Here’s a sneak peek at what attendees can expect from the education lineup at ERA’s upcoming D2C Convention September 13-15, in Las Vegas.Â
Track One: Direct Response Success
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Track Two: Digital Marketing IntelligenceÂ
Questions? Comments? Interested in contributing content? Please contact Vi Paynich, Editor-in-Chief, at vpaynich@retailing.org or 909-606-3406.
Statement from the Electronic Retailing Association on Death of Iconic DRTV Pitchman, Billy Mays
ARLINGTON, Va.–June 28, 2009 – The Electronic Retailing Association (ERA), the leading trade association for direct-to-consumer commerce, issued the following statements on the death of Billy Mays, one of the pioneers in the direct response television (DRTV) industry:
“DRTV has grown to be a $300 billion business during the last 20 years, and Billy Mays played a key role in making this possible,†said Julie Coons, president and CEO of ERA. “His dedication to DRTV will be remembered by those of us in the industry, as his animated approach to marketing dozen of products, such as Orange Glo and OxiClean, will be remembered by millions of consumers. Our thoughts and prayers go out to his wife, Deborah, and to his family and friends.â€
“This is a sad day for those of us that were lucky to know Billy,” said Nathan Fagre, chairman of ERA and senior vice president and general counsel of 
ShopNBC. “He worked hard, cared about his family and friends and he will be greatly missed.”
As you probably know, the FTC is planning to eliminate the safe harbor for testimonials with disclaimers. If you are concerned about these changes, make sure you sign up to receive updates from us on this issue. We will send occasional updates that will keep you up to speed. This is part of the grassroots effort we will be launching shortly and these updates will make sure you know about opportunities to get involved. Please make sure you don’t miss out - fill out the form here.
Tomi Turner is ERA’s legislative manager.
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!”
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.
The Electronic Retailing Association (ERA) was mentioned in a recent AdvertisingAge article for its work with the FTC on the proposed changes to endorsements and testimonials.
According to AdvertisingAge, “Results not typical” or “Experience may vary” used to be enough to protect marketers using testimonial ads to move their wares. But maybe not for much longer.
The Federal Trade Commission wants to toughen the rules for endorsements and testimonials by requiring evidence that results are likely to be typical — a move that would put pressure on purveyors of diet pills and exercise equipment, among others.
The FTC is proposing the change as part of a rewrite of its now-29-year-old guide for endorsements. In part, it’s an attempt to bring the rules up to date in order to meet some of the challenges of the internet and buzz-marketing age.
The biggest change: Advertisers that feature endorsers touting dramatic results will either have to demonstrate that consumers are “likely” to have similar success or describe in the ad what the “generally expected performance” is.
The Direct Marketing Association warned that the change could make it difficult for new competitors to advertise at all, and the Electronic Retailing Association and the Council for Responsible Nutrition said the change could make even well-documented claims difficult to make.
To read the complete article, click here.
Want to have your voice heard on Capitol Hill? Then we invite you to ERA’s Government Affairs Fly-In on April 20-21, where you’ll have the opportunity to meet with members of Congress and let them know your concerns and opinions on this issue and many others affecting the direct-to-consumer, multichannel marketing industry.
Click here for more information.
Visit msnbc.com for Breaking News, World News, and News about the Economy
As the economic situation in the U.S. brews with uncertainty, infomercials have increasingly become the talk of the town in the media. As a resource, we’ve compiled a few of the more noteworthy articles below.
ShamWow! Wins CNBC.com’s “As Seen On TV” Tournament - CNBC
New Prime-Time Ads Act Now! – Washington Post
Infomercials Find Their Way to Television’s Prime Time – New York Times
Additionally, enjoy this video segment featuring Telebrands Corporation’s A.J. Khubani.
Pat Cauley is Electronic Retailer magazine’s eMedia editor.
Currently, the FTC is proposing changes to its guidance on consumer testimonials. These changes will directly affect you and the way you do business. There are several reasons why honest marketers, particularly in the direct response world, should be worried.
If these changes are approved, the FTC will no longer allow for the general use of a “results not typical†claim. Marketers may instead offer clinical evidence of the typical performance of the product, or in some cases, offer an extreme level of detail about how the product was used—but generally, they may face liability without the more stringent type of disclosure. Here marketers will be asked to remove claims that are factually accurate and adequately documented.
As you know, in most cases, it will be extremely difficult or even impossible to provide the evidence the FTC is looking for. It is likely that companies will lack the resources to do a comprehensive study, so the consumer will be left with absolutely no idea of whether the product works at all. This gives them little incentive to try the products put forth by honest advertisers who wish to comply with the fullest extent of the law. Or worse, because the FTC does not propose very stringent standards for the type of clinical evidence needed, dishonest marketers will be rewarded. For example, today Mary says she has lost 20 pounds by following an exercise regime and the consumer is clearly reminded that most people will not have the same results she had. Tomorrow, if these guides are approved, less honest marketers will risk running afoul of the FTC’s guidance and say “the median weight loss for women under 30 who remained in the program for more than one year was 15 lbs.†when, in fact, a more accurate description of the product’s performance would be “the mean weight loss for program participants was 2 lbs.†The exact same product could appear to produce vastly different results by altering the study design.
The FTC also plans on amending rules that apply to talent and aspiring actors who do testimonials in the hope of gaining exposure. These alterations would impose liability on “experts†or celebrities for certain types of claims. It would also add to the disclosure requirements. Additionally, the changes could impose liability on bloggers and other new forms of advertising. The full proposal can be read here.
ERA is involved in presenting a forceful response to this proposal. We will be submitting comments to the FTC and continuing our advocacy on the Hill. Please don’t hesitate to contact me if you have any questions or would like to learn more about this issue.
Tomi Turner is ERA’s legislative manager. She can be reach at (703) 908-1022, or via e-mail at tturner@retailing.org.
WASHINGTON, D.C.—Last night, the Barack Obama campaign took an unprecedented step in the history of the infomercial, by running concurrently on several networks in the prime time half-hour beginning at 8 p.m. to make an appeal to voters in the form of an infomercial.
The John McCain camp, led by spokesperson Tucker Bounds responded, “As anyone who has bought anything from an infomercial knows, the sales-job is always better than the product. Buyer beware.â€
Rick Petry, representing the Electronic Retailing Association, a trade association that represents direct marketers that use electronic means including infomercials, had this response: “To use a political agenda to indict an entire genre of advertising by portraying it in such a negative light is patently unfair. It would be like charging an entire industry and everyone associated with it, say politics for example, as being scurrilous. We at ERA will be the first to tell you that there are some who use this method of advertising inappropriately, which is why we have an independent self-regulation program, ERSP, administered by the National Advertising Review Council in partnership with the Council of Better Business Bureau. With this watchdog mechanism in place, claims have to be proven; a standard that politicians are not required to live up to. The fact is infomercials have been used by not only start-ups with unique products, but successful brands such as Kodak and Mercedes Benz, even the U.S. Navy.â€
For more information on ERA, click here.