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Does Long                   Creating Greater
Form Still                  Response to Your
Have a Pulse?               Radio Campaigns
Page 46                                Page 60

Why You                     Industry Pioneers
Shouldn’t Ignore             Reminisce About
the U.S. Hispanic            the Early Days of
Market Page 52                    DRTV Page 68




                    GVG Capital Group CEO
                    Love Goel on Helping
                    Consumer Brands and
                    Retailers Thrive Page 38
                                                                                                           Vol. 7, No. 9 | September 2010

                                 tableof
                    CONTENTS
                         38                                                                                  FEATURES
                                                                                                            38
                                                                                                            Cover Story
                                                                                                            The Father of Multichannel
                                                                                                            Retail
PHOTOS BY JOE TRELEVEN




                                                                                                            GVG Capital Group Chairman and
                                                                                                            CEO Love Goel is renowned for his
                                                                                                            ability to turn consumer brands and
                         GVG Capital Group CEO
                         Love Goel will deliver                                                             retailers into thriving businesses.
                         the keynote address at                                                             By Vitisia Paynich
                         ERA’s D2C Convention
                         in September.                                                                      46
                                                                                                            What’s Ailing Long Form?
                                                                                                            Are infomercials an endangered
                         DEPARTMENTS                                   RESEARCH                             species? Just in a recession-
                                                                                                            induced slump? It depends on
                          5 Calendar of Events                         20 eMarketer Research
                                                                                                            whom you ask.
                            Upcoming conferences and                      Online video viewership
                                                                                                            By Jack Gordon
                            receptions in Sep.-Nov.
                                                                       22 IMS Retail Rankings               52
                          8 Industry Reports                              The Top 25 shows and spots        Engaging the U.S. Hispanic
                            Highlights from the OMMA                                                        Consumer
                            conference                                 26 Jordan Whitney’s Top              The U.S. Hispanic marketplace
                                                                          Categories                        breaks records in growth, buying
                         18 ERA Members Spotlight                         The Top five shows and spots      power and success in DRTV.
                            A profile of ERA’s newest                     in the Top three categories       By Jacqueline Renfrow
                            members
                                                                       30 Lockard & Wechsler’s              60
                                                                          Clearance & Price Index
                                                                                                            Channeling Radio Response
                         90 Bulletin Board                                                                  Generating greater response and
                            Torstar moves offices; Thane                  Index for 30, 60 and 120
                                                                                                            media attribution with stronger
                            Scores International Hit                                                        response mechanisms
                                                                       ONLINE STRATEGIES                    By Andrew G. Gordon
                         92 Ad Index
                                                                      86                                    68
                         98 Classifieds                               Online Insights: SEM                  Special Section
                                                                      A new way of looking at SEM and       An Industry Remembers
                                                                      the long tail                         Direct response veterans reflect on
                                                                      By Kaley Dobson                       25 years of the infomercial and the
                                                                                                            lessons that they’ve learned along
                                                                      88                                    the way.
                                                                      Online Insights: Social Media         By Richard Scheiner
                                                                      Measuring ROI of search and social
                                                                      By Rebecca Lieb

                          2     electronicRETAILER | September 2010
                                              TABLE OF CONTENTS




                                          6
                                           COLUMNS
                                               Your Association,
                                                                                              Does your
                                                                                              campaign need a
                                                                                              legal physical?
                                                                                                                                 78
                                               Your Bottom Line
                                               A Wealth of Leadership
                                               By Julie Coons

                                          32 Guest Viewpoint
                                             DRTV Categories and Product
                                             Promises Withstand Hard Times
                                             By Peter Koeppel

                                          34 Direct Response Insights
                                             Money Not Well Spent                              CHANNEL CROSSING
                                             By Ken Osborn
                                                                                             78 Legal
                                                                                                Do You Need a Legal Physical?
                                          76 Shop Talk
                                                                                                By Greg Sater
                                             Here, There and Everywhere
                                             By BJ Fazeli
                                                                                             80 Social Media
                                                                                                Social Media Marketing:
                                          100 Rick Petry
                                                                                                Keeping Your ROI in Check
                                              You, the Network
                                                                                                By Ed Elliott
                                              By Rick Petry
                                                                                             82 DRTV
                                          All online orders are
                                                                                                Nothing Lasts Forever…Thank
                                          not created equal.
                                                                                                Goodness
                                                                                                By Dick Wechsler

                                                                                             84 Teleservices
                                                                                                10 Rules for Selecting the Right

                                          34                                                    Telemarketing Company
                                                                                                By Richard Scheiner


                                                                        WEB EXCLUSIVES IN SEPTEMBER
                                                                        >> A Closer Look at Christian Marketing
                                                                           By Ken Michelini, Result Advertising Inc.

                                                                        >> What Will It Take for Long-Form Media
                                                                           to Get Healthy?
                                                                           By Dan Zifkin, Zephyr Media Group


                                          electronicretailermag.com
                                          ©2010 Electronic Retailer. All rights reserved. No part of this publication may be reproduced or
                                          transmitted in any form or by any means, electronic or mechanical, including by photocopy,
                                          recording, or information storage and retrieval system, without permission in writing from the
                                          publisher. Reprints of articles are available. Contact Debbie Duhn at (541) 952-0300, or via
                                          e-mail at dduhn@retailing.org.


4   electronicRETAILER | September 2010
                                                                       CALENDAR            SEPTEMBER-NOVEMBER 2010 INDUSTRY EVENTS


September 2010 | Volume 7 • Number 9
                                                                                L.A. Office RoadShow
Electronic Retailer magazine                                          Sept.     September 13-14, 2010
West Coast Office                                                     13-14     Hollywood, Calif.
1001 Avenida Pico, Suite #C 606
San Clemente, CA 92673                                                          For more information, visit www.laofficelounge.com
Phone: 949-489-5501
                                                                      Sept.     Free Webinar: “The Craw, Run and Walk of Lead Scoring”
EDITORIAL
Editorial Director Gina Mullins-Cohen
                                                                       16       September 16, 2010 at 2:00 p.m. EDT/11:00 a.m. PDT
gcohen@retailing.org | Phone: 949-489-5501                                      Sponsored by TARGUSinfo
Deputy Editor Vitisia Paynich
                                                                                To register, visit https://www.completereg.com/eraevents/
vpaynich@retailing.org | Phone: 909-606-3406                                    Registration.aspx
Vice President of Creative Services Kim Lewis                                   Telebrands/ERA Inventor’s Day in Las Vegas
klewis@retailing.org | Phone: 951-277-8259                            Sept.     September 20, 2010
Production Artist Tracy Ann Anderson                                   20       Wynn Hotel, Las Vegas, Nev.
Contributing Writers Andrew G. Gordon, Jack Gordon, Jacqueline                  For more information, e-mail inventorsday@telebrands.com
Renfrow, Richard Scheiner
Contributing Columnists: Kaley Dobson, Ed Elliott, Lesley Fair, BJ    Sept.     2010 ERA D2C Convention
Fazeli, Peter Koeppel, Rebecca Lieb, Ken Osborn, Rick Petry,          21-23     September 21-23, 2010
Greg Sater, Richard Scheiner, Dick Wechsler                                     Wynn Hotel, Las Vegas, Nev.
ADVERTISING                                                                     For more information, visit www.D2Cshow.org
Publisher Gina Mullins-Cohen
gcohen@retailing.org | Phone: 949-489-5501                                      OMMA Global New York
Associate Publisher/Operations Debbie Duhn
                                                                      Sept.     September 27-28, 2010
dduhn@retailing.org | Phone: 541-952-0300                             27-28     Hilton New York, N.Y.
Director National Advertising Sales Debbie Skerly                               For more information, visit www.mediapost.com/events
dskerly@retailing.org | Phone: 949-743-0319
                                                                                Shop.org Annual Summit
ELECTRONIC RETAILING ASSOCIATION EXECUTIVE STAFF
ERA President & Chief Executive Officer Julie J. Coons
                                                                      Sept.     September 27-29, 2010
Executive Director, ERA Europe Marcel Avargues
                                                                      27-29     Gaylord Texan Hotel & Convention Center, Dallas, Texas
Chief Finance Officer/Chief Operations Officer Kevin L. Kelly                   For more information, visit www.shop.org/summit10
Executive Vice President Gina Mullins-Cohen
Vice President of Government Affairs Bill McClellan                             NAB Radio Show
Vice President of Creative Services Kim Lewis
                                                                      Sept.     September 29-October 1, 2010
Vice President of Membership Robin Greenspan                           29-      Washington, D.C.
Vice President of Marketing Dave Martin                               Oct. 1    For more information, visit www.radioshowweb.com
Vice President of Events Evan Shubin
MAGAZINE ADVISORY BOARD                                                         eMetrics Marketing Optimization Summit
MAB Chairman: Dick Wechsler, Lockard & Wechsler Direct                 Oct.     October 3-7, 2010
Hal Altman, Motivational Fulfillment
& Logistics Services
                                                                       3-7      Sheraton National, Washington, D.C.
Danette Dickerman, R2C Group                                                    For more information, visit www.emetrics.org/washingtondc
Stacy Durand, Revenue Frontier/Media Design Group
Steven J. Edelstein, Dream Team Direct Inc.                                     DMA 2010 Conference & Expo
Marty Fahncke, FawnKey & Associates                                   Oct.      October 9-14, 2010
Edward Glynn, Venable LLP                                             9-14      Moscone Convention Center, San Francisco, Calif.
Harry Hill, Oak Lawn Marketing Group
Peter Koeppel, Koeppel Direct
                                                                                For more information, visit www.dma2010.org
Collette Liantonio, Concepts TV Productions
Robert Logie, Studio Moderna
                                                                       Oct.     ERA Networking Reception: San Francisco
Kathi Moore, Engagem3nt                                                 11      October 11, 2010
Rick Petry, Creative Writer, LLC                                                San Francisco, Calif.
Joan Renfrow, Onyx Productions Direct Inc.                                      For more information, visit www.retailing.org
Gene Silverman, Hawthorne Direct
Anthony Sziklai, Moulton Logistics Management                          Nov.     ERA Networking Reception: New York
Jeff Tuller, Savvier
Dan Zifkin, Zephyr Media Group
                                                                        3       November 3, 2010, 5:00 p.m. – 7:00 p.m.
                                                                                Pulse Restaurant & Bar, New York, N.Y.
EDITORIAL SUBMISSIONS                                                           For more information, visit www.retailing.org/NYC
Send press releases and other information to the deputy editor.
SUBSCRIPTIONS                                                        Please send your upcoming industry event listings to Vitisia Paynich, deputy editor,
E-mail Ashley Cavell at acavell@retailing.org                        at vpaynich@retailing.org. Note: Dates and locations are subject to change.

                                                                                                              September 2010 | electronicRETAILER    5
                       YOUR ASSOCIATION, YOUR BOTTOM LINE
                       BY JULIE COONS, ERA PRESIDENT AND CEO




                       A Wealth of Leadership




             s         September is a landmark month in the calen-
                       dar of the direct response marketer. We gath-
                       er as an industry at the ERA D2C Convention
                       (incidentally, this marks the 20th anniversary
                       of the event) where we forge and renew
                       friendships as well as business relationships,
                       all while educating ourselves and sharing
                       knowledge with the goal of further honing
                       our craft. And we reflect upon the year that
                       was, celebrating some of the industry’s finest
                       and most innovative work at the ERA Moxie
                       Awards Gala.
                          September marks a milestone for the ERA,
                       too, as we welcome new volunteer leaders to
                       the board of directors and name a new chair-
                                                                         Fazeli of BJ Global Direct and veteran
                                                                         industry and ERA leader Elliott Segal from
                                                                         Guthy-Renker represent this crucial sector
                                                                         of the industry.
                                                                            HSN’s Greg Henchel will ensure that we
                                                                         continue to have a board presence from the
                                                                         home-shopping space. Dave Wallace of
                                                                         Syndero brings a wealth of experience from
                                                                         the e-commerce world. Matt Fisher is SVP
                                                                         and GM of direct response at LiveOps, a very
                                                                         techno-centric company with leadership that
                                                                         has its roots in e-commerce, as well.
                                                                            The board’s new chairman will be Jeff
                                                                         Tuller, president of Savvier. Jeff, a true indus-
                                                                         try leader, has been a valued member of the
                       man of the board.                                 association for many years, continually tak-
                          In fact, this year we welcome eight new        ing on positions of increasing responsibility.
                       members to the ERA board of directors.            A member of the Strategic Planning
                       These new members will join our incumbent         Committee, Jeff is well positioned to lead the
                       members to create a board that is comprised       association in the first year of the three-year
                       of gifted and talented leaders, and one which     implementation of the strategic plan. As new
                       is balanced and nicely reflective of the indus-   vice chairman, SF Video’s Steve Feinberg will
                       try which it represents—it’s perfectly consti-    ascend to leadership for the 2011-2012 term.
                       tuted to provide leadership in what’s certain        I would be remiss if I didn’t acknowledge
                       to be a pivotal 2010-2011.                        outgoing chairman Lee Swanson and thank
                          We welcome two more women to the               him for his outstanding service throughout
                       board: Omni Direct’s Denira Borrero and           the year. Lee has led ERA through a transfor-
                       Cecilia Turner of International Commerce          mative period. He served as vice chair during
                       Agency. Both bring extensive DR experi-           the re-launch of the ERA D2C Convention
                       ence—domestic and international—and join          and ERA’s mid-winter event, The Great Ideas
                       existing members Stacy Durand of Revenue          Summit. As chairman, Lee was an enormous-
                       Frontier/Media Design Group and Murad’s           ly positive influence and helped drive the
                       Carey Grange to give us four female senior        approval of the strategic planning process
                       executives on the board.                          and saw it through to its successful conclu-
                          Adding to the group’s international contin-    sion with the ultimate board approval of the
                       gent and providing an Asian perspective is        strategic plan.
                       Harry Hill of Oak Lawn Marketing Group.              And as we head into the critical first year of
                       (In addition, John Mills—of John Mills            the plan’s implementation, I couldn’t be
                       Limited—will represent Europe as the new          more impressed with the assembled ERA vol-
                       chairman of the board of ERA Europe.)             unteer leadership. I know that as members,
                          DRTV marketers are certainly founda-           you share my enthusiasm and look forward
                       tional members of our association, and BJ         to working with them in the coming year.

6   electronicRETAILER | September 2010
   INDUSTRY REPORTS



OMMA Explores Two Critical Online
Marketing Issues BY TOM DELLNER
SAN FRANCISCO—The Hilton San
Francisco, in the heart of the city’s
Union Square, was the site for two
OMMA events July 21st and 22nd:
OMMA Behavioral and OMMA
Metrics and Measurement.
   OMMA Behavioral explored how
data is being leveraged by advertisers
in order to locate those website users
that are most relevant to the advertis-
ers’ goals. The one-day event opened
with a keynote address delivered by
Quentin George, chief digital officer
of Mediabrands. In it, George dis-




                                                                                                                                Comstock/Thinkstock
cussed the “semantic web”—what
many anticipate as the next logical
evolution of the Internet. It represents
the ability of software to identify not
only the location of information, but
also to interpret its meaning. In a
thought-provoking        presentation,          tance of integrating transparency        tising campaigns, e-mail, newslet-
George outlined the implications of             throughout the value chain to pro-       ters, e-commerce and catalogs. In
the semantic web, and what marketers            tect brands, agencies, networks          addition to sharing best practices
and advertisers need to do to maxi-             and—most important—consumers.            and lessons learned, the group dis-
mize the opportunity it represents.               The nest day, the topic shifted to     cussed broader issues, such as revis-
   Highlights of the single-day con-            analytics. The day opened with a         ing the very organizational designs
ference included a panel discussion             keynote presentation delivered by        of our businesses to adapt to this
of some of the leaders in online                Eric Peterson, a senior partner with     new multichannel world.
retail. Retailers are among the leaders         Web Analytics De-mystified. Peterson        With social media metrics, the key
in the space in driving behavioral tar-         reviewed what has been a near-com-       seems to be not how to gather data
geting. The panel reviewed methods              plete overhaul of the measurement        from your social media initiatives, but
by which retailers are utilizing the            and metrics sector that has occurred     rather how to glean meaningful
tools at hand to further a number of            over the past five years, while making   insights from the data and take action
different goals: CRM, customer                  some predictions for the future.         based upon it. Several of the industry’s
acquisition and participation in                  While all sessions provided useful     leading authorities debated the topic.
emerging data marketplaces. Also of             content, the most popular centered          Mobile analytics are even more
interest was a discussion of the rise of        around three of the most problematic     unsettled. In one of the most popular
real-time display ads, and the chal-            areas in analytics: measuring across     sessions of the conference, represen-
lenges and opportunities presented              channels, social media measurement       tatives from the cutting edge of
by this new platform.                           and mobile analytics.                    mobile marketing discussed tech-
   In the afternoon, a rousing discus-            A morning panel, moderated by          niques for gaining insights from the
sion was held on an issue that those            Akin Arikan of Unica Corporation,        mobile channel to make this powerful
in the direct-response space can                addressed multichannel metrics.          and rapidly growing platform even
relate to: self-regulation. With                Panelists discussed the importance       more effective.
behavioral targeting, the primary               of integrating online and off-line          For more information regarding
issue is, of course, privacy. Colin             data; it became readily apparent how     the full schedule of OMMA and
O’Malley, co-founder of Better                  challenging it is to collect and make    MediaPost events, please visit
Advertising, discussed the impor-               sense of data from traditional adver-    www.mediapost.com.

  8       electronicRETAILER | September 2010
   INDUSTRY REPORTS


Time Life Inc.’s Cindy Minionis Joins
the Women in Business Pavilion
                     LAS VEGAS—In the           dent of marketing and oversaw the             cation in our product portfolio well
                     August          issue,     company’s music and video campaigns.          beyond music and video, while applying
                     Electronic Retailer        Shortly thereafter, the company made          all the expertise, integrity and profes-
                     asked some of the          the strategic decision to expand beyond       sionalism of a top-notch, well-respected
                     female executives,         music and video and focus on the fit-         marketing company.
                     who will be partici-       ness category. “It was through this ini-          We also launched our own record
                     pating in the Women        tiative that I found and marketed the Ab      label, Saguaro Road Records, which
                     in Business Pavilion       Circle Pro product,” she says. “I can         has recorded some of the best-loved
                     at    ERA’s      D2C       proudly say that it is the biggest selling    artists like Patty Loveless, Bo Bice
Convention, to share a few insights into        product in the history of my company          and Mark Chestnutt, and we even
their industry backgrounds. This month,         and continues to be marketed through          won a coveted Grammy for the Blind
we spotlight another DR veteran who             all channels under my direction.”             Boys of Alabama collection.
will also be participating in the Pavilion.                                                       Another new and exciting develop-
Cindy Minionis is vice president, lifestyle     Electronic Retailer: What’s been              ment for my company is the recent
product marketing, at Time Life Inc.            the most significant accomplish-              maiden voyage of the Malt Shop
Electronic Retailer asked her to impart a       ment in your career?                          Memories Cruise. We hosted a themed
few thoughts about her involvement in                                                         cruise on a Carnival Cruise ship based
the direct response industry.                   Cindy Minionis: This is not your moth-        on one of our biggest selling ’50s and
   Minionis joined Time Life in the early       er’s Time Life…. Propelled by the success     ’60s music collections. Throughout the
1990s when the industry was just really         of Ab Circle Pro, I now oversee a new         cruise, we featured live performances of
getting started. “We were a big player in       company called Direct Entertainment           top acts from the collection, including
DRTV with our top-rated infomercial             Media Group, Inc. (DEMG). In this role,       Frankie Avalon, Bobby Rydell, Little
sets and continuity programs,” she              I am actively seeking products within the     Anthony and the Imperials, Lesley Gore,
explains. “Some of the biggest sellers          fitness category including hard goods         plus many others. The next Malt Shop
were Your Hit Parade, Fabulous 50s,             and IP products. In addition, I am also       Memories Cruise will sail in 2011 fol-
Lifetime of Romance, Classic Soul               looking for products for short form and       lowed by two additional themed cruises.
Ballads, Country USA, and of course,            long form in the “lifestyle” category. This       So, yes, it’s true. The industry is chang-
the evergreen Christmas collections that        includes housewares, hardware, beauty,        ing and we are changing right along with
Time Life was so well known for.                pet, automotive, etc. This new venture        it. And for now, here at Time Life, I am
   In 2005, Minionis became vice presi-         will enable me to continue the diversifi-     truly having the Time of my Life!


Celebrity Illusionist Criss Angel Teams with Ideavillage
on Marketing and Distribution Partnership
WAYNE, N.J.—Criss Angel, the                    individual magic tricks. The new              they have the ability to reach as many
world’s most famous illusionist, mys-           magic line is geared toward people of         up-and-coming magicians as possi-
tifier, escape artist, producer and star        all ages and promises to have one of          ble!” says Angel. The MINDFREAK
performer of the A&E hit show                   the largest non-digital entertainment         Magic Kits are created, designed and
“MINDFREAK®,” is adding business                retail launches ever.                         produced by Criss Angel/APWI.
man to his ever-growing repertoire of              “Criss Angel is a world class per-            Slated to be in retail stores in
talents. Angel, who at the age of 6             forming artist. It’s what he does best.       September 2010, the product offering
learned his first magic trick from his          TV is all about magic demonstra-              includes the Criss Angel Platinum
Aunt Stella, announced the selection            tions, which make it the perfect venue        MINDFREAK Magic Kit, which con-
of Ideavillage Products Corporation             for introducing Criss’ new Kit,”              sists of more than 250 MINDFREAK
as the marketing and retail distribu-           explains Anand “Andy” Khubani, the            tricks, including an instruction man-
tion partner for his 250-plus                   company’s CEO and founder.                    ual and DVD, as well as six individual
Platinum MINDFREAK Magic Kit                       I’m excited about the partnership          MINDFREAK tricks with instruc-
and multiple other magic kits and               with Ideavillage, because I know that         tions.

 10       electronicRETAILER | September 2010
    INDUSTRY REPORTS


 FTC Forum
Heading the Bad Guys Off at the Pass(word)
BY LESLEY FAIR




I
    n classic western movies, the good                                                         of a hack attack doesn’t automatical-
    guys foil the outlaws by “headin’                                                          ly mean that a company has violated
    ‘em off at the pass.” These days,                                                            the law, but savvy businesses take
marketers can help protect them-                                                                   steps to make it as tough as possi-
selves from online desperados by                                                                   ble for the bad guys to break in.
“headin’ ‘em off at the password.”                                                                 Although the Twitter settlement is
   The Federal Trade Commission’s                                                                  binding only on that company, the
recent settlement with social net-                                                                 FTC’s complaint suggests some
working site Twitter demonstrates                                                                  password practices that can reduce
that principle. According to the                                                                   a company’s risk:
FTC, serious lapses in the compa-                                                                  • Insist on administrative pass-
                                               iStockphoto/Th
ny’s password practices allowed                              inkstock                             words that are harder to guess. Ban
hackers to access non-public user                                                                 the use of words that are vulnerable
information, read private tweets and           ticated company like Twitter? An                   to “dictionary” programs;
send out phony messages from users’            evaluation of the company’s policies            • Disable administrative passwords
accounts. Given Twitter’s promises to          suggests that it was disturbingly sim-             after a number of unsuccessful
safeguard users’ personal informa-             ple. From July 2006 to July 2009,                  login attempts;
tion and allow them to designate               Twitter granted administrative con-             • Change administrative passwords
tweets as confidential, the FTC                trol to most of its employees, giving              regularly;
alleged that the company practices,            them the right to reset users’ pass-            • Establish an administrative log-in
when taken together, made those pri-           words, view non-public tweets, and                 page known only to authorized
vacy claims deceptive.                         send tweets on others’ behalf. To get              employees; and
   One lapse mentioned in the FTC’s            control, they simply had to type their          • Limit administrative access to
complaint was the company’s failure            user name and password on the same                 employees with a legitimate busi-
to lock out users after a number of            public login page used by millions of              ness need.
incorrect attempts to log in as an             Twitter users. In addition, employees              Visit www.ftc.gov/infosecurity for
administrator. In one incident, that           were allowed to use “weak” pass-                free security resources for your com-
practice allowed a hacker to use an            words—everyday words typed in                   pany.
automated password program to sub-             lowercase that are more vulnerable to
mit thousands of guesses on Twitter’s          automatic password programs.                    Lesley Fair is an attorney with the
login page. After the program correct-            Of course, simply being the victim           FTC’s Bureau of Consumer Protection.
ly sussed out an employee’s adminis-
trative password, the hacker reset sev-
eral passwords and posted them
                                                                                  Correction
where others could see. Using these             In the Gold Book 2010-2011, EAG’s name,        Email: willy@eaggroup.com;
fraudulent new passwords, intruders             phone and fax were listed incorrectly.         icano@eaggroup.com
sent phony tweets from users’                   Also, the URL was omitted. The correct list-   William Riveron, President
                                                ing should be as follows:                      Ines Cano, VP
accounts. One phony tweet sent from
                                                                                               Categories:
the account of then-President-Elect
                                                EAG                                            Agency, Full-Service w/Direct Div.
Obama claimed to offer his 150,000              www.eaggroup.com                               Media Buyer, Long-Form TV
Twitter “followers” a chance to win             1400 N.W. 107th Ave., Ste. 211                 Media Buyer, Per Inquiry
$500 in free gasoline. Unauthorized             Doral, FL 33172                                Latin America
tweets were sent from eight other               UNITED STATES                                  U.S. Hispanic
accounts, including Fox News.                   Phone: 305-597-5454
   How could this happen to a sophis-           Fax: 305-597-2116



 12      electronicRETAILER | September 2010
   INDUSTRY REPORTS


Portland Serves as Host City for Cmedia Summit
of National Television Media
PORTLAND, Ore.—Cmedia, the                     our fine city. We decided it was
media buying division of R2C Group,            high time we show off
for the first time hosted its annual           Portland and host a unique
media summit in R2C Group’s home-              ‘wine and food extravaganza’
town of Portland, Ore.                         for our media partners
   Traditionally held in New York City         around the country. Portland
or Los Angeles, more than 80 televi-           has become the place to come
sion network, cable and satellite media        for foodie and wine enthusi-
executives gathered in the Pacific             asts alike and the turn-out was
Northwest to visit the R2C Group               over the top!” says Michelle Cardinal,       From left: Michelle Cardinal, Cmedia
national headquarters, build relations         CEO of the Cmedia division of R2C          CEO, Alison Sproul-Martin, Cmedia short
                                                                                           form supervisor, Cheryl Leung, HGTV,
with the agency’s media division and           Group and co-founder of the agency.
                                                                                            Tonya Walshe, Cmedia senior buyer
tour the surrounding area, including           “Nothing beats spending quality time
Willamette Valley wine country, as well        face-to-face with our media partners,      satellite providers, and local broad-
as Portland’s many local attractions.          while also entertaining Portland style.”   cast stations. The attendees represent
   “With more than $400 million in               Media executives attending repre-        media properties including ESPN,
media buying clout, we wanted to host          sented the entire direct response tele-    MTV, Discovery, Turner, Outdoor
a memorable event that could show-             vision spectrum, including national        Channel, Ion, ABC, CBS, NBC, Fox,
case our media buying clout, as well as        networks, cable properties, cable and      Dish HGTV, Hallmark and DirectTV.




 14      electronicRETAILER | September 2010
   INDUSTRY REPORTS


Kymaro Goes to the Movies
IRVINE, Calif.—Guess what’s coming
to a movie, TV show and your cell
phone? Infomercials!
   BJ Global Direct, an Irvine compa-
ny built by 35-year direct response
veteran BJ Fazeli, is finding all sorts of




                                                                                                                             Hemera/Thinkstock
new media ways to get exposure for
its products. The company dreams
up, manufactures and sells several
dozen beauty and home fitness prod-
ucts under the brand name Kymaro.
   The company’s biggest seller for the
past couple of years is the Kymaro
Body Shaper. The newest product is
the Rhythm Rocker that Lacey                 UbuyEZ, has links to its commercials       Body Shaper and the toll-free order-
Schwimmer of “Dancing with the               on YouTube. It also has Facebook and       ing number will be visible.
Stars” is promoting.                         Twitter accounts and a blog.                 “We don’t expect people in the the-
                                                                                        ater to write down the phone number
                                                                                        but when the movie goes to DVD,
   “We started on television. In today’s world,                                         people can pause it and write down
   we have a second screen with the Internet.                                           the number,” he says.
                                                                                          BJ Global is also doing product
           And the next step is a third screen                                          integration with a reality TV show
               we’re looking at, cell phones.”                                          this fall. Again, Fazeli says he can’t
                                                                                        yet give the name of the show, but
                                        —BJ Fazeli, BJ Global Direct                    the theme will be ultimate fighting
                                                                                        for women and the Kymaro
  “We started on television,” Fazeli           “We’re breaking onto the silver          Rhythm Rocker will be one of the
says. In today’s world, we have a sec-       screen with product placement in a         pieces of equipment used to get
ond screen with the Internet. And the        movie this fall,” Fazeli says. He won’t    into fighting shape.
next step is a third screen we’re look-      disclose the name of the movie, but          “We’re marketers,” Fazeli explains.
ing at, cell phones.”                        he says that in one scene, an actor will   “You just keep your ear to the ground
  The company’s selling website,             be watching an infomercial for the         and keep moving with technology.”
Premier Solutions Begins Testing SLIDE-SLIM™
MIAMI—Premier Solutions has                response television, home shopping,        our own exclusive and ground break-
begun testing its new global product,      print, e-commerce and retail.              ing products, we are also seeking out
SLIDE-SLIM™.                                  “Further expansion of our success-      and adding other inventive third-
  Designed and invented by Jorge           ful fitness, health and weight-loss        party products that also complement
Hané, known as “The International          product lines is the result of our         our portfolio of products,” says
Weight Loss Guru” and owner of             company’s newest approach. In addi-        Sergio Do Nascimento, CEO of
Premier Solutions, SLIDE-SLIM™             tion to developing and marketing           Premier Solutions.

“Further expansion of
our successful fitness,
   health and weight-
  loss product lines is
      the result of our
   company’s newest
approach.”—Sergio Do
       Nascimento, Premier
                Solutions
was engineered by the most presti-
gious insole designer in Switzerland
to make this insole unlike any other.
  The company has targeted all main
channels of distribution for SLIDE-
SLIM™, including (DRTV) direct

      For the Record
 In “Jordan Whitney’s Top Infomercial
 Categories,” published in the July
 issue, we listed Haan as the distribu-
 tor of the Shark Portable Steam
 Pocket. The distributor for the prod-
 uct is Euro-Pro Corp.

 There was a typo in the headline of the
 feature article on the Quebec market,
 which was published in the August
 issue. The correct headline should
 read: “Say ‘Oui’ to the Quebec Market.”




 Avalanche Creative Services was
 omitted from the list of participating
 companies in the Women in Business
 Pavilion published in the 2010 ERA
 D2C Convention Pre-Show Planner.


                                                                                   September 2010 | electronicRETAILER   17
               MEMBERS SPOTLIGHT                            BY ROBIN GREENSPAN



The following companies have joined             agement team with decades in the             provides a good opportunity to learn
the Electronic Retailing Association            industry, CardFlex leverages unex-           from other industry members and
and discovered the value of ERA                 ploited technologies to deliver high-        enhance our on-air and online pro-
membership. Read on to better under-            end customer assistance—including            gramming, which is essential in this
stand the vast assortment of compa-             sophisticated marketing guidance in a        fast paced retail environment.
nies that help comprise this vibrant,           complex regulatory environment—to
fast-paced and growing industry.                direct-response merchants, affiliates
                                                and agent offices.
                                                                                             Who:
Who:                                            Where: Costa Mesa, California
                                                                                             What: ResponzeTV based in Hong
What: We are a multipurpose                     Web: www.cardflexpayment                     Kong, a strategic location for sourcing
teleshopping channel broadcasting in            solutions.com                                hit and competitively priced products
Persian and English on Hotbird (fre-                                                         from China, Korea and Asia. With 15
quency 11566), reaching out to mil-             Why ERA: Because that’s where the            years’ experience in home shopping
lions of viewers around the world and           electronic retail leaders are.               and direct response, ResponzeTV
focusing on Iran and covering Persian-          CardFlex’s clients are ERA members.          brings to you expertise in product
speaking and Middle East countries.                                                          sourcing and development, infomer-
Our primary target market in Iran                                                            cial products supplies and also inter-
comprises a population of over 70 mil-          Who:                                         national distribution mainly in Asia
lion. We are proud to offer our services                                                     Pacific, Europe and Middle East.
to our partners: 1) introducing, adver-         What: Based in Dubai in the United           Contact us for our range of products,
tising and offering in video our part-          Arab Emirates and established in April       all your sourcing needs and interna-
ners’ products to our viewers with              2005, Citruss TV is the leading home         tional distribution of your products.
most competitive broadcast rates; and           shopping network in the MENA region
2) advertising and offering to our view-        (Middle East and North Africa), broad-       Where: Kowloon, Hong Kong
ers in video our partners’ innovative           casting 24/7 in the Arabic language, tar-
products ranging from house appli-              geting the quality-sensitive and trend-      Web: www.responzetv.com
ances to automotive items and jewelry.          setting Arabic female and male viewer.
                                                Citruss TV produces its own shows to         Why ERA: “This is the place you defi-
               Why ERA: “Our reasons            suit the mentality and expectations of       nitely want to be if you want to be
              for becoming a member             the viewers in the region and provide        “heard and seen” as a direct response
              of ERA are to recognize           them with an exclusive and convenient        industry marketer. We hoped to achieve
              partners in business,             shopping experience from the comfort         more from building our business con-
extend the business in the Middle East          of their homes. To maintain its position     tacts and getting more new leads
and pursue globalization in business.           as the regional market leader, Citruss TV    through networking. ERA’s organized
Our expectations from ERA are: 1)               constantly sources and offers a variety of   convention is the place that we can
introducing reliable brands and compa-          exclusive high-quality products that         achieve our hope.”—Richard Lee
nies for trading; 2) creating secure con-       aren’t available in the marketplace,
ditions for business; and 3) providing          and provides a superior service leaving
good conditions for a regular interac-          no customer request unanswered.              Who:
tion in industry.”—Hojat Abedi
                                                Where: Dubai Media City                      What: Marketing Maven Public
                                                                                             Relations, Inc., specializes in earning
                                                Web: www.citrusstv.com                       national editorial media coverage for
                                                                                             direct-to-consumer products and
                                                Why ERA: Being a leader in the home          services, improving product visibility
Who:                                            shopping industry, we found ERA              and online reputation management,
                                                very beneficial as it has great net-         thus increasing online sales for clients.
                                                working opportunities, important             We also distribute products at retail
What: CardFlex Inc. was founded in              information and news about the elec-         and connect clients with funding.
2007 to help businesses manage all              tronic industry, as well as a valuable
electronic payments. Led by a man-              database of companies. This network          Where: Camarillo, California

 18       electronicRETAILER | September 2010
Web: www.marketingmavenpr.com                we view ERA membership as a key                 growth. We wanted to learn and model
                                             component of a communication strat-             the best industry practices by meeting
              Why ERA: “For a public         egy that is critical to the success of our      and learning from the best in their fields.
              relations company get-         business.”—Dan Wright, President                ERA is an excellent organization for
              ting consumer response                                                         keeping you on top of your game and
              for our clients is crucial,                                                    keeping your business vision and strate-
and direct-response advertising is one                                                       gy looking towards long-term excellence
strategy we use to get our clients visi-                                                     and success.”—Evie Weddle, President
ble and quantifiable results. Becoming       Who:
a member of ERA allows us to be a
part of a network of like-minded com-
panies, where we can share our knowl-        What: Quality Fulfillment and                   Who:
edge and gain valuable information           Distribution, Inc., is a fulfillment firm
from others in the industry.”—Lindsey        specializing in custom “white glove” ful-       What: We are a global contact center
Carnett, President & CEO                     fillment services and the U.S. Hispanic         that provides 24/7 multi-lingual voice,
                                             market, addressing its specific needs.          e-mail, chat and back-office services
                                             Whether you serve D2C or B2B mar-               that improve customer satisfaction,
                                             kets, our clients are small- to medium-         reduce operational costs, increase sales
                                             sized businesses that take advantage of         and enhance customer experience for
Who:                                         our specialized know-how, hands-on              the multichannel retailer, among other
                                             quality control, execution of custom or         verticals. Established in 2002, we oper-
What: Proceed Media Group is a data-         complex assembly jobs, economies of             ate in six countries including the U.S.,
driven DRTV media agency providing           scales, real-time web-based tracking and        UK and India, and offer best-shoring
next-generation media targeting, meas-       volume discounts. What does that mean           options to deliver high-value services
urement and reporting services to mar-       for the start-up that is out growing its        at a low, competitive cost. Other
keters. We target media using a propri-      home office or garage, or the small to          industries we service include enter-
etary panel of over 3 million DRTV cus-      medium warehouse, whose overhead is             tainment and gaming, financial servic-
tomers profiled with over 400 demo-          taking up a good slice of the profits? It       es and communications. Respondez is
graphic and behavioral attributes. We        means you can outsource your ware-              the global contact center and interna-
use our proven methodology to attrib-        housing and shipping to a reliable part-        tional business process outsourcing
ute telesales, online and retail responses   ner that will save you money and                brand of publicly traded Spanco
back to the media investments that gen-      increase your efficiencies.                     Group, a leader in the telecom integra-
erated them. And with our advanced               Are you new to the U.S. Hispanic            tion field, based in Mumbai, India.
tracking, we are able to update our          market or want to enter the Hispanic
robust online analytics platform every       market and need help getting started?           Where: Iselin, New Jersey, Hartlepool,
day so our planners, buyers and clients      Do you have a specialized direct-               United Kingdom, and Mumbai, India
can see the profitability of every media     response promotion? Do you source
investment we make on a daily basis.         your products in Florida or Latin               Web: www.respondez.com
                                             America and need a South Florida point
Where: Seattle, Washington                   of distribution? Give us a call. We will                      Why ERA: “We are excit-
                                             customize a program just for you.                             ed to join ERA, as it pro-
Web: www.proceedmediagroup.com                                                                             vides multiple opportuni-
                                             Where: Miami, Florida                                         ties for us to network and
              Why ERA: “We want to                                                           develop relationships with members
              contribute to the direct       Web: www.qualityfulfillment.com                 who may not have previously heard of
              response industry by pro-                                                      us. We support a strong, established
              viding innovative solu-                    Why ERA: “We joined                 client base in Europe and the Middle
tions that revolutionize media target-                   ERA because we wanted to            East, and are very focused on continu-
ing and measurement for marketers.                       meet like-minded profes-            ing this success and extending our
We feel that to accomplish our goals                     sionals and businesses that         value-added solutions in the U.S.
we must maintain an open and con-            not only would be potential prospects           region. We believe ERA can help us
stant dialog with all constituents in the    for our business, but would share an            meet our goals.”—Randy Taylor, EVP
direct-response ecosystem. To this end,      interest in industry education and              Sales, North America

                                                                                          September 2010 | electronicRETAILER     19
                            EMARKETER RESEARCH


                         Online Video Viewership on the Rise
                         According to eMarketer, a growing portion of the video audience is watching TV shows and movies online. This reflects a shift in the
                         content mix from short user-generated clips to full-length professional content.




                         U.S. Online Video Viewers, by Age, 2008-2014 (by % of total)


                                                                     2008           2009           2010       2011          2012             2013       2014
                                                       0-11          6.4%           6.8%           7.3%       7.8%          8.4%             9.0%       9.7%
                                                       12-17        13.4%           13.0%          12.7%      12.4%         12.1%         11.9%         11.7%
                                                       18-24        17.5%          16.8%           16.3%     16.0%          15.4%         14.8%         14.3%
                                                       25-34        21.2%           21.0%          20.8%      20.5%         20.1%         19.7%         19.3%
                                                       35-44        19.2%          18.7%           18.0%     17.4%          17.0%         16.9%         16.7%
                                                       45-54        13.5%           13.8%          13.8%      13.7%         13.6%         13.5%         13.4%
                                                       55-64         6.4%           7.1%           7.7%       8.5%          8.9%             9.3%       9.7%
iStockphoto/Thinkstock




                                                       65+           2.3%           2.7%           3.3%       3.7%           4.3%            4.8%        5.3%


                                                      Those in the 25-34-age category comprise the largest number of viewers. However, by 2013,
                                                      the total number is predicted to decrease slightly.
                                                      Source: eMarketer



                         Amount of TV Watched on the Internet According to U.S. Internet Users, by Age,
                         February 2010 (by % of respondents in each group)


                                                                                                                                       All
                                                                                    All                                                5%
                                                                           None
                                                                           17%      6%                                                        Most
                                                                                                                                              8%
                                                                                            Most                        None
                                                                                            23%                         36%



                                                                            Some                                                       Some
                                                                            54%                                                        51%
Hemera/Thinkstock




                                                                              <25                                               Everyone


                                                       Fifty-four percent of those over 25 say they watch some TV programming on the web.
                                                       Source: eMarketer


                          20       electronicRETAILER | September 2010
                              U.S. Online Video Viewers, 2008-2014 (in millions and % of Internet users)
                                                                                                                                               193.1
                                                                                                                            183.6             (77.0%)
                                                                                                            173.1          (75.2%)
                                                                                             160.2         (73.1%)
                                                                                147.5
                                                                      135.1                 (69.9%)
                                                                               (66.7%)
                                                  121.4              (63.8%)
                                                 (59.7%)
Hemera/Thinkstock




                                                  2008                2009      2010         2011           2012            2013               2014
                                                 eMarketer forecasts that by 2014, 77 percent of Internet users will view video online.
                                                 Source: eMarketer

                             Time Spent Watching TV, Online Video and Mobile Video in the U.S.,
                             Q1 2009, Q4 2009 & Q1 2010 (in hrs.:mins.)
                                                                                                        Q1 2009         Q4 2009          Q1 2010
                                                  Watching TV in the home                                156:24          153:47           158:25
                                                  Watching timeshifted TV                                 8:22            9:13                9:36
                                                  Using the Internet                                     29:15           26:32            25:26
Rayes/Photodisc/Thinkstock




                                                  Watching video on the Internet                          3:00            3:22                3:10
                                                  Mobile subscribers watching video                       3:37            3:37                3:37
                                                  on a mobile phone

                                                 During the first quarter of this year, viewers spent three hours and 10 minutes watching video
                                                 on the Internet, which is 12 minutes less than Q4 2009.
                                                 Source: eMarketer

                              U.S. Adult Internet Users Who Watch Full-Length TV Shows Online, 2008-2011 (in millions)
                                                                                                                                          72.2

                                                                                                           58.9
                                                                                 49.6
                                                        41.1
Hemera/Thinkstock




                                                       2008                     2009                      2010                            2011
                                                 This year, nearly 59 million adults will watch full-length TV shows on the web. That number is
                                                 expected to jump dramatically by 2011.
                                                 Source: eMarketer


                                                                                                        September 2010 | electronicRETAILER      21
                    RETAIL RANKINGS


                                   THE RETAIL RANKINGS FOR JULY 2010


                   LONG-FORM PRODUCTS SOLD ON TV
                   Based solely on frequency of programs aired on national cable networks monitored, media index and web activity.

RANK PRODUCT                                     CATEGORY                   PRICE

  1      Body Makeover                           Health & Fitness           $199.95 or 4 payments of $39.99 (plus $16.99 S&H)

  2      MaxClarity                              Beauty                     $19.95 for a 60-day supply (plus free shipping)

  3      P90X                                    Health & Fitness           3 payments of $33.00 (plus S&H)

  4      Shark Vac then Steam                    Household                  4 payments of $39.95 (plus $29.95 S&H)

  5      Shark Steam Pocket                      Household                  4 payments of $29.99 (plus $21.95 S&H)

  6      Total Gym                               Health & Fitness           12 payments of $49.95 (plus $50.00 S&H)

  7      Shark Navigator                         Household                  4 payments of $49.95 (plus $29.95 S&H)

  8      Your Baby Can Read                      Education & Self-Help      3 payments of $29.95 (plus $14.95 S&H)

  9      Ninja Professional                      Kitchen                    3 payments of $33.00 (plus $19.95 S&H)

 10      Brainetics                              Education & Self-Help      3 payments of $59.95 (plus S&H)

 11      Shark Portable Steam Pocket             Household                  3 payments of $33.00

 12      Nu-Wave                                 Kitchen                    3 payments of $33.00 (plus S&H)

 13      no! no!                                 Beauty                     3 payments of $89.95 (plus $14.95 S&H)

 14      Worx                                    Household                  3 payments of $33.33 (plus $19.73 S&H)

 15      New Body Shaper                         Fashion                    $39.95 (plus $9.95 S&H)

 16      bareMinerals                            Beauty                     2 payments of $29.99 (plus $15.98 S&H)

 17      Insanity                                Health & Fitness           3 payments of $39.95 (plus $24.95 S&H)

 18      Yudu                                    Crafts & Hobbies           $33.00 for 30-day trial (plus $24.99 S&H)

 19      Magic Bullet                            Kitchen                    6 payments of $19.99 (plus $19.99 S&H)

 20      PerfectSkin                             Beauty                     $29.95 for 30-day supply

 21      Wen                                     Beauty                     $29.95 (plus $5.95 S&H)

 22      Ab Circle                               Health & Fitness           $14.95 for 30-day trial (plus S&H)

 23      Hip Hop Abs                             Health & Fitness           3 payments of $19.95 (plus $12.95 S&H)

 24      Olay Pro-X                              Beauty                     3 payments of $19.99 (plus $6.95 S&H)

 25      Youthology                              Beauty                     $59.99 (plus $9.99 S&H)


© INFOMERCIAL MONITORING SERVICE, INC. IMS is a research and publishing company that ranks both long- and short-form DRTV
on national cable and satellite networks. IMS’ database and video library serve companies that are involved in all aspects of the DR
industry. IMS provides weekly and monthly reports, both in print and online, that include DRTV rankings, verification, evaluations
and specified research. Consulting, film and video production, post production and broadcast duplication are also available.




 22       electronicRETAILER | September 2010
                     RETAIL RANKINGS


                                  THE RETAIL RANKINGS FOR JULY 2010


                 SHORT-FORM PRODUCTS SOLD ON TV
                 Based solely on frequency of programs aired on national cable networks monitored, media index and web activity.

RANK       PRODUCT                               CATEGORY                                       PRICE                     S&H

  1        HD Vision Ultras                                Fashion                              $10.00                    $6.99

  2        Schick Hydro                                    Personal                             $0.00                     $0.00

  3        Page Brite                                      Miscellaneous                        $10.00                    $5.99

  4        Booty Pop                                       Fashion                              $19.95                    $6.95

  5        Pillow Pets                                     Entertainment                        $19.95                    $6.95

  6        Hydroxatone                                     Beauty                               $0.00                     $0.00

  7        Proactiv Solution                               Beauty                               $19.95                    $0.00

  8        Spill Daddy                                     Household                            $19.99                    $8.95

  9        Hydrolyze                                       Beauty                               $0.00                     $0.00

 10        Hoveround                                       Personal                             $0.00                     $0.00

 11        Total Pillow                                    Personal                             $19.99                    $7.95

 12        Wonder Hanger                                   Household                            $9.99                     $7.95

 13        Ionic Bulb                                      Household                            $19.99                    $0.00

 14        iRenew                                          Fashion                              $19.99                    $7.95

 15        eDiets                                          Health & Fitness                     $0.00                     $0.00
 16        Solar Animal Repeller                           Household                            $29.95                    $7.95

 17        Shake Weight                                    Health & Fitness                     $19.95                    $7.95

 18        Select Comfort Sleep Number                     Household                            $0.00                     $0.00

 19        ShamWOW                                         Household                            $19.95                    $7.95

 20        Tempur-Pedic                                    Household                            $0.00                     $0.00

 21        Alteril                                         Health & Fitness                     $0.00                     $0.00

 22        Emery Cat                                       Pet Products                         $19.95                    $7.95

 23        Rejuvenate Auto                                 Automotive                           $9.99                     $4.95

 24        Handy Caddy                                     Household                            $9.99                     $4.99

 25        PetZoom Pet Trainer                             Pet Products                         $19.95                    $6.95


© INFOMERCIAL MONITORING SERVICE, INC. IMS is a research and publishing company that ranks both long- and short-form DRTV
on national cable and satellite networks. IMS’ database and video library serve companies that are involved in all aspects of the DR
industry. IMS provides weekly and monthly reports, both in print and online, that include DRTV rankings, verification, evaluations
and specified research. Consulting, film and video production, post production and broadcast duplication are also available.




 24       electronicRETAILER | September 2010
   JORDAN WHITNEY’S TOP CATEGORIES


                       TOP INFOMERCIAL CATEGORIES FOR AUGUST 2010



                 FITNESS

RANK      SHOW NAME                       PRODUCT                           PRICE                DISTRIBUTOR

  1       P90X                            Exercise program                  $119.85              Beachbody

  2       Insanity                        Exercise program                  $119.85              Beachbody

  3       Hip Hop Abs                     Exercise program                  $59.85               Beachbody

  4       Total Gym                       Home gym                          Lead generator       American Telecast

  5       Zumba                           Exercise program                  $59.85               Guthy-Renker




                 BEAUTY

RANK      SHOW NAME                        PRODUCT                          PRICE                DISTRIBUTOR

  1       Max Clarity                      Acne treatment system            $19.95               Stiefel Labs

  2       Wen Hair Care                    Hair care products               $29.95               Guthy-Renker

  3       no! no!                          Hair removal device              $179.85              Radiancy

  4       Olay Pro-X                       Skincare                         $59.97               Procter & Gamble

  5       New Body Shaper                  Shaping undergarment             $39.95               Kymaro




                 WEIGHT LOSS

RANK      SHOW NAME                        PRODUCT                          PRICE                DISTRIBUTOR

  1       Six Week Body Makeover           Weight-loss system               $119.94              Provida Life Science

  2       NutriSystem                      Calorie-controlled meals         Lead generator       NutriSystem

  3       Sensa                            Weight-loss powder               Lead generator       Sensa Products

  4       Skinny Switch Secret             Online weight-loss program       $5.95/week           Guthy-Renker

  5       Bill Phillips Transformation     Online weight-loss program       $19.95 (trial)       Transformation




Source: The Jordan Whitney “Greensheet” published by Jordan Whitney, Inc., Tustin, CA. For information about the
“Greensheet,” Jordan Whitney’s consulting, tape library, or category specific research reports contact Clare Kogler at Jordan
Whitney, Inc., Voice: 714/832-3353; fax: 714/832-4422; email: greensheet@cox.net or visit our website at jwgreensheet.com.

 26      electronicRETAILER | September 2010
   JORDAN WHITNEY’S TOP CATEGORIES


                       TOP SHORT-FORM CATEGORIES FOR AUGUST 2010



                 HOUSEWARES/ELECTRONICS

RANK      SHOW NAME                  PRODUCT                            PRICE/OFFER                DISTRIBUTOR

  1       Total Pillow               Adjustable pillow                  $19.99                     Hampton Direct
  2       Sonal Animal Repeller      Animal deterrent/alarm             $29.95                     Bell & Howell/EMSON

  3       UGlu                       Adhesive strips                    $10.00                     IdeaVillage

  4       Wonder Hanger              Closet-organizing hangers          $19.99                     Hampton Direct

  5       Water Jet                  Power washer                       $19.95                     National Express




                 BEAUTY

RANK      SHOW NAME                  PRODUCT                            PRICE/OFFER                DISTRIBUTOR

  1       Proactiv Solution          Acne treatment                     $19.85                     Guthy-Renker

  2       Bare Lifts                 Adhesive breast lifts              $10.00                     Telebrands

  3       bareMinerals               Makeup                             $29.99                     Bare Escentuals

  4       Murad Acne Complex         Acne treatment                     $29.95                     Murad

  5       Cami Seret                 Faux camisole accessory            $10.00                     Ontel Products




                 PET PRODUCTS

RANK      SHOW NAME                  PRODUCT                            PRICE/OFFER                DISTRIBUTOR

  1       Bark Off                   Training aid                       $10.00                     Telebrands

  2       Pet Zoom Trainer           Training aid                       $19.95                     EMSON

  3       Crazy Critters             Pet toys                           $10.00                     Telebrands
  4       Pet Zoom Bathe & Groom Pet care system                        $19.99                     EMSON

  5       Shed Vac                   Electronic de-shredder             $19.95                     National Express




Source: The Jordan Whitney “Greensheet” published by Jordan Whitney, Inc., Tustin, CA. For information about the
“Greensheet,” Jordan Whitney’s consulting, tape library, or category specific research reports contact Clare Kogler at Jordan
Whitney, Inc., Voice: 714/832-3353; fax: 714/832-4422; email: greensheet@cox.net or visit our website at jwgreensheet.com.

 28      electronicRETAILER | September 2010
  LOCKARD & WECHSLER CLEARANCE & PRICE INDEX



  The Price and Clearance Indices are based on a 34-week moving average, dating back to the
  first week of January 2010. The Index is calculated by dividing current week clearance per-
  centage or CPM over the most recent 52-week average clearance or CPM.


                              CLEARANCE INDEX
                              As we continue to move through third quarter, 30-second clearance contin-
                              ues to be an issue. Every week has indexed below the yearly average, and
                              this is the 12th week the index has been below 1.0. The story is quite differ-
                              ent as it pertains to the 60-second and 120-second clearance. Both remain
                              strong, with 120-second index topping the 1.0 mark for the eighth week
                              this quarter.

                                           30 Clearance Index

week 5

week 4

week 3

week 2

week 1


         0.00                  0.20              0.40               0.60                0.80           1.00

                                           60 Clearance Index

week 5

week 4

week 3

week 2

week 1


         0.00          0.20           0.40      0.60       0.80       1.00       1.20          1.40    1.60

 30       electronicRETAILER | September 2010
                                      120 Clearance Index

week 5

week 4

week 3

week 2

week 1


         0.00          0.20      0.40            0.60       0.80          1.00           1.20            1.40          2.00


PRICE INDEX
Rates have finally caught up to the decline in viewership, as the price index
returns to 1.00 for the first time since the second week of the quarter.


 1.60


 1.40


 1.20


 1.00


 0.80


 0.60


 0.40


 0.20
                                                                                                     CPM Index
 0.00
                                                                                           10



                                                                                                        0


                                                                                                                   0
                          10
         9


                   0




                                                       0


                                                             10


                                                                        0


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                                                                                 September 2010 | electronicRETAILER    31
                          GUEST VIEWPOINT                      BY PETER KOEPPEL




                          DRTV Categories and Product




             r
                          Promises Withstand Hard Times
                          Recent economic reports offer a mix of messages       tion that occurs in times of economic strife.
                          that may as well come accompanied with the dis-       The New York Times reports that one-third of
                          claimer, “Results may vary.” However, as DRTV         Americans are obese, suggesting that in addi-
                          marketers continue with their own varying out-        tion to waistlines, the category itself will con-
                          comes during what has now become known as             tinue to grow. Further, such products are fre-
                          the Great Recession, there are some encouraging       quently sold as a convenient and wallet-slim-
                          signs. Nielsen reports that primetime viewership      ming alternative to gym memberships.
                          is up 3 percent in households that have high-def-        Household products comprise the largest
                          inition television sets and that nearly 52 percent    category, with nearly a third falling into this
                          of all U.S. TV households are now watching TV         broad spectrum. From solutions for the kitchen
                          with the more vivid technology.                       to the bathroom, to the outdoors, these prod-
                                                                                ucts all offer ways to make life at home more
                          What’s Considered                                     livable. All of the products that are winning in
                          Recession-Proof?                                      the current environment reflect cost-savings
                          The phenomenon is no doubt a reflection of            that eliminate the need for more expensive
                          the hunker-down mentality that many con-              alternatives. For example, a steamer can be a
                          sumers have adopted—think “staycation”—               cheaper solution to maintaining a clean house
                          where folks forego pricey expenditures and,           versus hiring a service to do it for you. Likewise,
                          instead, focus on feathering their nests and          DRTV-marketed outdoor tools can replace a
                          bringing balance to their lives. Interestingly, the   costly gardener and VoIP telephone service
                                                                                saves money compared to a landline.
       As DRTV marketers continue with                                             Products that are able to withstand an eco-
     their own varying outcomes during                                          nomic cold front often possess another endur-
                                                                                ing quality: they offer miraculous results or
     what has now become known as the                                           instant gratification. From undergarments that
        Great Recession, there are some                                         instantly reshape the body to chamois that
                                                                                absorbs both water and consumer skepticism at
                     encouraging signs.                                         impressive rates, a broad spate of such products
                                                                                continues to thrive despite recessionary woes.
                          most successful long-form DRTV products of               While it may seem like the current trend will
                          recent note reflect these very same ambitions.        never end, it’s worth remembering that such cli-
                          An analysis of the IMS Retail Rankings for May        mates, like the seasons, are cyclical. Neither a
                          2010 illustrates that there are several categories    blue-sky mentality nor an outright embracing of
                          and types of consumer products that appear to         the blues should color the day. Rather, it’s faith in
                          withstand the vagaries of a shaky economy:            our ability to embrace the tenets of success that
                             Five of the top 25 shows come from the             will chart the industry’s future prosperity.
                          Health and Fitness category, including four of
                          the top 10, reflecting buyers’ desire for a body      Peter Koeppel is president of Koeppel Direct, a
                          makeover. While this category seems to consis-        full-service media buying agency based in
                          tently be a dominant one in both good times           Dallas. He can be reached at 972-732-6110 or
                          and bad, its current resiliency may in part be        online at pkoeppel@koeppelinc.com or
                          attributable to the sort of personal recalibra-       twitter.com/DRTVBUYER.

32     electronicRETAILER | September 2010
                        DIRECT RESPONSE INSIGHTS                           BY KEN OSBORN




                        Money Not Well Spent




       a                All online orders are not created equally. Some
                        are ‘free’ while others cost money to obtain.
                        Unfortunately, many electronic retailers don’t
                        even realize they’re incurring additional costs
                        when obtaining orders online and don’t prop-
                        erly manage or factor in these costs.
                           Let me explain. If you display a web address
                        in the end tag of your spot and someone types
                        that URL into the address bar of his or her
                        browser and places an order, you realize no
                        additional media costs for that order. That
                        person saw the ad, went to your site directly
                        and placed an order. This is good. It is ideally
                        what you want every customer to do; howev-
                        er, it doesn’t end up working that way.
                                                                              And, if it works any other way, you incur
                                                                           additional costs to realize the order. Whether
                                                                           it’s money spent on search engine optimiza-
                                                                           tion (SEO) to obtain high organic listings,
                                                                           media costs of clicks from paid search or
                                                                           affiliate bounties paid, you’re handing out
                                                                           money to someone for each order driven.
                                                                           Once you look at it this way, you’ll realize just
                                                                           how important it is to properly manage the
                                                                           web overall and throughout the entire life of
                                                                           a project or campaign.

                                                                           Keep It Simple
                                                                           Believe it or not, web marketing starts in
                                                                           product research. If I were on the product
                                                                           development team, I would open up a brows-
                                                                           er to Go Daddy and type in domain-name
                                                                           ideas as we developed the product. Don’t go
                                                                           with odd names and misspellings. I can’t
                                                                           stand it when I see things like:
                                                                           www.GardDog.com or www.KarMat.com.
                                   kstock




                                                                                 Consumers type in the domain name of
                                                                                     the item (as they feel it is spelled). Try
                                ra/Thin




                                                                                     to come up with a name that is also
                                                                                     available as a web address. And please
                               Heme




                                                                                     get .com and not .net or .tv. People
                                                                                    type in .com just as they dial “800”
                                                                                   instead of “877.” As a side note, be sure
                                                                                 to purchase the misspellings of the
                                                                                domain. Case in point, years ago we con-
                                                                               vinced       a     client     to      purchase
                                                                              www.GlassWizzard.com for their Glass
                                                                             Wizard campaign. Nearly 7 percent of the
                                                                            orders came from that domain! It only cost
                                                                           the client $8 for the domain.
                                                                              Before leaving this point alone, I can’t
                                                                           stress enough how important it is that people
                                                                           find their way to your site directly and with
                                                                           ease. If they go to a search engine, are forced
                                                                           to look for the site or otherwise don’t know
                                                                           where to find you, it will cost you additional
                                                                           money to be found. Some of them will search

34   electronicRETAILER | September 2010
   DIRECT RESPONSE INSIGHTS




in a search engine or see a banner ad
or e-mail from an affiliate. If the con-                         Ken Osborn is speaking at the “Engage
sumer comes to your site through any                             Consumers in Their Natural Habitat” session
other door, it will cost you money.                              on Tuesday, September 21, from 11:15 a.m.
You’ll have to pay for the clicks from
paid search, or worse yet, pay affiliates
                                                                 - 12:15 p.m. at the D2C Convention.
large bounties for the orders they
drive. Make it clear and easy for peo-          your site that includes your TM and        en from the search engines, you’re
ple to find your site and you’ll save           other key terms.                           paying way too much. Why would
money—a ton of it.                                 Now, for one of the most impor-         you pay $10, $20, $30-plus on an
   To that point, please say your               tant items. Do your own TM paid            order when it otherwise would cost
domain (website address) out loud in            search marketing. Pay for the clicks.      you $2-$5?
your end tag—and prominently dis-               Don’t ever pay a set bounty for each          I truly believe this is a macro factor
play it. No, web orders don’t take away         order driven from TM terms. What I         that is negatively affecting many of
from the call center. The conversion            mean by TM terms and paid search is        today’s DRTV ad campaigns. Un-
rate in the call center has no relevance        bidding on terms in the search             fortunately, most electronic retailers
to the conversion rate of your site. If         engines that are made up of the trade-     don’t realize this and they continue to
you think that you’re losing orders             mark name of your item. For                bleed money without knowing it.
because the call center is converting at        instance, you would bid on “widget” if        It is extremely important that you
60 percent while the web is converting          your product was named the Widget.         control the listing in the paid search on
at 15 percent, you’re wrong. The more           If you don’t have the capacity to man-     your TM terms. If you have a trade-
ways you give a consumer to convert,            age it all, find an agency that will       mark, Google and others are quick to
the more conversions you’ll see. I              manage the campaign on a media-            help you out and you can push others
assure you, it is all complimentary.                                                       out of the search results. This all comes
                                                 Studies have shown                        back to what an order costs you online.
Consider SEO                                        that people visit a                    If you drive people to your site, it costs
Studies have shown that people visit a                                                     nothing more. If you market to them in
site three times prior to making a              site three times prior                     paid search under the TM terms, your
purchase. If that’s the case, that would             to making a pur-                      additional cost is minimal. If you let
put the maximum conversion rate on                                                         affiliates and others steal orders from
the site at 33 percent. People check                chase. If that’s the                   your TM terms, it costs you a mint.
out the site prior to ordering, even if          case, that would put                         Control your web business. Make it
they order via phone. Put the domain                                                       as easy as possible to find your site. Let
name in big letters in your end tag,               the maximum con-                        them know how to get there. Don’t
then analyze the numbers and see                   version rate on the                     hide it, leave it out or allow others to
how your “organic” order volume                                                            make money by driving you orders
increases versus “other” orders real-               site at 33 percent.                    you should have otherwise achieved
ized online. Remember, your organic                                                        directly on your own. In a recent study
orders cost you nothing.                        buying-agency-fee basis—pay an             of a campaign, we found that proper
   I would urge today’s DRTV mar-               agency fee on the ad dollars spent on      management of the domains, TM
keters to spend a little time doing             clicks in the search engines. The aver-    paid search and the affiliates saved a
some SEO work. There are some basic             age cost per order on TM terms in          client over $350,000 in one month
SEO tasks that can be achieved for very         paid search on a given $19.99-$40          alone. Now that’s a big number.
little money. True SEO with generic             item is in the low single digits. So, on
terms can cost thousands of dollars             average, it would take say $2-$5 in        Ken Osborn is president and CEO of
and take months to kick in. You can do          click costs for each order driven. If      Liquid Focus Direct in Bridgeport,
this as well. In other words, set up your       you’re paying a flat rate—or worse         Conn. Contact Osborn at (866) 892-
meta tags and provide some copy on              yet—paying affiliates for orders driv-     0259 or at kosborn@liquidfocus.com.

 36       electronicRETAILER | September 2010
  The
                              Fatherof
Multichannel
                              Retail                                                           BY VITISIA PAYNICH



                               GVG Capital Group Chairman and CEO
                               Love Goel is renowned for his ability to
                               turn consumer brands and retailers into
                               thriving businesses.




It’s no secret that general advertisers and brand marketers have throughout the years looked sideways at the direct
response industry. Yet while those on Madison Avenue began tightening their belts during the recession by slashing
advertising budgets, direct marketers forged ahead by delivering solid, accountable advertising via television, radio
and the Internet. Love Goel, chairman and CEO of GVG Capital Group in Minnetonka, Minn., is among those who
believe that direct marketers know how to effectively reach consumers using multiple channels.
   Lauded as “the Father of Multichannel Retail,” Goel built Macy’s and Fingerhut into two of the top three mul-
tichannel retailers during his tenure, acquired more multichannel companies than any other private equity
investor, created $30 billion in shareholder value, and advised 50 of the top 100 multichannel retailers. On Sept.
22, he will deliver the keynote address at ERA’s D2C Convention in Las Vegas.
   “I am honored to talk to the leaders in the direct response and electronic retailing industry. It is a group that I have admired
for a long time,” says Goel. “Today, when we literally have seconds to ‘hook’ a customer before they tune us out of their
extremely busy lives, the leaders in this retail channel excel at figuring out the hook, constructing the right message and deliv-
ering it effectively. Retail leaders from all channels would benefit from learning those skills that are core to this industry.”
   Electronic Retailer spoke one-on-one with Goel to learn about the things that have inspired him throughout his
career and what he believes are the key elements to creating a true multichannel business.




 38       electronicRETAILER | September 2010
PHOTOS BY JOE TRELEVEN
   THE FATHER OF MULTICHANNEL RETAIL


Electronic Retailer: You                        ER: You played a key role in             that the momentum will take every-
achieved more during your 20s                   transforming two iconic                  one all the way there.
than most people do through-                    American retailers: Sears and
out their entire careers. What                  Macy’s. Given that they both had         ER: You were the only person to
do you believe has been the                     long and well-established histo-         build three e-commerce start-ups
driving force behind your early                 ries as traditional bricks-and-          into $1 billion+ businesses
successes?                                      mortar businesses, what obsta-           before you were 30. Tell us about
                                                cles did you face in trying to           those ventures.
Love Goel: There are three key fac-             turn them around and make
tors that are behind any business               their brands more relevant to            Goel: The first two businesses were
success, which were true for me. We             today’s consumers?                       created inside the crucible of a large
had fantastic teams, pursuing a                                                          Fortune company (Fingerhut and
compelling vision buffeted by pow-              Goel: I was fortunate to be on great     then Macy’s), and the last one was a
erful macro trends, and we were                 teams that had a positive impact on      venture capital funded Silicon Valley
lucky more often than not.                      these companies through their evo-       business. The first one was the
Personally, for me, beyond those                lution. As in any established and        nation’s largest third-party e-com-
three factors was the active coach-             successful culture, I think it is        merce services company at the time,
ing and guidance of mentors who                 important to celebrate key elements      FBS, offering fulfillment, call center,
gave me the opportunity to take on              of your brand and heritage that res-     marketing and merchandising servic-
big challenges, to fail, to learn and
to grow. I cannot speak highly
enough about the mentors who                          I think it is important to celebrate key
took chances on me.                                elements of your brand and heritage that
   When I coach emerging leaders,
there are two key pieces of advice               resonate in the marketplace while updating
that I give them. First, find good                             the way you do certain things.
mentors. Second, do not worry
about the money; do something                                                —Love Goel, GVG Capital Group
you are passionate about. If you are
passionate about it, you are more
likely to give it the effort it will take       onate in the marketplace while           es, which helped put dozens of
to excel. Once you are the best at              updating the way you do certain          clients like Walmart, Levi’s, Pier 1, 1-
what you do, the money will take                things. In the case of Sears, we real-   800 Flowers, USSB/DirecTV and sev-
care of itself.                                 ly moved into soft-lines in a big        eral other companies on the Internet.
                                                way, which made us much more rel-        The second one, Federated Direct,
ER: Did you see yourself as a                   evant to the female customer and         was the world’s largest bricks-and-
visionary and if so, what chal-                 dramatically improved our sales,         clicks retailer at the time, which
lenges did you encounter when                   gross margins and profitability. At      included over 20 e-commerce prop-
you shared that vision with                     Federated (or Macy’s as it is now        erties that comprise three of the top
others?                                         known), we moved to a much more          100 Internet retailers—including the
                                                multichannel approach of being           world’s largest retail closeout site, the
Goel: It is a key part of the role of any       available to the customer 24/7—          first custom jewelry site, the first
leader to define “victory” or the long-         whenever she was ready to shop. In       online flower site, the first bricks-
term success, and the “path” or how             both cases and other transforma-         and-clicks wedding registry, the
we get there. The biggest challenge is          tions that I have been involved in,      largest birthday club and the largest
that you have to communicate it con-            the most challenging part is not         general merchandise site. The last
tinuously and consistently so that all          about figuring out what needs to be      business, Personify, was the world’s
your constituents get it, and often             done, but rather getting people on       largest customer profiling platform
enough that as you bring new people             board. You do that by sequencing         (500,000+ data points for over 100
on board—employees, vendors, con-               activities in a way that allows the      million customers) and leading ana-
sultants—they have a chance to                  team to earn small victories,            lytics provider of clickstream data to
understand and embrace what it is               inspires confidence in them about        dozens of top retailers like William
you are trying to build.                        the path forward, and then hope          Sonoma, J. Crew and LL Bean.

 40       electronicRETAILER | September 2010
   THE FATHER OF MULTICHANNEL RETAIL


ER: What’s more satisfying: build-             companies in our sector, we advise           dynamic has created a whole new set of
ing a company from the ground                  and serve on the boards of companies         consumer behaviors, which retailers
up or going into an existing com-              beyond our investment portfolio.             ignore at their own peril. But one of the
pany and completely turning it                                                              key shifts in consumer behavior is that
around?                                        ER: Of course, you’re no stranger            more than two out of three customers
                                               to direct marketing or live shop-            research things online before buying
Goel: I think they can both be equal-          ping. In fact, you’ve advised QVC,           offline and vice versa.
ly satisfying and rewarding. The best          ShopNBC and a number of our                     The two key elements of being truly
part about any such experience is              members. Based on that experi-               multichannel are: first, to offer cus-
when you accomplish something that             ence, what can brand marketers               tomers a seamless shopping experi-
exceeds the expectations of everyone           and traditional retailers learn              ence whether it is research, buying or
on the team and outside. It is a testa-        from this industry?                          service across all channels; and second,
ment to the power of what you are                                                           to leverage the structural and econom-
trying to accomplish and the quality           Goel: There are three core strengths         ic advantages of a channel to enhance
of teamwork that made it possible.             that all retailers and brand marketers       both the customer experience and
The interesting thing is it is also the        can learn from this industry. First, as I    profitability. For example, in SKU-
most fun—when you are in the midst             said at the outset, this industry is prob-   intensive categories like apparel,
of one of these missions, you can feel         ably the most skilled at distilling and      footwear and domestics, it could mean
the palpable excitement and enthusi-           communicating the “hook” to cus-             placing Internet kiosks in the aisles to
asm that everyone on the team has.             tomers. Second, it is an extremely data-     offer customers many more styles, col-
                                                                                            ors and sizes to complement the in-
   The best part about any such experience is                                               store offering—which can improve
                                                                                            same-store sales dramatically. Or, for
when you accomplish something that exceeds                                                  TV and catalog marketing programs, it
the expectations of everyone on the team and                                                could mean taking orders online
                                                                                            rather than over the phone, reducing
 outside. It’s a testament to the power of what                                             order processing costs dramatically.
        you are trying to accomplish....—Goel
                                                                                            ER: Many direct marketers are
                                                                                            successfully utilizing multiple
ER: Can you tell us more about                 driven business, which leads to real-        channels such as television, radio
GVG Capital Group?                             time adjustments in message, price and       and the Internet, while other
                                               offer. Third, losses are minimized by a      direct marketers might be hesi-
Goel: At GVG Capital Group, we are             culture of testing in the marketplace        tant to engage in other channels
passionately committed to building             with real paying customers, not just         like social media and mobile. How
market leaders in the multichannel             focus groups. If we could all bring          can marketers take their business
retail and consumer sector. We bring           those disciplines to our respective retail   to the next level by integrating
deep operating experience, industry            channels and formats, we would be a          these other emerging channels?
insights, a powerful network and cap-          lot more effective and profitable.
ital to help management teams grow                                                          Goel: I think it all starts with the cus-
their companies.                               ER: What does it mean to be truly            tomer. How do customers prefer to
   We are unique in the private equity         multichannel?                                shop the products and services you
sector for three reasons. First, we are                                                     sell? That should serve as a guide to
the only firm focused exclusively on           Goel: This answer requires some con-         the level of investment and capabili-
the multichannel retail and consumer           text because being multichannel is           ties that you add across all the chan-
sector. Second, we are led by seasoned         about more than just having a website,       nels. I have seen too many companies
operating executives who helped build          store, catalog, TV or mobile presence.       waste a lot of money by chasing the
best-in-class companies like Macy’s,           For the first time in human history, con-    latest fad—whether it be mobile or
Home Depot, Levi’s and Apple—so                sumers have better information about         social media—without thinking it
we see our role as helping companies           products, prices and promotions—and          through, or other companies like
win in the marketplace, not financial          consequently more power—than pur-            Blockbuster and Sam Goody not do
engineering. Third, because of our             veyors of goods and services; especially     enough when it was clear that their
commitment to helping leaders and              at the point and time of sale. This          business models were outdated.

 42      electronicRETAILER | September 2010
   THE FATHER OF MULTICHANNEL RETAIL


ER: Do you believe technology                  at utilizing the vast quantities of          more meaningful way; and second, to
has changed the profile of the                 behavioral data available to them in         use your social relationships to make
average consumer?                              tailoring their merchandising, mar-          your life better from finding a date to a
                                               keting and customer service pro-             job to a car, to the hottest little black
Goel: Absolutely. It has enabled con-          grams either for competitive advan-          dress. I think we are in the very early days
sumers with easy/free availability of          tage or greater profitability. Also,         where there is a lot of noise and confu-
information (prices, promotions)               most retailers really do not know how        sion. As the dust settles over the next few
and easy access to other vendors (one          their various channels are perform-          years, real businesses will emerge that
click away) that has dramatically              ing—their matchback strategies and           make the world a better place.
changed the way they buy. This                 rule of thumb cost allocations typi-
means that the average retailer has to         cally driven by political infighting or      ER: What other trends in technol-
be that much better—it is much more            legacy thinking obfuscate the true           ogy do you believe will have a
difficult to get away with a shoddy            efficacy of their marketing dollars.         dramatic impact on retailers and
retail concept like you could 10-15            This is probably the area most rife for      marketers in the long run?
years ago. You better have a clear             improvement, apart from leadership
“hook,” something compelling to                development, in the multichannel             Goel: I believe we are at the inter-
offer—unique product, lower prices,            retail world.                                section of four powerful trends that
better services—you get the idea.
                                                        For the first time in human history,
ER: Today, marketers, retailers and
e-tailers are armed with web tools                consumers have better information about
(such as web analytics and behav-                    products, prices and promotions—and
ioral analysis) to understand con-
sumer-buying habits and really                  consequently more power—than purveyors
get into their minds. Do you                                 of goods and services….—Goel
believe most companies are utiliz-
ing that information to its full
potential?                                     ER: Why do you believe some                  will dramatically alter the ways peo-
                                               direct marketers are hesitant to             ple live their lives and how retailers
Goel: You have stumbled upon a key             try mobile? Will there eventually            and marketers will have to sell: 1)
gap in the capability of most compa-           be a sea change in this area?                cloud-based data and services (think
nies today. This is a historical chal-                                                      mobile apps); 2) ubiquitous, high-
lenge and opportunity. For example,            Goel: I think it is challenging to offer a   speed, broadband wireless connec-
when I was at Fingerhut, we had 3,000          full, rich offering like you do on the       tivity; 3) always on, always connect-
data points on 32 million customers,           Internet on a mobile form factor. It         ed smart devices (think smart
and 1,500 data points on 100 million           sounds similar to what people said           phones, tablets, etc.); and 4) prod-
households—the availability of this            about the Internet 15 years ago com-         ucts, services and information on
data and our direct marketing capa-            pared to the store or catalog. That said,    the Internet.
bilities made us the most profitable in        direct marketers will have to figure out
our industry. We were able to do               for their respective categories and          ER: What’s the best piece of
amazing things like customize each             price the right business model(s) and        advice you could offer marketers
and every one of our 600 million cus-          customer experience that works—is            and retailers when it comes to
tomer interactions (mailings) each             mobile a price discovery and promo-          succeeding in today’s multichan-
year, or perform 5-10 percent better           tion channel, is it an edited assortment     nel world?
upsell than anyone else in the indus-          channel, is it a social media channel or
try. But, even at that time, it always         some combination of all of the above?        Goel: Pay attention to your cus-
surprised me that as a small $2 billion                                                     tomer. Deep, meaningful customer
player we had the nation’s largest cus-        ER: What changes do you see occur-           relationships are likely to be the sus-
tomer profile database. Retailers have         ring in the social media space?              tainable competitive advantage in a
been slow to embrace this thinking.                                                         world of channel fatigue, product
Most of them use web tools to track            Goel:Social media, in my mind, has two       and brand commoditization, adver-
basic things like conversion rate. Very        primary roles: first, to help you manage     tising overload and attention frag-
few, almost none, of them really excel         your social relationships in an easier and   mentation.

 44      electronicRETAILER | September 2010
46   electronicRETAILER | September 2010
                                                                  BY
                                                                       J AC
                                                                              KG
                                                                                   OR
                                                                                        DO
                                                                                             N




Are infomercials
an endangered species?
Just in a recession-induced
slump? It depends on whom you ask.
Is the half-hour infomercial headed the way of the dinosaur? Maria
Kennedy isn’t saying yes, but she regards the question as a serious one.
   Kennedy is vice president of direct response and paid programming for Discovery
Communications in New York City—the Discovery Channel. When the U.S. economy
tanked in 2008, she says, both general and direct response advertising fell off dramatical-
ly. Rates charged by her network and others had to drop. Rates remained low throughout
2009, a grim year for the television industry.
   This year, Kennedy says, especially since automakers returned to the air, general adver-
tising has bounced back strongly—and 2011 promises to be even better. The same applies
to short-form DR advertising. “Short form is incredibly strong right now,” she says. “It has
come back gangbusters.”
   But long form? As of mid-summer, the long-form market has picked up so slightly that
she might as well call it flat. She estimates that long-form rates are still down 15 to 20 per-

                                                                    September 2010 | electronicRETAILER   47
   WHAT’S AILING LONG FORM?


cent from two years ago across most             gins being partially made up in ship-      form market, Zifkin says. It’s not the
or all networks.                                ping and handling charges.                 Internet, it’s not the ‘fragmentation’
   Also troubling to Kennedy is that               Because fewer infomercials are gen-     of viewers brought on by proliferat-
she is seeing no influx of new advertis-        erating enough response to pay for         ing numbers of cable and satellite TV
ers into the long-form space. “In short         the media time, there is less competi-     channels, it’s not shorter audience
form, we’re getting tons of new adver-          tion for half-hour avails. Hence the       attention spans. It’s the economy.
tisers every quarter,” she says. Not so                                                       It is true, he says, that fewer new play-
in long form. The established                   “The industry hasn’t                       ers appear to be coming into the
infomercial marketers are still there—                                                     infomercial market. But that is due to
“the Euro-Pros and Product Partners
                                                seen a big new hit in                      the same consolidation that produced
and Guthy-Renkers”—but no new                        long form for a                       the kind of strong, established mar-
marketers seem to be trying long                                                           keters to which Kennedy referred:
form. And the “big corporate advertis-
                                                   couple of years.”                       Guthy-Renker, Product Partners, Euro-
ers” who at least dabbled in long form                    —Maria Kennedy,                  Pro, Allstar Marketing, Tristar Products
in the past—she mentions General                                                           and others. And while there may be no
Motors and Wyeth Pharmaceuticals as
                                                                Discovery                  brand new long-form hit at the
examples—are no longer doing so.                          Communications                   moment, “that doesn’t mean the process
   “The industry hasn’t seen a big new                                                     doesn’t work,” Zifkin says. Just look at
hit in long form for a couple of years,”        fallen prices for those avails, Wechsler   the continuing success of long-form
Kennedy says. So, she wants to know,            says. He predicts that the long-form       products like exercise program P90X.
is this just a slump of some sort? Or is        marketplace will begin to pick up by          Zifkin doesn’t buy the argument
the half-hour infomercial format no             January 2011, due to increasing con-       that major brand advertisers of the
longer working for some reason? “I’m            sumer confidence. “But I think that        General Motors ilk have deserted the
asking,” she says. “I want to know.”            the price of half-hours will continue      infomercial format. They were never
                                                to fall until then.”                       in it to begin with, he says, at least to
Consumer Confidence?                               So infomercials have no problems        any significant degree.
Among media agencies that buy televi-           that an improved national economy             “The big brand guys have never real-
sion time on behalf of DR advertisers,          wouldn’t solve? Another media buyer        ly come into our space,” agrees Rob
the consensus is that the infomercial           who makes that case is Dan Zifkin,         Medved, CEO of Cannella Response
format is perfectly viable and healthy.         president of Zephyr Media Group of         Television, a DR agency based in
The problem lies in the national econ-          Evanston, Ill. “It’s the economy” that     Burlington, Wis. “The closest we’ve
omy. Therefore, it’s temporary.                 is responsible for the sluggish long-      come to bridging that gap is probably
    Why would long form be slower than                                                     with pharmaceuticals on the short-
short form to recover from a recession?                                                    form side. As for long form, the same
It’s simple, says Dick Wechsler, president                                                 verticals we had when I started in the
and CEO of Irvington, N.Y., media                                                            business still dominate DR—[busi-
agency Lockard & Wechsler Direct.                                                                 ness opportunities], beauty,
Long-form advertising is much more                                                                housewares and fitness.”
reflective of consumer confidence than                                                               But does that suggest any rea-
short form, Wechsler says, primarily                                                              son to think we are witnessing
because most long-form products have                                                              “the beginning of the end of long
higher price points. “And consumer con-                                                           form,” Medved asks rhetorically?
fidence is a lagging indicator,” he says.                                                         “No. We’re having incredible suc-
“Coming out of an economic down-                                                                  cess in the space. The Guthy-
turn, it’s the last thing to come back.”                                                          Renkers and Product Partners are
    In other words, Wechsler says,                                                                as healthy as they’ve ever been.”
nervous consumers remain reluctant                                                                   “It is way too early to ring the
to make more expensive purchases.                                                                 bell on the death of the infomer-
He notes that one reason short-form                                                               cial,” Zifkin concurs. “I think
advertising is strong right now is that                                                           that long form is still one of the
price points for many successful                                                                  best forms of advertising by far.”
short-form products have dropped                                                                     Some executives on the TV-
from, say, $19.99 to $9.99, with mar-                                                             network side of the fence agree

 48       electronicRETAILER | September 2010
that long form’s problems are a tem-     er has gone wrong. “I think there are        sold effectively in a minute or two,
porary, recession-induced condition,     more problems with infomercials              Georgakakis wonders if 30 minutes is
brought on by a lack of consumer         than just a bad economy,” says               too long for today’s audiences.
confidence. And even the perception      Christine Georgakakis, senior vice           “Maybe we should be looking at alter-
that no new advertisers are trying       president of direct response for the         natives,” she says, such as program-
infomercials is not shared across the    TV Guide Network, located in New             ming two 15-minute infomercials
board. “We’re seeing a mixed bag with    York City.                                   into a half-hour slot instead of one
long form,” says Paul Teja of               “The 30-minute infomercial is at          30-minute program.
Chesapeake, Va., vice president of       risk. I think we need to do some               She offers one concrete recommen-
direct market sales for the ABC Family   things differently with that business,”      dation: Given the prevalence on on-
network. “We’re seeing more new          she says.                                    screen program listings for cable and
infomercials than in the recent past,       Due to digital video recorders            satellite customers, Georgakakis says
which is a good indicator of strength-   (DVRs) and the proliferation of TV           that the most important thing
ening in the marketplace.”               channels, not to mention the parallel        infomercial sponsors can do to boost
  At the same time, Teja confirms that   universe of Internet sites, “paid pro-       the success of their shows is to list the
“current advertisers have cut back on    gramming is getting lost in the clut-        show’s title in those on-screen guides.
the quantity and pricing of various      ter,” Georgakakis says. She also ques-       That is, if you’re selling real estate
time periods. I believe this is mostly   tions whether viewers still have atten-      secrets or power mops, say so in the
due to the economy,” he says.            tion spans long enough to accommo-           program listings; don’t just allow
                                         date half-hour infomercials.                 your show to appear as “paid pro-
Doubts                                      Granted that the premise for the          gramming.” The fee to list your title is
But other network executives share       infomercial’s existence is that some         minimal in relation to overall media
Kennedy’s view that something deep-      products cannot be explained and             costs, and it is enormously helpful for




                                                                                   September 2010 | electronicRETAILER    49
                                                                       WHAT’S AILING LONG FORM?


attracting viewers who might be             ing, he says, but those shorter ads are      effective methods for getting across to
interested in your product, she says.       subject to the same basic economic           the consumer the benefits of quality
  Seconding that advice is DRTV             conditions—and audience fragmen-             products. I believe that long form is
producer Jeff Meltzer, of Meltzer           tation exerts the same downward              here for the long run.”
Media Productions in New York               pressure on advertising rates.
City. He agrees with Georgakakis on            Teja predicts no significant conver-      Jack Gordon is a freelance writer based
some other points, as well. Clutter,        sion to regular programming by his           in Minnesota. He has been contribut-
for instance, is a real problem, he         network or others. The infomercial,          ing to Electronic Retailer magazine
says. Because of what he calls “a sat-      he says, “is one of the cheapest, most       since 2004.
uration of DRTV commercials,” con-
sumers have become more discrimi-
nating. To make an infomercial pay
today, you have to make a better
infomercial, Meltzer says.
  He also suspects that attention
spans are getting shorter and agrees
that 15-minute long-form programs
might be worth testing. “We probably
need to get to the point quicker,” he
says. “I think it’s been proven that
people tend to buy in the first pod of
an infomercial—the first eight min-
utes or so—or they don’t buy at all.”

Where’s the Bottom?
To the extent that the “problem with
long form” has to do with the fact that
half-hour avails are going cheap, that is
actually good news for infomercial
sponsors. But time buyers, time sellers
and producers all know that there is a
floor beneath which the price of a half-
hour avail will not be allowed to fall.
That is the point at which a station or a
network can make more money by air-
ing 30 minutes of regular program-
ming, with spot advertisements, than
by selling the time as a half-hour slot.
   Kennedy, Georgakakis and Teja all
say that their networks have not
begun to convert any infomercial
slots to regular programming. “But
we watch [the numbers] all the time,”
Kennedy says. “This is a business.”
   Medved says that while a few
infomercial avails may have vanished
on channels here and there, nothing
like a mass conversion to regular pro-
gramming is underway. “It hasn’t
happened, and I don’t think it’s going
to happen,” he says. Long form may
be slower to recover from a recession
than short form or general advertis-

                                                                                      September 2010 | electronicRETAILER   51
                              Engaging
                                                                         the   U.S.
Brand X Pictures/Thinkstock




                              52   electronicRETAILER | September 2010
Hispanic                                                     Consumer
The U.S. Hispanic                        times the call conversions when compar-
                                         ing the Spanish to the English version of
                                                                                        that more Hispanics are spending.”
                                                                                          Along with population increase,
marketplace breaks                       a show,” says Eitan Cohen, president of        there is a new comfort with using
                                         Media Stream Direct, a Sherman Oaks,           credit cards. In turn, marketers have
records in growth,                       Calif.-based media buying company              seen an increase in direct-response
buying power and                         with more than a decade of experience
                                         in the U.S. Hispanic marketplace.
                                                                                        sales via long-form television com-
                                                                                        mercials. Not to mention, the demo-
success in DRTV.                            Beyond growth and spending power,           graphic is more likely to purchase via
                                         marketers are finding renewed success          direct response. An estimated 11 per-
BY JACQUELINE RENFROW                    in categories such as beauty,                  cent of U.S. consumers will make a
                                         ingestibles, hardware, financial services      purchase through DR, but that num-
                                         and kitchenware thanks to U.S.                 ber is as high as 15 percent among the
U.S. Hispanic consumers are rapidly      Hispanics. And with Spanish-language           Hispanic population.
becoming one of the most important       advertisements drawing strength from
segments in direct marketing. In fact,   DRTV, marketers are expanding cam-             Purchasing Trends
with Hispanics constituting 15.4 per-    paigns across growing channels such as         According to Cohen, products that
cent of the total population in the      mobile and online social communities.          tend to sell the best in DRTV corre-
United States—more than 46 million                                                      late with the interests of the Hispanic
people—the industry can hardly afford    Growing Market,                                demographic such as beauty, fitness,
to ignore them. This second largest      Growing Power                                  health and housewares.
ethnic group not only continues to       The most important reasons to be in the           “We have been able to take English
grow, but so does its spending power.    U.S. Hispanic market space are twofold:        infomercials in these categories that
Despite myths, credit card use in this   the size and the spending power.               are either successful or, in some cases,
population is high—90 percent of U.S.      “It is the demographic growth of the         only marginally successful, and create
Hispanics who purchase through           market that is driving the growth of           tremendous hits with a Spanish cre-
DRTV have access to credit cards, and    DRTV,” says Marcelino Miyares, direc-          ative,” says Cohen. Media Stream
46 percent use credit and 26 percent     tor of Mercury en Español, a division of       Direct recently brought the Ab Rocket
use debit when making a purchase. The    Mercury Media in Santa Monica, Calif.          infomercial to the U.S. Hispanic mar-
collective buying power of the segment   “In fact, it is the population growth of       ket. Although the product was suc-
is expected to reach $1.2 trillion in    the Hispanic market that is driving the        cessful over the past three years in the
2010, up from $862 million in 2007.      population growth of much of the               English version, the introduction of
   “Our client case studies have shown   country. It is not necessarily that            the Spanish version created a resur-
that we experience an average of three   Hispanics are spending more, but rather        gence in response.

                                                                                     September 2010 | electronicRETAILER   53
   ENGAGING THE U.S. HISPANIC CONSUMER


   Miyares agrees that ingestibles,            viewer to the brand and the show.         Walmart—to stick with a campaign.
housewares and beauty products are             We’ve had several marketers come to          Yet another challenge marketers face
the workhorses of U.S. Hispanic                us after working with other agencies,     is properly budgeting Hispanic cam-
DRTV, along with music and video,              who simply had the show hastily           paigns versus general market cam-
diet and exercise, hardware, and               dubbed over and could not explain         paigns. In markets that are predomi-
financial services. In addition, lan-          why the campaign did not work.”           nantly Hispanic, Spanish-language
guage learning services and telecom-             Another challenge to the U.S.           media can substantially lift retail sales
munications continue to be stronger            Hispanic market is client patience.       and increase overall campaign per-
in the U.S. Hispanic marketplace ver-          “The problem is that few clients truly    formance.        Interestingly, Denira
sus the general market.                        commit,” says Miyares. “While in the      Borrero, vice president of operations
   Miyares also believes that U.S.             general market they may test offers,      for Omni Direct Inc. in Miami Beach,
Hispanic DRTV has followed the gener-          media mixes and telemarketing             Fla., says that English-language sales lift
al DRTV trend to push to retail. “What         scripts until a campaign works, the       when running a Spanish-language
makes this convergent with Hispanic            Hispanic market is more like one or       campaign simultaneously. This is most-
marketing is that Hispanic shoppers            two strikes and you are out.” He advis-   ly due to the fact that U.S. Hispanics
over-index at these types of retailers—        es clients—who can eventually imag-       consume media and use the Internet in
Walmart, Kmart, Bed Bath and Beyond,           ine their product on the shelves of a     both languages. So the message is rein-
Anna’s Linens, etc.,” says Miyares.                                                      forced in their native language, but in
   “I forecast that over the next 18            “It is not necessarily                   many cases, orders are processed
months, we will see a proliferation of             that Hispanics are                    through English-language channels.
products in the two extremes—$19.95                                                      Omni Direct was established in 1999 as
and $200-$400 range. The lower-                  spending more, but                      a company focused on the potential of
priced products have been difficult to               rather that more                    Hispanics as a U.S., not foreign, market.
make work given the costs of limited                                                        Kathi Moore, CEO and president of
media inventory. This problem is solv-                  Hispanics are                    Engagem3nt in Newport Beach,
ing itself with the addition of more                     spending.”—                     Calif., believes the biggest challenge
cable channels. And the higher priced                                                    in this market is breaking down the
products have simply been inaccessi-                 Marcelino Miyares,                  myths that surround it. One myth is a
ble to cash-oriented customers, but                  Mercury en Español                  belief that the demographic doesn’t
credit card penetration has reached a                                                    have credit cards, when 84 percent of
critical mass,” Miyares adds.

Today’s Challenges
in a Unique Space
Though very lucrative, experts agree
that marketers, media buyers and call
centers all need to be aware of the
nuances of the U.S. Hispanic market
and brace for a learning curve when
starting a campaign. One of the biggest
challenges when marketing a product
to Hispanics in the U.S. is translation
into Spanish. The key, says Cohen, is
                                                                                                                                       George Doyle/Stockbyte/Thinkstock




not to translate but to “transcreate.”
“When speaking to the Hispanic mar-
ket, it is essential to understand that
there are different expressions and
nuances in the phrasing that simple
voice dub-over cannot communicate,”
says Cohen. “Taking the time to prop-
erly re-phrase the intention of each
statement into appropriate Spanish
dialect immediately ingratiates the

 54      electronicRETAILER | September 2010
   Q:               What happens when leading female executives in today’s
                    direct-to-consumer marketplace occupy the Women in
                    Business Pavilion at ERA’s D2C Convention?


        A:
              They tell all! And they’ve geared two special ASK THE EXPERT sessions designed to
              answer your questions. So stop by Booth 1100. Meet Linda, Katie, Ava, Fern, Francine,
              Geraldine, Cindy, and Dena. Bring your questions. Or listen and learn.

        But wait! There’s more! We’ve partnered with luxury department store Barneys and their pre-
        mier fragrance brand Le Labo. Visit our “apothecary kitchen” and ask Le Labo’s fragrance
        expert about creating a custom fragrance – for “him” or for “her.”

                                 Enjoy the sweet smell of DR success! There’s a fabulous gift bag
                                 from Barneys exclusively for ASK THE EXPERT attendees, but sup-
                                 plies are limited, so arrive early.

                                 ASK THE EXPERTS ■ Women in Business Pavilion ■ Booth 1100

Wednesday, September 22, 2 p.m. – 3 p.m.                     Thursday, September 23, 11 a.m. – 12 p.m.
Ava Seavey, Queen Bee,                                       Cindy Minionis, VP, Lifestyle
Avalanche Creative Services, Inc.                            Product Marketing, Time Life Inc.
Take Five. How to Maximize Profits by Doing                  This Is Not Your Mother’s Time Life.
Five-Minute Infomercials. Secrets to five-                   Learn what a leading DR company that has
minute success.                                              been around for almost half a century has done
Linda Goldstein, Partner,                                    to stay relevant in today’s marketplace.
Manatt, Phelps & Phillips, LLP                               Geraldine Newman, President & Creative Director,
Has the Federal Trade Commission Raised the                  NEWTHYNK/Geraldine Newman Communications
Substantiation Bar? Hear the details of the                  He Buys, She Buys. We don’t think alike, we
most recent FTC actions and how those deci-                  don’t buy alike. We look for different benefits in
sions may be creating new substantiation                     life, we don’t have the same sense of humor, we
requirements for marketers.                                  don’t have the same values. Find out how to
Fern Lee, CMO & Principal,                                   sell to women, and how to sell to men.
Factor Nutrition Labs, LLC
DR Retail Integration – Big Box, Small                       Dena Levy, Founder & CEO,
Container. How to focus on the end goal of                   Two-D Productions
integrating DR success with the mass merchant                Host or No Host? It’s important to know when
and the retail world.                                        you need a celebrity host and when you don’t.
                                                             How do you choose the right host? What do
Francine Bergman, President                                  you do when you can’t afford one?
& Producer, Lipstick, Inc.
“How to S.W.A.T.” the Audience. Ingredients
for a successful spot or infomercial.


     Sponsored By:




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                                                ENGAGING THE U.S. HISPANIC CONSUMER


Hispanic DR purchases are made via          “We have been able to take English
credit. Also, that the market is too
small to be worthwhile. And finally,        infomercials in these categories that are
the myth that marketers don’t need to       either successful or, in some cases, only
advertise in Spanish because
Hispanics will catch the English cam-       marginally successful, and create tremen-
paign. However, 30 percent of the           dous hits with a Spanish creative.”
market watches only Spanish-lan-
guage television and even those who         —Eitan Cohen, Media Stream Direct
watch both respect advertisements in
their native language.                      Topf, president of Callzilla. He says         televisions have increased in popular-
   Callzilla, a Miami-based call center     there are three main challenges for call      ity over the past two years, both in
specializing in the U.S. Hispanic space,    centers. First, reaching the expanding        channel options and distribution,
deals with the same issues as a call cen-   demographic. Second, call centers             even though broadcast television has
ter for the general market—converting       must be ready for an increase in credit       taken a hit. And interactive and digital
calls to sales and now, more than ever,     and debit transactions. And finally, the      TV activity among the U.S. Hispanic
third-party upsells. What’s different       economy has put pressure on mar-              market will increase over the next 18
about a Hispanic-focused call center is     keters to capitalize on a new segment.        to 24 months, according to Miyares.
how the sales agents are trained. It’s                                                       One of Omni Direct’s recent success-
about “training, educating, retraining      Channel Changing                              es was with the campaign for “Sobre de
and monitoring [the agents] and mak-        DRTV continues to be the strongest            Oro,” marketed in non-Hispanic mar-
ing sure they adhere to best practices      media channel for both general and            kets as “My Gold Envelope,” by Money
that the industry mandates,” says Neal      U.S. Hispanic DR. Cable and satellite         4 Gold. The campaign ran on TV, radio,




                                                                                       September 2010 | electronicRETAILER   57
    ENGAGING THE U.S. HISPANIC CONSUMER


online and print channels and has          comes to the use of mobile technolo-
expanded internationally. Money 4          gy, we expect to see growth in mar-
Gold believed its product was under-       keting through the mobile channel,
tapped in the U.S. Hispanic market and     even within the very short term.”
so it worked with Omni Direct to devel-       Moore says that mobile is definitely a
op creative production and identify        growing segment of the demographic.
Hispanic celebrity endorsements. The       Everyone is trying to monetize the
campaign built a trusted name through      channel’s value and it’s already an
a customized Hispanic message. Even        effective means to get outbound mes-
when the category suffered bad press       sages, special offers, reminders, etc., to
due to other industry players, “Sobre de   customers. And U.S. Hispanics are

   “Because Hispanics are significantly over-
 indexed when it comes to the use of mobile
technology, we expect to see growth in mar-
    keting through the mobile channel, even
                within the very short term.”
                           —Denira Borrero, Omni Direct Inc.

Oro” withstood the hit because of its      conducting more business transactions
brand recognition among Hispanics.         via mobile than the general market.
   While the buying principles for            Moore also says that grassroots event
time in the U.S. Hispanic market are       marketing is a strong channel in the U.S.
the same as with the general market,       Hispanic demographic. The group
the universe is limited. There are far     tends to have more family oriented out-
fewer cable networks, particularly in      door events and attend large festivals in
the long-form space, and even fewer        population-dense cities such as New
in broadcast networks. This creates a      York, Miami, San Diego and Los
high-demand, low-supply situation,         Angeles. It benefits a marketer to spend
according to Miyares. As more mar-         money and have a booth at these events.
keters begin focusing on the                  According to Topf, there is an emerg-
Hispanic market, demand for long-          ing trend in using online social media
form media time will rise and subse-       in the direct-to-customer acquisition
quently, so will rates.                    space. Although at the moment it’s not
   Online is increasing faster than any    being used much in this way, users of
other channel. Since 2008, the U.S.        social media and other web applica-
Hispanic online population has             tions (either on the computer or by
grown faster than the non-Hispanic         phone) will start to see a correlation
population in terms of visitors and        between purchases and this channel.
time spent and pages consumed. Just           No matter what the channel, more
two years ago, most Hispanic cam-          and more marketers are going to
paigns did not have an e-commerce          arrive in the U.S. Hispanic space in
website. Now, about 25 percent of          the coming year. The question,
U.S. Hispanic campaign orders come         according to Topf, is not “Do I have to
through the Internet. “Based on our        be there [the U.S. Hispanic market],
own research and national statistics,      but how do I get there?”
we expect Internet usage to continue
to grow in this direction,” says           Jacqueline Renfrow is a freelance writer,
Borrero. “Also, because Hispanics are      who has been writing about the direct
significantly over-indexed when it         marketing industry for the past few years.

                                                                                        September 2010 | electronicRETAILER   59
 Channeling
                 Radio
Response
     Generating greater
     response and media
     attribution with stronger
     response mechanisms
 BY ANDREW G. GORDON

 This past summer, I spent quite a bit of time driving in my car and I had the
 opportunity to listen to a lot of radio. What I heard really surprised me. The
 creative messaging in the direct response radio spots was, for the most part,
 great, but where many of these commercials fell short was with the response
 mechanism in the call to action (CTA). Many of the spots weren’t using the
 response mechanisms effectively, and I’d be shocked if the response rate did-
 n’t suffer.
    There are three elements that make an effective response mechanism for
 a direct response radio or TV spot. It does not matter what kind of
 response mechanism you are using—whether it is a toll-free number
 (TFN), URL or SMS Short Code—a strong response mechanism must be
 unique, memorable and attributable only to the individual media outlet
 that generated the response. If you have these three elements in your
 favor, you will increase response volume and optimize your media
 buy to generate greater ROI. It is that simple.

 Toll-Free Number Response
 When selecting TFNs for your radio campaign, keep in mind, “an 800
 number” is a generic term for all toll-free prefixes, but you can’t use
 just any toll-free prefix. Consumers are predisposed to dial an 800

60     electronicRETAILER | September 2010
                                           Hemera/Thinkstock




September 2010 | electronicRETAILER   61
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OCTOBER 11, 2010 | San Francisco, CA (During the DMA2010 Conference)
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                                                                 CHANNELING RADIO RESPONSE


number. Use anything but a true 800         phone. Savvy marketers are channel-       Opinions vary on how easy it is to
number and you will lose calls. Even        ing the consumer urge to search by        remember a URL, as opposed to an
though they are less expensive, you         including URLs in their commercials.      800 number. The longer or more com-
must avoid the use of 888, 877 and 866      Depending on the product or target,       plex the URL, the less likely the con-
toll-free prefixes, and don’t be tempted    you can offer a consumer a TFN and a      sumer will remember it.
to use the new 855 toll-free prefix,        URL in your commercial and let them         There are marketers who are using
which will go into service next month.      choose, or you can exclusively drive      vanity URLs, such as Priceline.com or
It’s harder to acquire or lease true 800    them to the web and provide a URL as      eHarmony.com. These vanity URLs
numbers, but finding the right vendor,      the sole response mechanism.              are memorable and offer instant
with the depth and type of 800 numbers
needed, is your critical first step.
    Many marketers are using vanity
800 numbers, such as 800-MATTRESS
or 800-LAWYERS. Vanity 800 num-
bers are memorable and offer instant
brand recognition and credibility. The
only problem is they are not trackable
and do not offer clear media attribu-
tion, which is imperative to optimiz-
ing your media performance.
    A better alternative to a true vanity
800 number would be to use a series of
hybrid vanity 800 numbers, such as 1-
800-340-HAIR, which is used by a hair
restoration doctor; or 1-800-947-
AUTO, which is used by Geico. Hybrid
vanity 800 numbers are memorable,
while also allowing for individual
tracking of each media outlet. The only
challenge could be acquiring enough of
these numbers for your campaign.
    When using multiple media outlets,
it’s best to use unique, memorable
numeric 800 numbers, which allow for
individual tracking of each media outlet.
    These are the most effective types
of 800 numbers for use in direct
response broadcast advertising:

Repeaters:               800-236-6868
Thousands:               800-585-5000
Hundreds:                800-585-5500
Ascending:               800-246-2468
Descending:              800-986-4321

URLs/Web Response
The Internet has changed the way peo-
ple respond to direct-response offers.
Some consumers prefer going online
to respond because it allows them to
research and window shop a product
anonymously. Some people like to
browse on the web and buy over the

                                                                                   September 2010 | electronicRETAILER   63
   CHANNELING RADIO RESPONSE


brand recognition and credibility, but
like the 800 vanity number, these                                    Examples of URLs a
URLs are not trackable and do not                                Window Marketer Might Use
provide media attribution.
   I’ve also come across marketers who           Offer:              FreeWindowInfo.com             NewWindowDVD.com
are converting their vanity 800 numbers          Product:            BetterWindows.com              NewWindows.com
into URLs, such as 1800Flowers.com               Benefits:           KeepOutTheCold.com             WarmerThisWinter.com
and 1800Petmeds.com. This concept
drives visitors to the website by capital-
izing on the “brand equity” of the vani-                                                 brand names in your URL because
ty number. In the creative, this method         When using multiple                      responders will tend to go straight to
saves time by not having to individually          media outlets, it’s                    the corporate site. The purpose of
voice the 800 number and the URL                                                         using a URL as a response mechanism
multiple times in the CTA. This allows           best to use unique                      is to channel the listener’s urge to
you to repeat both your one domain              memorable numeric                        search online, while facilitating track-
name and the phone number more                                                           ing and media attribution.
often, but as great as this sounds, these          800 numbers….                            Consider basing your URL on your
vanity URLs don’t allow for media attri-                                                 offer, your product or the benefit
bution either.                                  have shown that consumers drop the       your product provides (see chart
   Just like a strong TFN, a strong             prefix or suffix in a URL, go straight   above for examples).
URL must be memorable and unique.               to the URL itself and foil any media        Along with your URL, I recom-
I cringe every time a marketer uses a           attribution. For the same reason, stay   mend using individual landing pages
backslash in his or her URL. Studies            away from corporate or product           rather than individual websites. If you




 64       electronicRETAILER | September 2010
   CHANNELING RADIO RESPONSE


are using many URLs in your cam-                which a text message can be sent. For    keywords, in combination with
paign, it’s more economical to set up           example, a short code could be a         numeric common short codes, try to
a master website with a relational              numeric 54321 or a vanity code such      establish a repeating rhythm between
database, which will paginate individ-          as COKE. Think of the short code as      them such as “Text 44 to 44566.”
ual landing pages that correspond               a destination that you dial.               Look out for the next iteration of
with the requested URLs.                           The other component of SMS is         SMS that can be used as a response
                                                the keyword that you text to the des-    mechanism. This patent-pending
SMS Common Short                                tination. The keyword can be as short    technology uses the traditional key-
Code/Text Message                               as two characters, could be numeric      word to short-code concept, but
According to the CTIA - The Wireless            or could spell a word. Some examples     returns a voice call instead of a text
Association, cell phone penetration             of keywords are “GO,” “25,” “HAIR”       message. This type of technology
has surpassed cable TV, web access              or “WINDOW.”                             could start to replace cumbersome 10
and home computers. With that in                   When using multiple media out-        digit TFNs.
mind, the interactivity of the SMS or           lets, it is more efficient to use one
text messaging feature of cell phones           common short code and assign indi-       Mobile Star Codes
and smart phones makes for a great              vidual keywords to each media outlet     The next generation of trackable
response mechanism for direct                   for tracking and attribution. Both the   response mechanisms that use a
response advertising.                           keyword and the common short code        mobile device will be Mobile Star
  SMS (Short Message Service) com-              should both be as short and as mem-      Codes. Soon marketers will be able to
mon short codes are phone numbers               orable as possible. The CTA should       leverage the power of these codes on
that are five or six digits long and can        be worded something like this: “Text     mobile devices. Mobile Star Codes act
only be accessed from a mobile                  insert keyword here to insert common     as intelligent phone numbers,
phone. The short code is a number to            short code here.” When using numeric     instantly connecting consumers to
                                                                                         brands, offers and promotions via
                                                                                         their mobile devices. Each code com-
                                                                                         bines the familiarity of a TFN, the
                                                                                         power of a URL and the mobile access
                                                                                         of a short code into one easy-to-use,
                                                                                         easy-to-remember number.
                                                                                            Unlike SMS short codes that only
                                                                                         support text responses and TFNs that
                                                                                         only support voice dialing, Mobile
                                                                                         Star Codes can deliver a wide variety
                                                                                         of response types. Now your response
                                                                                               mechanism can contain any
                                                                                               combination of response type.
                                                                                               You can send a consumer a text
                                                                                               message and forward them to
                                                                                               your call center, send them a
                                                                                               web link or even deliver an
                                                                                                 audio or video file. As the
                                                                                                    marketer, this allows for
                                                                                                     better communication
                                                                                                      and dissemination of
                                                                                                       information.
                                                                                                           A Mobile Star Code
                                                                                                         is placed by dialing
                                                                                                          the * button on the
                                                Hemera/Thinkstock




                                                                                                           handset twice, fol-
                                                                                                           lowed by a unique
                                                                                                           code, followed by
                                                                                                           the send button. The
                                                                                                           unique code may be

 66       electronicRETAILER | September 2010
as short as two digits or as long as is
needed to spell a word. You can use
memorable number patterns that are
easier to remember and that are
shorter than a TFN, URL or SMS
short code.

The next generation
of trackable response
mechanisms that use
a mobile device will
be Mobile Star Codes.

   Until Mobile Star Codes are in wide
use, with consumer acceptance and
adoption, we as marketers need to
make it easy for consumers to
respond to our direct-response offers
using the more widely accepted
response mechanisms.
   We need to accept that consumers
are in control. Give them a choice in
how they respond to your offer by
combining response mechanisms in
the call to action. Some powerful
response mechanism combinations
are the tandem use of a unique TFN
and a unique URL, or the tandem
use of a unique SMS short code and
a unique TFN. Whether you are
using a TFN, URL or SMS short
code, the response mechanism must
be unique, memorable and attribut-
able to the media outlet that gener-
ated the response.
   Over the years, some clients initial-
ly resisted the process to strengthen
their response mechanisms, but they
quickly saw the value in the process
after gaining both a greater response
and media attribution.

Andrew G. Gordon is president and
founder of Direct Impact Group, a
full-service DRTV, DR radio, rem-
nant print and mail marketing firm
that specializes in direct response lead
generation. Contact Gordon at (781)
453-2200, or via e-mail at
andrewg@directimpactgroup.com.
Direct response veterans reflect                               marketers, fulfillment service suppliers, webmasters and
on 25 years of the infomercial                                 product manufacturers—many of us have played our part.
                                                               Some individuals have endured the test of time, and others
and the lessons that they’ve                                   have stepped in to bring the genre to the next level.
                                                                  In preparation for the D2C Convention in Las Vegas in
learned along the way.                                         September, the ERA Public Relations Committee and ERA
                                                               staff have been busy at work, assembling exhibits of some of
                                                               the industry’s most iconic and memorable infomercial prod-
                      BY RICHARD SCHEINER                      ucts to be featured at the convention’s 25th Anniversary
                                                               Pavilion. Included will be product samples, clips of memo-
                      Welcome to the fourth installment        rable shows, and information on some of the people and
                      of Electronic Retailer’s celebration     companies that have contributed to the growth and success
                      of the 25th anniversary of the           of the infomercial. We urge all attendees of the convention to
                      infomercial.                             stop by the pavilion to visit and reminisce.
                         As we all now know, Al Gore did          This month, we hear from Mercury Media’s John
                      not invent the Internet by himself,      Cabrinha and Dan Danielson, Tim Hawthorne of
                      and Lebron James can’t win a             Hawthorne Direct, Jeffrey Knowles of Venable LLP and
championship without some help. It takes many individ-         Richard Stacey of Northern Response (Int’l) Ltd.
uals to create a success, and the direct response industry
is no exception.                                               Richard Scheiner is chief operating officer at International
   As inventors, marketers, producers, media agencies, tele-   Commercial Television Inc. in Wayne, Pa.




 68      electronicRETAILER | September 2010
                                              Dan Danielson
                                              and John Cabrinha
                                              Co-Founders and Co-Chairmen
                                              Mercury Media

Electronic Retailer: How did you           could almost create a time line of the      were     monumental:        Proactiv
both get into the DRTV industry?           business over those years based on the      Solution (long life, brand establish-
                                           “mega-hits” that were out there—the         ment), Power 90 (exercise, weight
Dan Danielson: John Cabrinha got           products that became household              loss, customer satisfaction, web,
his start in the DRTV business in          names. Some people in the industry          etc.), Kevin Trudeau (various
1982, answering telephones for one of      are too young to remember some of           shows developing the talk-show
the first home shopping shows called       the older titles that were there at the     format). Also, Time-Life (with the
“Telephone Auction.” He worked his         start of the business.                      music and video). We could go on
way up from an operator to a media            SyberVision:                    The      and on.
buyer and was actually an “on-screen       Neuropsychology of Weight Loss
demonstrator” a couple of times.           was one of the first “home look-            ER: What is your most memo-
                                           and-feel shows.” So many shows              rable (insightful, funny or
John Cabrinha: I met Dan Danielson         followed the style that this show set       endearing) story of the DRTV
at a company called SyberVision in         in 1987. Tony Robbins Personal              industry or a colleague in the
1987. We were two of the first people      Power was one of the first shows to         industry to date?
to ever call a television station and      use true celebrity hosts and to
convince them to sell us a half-hour.      appeal to a mass audience. Ron              Danielson: We have been doing
We developed relationships with cable      Popeil’s Food Dehydrator and Pasta          this for such a long time now that
systems and broadcast stations all over    Maker were two of the first massive         we have so many stories and expe-
the country. Back then, stations didn’t    kitchen product hits. There were            riences that have been funny, excit-
know what the value of the time peri-      other kitchen shows that worked,            ing, humorous and sentimental. As
od was and neither did we, so we did       but Ron took it to another level.           the industry is getting older, the
some calculations on what they should                                                  individuals in the business are get-
sell it to us for, and we waited for the   Cabrinha: Tae Bo is one that we             ting older. We have lost some of
response to see if we were correct. We     consider “the” mega hit because it          our fellow industry pioneers in the
quickly developed a database of sta-       was the first show that hit the air-        past few years. We have always
tions, markets and time periods and        waves and ran so much media in a            loved this industry because of the
what price they worked for and what        relatively short period of time,            people. We have worked with so
types of products were successful.         and people still talk about it to           many great people, whether as
                                           this day. It is a show to compare           clients, vendors, consultants or just
Danielson: This was so early in the        your success to, and that success           friends growing up in the business.
history of DRTV that half-hours            was met or exceeded over a long                There are lots of stories that we
weren’t even called infomercials           period of time by The Total Gym.            can’t publish, and there are many that
back then. There were only a hand-           We consider Bare Escentuals to            are way beyond the word limit we
ful of shows on the air during that        be the quintessential makeup prod-          have in this article. The one reason we
time, and we were all learning             uct that created a brand and had a          keep going to work every day and
things as we went along.                   long TV life and shelf life. Magic          attending every industry event is
                                           Bullet would be considered the              because we love the relationships and
ER: Is there any one product               modern day big hit. It’s had a long         the people we have met over the years,
that you believe changed the               TV life, went to retail and continues       and look forward to seeing those rela-
face of DRTV for the consumer?             to be successful in both channels.          tionships continue to blossom, and
                                           They set a trend and broke the              hopefully continue to develop rela-
Danielson: If we look back over the        mold. I’m sure there are so many            tionships with new people as they
past 25 years of infomercials, we          shows that we are leaving out that          come into this industry.




                                                                                     September 2010 | electronicRETAILER    69
 AN INDUSTRY REMEMBERS




                          Timothy Hawthorne
                          Founder, Chairman and Executive Creative Director
                          Hawthorne Direct

 Electornic Retailer: What were              with over $100 million in sales—        mix. Along the way, average pro-
 you working on 25 years ago, in             one of the first major long-form        duction budgets tripled, media
 relation to DRTV?                           direct marketers.                       prices quintupled and hit ratios
                                                                                     “inverse septupled” (from 1/3 to
 Timothy Hawthorne: In November              ER: How has the DRTV industry           1/20). Simultaneously, our busi-
 1984, I sat in the basement of a local      changed over the past 25                ness has gained complexity, credi-
 electrician’s home (one of the few C-       years?                                  bility and customers, and expand-
 band satellite owners in Fairfield,                                                 ed product categories, profession-
 Iowa), struggling to tune in tiny           Hawthorne: In 1986, I launched          alism and stability.
 cable network, Satellite Program            Hawthorne Direct, an ad agency
 Network (SPN), awaiting the telecast        dedicated to bringing long-form         ER: What, if any, technologies
 of my first infomercial to air in what,     DRTV to brand advertisers. For 15       and trends will influence
                                                                                     future growth and help to
            My vision was that all major brands                                      shape the DRTV industry?
     should capitalize on long form’s inherent
                                                                                     Hawthorne: PVR, VOD, Internet,
      power: “The more you tell, the more you                                        mobile, interactive TV, gaming,
      sell.” It took a while but over the past 25                                    local, TV Everywhere, Digital Out
                                                                                     of Home, social, apps, fragmenta-
      years, hundreds of brands have incorpo-                                        tion, consumer choice: these are the
          rated DRTV into their marketing mix.                                       hallmarks of the New Media age—
                                                                                     nothing less than a revolution in
                —Timothy Hawthorne, Hawthore Direct                                  communication and advertising as
                                                                                     significant as moveable type.
 unbeknownst to me, was soon to be           years, I had been telling compelling       The 65-year-old linear TV
 a new era of DRTV.                          human interest or investigative sto-    viewing experience will remain
    Moments after the hour-long              ries via documentaries; now I was       for a few more decades but
 infomercial, I anxiously called our         telling product stories. I still con-   diminish in use, replaced by
 small telemarketing partner in              sidered myself a filmmaker, not an      viewers interacting with advertis-
 Omaha for results. I was disap-             adman—but these “product sto-           ing messages on four screens: TV,
 pointed to learn only 100 orders            ries” presented an even greater         computer, mobile (hand set or
 had been posted. One hundred                challenge: results not measured in      tablet) and out-of-home digital
 seemed like a fraction of the               TV ratings, but sales and immedi-       displays. The primary threat to all
 potential, considering SPN was in           ate feedback on how successful I        advertising remains: in a world of
 5 million homes. I pulled out               executed my visual communica-           infinite choice, how do we engage
 some scratch paper and did my               tion skills. It was thrilling and       viewers in our products’ stories?
 first MER calculation: cost of              frightening at the same time.           Any ad delivery mechanism that
 media: $3,000. Sales: $30,000.                 My vision was that all major         provides consumer control,
 Ohhh…a 10 to 1. Thus began my               brands should capitalize on long        immediacy and relevancy will
 transition from DGA director and            form’s inherent power: “The more        win out in the end. But ads incor-
 documentary filmmaker to DRTV               you tell, the more you sell.” It took   porating the trademarks of
 advertising. Over the next 18               a while, but over the past 25 years,    DRTV—great products and
 months, I helped build the                  hundreds of brands have incorpo-        motivating offers—should always
 Beckley Group, 525 staff strong,            rated DRTV into their marketing         find success.


70     electronicRETAILER | September 2010
 AN INDUSTRY REMEMBERS




                         Jeffrey Knowles
                         Partner
                         Venable LLP

 Electronic Retailer: How did you           worked with Greg and other            the first DRTV products to expe-
 get into the DRTV industry?                industry leaders to form the          rience widespread counterfeiting
                                            National Infomercial Marketing        and marketing of knockoffs.
 Jeffrey Knowles: In the late ’80s,         Association (NIMA), which even-       Many of the legal strategies we
 my brother, an entertainment               tually became ERA. Twenty-one         employ today to defend clients’
 attorney in New York, introduced           years later, the rest is history.     intellectual property were devel-
 me to Tom Fenton and Dick                                                        oped while protecting the
 Kaylor at Synchronal. I did some           ER: What product or products          Thighmaster.
 legal and FTC-compliance work              have changed the face of DRTV
 for the company, which was then            within the past 25 years?             ER: What is your most memo-
 the largest infomercial company                                                  rable (insightful, funny or
 in the nation.                             Knowles: In my opinion,               endearing) story of the DRTV
   In 1990, Congressmen Ron                 Proactiv Solution is the single       industry or a colleague in the
 Wyden and Norm Sisisky invited             most transformative DRTV prod-        industry to date?
 members of the infomercial                 uct over the past 25 years. It has
 industry to testify at a hearing           generated more sales than any         Knowles: Greg Renker’s testimony
 about the industry’s practices. I          other DRTV product, and Guthy-        before Congress in 1990, was a
 was tasked with preparing Greg             Renker’s success integrating A-list   turning point for the industry in
 Renker, co-founder of Guthy-               celebrities into direct marketing     more ways than one. I will never
 Renker, to testify as the industry’s       marks a turning point in the          forget how Greg carried himself
 representative.                            industry’s history.                   during the hearing. At the time, he
                                                                                  was only 33 and was president of
  Greg Renker’s testimony before Congress                                         one of the fastest growing direct
 in 1990, was a turning point for the indus-                                      marketing companies in the
                                                                                  nation. Only a few years earlier, he
  try.... I will never forget how Greg carried                                    had been working at the Indian
    himself during the hearing. At the time,                                      Wells Racquet Club. I had pre-
                                                                                  pared a number of executives to
   he was only 33 and was president of the                                        testify before Congress during my
  fastest growing direct marketing compa-                                         career, and it’s safe to say none of
                                                                                  them were like Greg.
   ny in the nation.—Jeffrey Knowles, Venable                                        Watching him in front of the
                                                                                  committee and the steady gaze of
    During Greg’s testimony, Sisisky           The Thighmaster was another        television cameras from all three
 asked whether there were industry          transformative product. As the        major networks, you could tell he
 standards or an industry group             first wildly successful exercise      was something special. The way he
 representing the interests of com-         product marketed through DRTV,        carried himself, the way he
 panies producing infomercials.             it paved the way for other exercise   responded to questions with the
 When Greg said there were none, a          programs such as Tae Bo and           perfect combination of conviction
 light bulb went off. I decided the         P90X that have continued the tra-     and respect, I could see this was a
 industry needed an association,            dition of reshaping the industry      guy with the intelligence and pas-
 and I set out to organize it.              and customers’ lives.                 sion to reshape an industry.
    Over the next few months, I                Thighmaster was also one of



72    electronicRETAILER | September 2010
 AN INDUSTRY REMEMBERS




                         Richard Stacey
                         President and CEO
                         Northern Response (Int’l) Ltd.

 Electornic Retailer: How did you           to write a script for a 60-minute    ER: What product or products
 get your start in the DRTV                 show called “Blue Print for          have changed the face of the
 industry?                                  Success.” That show was a con-       DRTV industry within the past
                                            densed summary of my eight-          25 years?
 Richard Stacey: In 1984, I had a           hour live seminar.
 company in Canada selling home-              The first time we aired it, the    Stacey: In the beginning, the
 study courses that I wrote on how          station ran it for free, as they     infomercial industry was mostly
 to get rich in your own business           thought it was a public-service      home study and self-help courses.
 and real estate. They were sold            educational show. That’s how         As the ’80s progressed, companies
 through seminars and mail order.           “early” those days were back then!   began experimenting with hard
 I began seeing infomercials in the         The phone lines were jammed for      goods like the Hard-Hammered
 United States, selling similar             over a week from that first single   Chinese Cooking Wok or the
 courses by people like Tom Vu,             Sunday afternoon airing. From        Annushka Cellulite Reduction Kit.
 Tony Hoffmann, Hal Morris, Paul            that day forward, I was in the       Then the industry literally explod-
 Simon and Ed Beckley. I decided            infomercial business.                ed and everybody got into it. At the




74    electronicRETAILER | September 2010
same time, the cable industry was      ER: What is your most memo-
expanding so they had plenty of        rable (insightful, funny or
airtime to sell and the industry had   endearing) story of the DRTV
plenty of shows to fill it. It was a   industry to date?
perfect partnership. We locked up
huge blocks of airtime often from      Stacey: What I have always loved
midnight to 6 a.m. on most sta-        about this industry is that there is
tions. We stopped producing            always something new and exciting
shows and started distributing         going on. Probably the most impor-
them. We’ve now distributed over       tant insight is that there is no telling

You have to always keep an open mind
because no matter how crazy or off-beat
a product is, it just might be the next
winner.—Richard Stacey, Northern
Response (Int’l) Ltd.

3,000 shows over the past 25 years.    what people might buy—it almost
The products have not changed too      always pays to test. Our biggest hits
much—need, greed and vanity still      are often ones that you would not
sell. There are certain types of       have predicted in advance.
products that fit the DRTV genre       Sometimes, a show is not so well pro-
in short form and long form.           duced or the product is sort of gim-
Lately, it’s more about retail and     micky, but that is often what sells.
products that can be introduced by        I remember years ago, a show on
DRTV and later sold into Walmart.      how to get better grades in school
   There are many memorable and        that reportedly cost a million dol-
breakthrough products and pro-         lars to produce (a lot of money at
ductions that took the industry to     that time), that was shot on film
new levels each step of the way. I     and starred many sports stars like
always thought Media Arts with its     Wayne Gretzky. We had to call the
Amazing Discoveries series had a       station to see if it aired—there was-
big impact in the early days by        n’t one call! A few days later, we
showing what was possible. Guthy-      aired a very simple show called
Renker took it up a notch with its     Smart Mop and it took off like a
first Personal Power show, which       rocket. So you just never know. It
again demonstrated a new stan-         also means you have to always keep
dard of quality in DRTV products       an open mind because no matter
and production. These types of         how crazy or off-beat a product is,
shows pointed the way.                 it might just be the next winner.



                                                                                  September 2010 | electronicRETAILER   75
                        SHOP TALK            BY BJ FAZELI




                        Here, There and Everywhere




            f           For decades, conventional TV advertising wis-
                        dom suggested it took three net impressions to
                        break through to a consumer. Infomercials were
                        a counter-point to this argument because they
                        did not require frequency—a viewer could be
                        sold in one complete, half-hour pitch. While
                        that may still hold true, things may have come
                        full circle. With so many messages competing
                        for a consumer’s attention combined with esca-
                        lating media fragmentation, a direct marketer
                        needs to be here, there and everywhere.

                        Piquing Consumer Interest
                        Here are some innovative ways to create con-
                        sumer impressions that help develop aware-
                        ness and prime viewers so that when they see
                        your direct pitch, they are ready to buy:
                                                                            • User-Generated Content - Do-it-yourself
                                                                               satirists are posting their own versions of
                                                                               commercials and getting millions of views.
                                                                               Marketers should embrace such lampoons—
                                                                               it comes with the territory. But amateur
                                                                               archivists are also doing their own time lapse
                                                                               of body transformations by using fitness pro-
                                                                               grams marketed through direct means. The
                                                                               unadulterated authenticity of such programs
                                                                               is simply terrific, organic promotion, but it
                                                                               doesn’t mean that marketers can’t do it for
                                                                               themselves, as long as they disclose material
                                                                               relationships with endorsers.
                                                                            • Video sharing sites - Everyone thinks
                                                                               YouTube, but there are nearly 70 different
                                                                               video sharing sites that allow marketers to
                                                                               post content. Advertising, product reviews
                        • Mobile - With nearly half the world’s pop-           and personal appearances on talk shows are
                          ulation now owning a cell phone and 3.3              just some examples of what can be posted.
                          billion global subscribers, the so-called            Even an infomercial can be dissected and
                          third screen (after the TV and computer)             then organized so that consumers can get
                          has come of age. The iPhone alone has                ready access to the content they seek.
                                                                            • Blogging - It isn’t just about your blog—
While every marketer would like to achieve                                     it’s about their blog. Many bloggers will
                                                                               post opinions about your products. And
    the brand ubiquity of a Nike swoosh—                                       yes, such posters have to disclose any free
           or even a Snuggie—sometimes,                                        product that you provide, but who cares?
                                                                               Find trendsetters in your category, send
        you have to seed the marketplace.                                      them free product and bask in their evan-
                                                                               gelistic glow.
                          200,000 apps and endless opportunities for           While every marketer would like to achieve
                          advertisers. With the generational shift away     the brand ubiquity of a Nike swoosh—or
                          from the TV, this can be an excellent way to      even a Snuggie—sometimes, you have to seed
                          broaden your consumer base.                       the marketplace. While such tactics may not
                        • Product Placement - The ongoing boom in           be as easily quantifiable as pure direct mar-
                          reality television gives marketers many oppor-    keting, today it’s not just about being seen on
                          tunities for product placement. For example,      TV, but everywhere the consumer is paying
                          Kymaro’s Rhythm Rocker will be featured in a      attention, and that could be anywhere.
                          new NBC series, “Ultimate Women
                          Challenge.” The product will be showcased         BJ Fazeli is president of BJ Global Direct and
                          prominently as contestants use it to get fit in   Concept2Consumer. Contact Fazeli at (949)
                          this mixed martial arts competition.              825-5822.

76   electronicRETAILER | September 2010
                                                                BY GREG SATER




                                                                            Do You Need a Legal Physical?
                      CHANNEL CROSSING: LEGAL




                                                                            When was the last time you had a physi-              commercial use in the United States or
                                                                            cal? What about a legal physical? If you’ve          does it infringe registered or unregistered
                                                                            got a product you’re selling on TV, online           “common law” trademark rights of a
                                                                            or at retail, it may be a good idea to get           third party? Is it confusingly similar with
                                                                            one from a qualified attorney.                       a third party’s mark? Has a full search
                                                                                                                                 been done on this, i.e., beyond just a
                                                                            The Examination                                      Google search and a www.upsto.gov
                                                                            Not to worry you, but here are just a few            search? If it is available, should a U.S.
                                                                            of the subject matters to be considered in           trademark application be filed, and if so,
                                                                            the course of such an examination:                   what kind, by whom and at whose
                                                                            • Product/Patent rights. If you obtained             expense? Is the mark too descriptive to be
                                                                               your product or invention from some-              registered with ease or too easy for some-
                                                                               one else, do you have a written contract?         one else to come close to with a similar
                                                                               Does it include all the rights you need to        but lawful “knockoff” name? What about
                                                                               market the product for as long as you will        international registrations? And, is the
                                                                               need to market it and in all the channels         name perhaps too good, meaning the
                                                                               of distribution you desire? Is there a            FTC might view it as being deceptive if it
                                                                               patent application or patent? Should a            impliedly conveys to the ordinary con-
                                                                               patent application be filed, and if so, by        sumer that your product has some bene-
                                                                               whom and at whose expense? What                   fit, if that claim isn’t substantiated?
                                                                               about international IP protection? Can          • Ad Copy/Copyrights. Who owns the
                                                                               the product be marketed without                   spot or infomercial for your product?
                                                                               infringing someone else’s patent, i.e., has       Who owns the content of the website? Is
                                                                                              a search of other patents          there a written, signed “work-made-for-
                                                                                              been conducted? Are the            hire” agreement or copyright assignment
                                                                                              royalty and other financial        contract with every person who provided
                                                                                              obligations clear?                 any creative input, so the “chain of title”
                                                                                              • N a m e / Tr a d e m a r k       is clear and is in your name for copyright
                                                                                              rights. If you obtained the        purposes? Has the material been regis-
                                                                                              name or trademark of               tered with the U.S. Copyright Office?
                                                                                              your product from some-            What about registering the material with
                                                                                              one else, do you have a            U.S. Customs? In your contracts, is it
                                                                                              written contract? Is it a          clear who is indemnifying whom against
                                                                                              license or assignment?             third-party claims, alleging copyright
                                                                                              Does it give you the rights        infringement arising out of the material?
                                                                                              you need to use that name        • Production. Is there a production con-
                                                                                              or trademark in com-               tract? Is it clear? Does it include the nec-
                                                                                              merce as and when you              essary “work-made-for-hire” language?
                                                                                              desire? In the contract, is it     Does anyone (e.g., talent) have a right of
                                                                                              clear who is indemnifying          script review or approval? Have you con-
                                                                                              whom and holding them              sulted with legal counsel about the script
Comstock/Thinkstock




                                                                                              harmless against future            and advertising claims? Are there any
                                                                                              third-party claims, alleg-         edits that should be made or supers or
                                                                                              ing trademark infringe-            disclaimers added for legal reasons? Were
                                                                                              ment if any arising out of         the product demonstrations “rigged” in
                                                                                              the use of the mark? Is the        any way? Is there a release form signed by
                                                                                              mark even available for            all on-camera talent? Is there a testimoni-

                       78                       electronicRETAILER | September 2010
  al affidavit signed by all of your tes-    What edits could be made and               material connection that they have
  timonialists? How were they recruit-       what supers or disclaimers added,          with you (e.g., that you gave them
  ed? Were any of them paid or given         for a reduced legal risk level? What       free product)? Finally, in your con-
  anything and if so how much, when,         substantiation could be developed?         tracts, who is indemnifying whom
  by whom and for what?                      Does your product or your claim            for FTC or other third party (e.g.,
     If you have an expert (e.g., a          about it fall into a category that the     attorneys general) claims of false or
  doctor) who is going to endorse            FTC historically has been interested       deceptive advertising?
  your product in your ad, what              in (e.g., weight loss)? Are you sub-     • Contracts. Does everyone who has
  exactly did he or she do to evalu-         ject to other regulatory bodies such       an obligation to you, and does
  ate the product and to support
  whatever he or she is saying or           In your contracts, who is indemnifying
  implying about it in the ad; and is
  there a signed expert endorse-            whom for FTC or other third-party claims
  ment affidavit to back it up?             of false or deceptive advertising?
  Under your contract, is it clear
  who will indemnify whom for any
  third-party claim of copyright             as the FDA? Do you use testimoni-           everyone who has a right to be paid
  infringement or false advertising          als? If so, have you ascertained and        by you, have a signed contract? Is
  arising from the ad?                       are you disclosing the results that         anything vague, ambiguous,
• FTC claims review. No advertis-            one can “generally expect” from use         unclear or otherwise a “loose end,”
  ing should be done without there           of your product in the depicted cir-        and if so which party does that
  having been some FTC claims                cumstances? Are you using the               favor?
  review or consultation ahead of            word “free” and if so how and why?
  time. What express claims are being        Are you “guaranteeing” any results?      Consult with an Expert
  made? What would the FTC believe           In terms of the online space, is your    On some of the above matters, it may
  the implied claims are? Liability          privacy policy adequate? Are your        be reasonable to defer getting legal
  exists for both express and implied        terms of use adequate? Are you run-      advice until you’ve tested your cam-
  claims. For each, do you have ade-         ning a sweepstakes or contest? Are       paign and you know it will make
  quate substantiation according to          you using disclaimers and disclo-        money; but on others, it is a major risk
  FTC precedent? Given your prod-            sures properly and in the right loca-    to do that. Figuring out which is
  uct and your claims about it, what         tions? Are you using online affiliates   which is the first step. As they say on
  degree of substantiation would the         or affiliate networks? If so, is their   TV, “always consult your physician
  FTC likely require? Do you need a          conduct in compliance with the           before beginning this or any other
  clinical? Do you need two? Does it         FTC Act and the FTC’s guidelines?        exercise program…”
  need to have a placebo group or            The same question goes for any
  other design features? Is there any        bloggers or other social media par-      Greg Sater is an attorney with Rutter
  preexisting substantiation you can         ticipants you pay or to whom you         Hobbs & Davidoff in Los Angeles.
  borrow from, that may apply to             may send free product or gifts. Are      Contact Sater at (310) 286-1700 or at
  your product and your claims?              they, for example, disclosing the        gsater@rutterhobbs.com.
                                                 BY ED ELLIOTT




                                                             Social Media Marketing:
                                                             Keeping Your ROI in Check
CHANNEL CROSSING: SOCIAL MEDIA




                                                             Is it possible to quantify the true value     sis…forget cost per lead (CPL)…forget
                                                             of social media marketing (SMM)?              proving to clients that any and all mar-
                                                             Advertising and marketing firms across        keting efforts are worth the investment.
                                                             the globe are scrambling to answer this       It’s as if the phenomenon of social media
                                                             million-dollar question. Yet without          took off too quickly for people to ques-
                                                             knowing the answer to this question, we       tion its validity. Yet, we all know that
                                                             continue to see companies invest tens of      effective networking—whether through
                                                             thousands of dollars in social media          social media or other means—generally
                                                             campaigns, apparently throwing cau-           leads to business growth. So the value
                                                             tion to the wind.                             must be there, but how will we ever mon-
                                                                Marketing spent on social networking       etize it? In short, through technology.
                                                             sites in 2009 reached $2.4 billion, accord-
                                                             ing to a report by Mintel. The social         Putting the “Buzz” in Social
                                                             media revolution is relentless in its         Media Marketing
                                                             expansion. Most businesses fighting for       Most will say revenue growth through
                                                             survival in today’s economy refuse to be      SMM is difficult to track; the rest will say
                                                             left behind—even if they don’t under-         it’s impossible. Do not be deceived.
                                                             stand how SMM efforts conducted by a          Without an industry-accepted formula to
                                                             hired firm actually affected their return     calculate social media, here’s what you need
                                                             on investment (ROI). Pack mentality is        to know: Social media firms know the
                                                             driving the market and may actually be        buzzwords. They will “strategize, engage,
                                                             its greatest proponent.                       listen and influence online consumers,”
                                                                If only radio, television and online       while encouraging others to “connect with,
                                                                        marketing firms had it this        trust and recommend” your brand.
                                                                           easy. Wouldn’t they all love       Through them, you will gain “direct
                                                                              it; forget audience analy-   contact with consumers,” “real-time cus-
                                                                                                           tomer feedback,” “reach untapped mar-
                                                                                                           kets,” “gather valuable customer data,”
                                                                                                           “achieve branding recognition” at its
                                                                                                           best, and even “gain influence over con-
                                                                                                           sumers.” The buzzwords continue. Your
                                                                                                           chosen firm will report to you on the
                                                                                                           number of new “backlinks,” “friends,”
                                                                                                           “followers,” “likes,” “online articles,”
                                                                                                           “blogs,” “bookmarks,” “newsletter opt-
                                                                                                           ins,” “comment sentiment,” etc. Yet, they
                                                                                                           can’t tell you how any of this actually
                                                                                                           affects bottom-line revenue. Business
                                                                                                           growth spawns from innovation and it
                                                                                                           seems the horses (social media firms) left
                                                                                                           the cart (your business) in the dust
                                                                                                           before anyone knew the race had started.
                                                                                                              So forget all that. What can we really
                                                                                                           track with even the most basic, often free,
                                                                                                           technology? How about increased web
                                                                                                           traffic, number of new leads, leads con-
                                                                                                           verted to sales and overall revenue growth

 80                              electronicRETAILER | September 2010
achieved through SMM efforts? It          address or phone number. Social           social media mountain with you
seems a simple request. If your social    media sites are merely a collection of    rather than for you. Then just sit
media firm is unable to deliver these     consumers versus a purchased list of      back and monitor online traffic,
fundamental figures and if its busi-      leads falling within your target          new leads, conversions and revenue
ness model is obscure like most, then     demographic. The social media leads       growth. This is how results get
you’ll never truly understand objec-
tive ROI when it comes to marketing       The social media leads are useless if not
through social media.                     given specific instructions designed to get
   However, there is a solution. Find
a firm that grows as you grow: a          them to hand over lead information to you
firm whose interests are your own.        and you only.
I’m, of course, referring to revenue
sharing, which is simply a way to
grow a business in a manner out-          are useless if not given specific         achieved. This is how technological
side existing portals. Can your firm      instructions designed to get them to      innovation has finally caught up
offer a concrete social media CPL         hand over lead information to you         with the wild brute we call the social
prior to campaign launch? Not like-       and you only. Micro-sites now enter       media revolution.
ly. They’ll need a new business           the equation.
model for that.                              Find a firm that’s willing and         Ed Elliott is chief financial officer at
   Also, lead generation is imperative.   technically able to set up a top-         Media Worldwide Partners in Long
People who “like” your Twitter busi-      notch micro-site. As they drive traf-     Beach, Calif. Contact Elliott at (562)
ness page are not leads. Their “like”     fic to this site (at no out-of-pocket     439-3900, or via e-mail at eelliott@
does not give you their e-mail            cost to you), let them climb the          mediapartnersworldwide.com.




                                                                                   September 2010 | electronicRETAILER   81
                                          BY DICK WECHSLER




                                                      Nothing Lasts Forever…
                                                      Thank Goodness
CHANNEL CROSSING: DRTV




                                                      This has been a challenging year at best. A      these forces is fool-hearted at best. We need
                                                      bullish media market drove up rates, while       to be nimble enough to take advantage of
                                                      a lingering economic downturn depressed          opportunities when they arise, and intelli-
                                                      consumer confidence and as a result, their       gent enough to adjust our exposure to con-
                                                      willingness to respond to DRTV offers.           stant social and economic change.
                                                      Here’s the good news. The 2011 television           We also need to constantly protect and
                                                      Upfront market was extremely strong.             add value to the “As Seen on TV” retail fran-
                                                      That means there will be less pressure from      chise, which has become the dominant rev-
                                                      high-rate general advertisers on the Scatter     enue channel of our industry. Scott Boilen of
                                                      market, where DRTV resides.                      Allstar Marketing raised a pressing concern
                                                         Furthermore, DRTV response rates are          as a panelist during an industry conference
                                                      on the rise. Despite the summer’s news           in May. Boilen said that the biggest risk we
                                                      reports of sinking consumer confidence,          faced was the pretenders that take advantage
                                                      we’ve seen an across-the-board improve-          of the hard-earned As Seen on TV retail
                                                      ment in DRTV response rates, a pure              space, with products that have never been
                                                      impulse purchase and one of the truest           seen on TV in a meaningful way.
                                                      measures of consumer confidence.                    As these DRTV wannabees sit unsold
                                                      Improved consumer response, coupled              on store shelves, retailers are going to lose
                                                      with a stable media market, has enabled          confidence in the next wave of deserving
                                                      more campaigns to achieve profitable scale.      products. As an industry, we need to
                                                                                                       embrace a more reliable method to mon-
                                                      What Have We Learned?                            itor and report on DRTV campaign activ-
                                                      As 2010 moves into 2011, the DRTV                ity than we currently settle for.
                                                      industry will continue to improve. How              Don’t be impatient and settle for medioc-
                                                      long it will take consumer willingness to        rity. Over the past year, some of the smartest
                                                      purchase $10, $14.99 and $19.99 items to         and most successful DRTV marketers in the
                                                      trickle up to more expensive infomercial         world have compromised their standards
                                                      offers remains open ended. However, we           on campaigns delivering ROIs below his-
                                                                                                       toric norms. They justified their decisions
                           Despite the summer’s news reports of                                        based on high media rates and poor con-
                                                                                                       sumer response. Some said that DRTV
                            sinking consumer confidence, we’ve                                         would never again be a profitable stand-
                         seen an across-the-board improvement                                          alone channel. Over the past year, a media
                                                                                                       earnings ratio of 1.3 became the new 2.5.
                                      in DRTV response rates….                                            Fortunately, the media market has grown
                                                                                                       more stable and consumer confidence is on
                                                      expect that the improvements in the media        the rise. Scalable, profitable campaigns are
                                                      market and in consumer confidence that           starting to take off. Just keep in mind, noth-
                                                      are now boosting short-form DRTV will            ing lasts forever…be patient, nimble and
                                                      begin to have a sustained and positive           track everything that you do and the DRTV
                                                      impact on long form later in the fall.           industry will prosper when times allow.
                                                         What new insights can we carry forward
                                                      from the trials of the past year? The first is   Dick Wechsler is CEO of Irvington, N.Y.-
                                                      that neither good nor bad times will last        based Lockard & Wechsler Direct, and
                                                      forever. Our industry is affected by power-      chairman of Electronic Retailer’s
                                                      ful and dynamic economic and social              Magazine Advisory Board. Contact
                                                      trends. To think that we can affect or beat      Wechsler at rwechsler@lwdirect.com.

 82                       electronicRETAILER | September 2010
                                                                          BY RICHARD SCHEINER




                                                                                      10 Rules for Selecting the Right
                                                                                      Telemarketing Company
CHANNEL CROSSING: TELESERVICES




                                                                                      In order to be a successful marketer in the        time, many other service organizations
                                                                                      DRTV industry, a retailer has to have a            have entered the picture, creating fierce
                                                                                      strong and effective relationship with its tele-   competition and making choices for the
                                                                                      marketing service provider (or providers).         service consumer more difficult.
                                                                                      However, individuals who have worked on               I am often asked what retailers should
                                                                                      the “client side” know how competitive that        look for in choosing a telemarketing ven-
                                                                                      telemarketing service companies can be.            dor. There are so many options out there
                                                                                         When I began in the DRTV industry               today—“brick and mortar” type mega
                                                                                      back in the 1980s, I often went to the Mecca       call centers, home-based operations, off-
                                                                                      city for the “in-bound industry”—Omaha,            shore operations, IVR-based technology
                                                                                      Neb. While in Omaha, it was normal to              companies and smaller “boutique” high-
                                                                                      shuttle between the major companies in the         sales-conversion-oriented facilities. In
                                                                                      industry that offered services. I met with         addition, each of these categories is at
                                                                                      the owner of one such company, and asked           least five to 10 companies deep, so you not
                                                                                      him why we should use more of his servic-          only need to choose your type of “part-
                                                                                      es. He stated, “You know, we are better at         ner,” but determine which one gives you
                                                                                      dealing with problems that arise than any-         the best chance to succeed.
                                                                                      one in the industry.” I then went across              All of these types of service companies
                                                                                      town to meet with one of his competitors           provide useful options. However, what
                                                                                      to ask the same question, telling the com-         works best for each DRTV retailer is real-
                                                                                      pany sales manager what his competitor             ly based on what they are looking for in
                                                                                      had said. “Well, we are better because we          an operating relationship. But how do
                                                                                      don’t have problems,” he replied, “and the         you cut through the myriad of choices,
                                                                                      other guy is probably good at solving prob-        and how do you best manage the rela-
                                                                                      lems because he is so used to having them.”        tionship with the companies you choose?
                                                                                         The telemarketing service industry that            For one thing, you have to do your
                                                                                      has developed to support DRTV is very              homework before choosing the right one.
                                                                                      much like the wireless service industry            Many people gravitate to a big name or the
                                                                                      that I worked in during the early 1990s.           new technology of the moment, but that’s
                                                                                      Like wireless, there were a limited number         not always the best choice. You need to
                                                                                      of larger companies that dominated mar-            establish a list of criteria that fit your needs,
                                                                                      ket share in the early years of DRTV. Over         and then evaluate your choices accordingly.
                                                                                                                                            Here, then, are 10 rules that I believe
                                                                                                                                         that DRTV retailers should use when
                                                                                                                                         selecting a telemarketing partner, along
                                                                                                                                         with ways to maximize their relationship:
                                                                                                                                              Marry your offer and price point
                                                                                                                                         1    with the proper company. Some
                                                                                                                                         companies are better at different types of
                                                                                                                                         offer categories (such as hard offers, soft
                                                                                                                                         offers, continuity, installments, lead gen-
                                 iStockphoto/Thinkstock




                                                                                                                                         eration) and price points (the $19.95
                                                                                                                                         “sweet spot,” mid-range prices points
                                                                                                                                         similar to $49.95, or $100 and up).
                                                                                                                                         Reputable companies should tell you
                                                                                                                                         what their strengths and weaknesses are.


 84                                                       electronicRETAILER | September 2010
     Match your media budget to             understands that they are the first con-    version metrics. The good telemarket-
2    the capabilities of the tele-
marketer. Smaller facilities may not
                                            tact with your customer, so they should
                                            always be aware of what you are trying
                                                                                        ing companies don’t mind this. This is
                                                                                        like working with a doctor—you are
be able to handle the call volumes          to achieve in customer relationships.       always your best advocate when you
generated by your larger, national          That is also why it’s so important to       take charge of the process.
media placements, so if your budgets        periodically monitor calls as a cam-                 Don’t assume that your
grow, they may not be able to grow
with you.
                                            paign continues.
                                                Tell them how you want to meas-
                                                                                        10       sales manager is as good
                                                                                        as his or her agents. This is a con-

3   Check their references with people
    you trust. Companies will always
                                            7   ure their conversion rates,not how
                                            they measure them. Order conversion
                                                                                        troversial comment to make, but it’s
                                                                                        always the “elephant in the room”
give you their preferred reference list,    rates can be computed in different          when considering telemarketing
but it is important to find people you      ways by companies, but if you are deal-     resources. Many firms have knowl-
know and trust who have used them           ing with multiple telemarketing cen-        edgeable sales account managers who
before for the real story, and these ref-   ters, you need everyone on the same         know the business; but their agents in
erences may not be on that list.            page—so set standards that are impor-       the field don’t always have the same
     Make sure that their report-           tant to you and have all of your service    capabilities. Accountability must
4    ing information can meet
your needs. The level of informa-
                                            providers use the same metrics.
                                                 Set specific performance
                                                                                        start at the top of these organizations,
                                                                                        but it needs to be managed down-
tion you receive on order capture
and non-order capture is essential, as
                                            8    standards and conversion
                                            rates that you want them to meet
                                                                                        wards to achieve your objectives.
                                                                                           As our DRTV business continues
is the timing of that information. If       on a weekly basis. As a retailer, I         to evolve and media formats and
you can’t get usable data on a timely       find this is essential in maximizing        ways to place orders increase with
basis, you can’t manage your busi-          call center performance. It is impor-       new technology, it is important to
ness properly.                              tant to set realistic metric goals for      remember that many of our key tar-
    Make sure that you have the             your service provider so they know          geted demographic groups will
5   ability to listen in on live and
recorded calls. Listening to calls is
                                            what’s expected of them. This is also
                                            very useful when using multiple tele-
                                                                                        continue to use their phones as
                                                                                        their primary order option. Making
essential, especially during the early      marketers on a campaign—they will           the right decisions on whom we
testing of shows and spots. That is         always work harder to achieve their         choose to partner with and how we
why industry experts have recom-            optimum level if their market share         maximize our telemarketing rela-
mended that campaigns that utilize          for the account is at stake.                tionships will remain one of our
IVR technology should first test with           Micro-manage the scripting              keys to success.
live operators to get feedback on
their shows, spots and related offers.
                                            9   process. The most successful com-
                                            panies in the industry have always been     Richard Scheiner is COO at
    Make sure that the telemarketer         very involved in telemarketing script       International Commercial Television
6   understands the importance of
their contact with your customer. It is
                                            development, constantly tweaking and
                                            adjusting wording, sequencing offers
                                                                                        Inc. in Wayne, Pa. Contact Scheiner
                                                                                        at    (484)    598-2310    or    at
important that the service company          and reacting to changes in order con-       scheiner@ictvonline.com.




                                                                                       September 2010 | electronicRETAILER   85
Online Strategies                                           BY KALEY DOBSON




                                                                        A New Way of Looking at
                                                                        SEM and the Long Tail
                    ONLINE INSIGHTS: SEM




                                                                        It’s been more than half a decade since          2010 Nielsen Company data on the top
                                                                        Chris Anderson first introduced the con-         U.S. search providers, Google, Yahoo! and
                                                                        cept of the long tail in a 2004 Wired maga-      Microsoft together represent 92 percent of
                                                                        zine article, which he expanded into a best-     the market share of searches. These three
                                                                        selling book. Since then, the “Long Tail”        companies can be considered the short tail
                                                                        theory has been applied to a myriad of sub-      of search advertising partners, while the
                                                                        jects, including online advertising. From        other players in the search advertising space
                                                                        hotly debated panels at industry events, to      who account for the remaining 8 percent of
                                                                        IAB          initiatives       such       as     search share can be considered long-tail
                                                                        IAmTheLongTail.com, it’s clear that the          partners. Search ad networks that fall into
                                                                        Long Tail theory remains relevant today.         the Long Tail category aggregate and mon-
                                                                                                                         etize traffic that doesn’t originate on the big
                                                                        Applying Long Tail to Search                     three search engines.
                                                                        Allow me to highlight a specific industry           Now, 8 percent might not seem like a huge
                                                                        where we can examine the concept of the          number, but when you consider a recent
                                                                        long tail—search advertising. Admittedly,        eMarketer report that estimates search ad
                                                                        talk about search and the long tail is nothing   spend in 2010 will reach a staggering $12.4
                                                                        new; not long after Anderson published his       billion, it’s clear that long-tail providers can
                                                                        theory, a plethora of articles popped up out-    add significant value and volume to existing
                                                                        lining how one could apply the principles of     search campaigns. The long tail may be a
                                                                        the Long Tail theory to the process of bid-      smaller market compared to the big three,
                                                                        ding on search keywords. In a nutshell, these    but why turn away the possibility of addi-
                                                                        articles advocated the value of expanding        tional ad spend return? Similar to the con-
                                                                        campaigns beyond the 10-20 most popular          cept behind economic theories of savings
                                                                        keywords to include bids on the hundreds or      and how many of us manage our financial
                                                                        thousands of keywords that on an individual      assets, even a relatively small amount of
                                                                                                                         additional revenue each month can slowly
                                           When advertisers manage their search                                          make an impact over time.
                                           portfolio like their stock portfolio and                                         At my company, we’ve been evangelizing
                                                                                                                         this idea for a long time, often advising
                                             diversify their ad spend wisely, they                                       advertisers to adopt a “Portfolio Approach”
                                           often see impressive results and more                                         to search advertising. When advertisers
                                                                                                                         manage their search portfolio like their stock
                                                           money in their pockets.                                       portfolio and diversify their ad spend wisely,
                                                                                                                         they often see impressive results and more
                                                                        basis may not be searched for very often, but    money in their pockets.
                                                                        that, as a whole, have the ability to send a        Although it can be challenging for
                                                                        high volume of relevant traffic to your site.    search marketers and advertisers looking
                                                                          Another meaningful, yet often over-            to maximize ad spend, thinking outside
                                                                        looked, application of the Long Tail theory      of the confines of a consolidated market
                                                                        to the search advertising industry relates to    and choosing long-tail partners wisely
                                                                        the employment of search advertising part-       can work to your advantage.
                                                                        ners. It’s widely documented that the over-
                                                                        whelming majority of both searches and           Kaley Dobson is marketing manager at
                                                                        search ad spend takes place on the “Big          LookSmart, a long-time provider of search
                                                                        Three” search engines: Google, Yahoo! and        marketing solutions. Contact Dobson at
                                                                        Microsoft. According to the most recent          kdobson@looksmart.net.

                     86                     electronicRETAILER | September 2010
Online Strategies                                                   BY REBECCA LIEB




                                                                                Measuring ROI of
                                                                                Search and Social
                    ONLINE INSIGHTS: SOCIAL MEDIA




                                                                                The burgeoning social media landscape is         or “excellent.” Nearly all of them—94 per-
                                                                                studded with success stories. Take Dell,         cent—would like to know their social
                                                                                for example. By the end of last year, the        media ROI. They just don’t know how to
                                                                                company had racked up $6.5 million in            get a handle on it. Despite that, 90 percent
                                                                                sales—direct from its Twitter accounts.          say social media activity will consume more
                                                                                   You can bet Dell can calculate the ROI        of their time next year.
                                                                                of this effort. It knows exactly what it’s
                                                                                investing in the initiative: 100 employees       ROI Calculations Made Easier
                                                                                are tweeting in 35 different channels to         Thanks to improved tracking technology,
                                                                                customers in over 12 countries. Brazil           other digital marketing channels such as
                                                                                alone brought in an average $100,000 in          SEO are much easier to assign ROI to, as
                                                                                sales per month in 2009.                         well as to compare to other marketing
                                                                                   Calculating the ROI of direct sales from      channels. Social media, still very much in
                                                                                social media is easy, but only so long as you    its infancy, still lacks those technological
                                                                                remember that while many social media            and cross-channel underpinnings.
                                                                                tools, such as Facebook and Twitter are free,       The ROI of search advertising cam-
                                                                                time is money regardless of channel. Yet,        paigns is relatively easy to calculate.
                                                                                many marketers have social media goals that      Almost by definition, search ad bids must
                                                                                are far softer than moving product. These        be calculated on a break-even or cost-
                                                                                can include increasing traffic, awareness, PR,   positive basis. Otherwise, why advertise?
                                                                                customer relations and support, lead-build-         Social media campaign ROI is more
                                                                                ing, conversions, SEO and even product           analogous to organic search engine opti-
                                                                                development. In fact, most marketers admit       mization. Goals must be defined and
                                                                                to having no real defined social media goals.    measured against concrete benchmarks,
                                                                                   How do you measure the ROI of that?           e.g., cost per lead, average customer life-
                                                                                A recent Econsultancy study, “The Value of       time value, the conversion rate of a
                                                                                Social Media,” asked marketers how well          desired action, organic traffic and con-
                                                                                their organizations are at measuring ROI         version sources.
                                                                                from social media activity. Over half (51           Unless your social media campaign is
                                                                                percent) admit to being “poor” or “very          based on direct sales—and many good
                                                                                poor” at measuring social media ROI. A           ones aren’t—establishing and valuing key
                                                                                scant 15 percent rate themselves as “good”       performance indicators (KPIs) is the first
                                                                                                                                 step toward calculating ROI, and deter-
                                                                                                                                 mine where to go from here.
                                                                                                                                    Bear in mind that the old saw, “every-
                                                                                                                                 thing online can be measured,” is true.
                                                                                                                                 Except when it isn’t. Just as every direct
                                                                                                                                 conversion from SEO will never be precise-
                                                                                                                                 ly measured, the same holds true for social
                                                                                                                                 media, even when the tools do improve.
                                                                                                                                 That’s still no excuse for not setting goals
                                                                                                                                 and constantly measuring and monitoring
                                                                                                                                 efforts against those benchmarks.

                                                                                                                                 Rebecca Lieb is vice president of
                                                                                                                                 Econsultancy’s U.S. operations. Contact
                                                                                                                                 Lieb at rebecca.lieb@econsultancy.com.

                     88                             electronicRETAILER | September 2010
                       Thursday, September 16, 2010
                        at 11 a.m. PDT / 2 p.m. EDT

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your leads by identifying your best prospects–boosting conversion rates, speeding sales
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 BULLETIN BOARD


COMPANY                                       Torstar Media Group Television Moves Headquarters

NOTICES                                       TORONTO—On June 21, Torstar
                                              Media Group Television, TMGTV
                                                                                         delivery docks enable the company
                                                                                         to augment its product work as well
                                              Productions and TMGTV Inc. relo-           as expand its product distribution
                                              cated from 1 Yonge Street, home of         business. What’s more, the newly
                                              their parent corporation, to another       renovated office will house a full-
                                              of Torstar’s flagship buildings, The       service production facility.
                                              Hamilton Spectator in Hamilton.              The new address is 44 Frid St.,
                                              The facility boasts 300,000 square         3rd Floor, Hamilton, Ontario, L8N
                                              feet of space. It’s also home to three     3G3, Canada. The new numbers
                                              of Torstar’s printing presses. The         are (905) 526-4600, phone; and
                                              added square footage and enhanced          (905) 526-3698, fax.

                                              Provell Rolls Out New Grocery and
                                              Dining Discount Program
                                              MINNEAPOLIS—Provell Inc. offi-             This program puts the name-brand
                                              cially launched Taste for SavingsTM, a     coupons subscribers want and use
                                              grocery and dining program that pro-       every day at their fingertips. It’s simple
                                              vides subscribers with thousands of        and convenient. Plus, Taste for Savings
                                              dollars in food savings annually           features double coupon days, free din-
                                              through grocery coupons, exclusive         ing certificates and so much more.”
                                              discounts and cash-back rebates.              In addition to grocery and restaurant
                                                Provell is a leader in consumer          discounts, Taste for Savings also features
                                              marketing services and membership          time-saving tips and tools, as well as
                                              programs, specializing in developing       inexpensive and healthy recipes, and
                                              unique, high-value programs that           exclusive money-saving offers from
                                              are particularly relevant to the needs     online merchants for everything from
                                              of today’s consumer marketplace            kitchenware to steaks and seafood.
                                              and the challenges of the current             Provell’s Partnership Sales team is
                                              economic landscape.                        also expanding a category dedicated
PERSONNEL NEWS                                  According to Paul Wallerich, vice        to organic and sustainable foods and
                                              president of marketing development at      kitchen products in response to con-
OrderMotion has named Jane                    Provell, “Today, coupon-clipping is        sumer interest in products that are
Schloth as vice president of                  more popular than ever with con-           not only less expensive, but also
marketing.                                    sumers across the board. We knew the       healthier for both themselves and
                                              time was right for Taste for Savings.      the environment.
Brian Lesser has been promoted
to senior vice president and gen-             Thane Scores International Hit with Derma Seta™
eral manager at the Media
Innovation Group.                             TORONTO—Thane Direct has begun             ly, but also exfoliates to give skin a beau-
                                              international rollout of the global        tiful, radiant look. Derma Seta utilizes
R2C Group has hired John                      DRTV company’s newest hit product,         Derma Crystal Pads that rotate 550
McGuigan as a client service direc-           Derma Seta Spa Treatment, it was           times per minute, painlessly removing
tor for the firm’s Cmedia division.           announced by Daniela Todorovic, pres-      unwanted hair while also polishing,
                                              ident of international sales. Launched     exfoliating and buffering skin.
Alex Miller has been promoted to              in June, Derma Seta achieved impres-          Thane Direct has targeted all main
QVC’s vice president of e-commerce            sive early results, prompting expansion    channels of distribution for Derma
and eMarketing.                               of the handheld mini spa into all key      Seta Spa Treatment, including direct
                                              international territories.                 response television, home shopping,
InfoCision has promoted Dave                     A professional skin treatment system    print and retail—including Thane’s
Hamrick to CFO.                               in the palm of your hands, Derma Seta      recently established owned and oper-
                                              Spa not only helps remove hair painless-   ated retail locations.

90      electronicRETAILER | September 2010
HAPPY ANNIVERSARY!
   ERA thanks and congratulates ERA members celebrating anniversaries
     in August. Looking forward to another year of exploding success.
20 Years                         10 Years                         3 Years        1 Year
• West Direct                    • C Spot Run                                    • Educational
                                                                  • Jordan Direct, LLC
                                   Productions, LLC                                Technologies Limited
                                                                  • Integrated Marketing, LLC
19 Years                         • MediaPower                                    • GemsTV
                                                                  • Latino Media Services
• Guthy-Renker                                                    • Product Trend /
                                                                                 • Hasbro, Inc.
                           7 Years                                               • HP Company
18 Years                                                            Hampton Direct
                           • Discovery                                           • Lifestyle Lift/Kent
• WorldLink, LLC                                                  • Response ADvantage
                             Communications                                        Creative Group
                                                                  • Vision TV, Inc.
17 Years                   • Quality Products S.A.                               • Mad Dogg Athletics, Inc
• Grupo TVOFFER! Central 6 Years                     2 Years                     • OrderMotion
  America                                            • As Seen on TV Direct, LLC
                           • Purity Products                                     • Retrieval Masters
                                                     • CD3, Inc.
16 Years                   • Revenue Enhancement                                 • Creditor Bureau
                                                     • Church and Dwight
• World Class Marketing      Consultants, Inc.                                   • SierraSil Health, Inc.
                                                       Co, Inc.
16 Years                   5 Years                   • Citadel Health, LLC       • Smarterville, Inc.
• Best Buys Direct, Inc.   • Global Infomercial      • Comcast                   • The Documentary Channel
                             Services, Inc.          • Launch DRTV
12 Years                                                                         • Transera Communications
                           • Hanjo Corporation       • Media Stream Direct
• Antena 3 Directo (Chile) • Litle & Co.             • Trastevere Films          • Tribune Media Services
  SA A3D                   • Manhattan Advertising &   Productions               • Two-D Productions
• Screen Actors Guild        Media Law, Inc.                                     • Vantage Media, LLC
• Cmedia/ R2C Group        • NorthStar Studios
Attention New Members!
Join ERA now and receive a FREE registration to any of our domestic conferences, including the 2010 ERA D2C Convention in Las
Vegas! For additional information, visit www.retailing.org or contact Robin Greenspan at rgreenspan@retailing.org or 703-908-1036.
    AD INDEX

Advertiser                                          Page      Advertiser                                            Page      Advertiser                                            Page
a2b Fulfillment. . . . . . . . . . . . . . . . . . . 17       Evolve Tele-Services Inc . . . . . . . . . . 79                 Motivational Fulfillment & Logistics
www.a2bf.com                                                  www.evolveteleservices.com                                      Services. . . . . . . . . . . . . . . . . . . . . . . . . . . 3
866-843-3827                                                  517-332-1031                                                    www.mfals.com
Allstar Products Group . . . . . . . . . . . 37               Fosdick Fulfillment Corp. . . . . . . . . . 83                  909-517-2200
www.AllstarProductsGroup.com                                  www.fosdickfulfillment.com
914-593-6666                                                  800-759-5558                                                    Moulton Logistics Management . . . 4
Applied Perceptions . . . . . . . . . . . . . 73                                                                              www.moultonlogistics.com
                                                              Fulfillment Works . . . . . . . . . . . . . . . . 66
www.apcrc.com                                                 www.fulfillmentworks.com                                        888-765-Moulton
800-915-4170                                                  888-717-7511                                                    NEWTHYNK/Geraldine Newman
BJ Global Direct . . . . . . . . . . . . . . . . CV4          Hawthorne Direct . . . . . . . . . . . . . . . . 59             Communications. . . . . . . . . . . . . . . . . 16
www.bjgd.com                                                  www.hawthornedirect.com                                         www.newthynk.com
949-753-1111                                                  641-472-3800/310-248-3972                                       212-988-3395
Blue Moon Studios . . . . . . . . . . . . . . . 45            Icon Media Direct Inc . . . . . . . . . . . CV2                 NuLab Inc. . . . . . . . . . . . . . . . . . . . . . . . 87
www.bluemoonstudios.tv                                        www.iconmediadirect.com
973-812-2282                                                                                                                  www.nulabinc.com
                                                              818-995-6400
                                                                                                                              727-446-1126
Brands Direct . . . . . . . . . . . . . . . . . . . . 25      IGEA Group . . . . . . . . . . . . . . . . . . . . . . 43
949-294-6526                                                  www.igealife.com                                                Oak Lawn Marketing . . . . . . . . . . . . 23
Broadcast Communications                                      +61 (2) 8023 3888                                               www.oaklawn.co.jp
Media Inc. . . . . . . . . . . . . . . . . . . . . . . . 11   IdeaVillage Products Corp. . . . . . . . 13                     Permission Interactive . . . . . . . . . . . . . 1
www.bcmedia.tv                                                www.ideavillage.com                                             www.permissioninteractive.com
310-452-6585                                                  973-826-8400                                                    619-708-7456
Cannella Response Television LLC. . 7                         Infomercial Monitoring
www.drtv.com                                                                                                                  SF Video Inc. . . . . . . . . . . . . . . . . . . . . . 85
                                                              Service Inc. (IMS) . . . . . . . . . . . . . . . . 14
262-763-4810                                                  www.imstv.com                                                   www.sfvideo.com
Catalyst Computer Services Inc. . . 75                        610-328-6902                                                    800-545-5865, 415-288-9400
www.catalystsoftware.com                                      Jordan Whitney Inc . . . . . . . . . . . . . . 64               SKO Brenner American Inc. . . . . . . . 64
800-659-2267                                                  info@jwgreensheet.com                                           www.skobars.com
Chief Media. . . . . . . . . . . . . . . . . . . . . . 27     714-832-3353                                                    928-777-8813
www.chiefmedia.com/ER                                         Kingstar Media. . . . . . . . . . . . . . . . . . . 51
212-300-8970                                                                                                                  Stilson LLC . . . . . . . . . . . . . . Cover Wrap
                                                              www.kingstar.tv                                                 www.stilson-stilson.com
Concept TV Productions Inc.. . . . . . 81                     416-869-0631
www.conceptstv.com                                                                                                            801-232-6958
                                                              Latin America Ethnic Television . . . 67
973-331-1500                                                  www.laetv.tv                                                    Telebrands . . . . . . . . . . . . . . . . . . . . . . . . 9
CPU2 LLC . . . . . . . . . . . . . . . . . . . . . . . . 77   305-477-5483 ext 120                                            www.telebrands.com
www.cpu2.com                                                  Liquid Focus Direct LLC /                                       973-244-0300
800-545-3828 ext. 1255                                        As Seen On PC . . . . . . . . . . . . . . . . . . . 41          Thane Direct Inc. . . . . . . . . . . . . . . . . . 33
Cyber City Teleservices . . . . . . . . . . . 57              www.liquidfocus.com /                                           www.thanedirect.com
www.cctll.com                                                 www.asseenonpc.com
800-500-9393                                                                                                                  905-625-3800
                                                              203-635-4382 / 203-256-9897
DMA 2010 . . . . . . . . . . . . . . . . . . . . . . . 93                                                                     TransFirst ePayment Services . . . . . 49
                                                              LiveOps. . . . . . . . . . . . . . . . . . . . . . . . . . 65
www.dma2010.org                                               www.liveops.com/3DR                                             http://epay.transfirst.com
E&M Media Group Inc. . . . . . . . . . . . 14                 408-844-2829                                                    402-905-3600 800-571-6199
www.emtvsales.com                                             Lockard & Wechsler Direct . . . . . . CV3                       TV Guide Network . . . . . . . . . . . . . . . 15
212-455-0177                                                  www.lwdirect.com                                                www.tvguide.com/tvadsales
Electronic Retailer Webinar . . . . . . . 89                  914-250-0250                                                    212-626-2563
www.electronicretailermag.com/                                Manatt Phelps & Phillips LLP . . . . . 55
webinars/                                                                                                                     Venable LLP . . . . . . . . . . . . . . . . . . . . . 63
                                                              www.manatt.com
                                                                                                                              www.venable.com
Engagem3nt Inc . . . . . . . . . . . . . . . . . 29           212-790-4500
www.engagem3nt.com                                                                                                            888-VENABLE
                                                              Manhattan Media Services Inc. . . . 71
949-294-6526                                                  www.manhmedia.com                                               The index is provided as an additional
ERA D2C 2010 . . . . . . . . . . . . . . . . . . . 50         212-808-4077                                                    service. Electronic Retailer does their
www.D2Cshow.org                                               Mercury Media. . . . . . . . . . . . . . . . . . . 35           best to insure advertisers are included,
ERA Reception . . . . . . . . . . . . . . . . . . . 62        www.mercurymedia.com                                            however, the publisher does not assume
www.retailing.org/events                                      310-451-2900                                                    any liability for errors or omissions.

  92          electronicRETAILER | September 2010
                                    PLATINUM MEMBERS
                                    REPRESENTING THE LEADERS OF
                                    THE DIRECT RESPONSE GENERATION


                                         Phone: (402) 498-4009                    Santa Monica, CA 90405-3248
                                         Fax: (402) 491-4820                      Phone: (310) 581-6250
                                         Email: michael.riggs@convergys.com       Fax: (310) 581-3232
                                         Web: www.convergys.com/                  Web: www.guthy-renker.com
                                         directresponse
Allstar Products Group is a leading
direct response and consumer prod-
ucts company making quality prod-
ucts available to U.S. and interna-
tional consumers through direct
                                                                                  Homeshopping-Channel HSE24 has pre-
response television as well as inter-
                                         Dial 800 helps direct marketers opti-    sented around-the-clock live shop-
net and retail channels. Allstar has a
                                         mize campaign profitability with a       ping programs via TV and Internet
diverse product portfolio including
                                         powerful proprietary tool suite that     for the last 13 years, 365 days per
popular consumer brands such as
                                         includes nimble call routing, demo-      year. HSE24 broadcasts throughout
Snuggie™ Blanket with Sleeves,
                                         graphic data, unforgettable toll-free    Germany by cable and satellite. The
Bendaroos® Building Sticks, Topsy
                                         numbers and automated direct mail.       TV department store reaches a total
Turvy® Planters, Perfect Brownie™        Scott Richards                           of more than 40 million households
Pan Set, Big Top Cupcake™ bake-          CEO                                      in Germany, Austria and
ware, Emery Cat™ board and               9911 West Pico Blvd., Suite 1200         Switzerland. HSE24 is a company
Bumpits™ Hair Inserts.                   Los Angeles, CA 90035                    within the Primondo Group, a hold-
Allstar Products Group                   Phone: 1-800-DIAL800                     ing of Arcandor AG, which pools the
Osania Del Rio                           Fax: 1-800-FAX-LINE                      universal and specialty mail-order
Director of Business Development         Email: scott.richards@dial800.com        trade companies of Arcandor.
2 Skyline Drive                          Web: www.dial800.com                     Richard Reitzner
Hawthorne, NY 10532                                                               CEO
Phone: (914) 593-6666                                                             Home Shopping Europe GmbH
Email: osaniad@allstarmg.com                                                      Münchener Strasse 101 h
Web: www.allstarmg.com                                                            D 85737 Ismaning
                                                                                  GERMANY
                                                                                  Phone: 0049 (0)89 96060100
                                         Guthy-Renker LLC is one of the world’s   Fax: 0049 (0)89 96060110
                                         largest direct response television       Email: presse@hse24.de
                                         companies with annual sales in           Web: www.hse24.de (Online-Shop);
As an industry leader, Convergys has     excess of $1.5 billion. Originally       www.hse24.net
been providing direct response           launched as an infomercial produc-
clients with superior contact center     tion studio by co-CEOs Bill Guthy
sales support since 1978. We are         and Greg Renker, the independent-
dedicated to helping our clients         ly-owned, vertically-integrated com-
meet their sales goals, while repre-     pany has since broadened its focus
senting them professionally to their     into every area of electronic retail-    HSN LP originated the electronic retail-
customers. This dedication earned        ing, making quality products avail-      ing concept in 1977 and has since
us Customer Inter@ction Solutions        able to U.S. and international con-      evolved into a global multi-channel
magazine’s ranking as the number         sumers through broadcast televi-         retailing giant, offering thousands of
one inbound teleservices agency for      sion, cable and satellite, as well as    name brands including JVC, Kodak,
the last six years.                      telemarketing, direct mail and           Gateway Computers and Wolfgang
Mike Riggs                               retail channels.                         Puck cookware, as well as stylish fash-
Director, Business Development           Megan MacDonald                          ions from Nicole Miller and Nine West.
Convergys Corporation                    Beauty Product Submissions               Brad Bohnert
2121 North 117th Ave.                    Email: mmacdonald@guthy-renker.com       Director, Public Relations
Omaha, NE 68164                          3340 Ocean Park Boulevard #3055          1 HSN Drive
St. Petersburg, FL 33729                   LiveOps has the tools to maximize rev-      employees in Japan and employees
Phone: (727) 872-7515                      enue throughout your campaign lifecy-       working worldwide at quality control
Fax: (727) 872-6615                        cle and offers the most experienced         offices in Shenzhen and Shanghai, and
Email: brad.bohnert@hsn.net                teams to handle your unique call types      at its product sourcing company Global
Web: www.hsn.com                           and volumes.                                Infomercial Services, located in Chicago.
                                           Matt Fisher                                 Scott Reid
                                           SVP and GM of Direct Response               Operating Officer
                                           5425 Stevens Creek Blvd.                    NHK Nagoya Broadcasting Center Bldg.,
                                           Santa Clara, CA 95051                       14F
                                           Phone: (408) 844-2440                       1-13-3 Higashisakura, Higashi-ku
                                           Fax: (650) 745-3756                         Nagoya 461-0005
                                           Email: matt@liveops.com                     JAPAN
The InventHelp family of companies         Web: www.liveops.com                        Phone: +81 (0) 52-950-1191
consists of InventHelp, Intromark                                                      Fax: +81 (0) 52-973-3924
Incorporated and INPEX – The                                                           Web: www.oaklawn.co.jp
Invention Show. InventHelp is
America's leading inventor service
company, with sales offices in more
than 60 cities in the U.S. and across
the world. We attempt to submit            Founded in 1989, Mercury Media is the       Product Partners, LLC / Beachbody /
clients' inventions to industry in the     nation’s largest direct response media      Breakthrough in Beauty, creator of the
hope of obtaining a good faith             agency, with gross billings in excess of    nation's most popular in-home fit-
review. Intromark Incorporated works       $350 million. The company offers an         ness and weight loss solutions, was
to negotiate a licensing agreement if      unmatched platform of talent and serv-      founded in 1998 by Product
a company expresses interest in an         ices for long- and short-form television    Partners, LLC, of Los Angeles.
InventHelp client's idea. In addition      and traditional advertising services such   Beachbody products combine chal-
to our submission services,                as print, radio and out-of-home media.      lenging video-based fitness pro-
InventHelp annually holds INPEX,           Maintaining the most comprehensive          grams with easy-to-follow diet
The Invention & New Product                direct response database and the most       guidelines, superior nutritional sup-
Exposition, America's largest inven-       sophisticated research, Mercury offers      plements, and an unparalleled
tion trade show, where inventors           best-in-class direct response solutions     online support system.
from around the world come to              and measurable, data-driven results.        Mr. Jon Congdon
exhibit their ideas and make con-          John Barnes                                 President
tacts with companies interested in         President                                   3301 Exposition Blvd., 3rd Floor
new products.                              520 Broadway Suite 400                      Santa Monica, CA 90404
Robert Susa                                Santa Monica, CA 90401                      Phone: (310) 883-9033
President                                  Phone: (310) 451-2900                       Fax: (310) 883-9076
217 Ninth St.                              Fax: (310) 451-0810                         Email: jcongdon@product partners.com
Pittsburgh, PA 15222                       Email: jbarnes@mercurymedia.com             Web: www.beachbody.com
Phone: (412) 288-1300 x4540                Web: www.mercurymedia.com
Fax: (412) 288-1354
Email: rsusa@intromark.com
Web: www.InventHelp.com


                                                                                       QVC, Inc. was founded in June 1986
                                           Oak Lawn Marketing is a branding and        by Joseph Segel and began opera-
With over 20,000 highly skilled, inde-     media company headquartered in              tions in November 1986. QVC
pendent home agents, LiveOps is the        Nagoya, Japan with global operations in     broadcasts live 24 hours a day, 364
industry’s leading call center, handling   China and the United States. OLM is         days a year, and introduces over
over 70% of the top DR programs.           the largest infomercial company in          1600 products every week to view-
With LiveOps 3DR, you can add new          Japan and its strategy for growth is        ers in over 87 million homes across
dimension to campaigns with best-in-       encompassed by its focus on “Four           the United States. Other divi-
class telemarketing services, including    Converging Circles of Success - Media,      sions/subsidiaries include QVC.com,
live agent, IVR, hard offer, soft offer,   Product, Brand and Entertainment.”          QVC@, and QVC Local. The QVC
lead gen, Spanish and outbound.            Currently the company has over 750          Studio Tour is located at the compa-
REPRESENTING THE LEADERS OF THE DIRECT RESPONSE GENERATION

ny's world headquarters in West
Chester, PA. QVC is a subsidiary of
Liberty Media Corporation.
Lawrence R. Hayes
Senior Vice President and General Counsel
Studio Park                                 ShopNBC, one of the nation’s largest    Studio Moderna - Studio Moderna is the
West Chester, PA 19380                      television home shopping networks,      leading electronic retailer and largest
Phone: (484) 701-8192                       sells a wide range of upscale mer-      DRTV company in Central and Eastern
Fax: (484) 701-1021                         chandise including jewelry, house-      Europe. With over 300 hours of pro-
Email: larry_hayes@qvc.com                  wares, apparel, computers, electron-    gramming going out across more than
Web: www.qvc.com                            ics and health and beauty products      300 public and commercial TV sta-
                                            at great values. ShopNBC broad-         tions daily—including 5 of our own
                                            casts live 24 hours a day, seven        homeshopping channels—Studio
                                            days a week and is also available       Moderna can bring you an audience
                                            via webcast on ShopNBC.com. The         in excess of 400 million people, sup-
Savvier is one of the leading infomer-      company, founded in 1990, is avail-     ported a by fully integrated direct dis-
cial companies in the direct response       able in 60 million homes through        tribution network across CEE. Our
industry with expertise in product          analog and digital cable as well as     continually expanding chain of retail
development, manufacturing, market-         through DirecTV (channel 370) and       outlets currently boasts over 80 of our
ing and domestic/international distri-      Dish Network (channel 228). It has      own Top Shop stores, with around 50
bution. Savvier’s first two long form       been publicly traded since 1991 on      franchises in operation. Our cutomer
infomercials, Bodyflex and 6 Second                                                 base has doubled every year, with our
                                            NASDAQ under the symbol VVTV.
Abs, were both number one products                                                  Internet team continuously adopting
                                            Nathan Fagre
on IMS and Jordan Whitney.                                                          technological improvements.
                                            SVP & General Counsel
Jeff Tuller                                                                         Eivind Schackt
                                            6740 Shady Oak Road
President                                                                           CEO
                                            Eden Prairie, MN 55344
5790 Fleet Street, Suite 130                                                        Via Pretorio 22
                                            Phone: (952) 943-6000
Carlsbad, CA 92008                                                                  Lugano 6900
                                            Fax: (952) 943-6111
Phone: (760) 431-7274                                                               SWITZERLAND
                                            Web: www.shopnbc.co
Fax: (760) 431-7875                                                                 Phone: 41 91 966 9544
Email: jefftuller@savvier.com                                                       Fax: 41 91 966 9546
Web: www.savvier.com                                                                Email: eivind.schackt@studio-
                                                                                    moderna.com
                                            The Sylmark Group is a leading multi-
                                                                                    Web: www.studio-moderna.com
                                            channel consumer products compa-
                                            ny specializing in housewares, per-
                                            sonal care and fitness products
SF Video was incorporated in 1990           based in Los Angeles. Our company
and began servicing the infomercial         markets its products through cam-       The story of Telebrands is one of great
industry in 1992. Our focus is on           paigns featuring direct response tel-   hope for all entrepreneurs around the
large volume CD / DVD / HD-DVD /            evision, the Internet and retail        world. Started by one man, AJ
Blu-Ray replication manufacturing.          channel distribution both in the        Khubani, and expanded into a global
We currently have plants in Los             United States and international         direct-response empire, it provides
Angeles, New York, Israel and Hong          markets. The Sylmark Group is ver-      encouragement to all those who seek
Kong. In addition, SF Video offers          tically integrated with television      to find their "nitch" in the market.
printing and packaging to compli-           production, product development,        The Telebrands' Invention Channel
ment our disc media replication             global sourcing, direct marketing,      brand can be seen everywhere - on
services.                                   retail and customer service—all         television, on retail shelves, in cata-
Steven Feinberg                             under one roof.                         logs, in print ads, on the Web and in
President                                   Katie Williams                          40 countries around the world.
1000 Sansome St., Suite 280                 President                               Telebrands is riding high and cele-
San Francisco, CA 94111                     7821 Orion Ave., Suite 200              brating 25 years in DRTV.
Phone: (415) 288-9400                       Lake Balboa, CA 91406                   Lois Fischbach
Fax: (415) 288-9410                         Phone: (818) 217-2000                   Executive Assistant to AJ Khubani
Email: steven@sfvideo.com                   Email: katiew@sylmark.com               One Telebrands Plaza
Web: www.sfvideo.com                        Web: www.sylmark.com                    Fairfield, NJ 07004
Phone: (973) 244-0300, x341                  comprehensive plan to increase your            grams in categories including: privacy
Fax: (973) 244-0233                          revenues with short- and long-term             and protection, health and wellness,
Email: lois@telebrands.com                   objectives and results. The bottom line        credit report and credit score moni-
Web: www.telebrands.com                      is TMP gets results for its clients.           toring, entertainment, insurance,
                                             Bret Saxon                                     travel and shopping. These programs
                                             President                                      uniquely combine the services and
                                             3340 Ocean Park Blvd., Suite 3050              products of thousands of retailers, e-
                                             Santa Monica, CA 90405                         commerce vendors and benefit
                                             Phone: 310-392-4042                            providers.
                                             Fax: 310-392-4052                              Jay Sung, President
                                             Email: peter@transactional                     David Schachne, SVP, Corporate
Thane International, Inc., has emerged as    marketing.com                                  Development
the leading global marketer of con-          Web: www.transactionalmarketing.com            Steve Howard, SVP, Sales
sumer products launched through                                                             Rita DiPalma, SVP, Client Services
shopping television in over 100                                                             20 Glover Ave,
countries worldwide. Thane’s distri-                                                        Norwalk, CT 06850
bution platform, which spans the                                                            Phone: (203) 674-7139
globe, and its strong product portfolio      TransFirst ePayment Services has been a        Fax: (203) 674-7080
have made Thane a partner of choice          leading provider of payment processing         Email: sales@vertrue.com
for numerous product owners and trad-        services to many nationally recognized         Web: www.vertrue.com
ing partners worldwide.                      direct marketers for almost two decades.
Thane Direct, Inc.                           Fully integrated with leading fulfillment
Amir Tukulj, Chief Executive Officer         and telemarketing companies, we are
Daniela Todorovic, President International   your one-stop solution for all payment
Sales                                        types. We offer dedicated client sup-
Jorgen Hansen, VP, New Business              port, competitive rates, automated
Development                                  chargeback and retrieval processing, and       West Direct, the DR industry’s premier
Renata Skowronska, New Product               state-of-the-art technology and reliability.   contact solutions provider, helps
Acquisitions                                 Michael Phelan                                 today’s leading companies increase the
Email: jorgen.hansen@thanedirect.com,        President                                      number of calls processed, generate
renatas@thanedirect.com                      12120 Shamrock Plaza, Suite 100                additional revenue, achieve greater call
5255 Orbitor Drive                           Omaha, NE 68154                                flexibility and deliver a higher level of
Suite 501                                    Phone: (800) 571-6199                          customer care. We also offer powerful
Mississauga, Ontario L4W 5M6                 Fax: (402) 399-8333                            automated solutions and intelligent
CANADA                                       Email: mphelan@transfirst.com                  upsell and cross-sell solutions that give
Phone: (905) 625-3800                        Web: http://epay.transfirst.com                companies the ability to maximize
Fax: (905) 625-3844                                                                         every customer contact opportunity.
Web: www.thanedirect.com                                                                    Jim Speidel
                                                                                            VP, New Business Developement
Thane Direct, Inc.                                                                          11808 Miracle Hills Drive
Paul Greenberg                                                                              Omaha, NE 68154
Chief Creative Officer                       Founded in 1989, Vertrue is a lead-            Phone: (800) 862-1000
5900 Wilshire Blvd., #1740                   ing marketing solutions provider               Fax: (402) 963-1602
Los Angeles, CA 90036                        which designs and markets member-              Email: Sales@west.com
Phone: (323) 931-3600                        ship and custom loyalty programs.              Web: www.westdirect.com
Fax: (323) 931-3500                          Vertrue offers proprietary telephone
                                             and Internet-based upsell and cross-
                                             sell technologies, creating multi-
                                             channel customer acquisition venues
                                             for our clients in order to generate
                                             incremental revenue and strengthen
When you work with TMP, you partner          customer affinity. These programs
with a team of ambassadors for your          offer valuable services and product
business – dedicated professionals           discounts to millions of consumers in
experienced in all phases of marketing.      the U.S., United Kingdom and
The strength of TMP is executing a           Canada. Vertrue currently offers pro-
 CLASSIFIED DIRECTORY


Electronic Retailer ONLINE Classifieds can be found at www.electronicretailermag.com/classifieds.
For information on advertising, contact Debbie Duhn - dduhn@retailing.org or 541-952-0300


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98        electronicRETAILER | September 2010
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                                                                                       September 2010 | electronicRETAILER   99
                         RICK PETRY




                         You, the Network




            f
                         Facebook users understand that its influence           Perhaps this behavior is a byproduct of
                         can sneak up on you. Once it wraps its tenta-       Facebook CEO Mark Zuckerberg’s assertion
                         cles around virtually every part of your con-       that, rather than maintaining two separate
                         sciousness, it becomes a sort of umbilical          identities—one for business and one for per-
                         cord to the sphere of influence that you’ve         sonal—that social networkers are destined to
                         built there and a vital (and viral) part of one’s   maintain but a single identity. If you believe
                         daily existence. On the other hand, those           that each individual is a brand, then
                         refusing to join the party frequently charac-       Facebook becomes the ultimate expression of
                         terize it, with emotional vehemence, as trivial     that brand with its ability to narrowcast one’s
                         and an enormous waste of time. But if recent        stream-of-consciousness with effortless will.
                         trends are any indication, Facebook isn’t just         In a recent conversation with the head of an
                         about monkey business; it is rapidly displac-       ERA supplier member, he remarked, “Oh, I can’t
                         ing LinkedIn as the preferred social network-       be bothered with that stuff.” I conveyed who
                         ing site for conducting real, tangible business.    some of my Facebook friends were, which
                            There are two types of users of Facebook for     includes the head of a very well-known direct
                         business: those who create an identity that is      marketing company. “I can’t get him to return
                         clearly devoted exclusively to their company        my calls,” he bemoaned. “Well,” I explained,
                         and often named after it, and those who blend       “when he posts one of his videos on Facebook,
                                                                             you can comment on it. It’s like leaving a little
         Rick Petry is moderating the                                        deposit of goodwill. If you do it frequently
         “Triggering the Purchase Impulse:                                   enough, by the time you get to the next industry
                                                                             gathering, you’ll know 10 things about this per-
         Create the ‘Ah-Ha’ Moment” session on                               son you can use to strike up a conversation.”
      Tuesday, September 21, from 11:15 a.m. -                                  Given that industry professionals depend on
      12:15 p.m. at the D2C Convention.                                      networking to drive business, it should come as
                                                                             no surprise that their presence is being felt with
                         the personal and the professional into one. My      increasing pervasiveness on the likes of
                         own mix of Facebook “friends” includes peo-         Facebook. As Dr. Robert Cialdini points out in
                         ple I went to high school with, business col-       his seminal book “Influence: The Psychology of
                         leagues who I also consider friends and some        Persuasion,” people buy from people they like.
                         who are passing acquaintances. But amid the         Facebook is like one giant cocktail party that
                         parental bragging and vacation photos, some         never ends, filled with everything from insipid
                         unexpected things are emerging:                     chatter to the occasionally profound and,
                         • Business leads are coming in through              increasingly, the business at hand. In this case,
                            Facebook.                                        that hand happens to be holding a computer
                         • Instant messaging related to business is          mouse where you’re potentially one click away
                            coming through Facebook. In fact, one            from making your next business connection.
                            learns pretty quickly who uses the site habit-
                            ually and can reach them there more easily       Rick Petry is a freelance writer and is a past
                            than through e-mail or a telephone call.         chairman of ERA. He can be reached at (503)
                         • Inquiries about business topics are starting      740-9065 or online at rickpetry.com. On
                            to surface on Facebook.                          Twitter at http://twitter.com/thepetrydish.

100   electronicRETAILER | September 2010
                        Stilson LLC                              ER: What should a marketer expect to                    required for DRTV mass                                                        Stilson: While a client should     short form may begin substituting for the long
                      Eric L. Stilson                            learn during a consultation with a                      marketing, helping you de-                                                    always consult experienced legal   form as an effective and inexpensive “reminder.”
                                 CEO                             prospective production company?                         cide if your product or serv-                                                 counsel regarding FTC guide-
                                                                                                                         ice is a good bet or a long                                                   lines, a good production com-      ER: Do you specialize in any category or
                                                                 Stilson: Compatibility may be the most impor-           shot. They should also advise                                                 pany will always try to help the   production type?
                                                                 tant. Each client and each project has its own          you on ways to alter or pack-                                                 client stay on top of changing
                                                                 unique style, goals, budgets, purpose and person-       age the product into a more                                                   compliance requirements. The       Stilson: We have multiple crews capable of
Celebrating its 32nd year in advertising and its 20th year in    ality. It needs to feel like a good fit. You’ll learn   appealing package or a recur-                                                 most recent of which means         handling anything from simple short or long
the direct response industry, Stilson has a reputation for       quickly if they know what they are taking about         ring income model that may                                                    taking more care to give a more    form budget shows to High Def, or 35mm feature film production with
high-production value infomercials that sell product! As         and if they know how to listen. You need to see         turn a weak product into a very strong one.              balanced view of testimonial experiences and not        scored music, national celebrities, custom special effects and sound design.
their billions in DRTV sales and several of the highest gross-   and be excited by the producer’s demo and rec-                                                                   just the most flattering ones. The catch all “results
ing shows ever on air, clearly demonstrate. Their shows are      ognize the type, quality and body of work and be        ER: How much input does a marketer                       will vary” disclaimers are quickly being phased out     ER: What “marketing” services do you offer along with production?
also capable of building consumer trust, information, enter-     able to visualize how your own products might           have in the creative process?                            and clients must make certain that any claims or en-
tainment and branding. Eric Stilson is CEO of Stilson LLC.       look and feel with the same treatment. If you                                                                    dorsements are accurate and documented.                 Stilson: Everything from beginning to end really. Product evaluation and analy-
                                                                 don’t see anything on the reel that excites you or      Stilson: Our clients have as much input as feels                                                                 sis for DRTV, Packaging and positioning, pricing modeling, MER projections,
Electronic Retailer: Why is it important to work with            that you know has been a huge hit, keep looking,        comfortable to them. We will candidly advise,            ER: When testing a long-form campaign, is               Off shore manufacturing, support for vendor setup and relations for web and
a DRTV production company as opposed to a com-                   chances are that is how your show will look too.        council and direct, but final approvals still lie with   it generally recommended that the mar-                  telemarketing inbound, CC processing and merchant accounts, data processing
pany that produces general-market commercials?                                                                           the client. If the production company can’t ade-         keter also test a short-form version? Why               and fulfillment, media management and testing, evaluation and national rollout.
                                                                 ER: What type of analysis does a production             quately explain and defend their creative strategy       or why not?
Eric Stilson: DRTV production requires a specialized expe-       company typically do to help determine                  to the satisfaction of the client, then perhaps it’s                                                             ER: What’s the best piece of advice you can offer a marketer who is trying
rience base and skill set beyond that of traditional commer-     whether a product is suitable for DRTV?                 not a good strategy. We acknowledge that the             Stilson: Testing short form and long form si-           DRTV for the first time?
cial producers. We all started out as traditional producers.                                                             client best knows their own product, but they also       multaneously is not a bad idea if the short-form
But traditional commercial producers are only expected to        Stilson: That depends on two things: 1) How ex-         deserve our best-experienced advice on how the           production is already completed and included            Stilson: Try to configure your product and offer as a “continuity” or recur-
                      “execute” a client’s strategy not under-   perienced the production company is, and 2)             product and sales may need to adapt to DRTV.             with the long-form production. It costs very lit-       ring income model. History tells us that being very successful long term re-
                      stand and direct the client on how to      whether they are also a DRTV marketing company          Again, it should be a team approach and still an-        tle to run a small short-form schedule for a brief      quires a recurring income model. The other is test, test, and then test some
                      address and approach the unique na-        that routinely participates in the entire marketing     other reason compatibility is important.                 test. However, if you do not produce the short          more. Some of our best $100 million blockbuster shows did not pay out until
                      ture of the DR market. Direct response     process, or a commercial “producer” who only pro-                                                                form along with the long form, I would not pro-         the third or fourth revision. Continuity models don’t break even until the
                      producers (at least in our case) are ex-   duces what the client instructs them to produce.        ER: What concerns might a marketer have                  duce a separate short-form spot until after test-       third or fourth month. Look at the big picture. Be patient! Don’t give up
                      pected to advise and participate fully        A production company that is also an experi-         about testimonials, endorsements and                     ing the long form. Typically, the short form            after the first negative test.
                      and directly in the entire marketing       enced direct marketing partner will typically help      claims made in an infomercial or spot?                   works best to reinforce and support a long-form
                      process. And it’s that distinction that    the client understand all of the key COS, CPC,          How can a production company help to                     campaign. It can add reach and frequency to any                             Eric Stilson
                      can significantly increase the opportu-    MER, and CPO numbers and percentages. They              make certain that a campaign complies                    successful long-form schedule and once aware-                               801-571-6277
                                                                                                                                                                                                                                                              estilson@stilson-stilson.com
                      nity for success in DRTV.                  will also quickly analyze the potential mass appeal     with FTC guidelines?                                     ness and brand are built with the long form, the

				
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