinman,
who cautions marketers not to make the
mistake of using their local banks to fa-
cilitate payment processing. Local banks
are not familiar with spikes or peaks when
you have a successful television spot air.
Chris Reinmuth, vice president of
direct response, at Litle & Co., in Lowell,
Mass., concurs, and says marketers should
seek out providers that arent bank-owned
and preferably a company that has a sharp
eye on PCI compliance, security and new
technological innovations. You want a
payment partner than can capture exist-
ing customers on a multi-bill or continu-
ity system, says Reinmuth, who also
cautions companies to avoid deceptive
campaign practices, which nearly always
result in high chargebacks. Theres a fine
line between being competitive and being
deceptive. Dont cross it.
Support ServiceS guide
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40 Response AUGUST 2012 www.responsemagazine.com
Who Needs Multiple Merchant
Accounts? Probably You
By Curtis Kleinman
T
oday more than ever, businesses must put them-
selves in a secure position by maintaining mul-
tiple merchant accounts. Unfortunately, those
who most need multiple merchant accounts
often have only one.
The problem is, there are circumstances beyond ones
control such as fraud and chargebacks that can jeop-
ardize your ability to process payments through a single
merchant account. Having one merchant account for a
high-risk business is like using a rubber band as a bungee
cord.
Who and Why to Maintain More Than One Account
Multiple Payments or Products. Those with con-
tinuity payments, trial offers, upsells, cross-sells or
memberships involved must protect themselves.
TV or Radio Advertisers. Those who have long-
or short-form DRTV or DR radio campaigns must
handle the spike that a successful spot can bring.
Affiliate Marketing-Driven Sales. You must pro-
tect against bad affiliate traffic. A very enticing
incentive can lead consumers to sign up for a trial
in the hopes of winning a prize. If they dont win,
consumers often stop reordering the product and
you lose. Often, bad affiliate traffic will help drive
sales, but also drive refunds/chargebacks to your
merchant account several months from the time of
the purchase.
Achieve a Greater Processing Volume. By lever-
aging the money they keep in their business bank
account, a company can acquire a second or third
merchant account. Merchants want to be able to
process every sale they are entitled to without any
obstacles imposed by their banking institutions.
Merchants who work with multiple affiliate net-
works can better identify the source of problematic
affiliate traffic.
Accounting Purposes. Some businesses want to
separate their orders based
on factors like the method
of sale, such as E-commerce
vs. MOTO (mail order/tel-
ephone order), or method of
advertisement, such as radio
versus television. However,
one thing to note when considering multiple mer-
chant accounts: a marketer is not supposed to load
balance in order to drive traffic to the account with
the lowest chargebacks. This practice is frowned
upon and, often, sends a red light to regulators.
Billing Descriptors. Multiple merchant accounts
will allow you to have a more accurate billing de-
scriptor, which is how your charge appears on your
customers credit card statements. If a customer
can easily identify your purchase as valid, this will
greatly reduce customer confusion, disputes, retriev-
als and chargebacks. Adding your customer service
phone number to your billing descriptor is another
great idea.
Banks Changing Risk Tolerance. You can be
asked to leave your banking institution, thereby los-
ing the ability to process credit cards immediately.
Ask nutraceutical merchants, skincare merchants,
educational merchants or other marketers that have
been shut down and unable to process payments.
Many were terminated without any notice or proper
time given to open another merchant account.
Know How, Where and When to Implement
For a merchant to implement multiple merchant ac-
counts running simultaneously, it must have properly de-
signed technical infrastructure to support more than one
merchant account. This includes a gateway, which will
enable a load-balancing function. Merchants should have
some form of dedicated in-house or outsourced services at
their disposal. This should include quality customer serv-
ice, technical support, and experience with E-commerce.
Additionally, many merchants wait until theyre in
chargeback trouble to try to acquire an additional mer-
chant account. By that time, no banking institution will
want your merchant account. Or, if they do decide to pro-
vide you a merchant account, the chances are that your
reserves and processing rates will both be higher.
In case youre wondering if the necessity for multiple
merchant accounts is common, many companies that fund
media for DRTV commercials absolutely require that their
clients process using multiple merchant accounts. More
vendors should insist on this, since their profit is attached,
and they owe it to their clients to provide professional
advice.
Curtis Kleinman is vice president
of business development at Swipe
Payment Solutions. He has 27 years
banking experience and is the 2011
DRMA Member of the Year. He can be
reached at (310) 573-9019 or via E-mail
at curtis@swipellc.com.
Support Services
The
DRMA
is...
YOU!
So join today.
$595 per company per year
Contact John Yarrington | 714-338-6724 | jyarrington@questex.com
www.thedrma.com
42 Response AUGUST 2012 www.responsemagazine.com
Digital Age Stimulus/Response:
Are You There When They Respond?
By Irv Brechner
I
t used to be that consumers
responded to short-form spots
and infomercials by phoning or
mailing in a check. Then along
came the Internet, adding websites and
search as response channels. Today, the
number of venues on which consumers
can respond and react to DRTV has
exploded. The big question for every
marketer is: Are you there when they
respond? And should you be?
Below is a good top-level list of
response mechanisms, organized by
category that follows the infographic at
right. Whether a consumer is ready to
buy or needs more information, here are
the ways he/she can respond:
With all of these options to respond, you need to
prioritize them based on your business. While it would
be nice to be everywhere, being
everywhere might not be the best
approach. Many of these are no-
brainers:
Search. Every single DRTV cam-
paign needs to have a supportive
search program. If you dont,
youre paying for customers who
go to your competitors sites
who do have a search pro-
gram. Which search engines
you use is another question.
Google and Bing have the
lions share, so youve got to
have those two covered, while
Yahoo!, Ask and others are
also important.
Tell-a-Friend. With so many
ways for consumers to spread
the word, youve got to devel-
op a program that encourages
them to tell family, friends
and colleagues about your
product or service. A tell-
a-friend button on your site
and an incentive on the con-
firmation page are two common techniques.
You may also want to suggest that they blog
about your product, Tweet to their followers
and post a review on any of the other social
media sites.
Social Sites. With the explosion of social
sites and their staggering numbers, having
a presence, consistent with your website,
is rapidly becoming a must. Check out the
biggies Facebook, Twitter, Pinterest,
YouTube as well as niche and specialty
sites, to determine where you should have a
presence. Look where your competitors are
and make sure youre there as well.
Stores. Clearly you need to have your
own E-commerce site, unless you dont sell
direct-to-consumer. Im sure youve seen the numer-
ous As Seen On TV stores and other online stores
that you may want to consider adding as outlets. You
may also consider using affiliates, but if you do so, you
need to make sure they dont cannibalize your own
paid search program.
Your response side of the stimulus/response story
needs to be tailored to your own products. Theres no
size that fits all. This should be part of a bigger strategy
discussion when planning your next DRTV campaign.
Irv Brechner is executive
vice president and found-
ing partner of Acquirgy.
He can be reached at (732)
321-1924 or via E-mail at
irv@acquirgy.com.
Net Gains
Search
Google
Bing
Yahoo!
Ask
And many more
Social Sites
Facebook
YouTube
LinkedIn
Pinterest
And many more
Tell Friends and
Family
E-mail
Instant Message
Text
Tweet
Phone
Blog
Phone
Landline
Mobile
VoIP
Store/Dealer
Online
Brick-and-mortar
As Seen On TV
stores
Affiliates
Web
Desktop
Laptop
Tablet
Smartphone
DRTV Response Mechanisms
Whowillbecrowned
the2012DRMA
MarketeroftheYear?
Find out Wednesday, Sept. 12
at the Marketer of the Year Award Cocktail Party
CHATEAU ROOFTOP, PARIS LAS VEGAS RESORT
|
9 P.M.- MIDNIGHT
Be a part of DR History. R.S.V.P. Today!
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BROUGHT TO YOU BY:
44 Response AUGUST 2012 www.responsemagazine.com
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DIRECT RESPONSE ADVERTISING AGENCIES
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757.547.5400
DIRECT RESPONSE SERVICES
Let the experts at Carrier Solutions Group perform a free analysis.
They will simplify your phone and Internet services
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Do you really know what you are paying for?
Savings with More Choices...
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contact Dan Donati at 714-338-6723; Fax: 714-338-6713; e-mail: ddonati@questex.com
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www.responsemagazine.com Response AUGUST 2012 45
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Contact Dan Donati today!
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Tel 310-573-9019
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But Wait, Theres More!
Response ... On the Road
J
uly saw the summer social cal-
endar push into full swing, with
a series of annual events dotting
the landscape from Wisconsin to
Southern California, including the
third annual DRMA Summer Bash,
held in Irvine, Calif., on July 26. Lets
take a look at all of the festivities.
From left, BJ Global Directs Jessica Stevens, Alexa
Allen and Amy Shaw share a laugh with A2B
Fulllments Gary Latz (in hat), Debbie Skerly and
Ayal Latz at the July 26 DRMA Summer Bash.
Martin Melgoza and Ben
Zimmerman of Media Design
Group, Mark Biglow of
Mercury Media, BJ Fazeli of
BJ Global Direct and James
Diorio of Dial800 enjoy the
DRMA Summer Bash at Shady
Canyon Country Club.
Venables Bret
Siciliano and Robert
Bolger chat with
guests Karen and Joel
Goldhirsh in Irvine,
Calif., on July 26.
Guthy-Renkers Elliott Segal, Beachmints,
Jonny Forman and Swipe Payment Solutions
Curtis Kleinman chat during the Summer
Bash in Irvine, Calif.
The Direct Response Academys Greg Sarnow joins
Ordermotions Michaella Harkey, the DuMont
Projects Kelly Perdew, BeyondBarre.coms Colleen
Ketchum, and the DuMont Projects Dawn DuMont-
Perdew at the DRMA Summer Bash on July 26.
Rob Albert of Grand Slam Direct meets with
Stephanie LaMore and Marc Johnston of
Direct Avenue at Shady Canyon on July 26.
New Day Marketings annual Fiesta event at the Canary Hotel
in Santa Barbara, Calif., on July 27 drew a big crowd of DRTV
insiders, including (below) Listen Up Espaols Tom Sheppard,
guest Maggie Mahony and Guthy-Renkers Keith Manning. At
right, New Days Robert Hunt welcomes Diamond Medias Sarah
Moody and InQuest Communications Rick Shiu.
Thill Logistics eighth annual networking event again explored
Wisconsins cultural outposts, as well as stops along the Mississippi
River, bordering neighboring Minnesota. Here, Thill Logistics Brian
McGarry and Todd Thill, XSell Responses Scott Swanson, West Directs
Eric Stracener, APGs Mick Rispoli and Responses Thomas Haire enjoy a
visit to the House on the Rock in Spring Green, Wis.
OpenJar Concepts Mike Danbury, Tony Young, Giana
Scimo, Misty Pommier and Adam Casas enjoy the
DRMA Summer Bash.
46 Response AUGUST 2012 www.responsemagazine.com
ICON MEDIA DIRECT has built an industry-wide reputation for executing unique strategies
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rates in the industry. Our team of top notch experts produce sound strategies that deliver
ROI accountability, with measurable and innovative service and technology.
Whether short or long form television or full-service print media buying and creative design,
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