Questions? Comments? Interested in contributing content? Please contact Vi Paynich, Editor-in-Chief, at vpaynich@retailing.org or 909-606-3406.
The following are a few highlights from ERA’s 2009 Government Affairs Fly-In.
To view more pictures, click here.
Don’t miss out on upcoming ERA networking, education and fun!
ERA Webinar: How to Fight Online Knock-Offs and Counterfeits- May 14
ERA NYC Networking Reception- June 18
The 2009 Electronic HomeShopping Conference- June 28-30
The ERA European Conference and Trade Show
ERA L.A. Networking Reception- July 21
According to a recent article in Online Media Daily, Craigslist founder Craig Newmark said the site does not currently plan to discontinue its “erotic services” listings, despite renewed pressure from law enforcement authorities triggered by the recent “Craigslist murder.”
In an interview with ABC Nightline’s Martin Bashir, Newmark also said he disagreed that the site facilitates prostitution. “I wouldn’t put it that way; no, I disagree,” he responded when Bashir confronted him with ads that appear to be for prostitution and asked whether the site facilitates such activity.
Internet law experts say that legal action against Craigslist isn’t likely to get very far because Section 230 of the Communications Decency Act states that Web sites are immune from liability when users of the site violate state law.
Loading ...ERA hosted the 2009 Government Affairs Fly-In in Washington, D.C. on April 20 and 21. Over 50 ERA members came together in our nation’s capital to network and meet with members of Congress to highlight their concerns over the revised Federal Trade Commission (FTC) Guides on Endorsements and Testimonials. Attendees participated in over 40 meetings with members of Congress and their staff, enjoyed a dynamic keynote speech by Senator Mark Pryor (D-AR), and networked with the movers and shakers of the D2C industry at two cocktail receptions.
For more video testimonials, click here. To learn more about ERA’s government affairs efforts, click here.
Brian McGarry, national sales manager of TransFirst, welcomes Dillon Craig McGarry to the world. Congrats!
“There’s no way you can justify spending $3 million on a thirty-second Super Bowl ad, but you sure as hell can justify a half hour infomercial that you know the cost of when within 72 hours you know the revenue you generated from it.” — Chris Rebholz, president of Christopher Morgan Fulfillment
Look for more insights from Chris and other DR fulfillment leaders in Electronic Retailer’s upcoming May issue! Do you have an industry quote or industry event pictures worth sharing? Post a comment or send an e-mail to eMedia editor Pat Cauley at pcauley@retailing.org for possible inclusion.
MEXICO CITY—Mexico is protesting what it says is a whopper of an insult, according to the Associated Press. An advertisement for Burger King’s Texican Whopper burger that has run in Europe shows a small wrestler dressed in a cape resembling a Mexican flag. The wrestler teams up with a lanky American cowboy almost twice his height to illustrate the cross-border blend of flavors. “The taste of Texas with a little spicy Mexican,†a narrator’s voice says. The taller cowboy boosts the wrestler up to reach high shelves and helps clean tall windows, while the Mexican helps the cowboy open a jar. Mexico’s ambassador to Spain said Monday he has written a letter to Burger King’s offices in that nation, objecting to the ad and asking that it be removed. Jorge Zermeno told Radio Formula that the ads “improperly use the stereotyped image of a Mexican.â€
Click here to read the complete article.
Loading ...As this year’s ERA Government Affairs Fly-In comes to a close, the FTC’s view on testimonials and endorsements has been the hot topic. The following column addressing this issue first appeared in Electronic Retailer in March of 2007.
Disclaimer: Some readers of the following column may be amused and entertained; others may be put off by a perceived self-indulgent rant. Results may vary.
A few years ago, a client of mine who was sponsoring a car at the Indy 500 was gracious enough to invite me along. Just prior to the start of the race, a parade of stars was introduced. Who do you suppose elicited the greatest ovation from the crowd? Was it pop star and Proactiv endorser Jessica Simpson? Late night star cum racing team leader David Letterman? Jim “Gomer Pyle†Nabors singing “Back Home in Indiana†just prior to “Lady (thank you, Danica Patrick) and gentlemen, start your engines?†No, it was Jared Fogle. Jared Fogle? Yes, Jared–the Subway Guy.
I mention all this because as the Federal Trade Commission (FTC) begins the process of reviewing its policy on testimonials in advertising, Jared and the billowing pants he used to wear when he was 235 pounds heavier are about to endure the kind of scrutiny serial dieters reserve for their waistline. The FTC is examining whether highlighting such extraordinary cases of success within advertising creates expectations in the mind of the consumer that are misleading or even deceptive, even though they may be accompanied by a disclaimer along the lines of “results not typical.†Given the prevalence in health, fitness and even financial direct marketing of such endorsements, this may threaten a core device advertisers have long employed to spur couch potatoes to take action.
The Jareds of the world are aspirational catalysts who inspire others to change their lives. Does anyone really think that by working out at 24 Hour Fitness, they can ride a bicycle like Lance Armstrong? No, but by endorsing this chain, Armstrong may lead the target audience to healthier living. Similarly, a tearful weight-loss infomercial testimonial that causes a viewer to pick up the phone could be viewed as a public service. Given the rate of obesity in America, shouldn’t these authentic testimonials be framed in a positive light?
In a world with scant heroes, perhaps we shouldn’t be surprised that commoner Jared received the greatest roar at Indy. Subway has tried many different campaigns in the near-decade since our bespectacled everyman first “ate fresh,†but keeps coming back to the icon that represents the ability of the average person to achieve extraordinary results. And what of the role of personal responsibility in making choices (something I would think our government would want to extol)? Having sat through countless focus groups, I can attest that consumers pay close attention to those mouse-typed disclaimers, and comprehend every word. The FTC should give them more credit. Perhaps a more appropriate disclaimer for such testimonials would be: “Individual desire or will may vary.†Fat chance.
Rick Petry is a freelance writer who specializes in direct marketing. He can be reached at rick.petry@me.com.
For more information about ERA’s government affairs efforts, click here.
Media buyers and marketers are looking at mobile TV to increase sales for clients.
Mobile TV is being viewed as a way of expanding brand and presents a unique opportunity when it comes to direct-response sales lead generation.
Traditional direct-mail marketers reveal that their response with print mailing has dropped to less than 0.1 percent. That means 99.9 percent of your client audience is not responding to the direct-mail piece you spent money on.
What makes mobile TV so attractive to advertisers? The emergence of mobile TV as a mobile medium also comes with some impressive applications. For instance, if you are seeing a Lexus commercial on your mobile iPhone while watching a local news program, you could potentially touch a Lexus icon on your phone screen to be connected to a live Lexus sales representative.
The real-time factor. Mobile TV provides the unique value of real-time marketing to consumers. Studies show they spend more when transactions are completed quickly before they have a chance to rationalize a purchase.
Even with all of these big changes underway, television is still a big layer in the media game. TV ads will continue to have loyal buyers.
Do you agree?
Peter Koeppel is a Wharton MBA and president of Koeppel Direct, a full-service media buying agency based in Dallas.
Unless you’ve been living under a rock, you have probably noticed the extensive increase in coverage recently of the DRTV industry. Here are some current events you won’t want to miss:
Discovery Channel’s Pitchmen - Wednesdays at 10 p.m.
CNBC’s “As Seen on TV” Special - Wednesday, April 22. 9 p.m.
Slate Magazine: The Art of the Infomercial
USA Today’s review of Remy Stern’s new book “But Wait…There’s More!”
Below are a few photos from ERA’s eRetailer Summit held recently in Miami. Check back often, more photos will be posted soon!
Don’t miss out on future ERA networking, education and fun!
ERA Webinar: Optimizing Your DRTV During a Downturn
April 7, 2009 at 2:30 p.m. EDT
ERA Webinar: Changing the FTC Rules on Endorsements & Testimonials: Why You Should Care!
April 16, 2009 at 2:30 p.m. EDT
ERA Government Affairs Fly-In
April 20-21
ERA Toronto Networking Reception
April 29, 2009
It’s never easy, but you can to narrow down your choices through a process of elimination by considering the following:
Select a product that fulfills a perceived problem that the consumer has. In most cases, people aren’t always aware of the problem they have, so you need to show them.
The product should be simple to explain yet have enough features and benefits that it can hold audience attention for a half-hour.
Pick a product that will have people instantly recognizing they have the problem – and need the solution. For example, “Are you tired of knives that just don’t cut?†Sometimes people won’t think about this as an everyday problem in their lives, however once confronted with this, they will quickly see this as a problem they would like to solve.
Recognize that DR relies on an impulse buy – people must want the product right now. Don’t try to sell products that are preventative; the products need to solve a problem consumers have today rather than a problem they may have over time. Unless you’re looking at a lead generation campaign, alarm systems or life insurance are examples of preventative products that are not suitable for the infomercial format.
The product should have a high-perceived value and be able to sell for a 5 to 1 mark-up.
The show and product are inherently intertwined like two dancers- two interlocking pieces of the same puzzle. But, you must start with the product first then focus on the show later.
The product/Pitch/Show – TV is a medium of entertainment, so you have to make sure the product can entertain for thirty minutes. Is it interesting to look at? Can you see it working? Is the function of the product interesting to watch? A blender is interesting to watch as it converts a solid into a liquid. Is the product easily demonstratable? With a food preparation device such as a counter top oven, you are watching a process occur. With a fitness machine, consumers can see a product working with results before their eyes.
Every product has a weakness and audience will figure it out in the half-hour. It is the marketer’s job to address that weakness and ideally turn it into a benefit or strength. For example, when concerned a product is too small, confront it head-on by emphasizing how compact and convenient it is.
The product and the show should be aimed at the audience that is watching. There is no use trying to sell a product to an audience that is simply not there. For instance, snow shovels in Miami would not be a way to go!
Paul Greenberg is Thane Direct’s chief creative officer.
After the Obamamercial, in which ERA so creatively defended our industry against McCain camp attacks, I seriously thought that was the end of Obama crossing hairs with the direct response gang. But, apparently I was mistaken.
Speaking of Washington, you’ve probably heard about the FTC’s proposed changes on endorsements and testimonials. Don’t miss your chance to do something about it and have your own Billy Mays/Obama-esque moment!
On the evening of April 20 and all day on the 21st, ERA will be hosting the Government Affairs Fly-In. In addition to two fantastic networking receptions, a keynote address by Senator Pryor, and detailed issue briefings, you will have the opportunity to really let lawmakers know about how this issue affects your business.
Pat Cauley is Electronic Retailer Magazine’s eMedia editor.
Payment processing is often overlooked as a source of revenue creation and marketing intelligence, two of the most important concerns for merchants facing the current economic conditions. By looking at payments and processing as an opportunity to improve operations, merchants can increase their revenue by reducing declined authorizations, offering the right mix of payment options and focusing attention on their most profitable customers.
Law #1 - Don’t Concede to Commodity
Merchants scrutinize decisions about order management, fulfillment and customer service based on the ease with which they fit into their operations, show positive ROI across shorter-cycles and limit the additional infrastructure needs upon the organization. All payment processing decisions should be looked at in the same manner. Looking through the “lowest-cost†lens leads, in part, to minimized expectations that a processor can add value to the business. Choosing a low cost solution without understanding the value returned by all options is a luxury most merchants cannot afford in any part of their business.
Law #2 - One Size Does Not Fit All
Merchants today have more choice than ever when it comes to managing payments and choosing the platforms through which they run. Simply put, when selecting a payment processor and platform, “better for you†is more important than “most popular.†What the merchant sells, how it sells its products or services and the medium through which most of the payments are received should always dictate how a merchant processes those payments.
Law #3 – Don’t Get Tied Up in a Bundle
“Interchange†“assessment†“downgrades†— terms associated with payments transactions are abundant and confusing. If the cost of processing meets the bottom line need, it’s easy to think the specifics aren’t important. They are, and they should be to the processor as well. Merchants should be sure to monitor and audit where their money is going, which will help establish processing benchmarks as well as reduce or eliminate unwarranted processing charges.
Law #4 – All Payments Are Not Created Equal
Merchants should choose platforms that reduce declined authorizations, improve re-authorization success rates, lower the percentage of refunds, and help facilitate easy adoption of competitive service differentiators, such as alternative and international payments, which expose products and services to new consumer audiences and new revenue opportunities as a result.
Law #5 – Don’t Ignore Alternative Payments
The current economic conditions are fueling consumer adoption of alternative payments. By offering an alternative payment method such as PayPal, whose 70 million active accounts produced nearly $16 billion in total transaction volume in Q4 2008, merchants can take advantage of those accounts, which contain almost $3 billion in stored value that is spent every two weeks.
Law #6 – Watch out for Connection Overload
Rapid advances in retail platforms over the last decade have left many retail systems at the point of overload. A payment engine should be a major component in streamlining operations as they relate to all other business cycles in a merchant’s operation. The single point of failure for many retailers is that there are too many points of failure. By choosing a processing platform that connects directly with networks, merchants can dramatically minimize these points of failure.
These seven laws can all be reduced to one golden rule of payment processing: the more holistically merchants look at the value of payments, the more value-oriented, and less commodity-driven, their decisions will be.
Jason Pavona is vice president of product management for Litle & Co.
Click here to view Electronic Retailer’s 2009 Payment Processing Guide featuring further insights from Jason Pavona and other leaders in payment processing.
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