Unlocking the Mysteries of How Consumers Consume DRTV.

The Electronic Retailing Association (ERA), a trade association representing the $138 billion electronic retailing industry, today unveiled the results of a consumer tracking study designed to monitor and update direct response television (DRTV) viewership trends as well as consumer attitudes and preferences about electronic retailing.

The ERA 2003 Spring Conference and Trade Expo kicked off at the Ritz Carlton hotel in Key Biscayne, FL. ERA CEO, Elissa Matulis Myers, noted that the electronic retailing industry continues to thrive as more consumers’ embrace shopping through direct response television/radio advertisements and home shopping channels. “We are enormously excited about this new study,” noted Myers. “Not all the news it brings is good news as the data reflects challenges faced by all marketers for consumer attention in an increasingly fragmented and overcrowded media landscape. But much of the news is great and reflects the growing importance of direct response TV in the marketing mix.”

The ERA commissioned the Leisure Trends Group of Boulder, Colorado, an independent market research firm, to conduct a nationally representative telephone survey of American adults in the third quarter of 2002.

In a session titled “Unlocking The Mysteries of How Consumers Consume DRTV” Bill Danner, Principal of the Leisure Trends Group moderated a panel of industry experts including Tim Hawthorne of hawthorne direct, David Savage of American Telecast Corporation, Rick Petry of Euro RSCG Tyee MCM, Steve Pittendrigh of The Aftermarket Company and Elise Erlich of Media Solution Services.

The results shed definitive light on the ways that consumers interact with DRTV including infomercials (30-minute long form paid television programming), direct response television advertisements i.e. “spots” (short form 30-second to two minute TV ads), and live shopping via home television shopping networks such as QVC, HSN, Shop at Home, and ShopNBC.

“The study’s findings help unlock some of the mysteries around who in TV-land is responding, how they are doing it, and what impact their behavior may have on a direct marketer’s go-to-market strategy,” noted panelist Rick Petry.

Electronic Retail Association Tracking Study Highlights

Two-thirds of America Watches DRTV

Out of the total adult population of Americans, 63% watch some form of DRTV advertising, translating to a customer base of 136.2 million viewers. While this is strong participation, overall DRTV viewership has declined 11 percentage points since a previous 1996 study. “DRTV programming is in the mainstream of all types of TV programming and not immune to the same things that are happening to TV in general, added Myers. “TV viewership in general is down attributed to the increasing fragmentation of television choices and the widespread adoption of the Internet.”

DRTV’s Audience is Desirable

People who watch and buy from DRTV are more likely to be employed, and more affluent than people who don’t watch DRTV. Buyers are also more likely to be married with children when compared to the other groups. While DRTV viewers continue to skew female, they do not hold as dominant a position as previously believed. “This gender balance may be a reflection of the broad spectrum of products and services offered and the audiences they attract,” noted Petry.

DRTV is Reaching a Younger Audience

On average DRTV viewers are four years younger than Americans who don’t watch DRTV. Among the youngest viewer group (ages 16 – 24) time spent watching infomercials has increased from a year ago. “This is especially significant because the general population trends are going in the other direction and skewing older,” continued Myers. “This is the highly desirable, 70 million strong population that traditional advertisers spend billions trying to attract.”

Customer Shopping Motivations Vary by Format

Infomercial buyers are most likely to purchase because they “believe the product will help them” while live shopping buyers were motivated by “finding the best price” and direct response spot buyers because they “always wanted the product.” “Marketers should use these findings to influence channel and product placement options,” noted session moderator, Bill Danner.

DRTV Drives Traditional Retail Sales

In addition to generating immediately trackable sales, DRTV campaigns also drive retail store traffic. More than one third of viewers indicate that they have purchased a product that they were first exposed to via DRTV. This incidence was highest among infomercial viewers (39%), followed by live shopping (34%) followed by 60-second to two-minute TV spots (32%).

In DRTV We Trust?

DRTV viewers are more likely to trust infomercials than Congress, used car salesmen and corporate executives.

For more information at http://www.retailing.org