ERA

Thoughts from the Electronic Retailing Association Convention.

I recently returned from the Electronic Retailing Association convention in Las Vegas. ERA is the annual infomercial meeting where vendors involved in the industry get together to discuss trends and analyze and peddle new products and ideas. As usual there were the staple of products and wares being offered, everything from how to lose that difficult extra 10 pounds by not lifting a finger, having a mini-face-lift to look years younger, to relieving that nagging back pain.

I’ve attended this convention for the past 15 years or so and the story this year seemed to be cautiously optimistic. Overall from a media perspective and discussions that I had there is hope that DRTV program results will begin to improve especially during Q4. Business in the DRTV industry has been through a tough economy overall and there’s hope for improvement in results and yet in several cases results remain flat as compared to last year.

Many cable networks and TV stations are bullish on selling their rates this quarter, however its yet to be seen if rates will hold up as we get into the beginning of October, typically Q4 is one of the best periods of the entire year for DRTV products. If results begin to fall off…rates could quickly edge downward and there will be inventory available for media buyers and marketers to pick up at reduced rates. If results are good then the opposite will occur.

There are a few new shows and products in the works, a lot of testing going on in various product categories, mostly those that have been proven effective in the past…such as beauty, exercise and fitness, kitchen and house wares, biz ops, etc. One thing is true - DRTV has become a more respected industry with major brands and some Fortune 500 companies getting involved, but there is still room for the small guy to start up and with minimal investment to reach a national audience with a DR product or service.

One other area of our industry seeing changes is the call centers use of 800#’s with live operators vs. IVR’s. This continues to be debated and more and more marketers are finding that the use of URL’s on the screen and during product offers are generating as much as 30-40% of response depending upon the target demos.  

Overall a well attended ERA with booths and convention space being up and general attendance up too. Hopefully this is a sign of things to come. In the meantime we’ll be keeping a close eye focused on measuring media response during the days and weeks ahead.

Steve Newton is the founder and CEO of Newton Media, a full service media planning and buying company headquartered in Virginia with offices in Dallas. Founded in 1995, Newton Media’s team of seasoned experts has become a leader in both Ministry and Direct Response TV and radio.

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