When I was a young lad, nobody in their right mind said, “When I grow up, I want to be in the infomercial business.” But nearly 25 years after starting in this industry, that’s just where I find myself. And boy, am I glad!
As Electronic Retailer magazine and ERA celebrate the 25th anniversary of the infomercial, we wanted to give all of our readers the opportunity to share their stories and memories.
Here are mine…
It was a snowy day in December of 1986 when I reported for duty on my first day as an inbound call agent for National Instant Consumer Exchange, then known as NICE Corporation. Today, it goes by the name Convergys, and it’s one of the largest contact centers in the world. At that time, I was a skinny teenager making minimum wage. NICE Corporation was a little company whose entire inbound call center fit in one room in Ogden, Utah. And the infomercial business was in its infancy…but just getting ready to explode to a scale few could have imagined.
In those days, the phones were ringing non-stop for blues records, stop smoking products, diet pills and a wide range of other products. The 30-minute “infomercial” format had just hit the airwaves one-year prior. New upstart cable networks had hours and hours of time to fill, and the long format gave them something to broadcast while adding to the bottom line. And the American consumer was enraptured with the whole idea of watching a 30-minute advertisement, then calling to order a product, which would be delivered right to their home. They were doing it by the millions.
Yes, the industry has grown by leaps and bounds since that time. So has my career. And my waistline…but that’s a different story.
In the 24 years I’ve been in the business, I’ve worked for call centers large and small. I’ve done creative production for short form and infomercials, product marketing, international distribution, product sourcing, e-commerce and more. Starting in 1999, I’m proud to have been (and continue to be) one of the pioneers on the forefront of new technologies in the electronic retailing space. My team was the first to stream infomercial video online (years before YouTube existed), was the winner of the very first “Best Website” award ever presented by ERA in 2001, and I’ve continued to introduce new tools and concepts to the industry through my articles in Electronic Retailer magazine, and speaking at dozens of industry conferences. Whether it’s the shift from “Call Now” to “Visit our website,” SEO, innovative shopping carts or social media marketing, this industry is always changing…and always fascinating.
Here are a few of my “remember when” memories from 1986:
“COD” was the payment option of choice for most consumers calling to order.
Orders were mailed or faxed from the call center to the fulfillment center. There was not data transfer!
For really big clients, we sent a reel-to-reel magnetic tape every couple of days containing their orders.
The “Golden Girls” were big on TV. (Twenty-five years later, Betty White is still hot on TV.)
A gallon of gas was 89 cents.
Richard Simmons made his FIRST appearance on QVC.
When they weren’t watching infomercials on TV, people were watching “The Cosby Show” and “Magnum P.I.”
There was only one “toll free” prefix…and it was 1-800.
One last memory of the past 25 years: The friends I’ve made in the business are second to none. To this day, I have business relationships stretching back to the very earliest days of my career, and I’m proud to call these same people my friends these many years later.
So now it’s your turn. What are YOUR favorite memories of the DRTV / Infomercial / Electronic Retailing business? How did you get started? What “remember when” highlights would you add to the above list?
Please leave your thoughts in the Comment section below and let the reminiscing begin!
Marty M. Fahnckeis a consultant, speaker and writer working with companies around the world to increase the effectiveness of their marketing strategies. Fahncke is a regular contributor to Electronic Retailer magazine, and is a member of the Magazine Advisory Board. Be sure to check out his blog at http://www.MartyFahncke.com.
Direct response has become so prevalent lately that even TV shows and restaurants are using it as fake marketing bait. As a fan of HBO’s “True Blood†on Facebook, from time to time teaser items will appear on my News Feed. Recently it tempted fans to check out an infomercial from The American Vampire League, a fictitious vampire rights group in the show. It’s interesting that an infomercial was considered the appropriate marketing vehicle to further entice fans. Perhaps vampires were simply following in Obama’s footsteps!Â
Aside from social media marketing, “True Blood†has made a big splash in traditional media too. In L.A. alone it was hard to miss the second season debut as stars Anna Paquin and Stephen Moyer graced everything from the entire side of a Sunset Strip office building, to busses and even bus stop benches. But in the end, it looks like the intense mixed marketing effort paid off. According to The Hollywood Reporter, the second season premiere of “True Blood†was the most-watched program on HBO since “The Sopranos†finale. An article in Sunday’s New York Times went so far as to say that “True Blood†has brought HBO out of its slump!
Consequently, Burger King has released a new ad campaign that utilizes a home shopping format to distinguish the value of the Whooper JR.
For direct response professionals, while these campaigns are drenched in irony, they still salute to the fact that DR is a mainstay marketing force to be reckoned with.
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.
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:
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!
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.
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.
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.
This product was a topic of discussion at my aunt’s house on Christmas morning. I believe my uncle said something along the lines of: “If someone wore that to a Steelers’ game, they’d be shot.†You too, may have recently been involved in a casual conversation about it. ERA member Allstar Marketing Group’sSnuggie has made a splash in both traditional and new media. Electronic Retailer’s Tom Dellner was recently quoted in a Time magazine article devoted entirely to the Snuggie and DRTV.
While “The Cult of Snuggie†YouTube video is pretty harmless, others don’t take it so lightly on the product.
This video withstanding, I’d tend to agree with Allstar’s CEO Scott Boilen as he was quoted in Time’s article saying, “Publicity is publicity. At least people are talking about it.â€
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.
When I was a young lad, nobody in their right mind said, “When I grow up, I want to be in the infomercial business.” But nearly 25 years after starting in this industry, that’s just where I find myself. And boy, am I glad!
Direct response has become so prevalent lately that even TV shows and restaurants are using it as fake marketing bait. As a fan of HBO’s “True Blood†on Facebook, from time to time teaser items will appear on my News Feed. Recently it tempted fans to check out an infomercial from 
 But in the end, it looks like the intense mixed marketing effort paid off. According to 
Statement from the 
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 - 
It’s never easy, but you can to narrow down your choices through a process of elimination by considering the following:
The 
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.
This product was a topic of discussion at my aunt’s house on Christmas morning. I believe my uncle said something along the lines of: “If someone wore that to a Steelers’ game, they’d be shot.†You too, may have recently been involved in a casual conversation about it. 
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.
