DRTV Advertising and TV Infomercial Advertising rules changes as of December 1, 2009. The Federal Trade Commission announced the implementation of its new Testimonial and Endorsement Guides. The new Guides go into effect on December 1, 2009. Here are a few areas of important changes as reported by John Hendricksen of Manhattan Advertising and Media Law:
"The Guides remove the "safe harbor" provision which previously allowed use of a text disclaimer such as "results not typical" or "results may vary" when presenting exemplary testimonials of the product or service. In short, marketers should be prepared to disclose the "typical" results which users can expect to achieve."
"If bloggers or "word-of mouth" marketers have a "material connection" to the product or service, this fact must be disclosed when writing, posting, or otherwise promoting the product."
"Celebrities must disclose their relationships with advertisers when making endorsement-like statements on talk shows, interviews, blogs, tweets, or in other social media."
We always recommend that you have your scripts checked by a good attorney to make sure that you are in compliance. For more information and DRTV and Infomercial resources look here.
Sunday, November 15, 2009
Saturday, October 31, 2009
Long Form Media Rates Down!
You know people there's a Yin and Yang, ebb and flow to life and business. On our sister blog DRTV Media Blog we recently posted the "bad" news about how tight inventory is in the short form market -- let's call it the Yin....Well, how about some Yang -- long form media rates are down and avails are plentiful. Moreover, the long form infomercial format is a staple and boasts the highest conversions of any TV shopping format.
In the last several years, many marketers have gravitated to short form because the production fees are lower and the demographic targeting is more scientific. Many of the most well known AS Seen On TV products ultimately roll out in short form, too. But the idea here is to sell your product on TV -- and from day 1. Make no mistake, long form TV infomercials give you the best chance to convert a sale, fully demonstrate your product, and make emotional testimony come to life. TV Production costs are also down, and a simple talk show format can cost as little as $20,000.00 and a nice demonstration show with lots of bells and whistles go for well under $50,000.00.
We buy long form paid programming for our clients for as little as $40.00 a half hour. And this is on a broadcast station in the 6th largest market in the country. Smaller markets may have time for even less! There's plenty of inventory and the rates are highly negotiable. Heck, there's also PI long form inventory out there, and we know where to find it.
So before you jump in, consider if your product or service could use the benefits of a half hour infomercial. Also, with the added production values you will have the footage for short form, too.
In the last several years, many marketers have gravitated to short form because the production fees are lower and the demographic targeting is more scientific. Many of the most well known AS Seen On TV products ultimately roll out in short form, too. But the idea here is to sell your product on TV -- and from day 1. Make no mistake, long form TV infomercials give you the best chance to convert a sale, fully demonstrate your product, and make emotional testimony come to life. TV Production costs are also down, and a simple talk show format can cost as little as $20,000.00 and a nice demonstration show with lots of bells and whistles go for well under $50,000.00.
We buy long form paid programming for our clients for as little as $40.00 a half hour. And this is on a broadcast station in the 6th largest market in the country. Smaller markets may have time for even less! There's plenty of inventory and the rates are highly negotiable. Heck, there's also PI long form inventory out there, and we know where to find it.
So before you jump in, consider if your product or service could use the benefits of a half hour infomercial. Also, with the added production values you will have the footage for short form, too.
Saturday, October 24, 2009
TV Infomercial Budgets
What is the cost of an infomercial? How much does it cost for TV infomercial production? Are long form infomercials more expensive than short form infomercials? These questions -- and others about the cost of TV infomercial media and airtime come into our offices every day. This blog is for you -- to answer your questions and help you understand the wacky, wonderful world of TV infomercials -- our world!
Let's start with question number one: What is the cost of an infomercial? First of all, as you may know, there are two basic formats: short form infomercials and long form infomercials. Short form is comprised of commercial lengths of two minutes or less. Long form is generally considered the thirty minute format (actually 28:30 minutes, but there is now some nationwide media distribution for five minute infomercials too. So what is the cost of an infomercial? TV infomercial budgets start with a TV production budget. This cost is a one time fixed cost, and it needs to amortized over the life of the project. Short form budgets can run anywhere from a few thousand dollars to more then $50,000.00 depending on the scope of the production. Long form infomercial costs also run in a wide range of budgets. Talk show formats cost about $20,000.00 and up, demonstration shows usually cost around $50,000.00 to $100.000.00. Again, think production values -- or in movie language big action movie budgets verses low budget indie films.
The largest portion of a TV infomercial budget is the media budget. And you may be surprised to learn that long form infomercial media is cheaper than highly targeted CPM short form airtime. Check out our other blog for ongoing discussions about TV and radio media costs, clearance issues, and the latest trends. We recommend testing your offer on national and regional cable with test budgets of at least $5000.00 per week. Remember, repetition is very important in all forms of television advertising, so you must stay on the air to build momentum.
Check back here frequently for more information on TV infomercial budgets.
Let's start with question number one: What is the cost of an infomercial? First of all, as you may know, there are two basic formats: short form infomercials and long form infomercials. Short form is comprised of commercial lengths of two minutes or less. Long form is generally considered the thirty minute format (actually 28:30 minutes, but there is now some nationwide media distribution for five minute infomercials too. So what is the cost of an infomercial? TV infomercial budgets start with a TV production budget. This cost is a one time fixed cost, and it needs to amortized over the life of the project. Short form budgets can run anywhere from a few thousand dollars to more then $50,000.00 depending on the scope of the production. Long form infomercial costs also run in a wide range of budgets. Talk show formats cost about $20,000.00 and up, demonstration shows usually cost around $50,000.00 to $100.000.00. Again, think production values -- or in movie language big action movie budgets verses low budget indie films.
The largest portion of a TV infomercial budget is the media budget. And you may be surprised to learn that long form infomercial media is cheaper than highly targeted CPM short form airtime. Check out our other blog for ongoing discussions about TV and radio media costs, clearance issues, and the latest trends. We recommend testing your offer on national and regional cable with test budgets of at least $5000.00 per week. Remember, repetition is very important in all forms of television advertising, so you must stay on the air to build momentum.
Check back here frequently for more information on TV infomercial budgets.
Monday, April 6, 2009
Radio Infomercials Drive Infomercial Sales
If you are thinking about marketing a product through the use of direct marketing and electronic retailing, give some thought to long form radio infomercials. This format is perfect for selling financial information, dietary supplements and neutriceuticals, or any talk show style news format.
A long form radio infomercial listener may be driving in their car and be quite attentive to your information, or they could be listening on a mobile device through online hookups. The bottom line - radio listeners buy product and radio infomercials convert callers to sales.
The cost of a radio infomercial is a fraction of the cost of a TV infomercial and could also be used as a testing format for various offers and direct response strategies. Remember, the smartest and savviest direct marketers test multiple offers and several telemarketing scripts to optimize conversion rates and enhance revenue.
Radio infomercial airtime can cost as little as $50 -- that's a half hour to inform, convince and make your best offer to your best prospects. Good prospects, you bet...you can target different demographics through radio direct response. Men through talk stations, women through music formats and religious stations. This long form format is here to stay and it delivers good customers at a low cost per acquisition.
A long form radio infomercial listener may be driving in their car and be quite attentive to your information, or they could be listening on a mobile device through online hookups. The bottom line - radio listeners buy product and radio infomercials convert callers to sales.
The cost of a radio infomercial is a fraction of the cost of a TV infomercial and could also be used as a testing format for various offers and direct response strategies. Remember, the smartest and savviest direct marketers test multiple offers and several telemarketing scripts to optimize conversion rates and enhance revenue.
Radio infomercial airtime can cost as little as $50 -- that's a half hour to inform, convince and make your best offer to your best prospects. Good prospects, you bet...you can target different demographics through radio direct response. Men through talk stations, women through music formats and religious stations. This long form format is here to stay and it delivers good customers at a low cost per acquisition.
Wednesday, March 18, 2009
Infomercial Production in the 21st Century
Let's talk about infomercial production. Let's talk about the latest affordable TV production techniques. Let's talk about using 21st century computer technology to make your long form TV infomercial look like it cost a million bucks!
Green screen or Chromakey technology allows you to shoot against a green screen background and drop in any environment you wish. Well .... when you combine the latest Chromakey magic using an Orad system combined with top notch virtual sets by the leading Hollywood virtual set designer, your direct response TV infomercial will look like it was shot on a million dollar set. Think of an infomercial shot ten years ago against a black curtain and no set and now for the same low infomercial budget, you can have a top quality 3D virtual set customized with your product identity. Lately you see green screen infomercials and direct response commercials often with testimonials shot against green screen backgrounds. We've had several short form infomercial rollouts recently like SnorEnz, Memacin, and Cinergy Health.
Infomercial production costs are coming down in 2009, and the cost to produce great long form infomercials and test them has been driven down considerably from just a few years ago.
Green screen or Chromakey technology allows you to shoot against a green screen background and drop in any environment you wish. Well .... when you combine the latest Chromakey magic using an Orad system combined with top notch virtual sets by the leading Hollywood virtual set designer, your direct response TV infomercial will look like it was shot on a million dollar set. Think of an infomercial shot ten years ago against a black curtain and no set and now for the same low infomercial budget, you can have a top quality 3D virtual set customized with your product identity. Lately you see green screen infomercials and direct response commercials often with testimonials shot against green screen backgrounds. We've had several short form infomercial rollouts recently like SnorEnz, Memacin, and Cinergy Health.
Infomercial production costs are coming down in 2009, and the cost to produce great long form infomercials and test them has been driven down considerably from just a few years ago.
Monday, January 12, 2009
How To Produce An Infomercial Part III
In the last post of this series we talked about avoiding production delays. Please be mindful of those points. Today let's talk about some of the TV Infomercial production values. After all, a TV Infomercial is a TV show! Keep in mind that we are talking half hour long form TV infomercials for broadcast.
Now remember, you start the project with a product that has been fully evaluated by professionals who have determined that it is best suited to be presented in an infomercial format. Your TV infomercial production company should have a budget with specific production values. For instance, at InfoWorx, the cost of half hour infomercials ranges from $31,500.00 to $80,000.00. And there is wide difference in the production values.
None of these budgets includes celebrities or even C list "has been" celebrities. This question always comes up, so let me address it now. If the celebrity is well known enough to be a channel stopper, it can help. If the celebrity "fame" is congruent with the product it can help. If your celebrity does not possess one or both qualities for your product, then use non union talent and make sure you have full permission to use the infomercial production any way you see fit. There are advantages to this approach such as: affordable infomercial budgets, no restrictions on the use or distribution of the TV infomercial, and no back end royalties or residuals.
TV infomercial budgets can vary widely and some products lend themselves to lower budget productions. Many supplements, business opportunities and intellectual property can be well presented in a talk show environment. If you have a kitchen product, say a counter top oven, you should have a full kitchen set, food stylist, and more for the production values. When doing your do diligence in the selection process of an infomercial company, make sure you compare apples to apples when evaluation budgets and look for samples of the company's work at those budgets.
In the next post, we will discuss TV infomercial scripts, infomercial rundowns, and changes in the scripts.
Now remember, you start the project with a product that has been fully evaluated by professionals who have determined that it is best suited to be presented in an infomercial format. Your TV infomercial production company should have a budget with specific production values. For instance, at InfoWorx, the cost of half hour infomercials ranges from $31,500.00 to $80,000.00. And there is wide difference in the production values.
None of these budgets includes celebrities or even C list "has been" celebrities. This question always comes up, so let me address it now. If the celebrity is well known enough to be a channel stopper, it can help. If the celebrity "fame" is congruent with the product it can help. If your celebrity does not possess one or both qualities for your product, then use non union talent and make sure you have full permission to use the infomercial production any way you see fit. There are advantages to this approach such as: affordable infomercial budgets, no restrictions on the use or distribution of the TV infomercial, and no back end royalties or residuals.
TV infomercial budgets can vary widely and some products lend themselves to lower budget productions. Many supplements, business opportunities and intellectual property can be well presented in a talk show environment. If you have a kitchen product, say a counter top oven, you should have a full kitchen set, food stylist, and more for the production values. When doing your do diligence in the selection process of an infomercial company, make sure you compare apples to apples when evaluation budgets and look for samples of the company's work at those budgets.
In the next post, we will discuss TV infomercial scripts, infomercial rundowns, and changes in the scripts.
Monday, December 22, 2008
How To Produce an Infomercial - Part II
I hope some of you are following along because you will find tips and secrets to TV Infomercial success that have taken me over 16 years to learn. We explained in "How To Produce an Infomercial - Part I" a little bit of the planning, research and thinking that went into our first steps.
Now, today, I want to talk about time lines, point person, and the best way to effectively produce a winning infomercial hit show. Our client, with a business opportunity perfect for the New Year wants to create the show and the intellectual property product in just several weeks. Yes, we can do it....but it takes a concerted effort by both sides of the team to achieve it. I have seen scenario fall apart time and time again.
So how can you produce an infomercial and the related intellectual property in 4 weeks or so? It can be done. First, the client must select a point person. He or she should be the main point of contact, and when there are times that all parties need to make decisions, a simple conference call can settle these sticking points. But be decisive, make a decision and stick to it! Please see our article, written and also published in DM News several years ago on production delays,"Production Delays That Cost Money....."
The five keys to keeping a production schedule are as follows:
1. Write up a timeline that is feasible.
2. Designate a point person so that all questions filter through he or she.
3. If your team has several members all of you can work independently with the offer strategy and outline, then come together and gain consensus before presenting your suggestions to our creative team.
4. Make all of your payments on time to the producer according to your agreement. This is an ongoing pitfall that causes many production delays.
5. Be committed to your timeline and make it happen instead of finding alibis to force postponements.
Please keep checking this blog, as in the next installment, we will discuss talent selection, art direction and sets.
Now, today, I want to talk about time lines, point person, and the best way to effectively produce a winning infomercial hit show. Our client, with a business opportunity perfect for the New Year wants to create the show and the intellectual property product in just several weeks. Yes, we can do it....but it takes a concerted effort by both sides of the team to achieve it. I have seen scenario fall apart time and time again.
So how can you produce an infomercial and the related intellectual property in 4 weeks or so? It can be done. First, the client must select a point person. He or she should be the main point of contact, and when there are times that all parties need to make decisions, a simple conference call can settle these sticking points. But be decisive, make a decision and stick to it! Please see our article, written and also published in DM News several years ago on production delays,"Production Delays That Cost Money....."
The five keys to keeping a production schedule are as follows:
1. Write up a timeline that is feasible.
2. Designate a point person so that all questions filter through he or she.
3. If your team has several members all of you can work independently with the offer strategy and outline, then come together and gain consensus before presenting your suggestions to our creative team.
4. Make all of your payments on time to the producer according to your agreement. This is an ongoing pitfall that causes many production delays.
5. Be committed to your timeline and make it happen instead of finding alibis to force postponements.
Please keep checking this blog, as in the next installment, we will discuss talent selection, art direction and sets.
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