many product campaigns that weren't profitable before are now viable in the marketplace.
New York, NY (PRWEB) March 23, 2009
The recession year 2009 is turning into a boom year for direct response television marketers. As traditional advertisers, such as banking, auto and travel companies, have cut back on TV advertising due to the consumer spending downturn and financial crisis, television rates have fallen dramatically since 2008 with the slide expected to continue through 2011. This is happening in tandem with a huge increase in TV viewership which has led to greater profitability for direct response marketers. The combination of falling ad rates and increasing viewership has more than offset the general decrease in consumer spending.
EAKC Investments' recent introduction of Boomer Berry, Protexid and Its Quitting Time direct response product campaigns bears this out. Mark H. Stenberg, president of EAKC, a leading direct response consulting and investment firm, says that "recent trends point to record-setting profitability in the direct-to-consumer business this year."
According to TNS Media Intelligence, a firm that tracks ad spending, the money advertisers spent declined 7.5 percent on network TV, and 5.5 percent on cable, from 2007 to 2008. The New York Times, in a January 25, 2009 article, reports that this trend is accelerating in 2009 (http://www.nytimes.com/2009/01/26/business/media/26adco.html.)
Coupled with TV rate reductions, strapped consumers are staying at home instead of shopping, traveling, and dining out, causing TV viewership to skyrocket. Though overall consumer spending is down, especially for big-ticket items like cars, appliances, clothing and travel, the sale of small-ticket items, especially health-related, has held up.
This confluence of events has opened up a vast opportunity for direct response (DR) marketers whose 1-, 2- and 30-minute infomercials fill the open airtime at significantly discounted prices. Since the profitability of DR advertising is directly impacted by the numbers of calls generated per ad dollar spent, lower rates translate immediately into a lower cost for customer acquisition.
Mr. Stenberg reports that "inquiries from product marketers looking to enter the direct response arena are up 75% over last year. It's the best time in years to use DRTV to produce profits while building brand awareness and a customer base." He added that, "many product campaigns that weren't profitable before are now viable in the marketplace."
For additional information, contact Mark Stenberg or visit http://www.eakcinvestments.com.
About EAKC Investments:
Established in 2001, EAKC Investments is the only direct response consulting and investment firm that takes no hourly or project fees. The firm's only compensation is based on the profitability of the product campaign. Originally launched as a television direct marketing consulting firm by Mark H. Stenberg, the founder and former CEO of Iceland Health, Inc., the independently-owned, vertically-integrated company has since broadened its focus into every area of electronic retailing, helping a wide range of companies market their products through broadcast television, cable and satellite, as well as radio, internet, outbound telemarketing, direct mail, and retail channels. EAKC also provides startup financing and media funding. Iceland Health was one of the most successful direct marketing ventures in recent history, with a total of 4 successful nationally-advertised product campaigns including one that ran on television continuously for over 5 years. EAKC now applies the same success strategies to direct response investment, consulting, marketing, and support in a variety of product categories.
EAKC Investments, Inc.