ResponseWire

How Will Customized Search Affect Online Advertising?

Wed, 12 Mar 2008 08:43:03 +0000

As the use of customized search engines picks up steam and gains in popularity, the question of how this trend will affect online advertising begs to be asked.

While the customized search feature allows users the opportunity to craft a unique search engine platform, it can also help to narrow down an advertiser�s target market. As Internet surfers browse websites and utilize customized search engines, the engine then collects specific information on the likes (and dislikes) of a particular target market.

When it comes to customized search, one thing to keep in mind is that some search engines do offer clients the ability to provide search results for Internet surfers sans advertising. In other words, when an individual searches a site or sites via a customized engine, the results of the search will not display any advertisements on the results page.

When ad displays are allowed on the search results page, however, they are more likely to be considered relevant by the user, thus increasing the odds of the user clicking through to the advertiser�s website.

Clinton Kicks Off 'Serious' Ad Campaign

Fri, 15 Feb 2008 08:38:19 +0000

Senator Hillary Rodham Clinton beefed up her political advertising campaign this week in preparation for the California primary Feb. 5, 2008. Clinton's political marketing and media team produced a spot entitled "Serious." (View it here on YouTube.)

In the clip, Clinton is heard discussing her multibillion-dollar energy program designed to help the United States end its dependence on foreign oil. Most of the shots are taken from an upbeat and energetic rally, and the spot ends with the words "Vote February 5^th" on the screen. This piece of political advertising can now be viewed online in its entirety on youtube.com.

Along with the California advertisement, Clinton also began running campaigns in parts of Connecticut, Georgia, Utah, and New Mexico. In all, it is estimated the Democrat politician is spending $4 million over a 10-day span before this year's Super Tuesday.

Clinton isn't the only Democrat candidate who has kicked his or her political marketing efforts into high gear. Opponent Barack Obama is advertising in most or all of the same states as Clinton. Early reports also indicate that he is also forking out millions to pay for the ads. (And now Clinton is reportedly using her own money, in the millions, to fund these political advertising efforts.) Additionally, Obama's spots are running on MSNBC and CNN.

DRTV Media Buyer

Mon, 22 Jan 2007 12:38:22 +0000

It's important to work with an experienced DRTV media buyer when launching a DRTV campaign. A knowledgeable DRTV media buyer knows the best stations and networks to buy if you are targeting a specific audience with a product in a certain category. For example, a trained DRTV media buyer knows the most eficient media vehicles that can be purchased if you are targeting females 35+ that buy facial beauty products. Hiring a DRTV media buyer with this type of knowledge and experience will end up saving you money, since they will help you purchase media at the best rates and with the highest probability of performing.

Peter Koeppel is Founder and President of Koeppel Direct

DRTV

Mon, 22 Jan 2007 11:12:42 +0000

DRTV (direct response television) is an excellent media vehicle for marketers interested in tracking the performance of their TV campaign and measuring their return on investment from the campaign. DRTV allows a marketer to measure performance on every network and station their campaign will be airing on. DRTV also provides the marketer with the opportunity to optimize the campaign by analyzing the results for each station and buying more time on the stations that are perfroming and dropping the stations that are not performing. DRTV is a medium that more and more savvy marketers are adding to their media mix.

Peter Koeppel is Founder and President of Koeppel Direct

Technorati Profile

DRTV and the Search Engines

Wed, 10 Jan 2007 15:34:46 +0000

Search engines are playing an increasingly important role in DRTV marketing. A large percentage of the Web traffic generated from an infomercial passes through the aperture of a major search engine, such as Google. Most marketers don't realize that their company name, product brand names and slogans can be "pirated" by search engine optimizers and directed to competitive websites. Often these websites are owned by authorized resellers, but they can also be owned by direct competitors, including knock-off artists. I run into this problem with DRTV marketers who are totally unfamiliar with Web marketing and, in many cases, have handed their Web business over to affiliates. Because they don't optimize their corporate website properly, the search engines can't find it and they end up selling their product at a lower price to the affiliates rather than directly to consumers. My advice: talk to a search engine consultant before launching your DRTV campaign.

- Tony Sziklai

Want to Reach More Buyers? A Multi-Media Advertising Approach is the Key

Wed, 15 Nov 2006 09:08:42 +0000

Twenty years ago, an advertiser could run an ad for a product or service on any one of the three television networks in existence and reach a large segment of the population. Today, with the multitude of media options available, advertisers must be savvier if they want to hit their target market. Thanks to the proliferation of niche cable television networks, the Internet, iPods, satellite TV and radio, video games and a host of other media options, advertising to your target market is more difficult than ever before. That is why smart marketers are now using a multi-media direct marketing approach to leverage their advertising dollars and reach more potential buyers.

What is multi-media direct marketing? It means that you are utilizing an integrated media buying strategy for TV, online, print, and radio and tracking the performance of each medium. The fact is that multiple mediums helps you maximize your profit from direct response advertising, because you are combining all the available media options and tracking response, in order to determine which medium will be most effective for you. Depending on your product offering, you may find that TV and online ads work best, for example, or that print and radio is the way to go. Such an approach enables you to take advantage of new mediums you may never have considered, which in today's rapidly changing media environment are essential for reaching your target audience.

Peter Koeppel is Founder and President of Koeppel Direct

Time to use Verified by Visa and MasterCard SecureCode?

Tue, 09 May 2006 08:54:10 +0000

The Verified by Visa and MasterCard SecureCode programs have not really caught on with cardholders or merchants since their introductions in 2001. The programs were designed to increase both cardholder and merchant confidence in Internet purchasing and reduce disputes and fraudulent activity related to card use.

Since the liability shift from acquirers to issuers for fraudulent card use became effective, however, the programs have provided real value for merchants. For merchants to use Verified by Visa and SecureCode on their e-commerce sites, they must purchase a simple plug-in software module that determines cardholder participation in the service and establishes an Internet connection.

This enables issuers to authenticate cardholders. The implementation process for merchants was at first somewhat complex, but today the various vendor solutions have made it much easier.

The card Associations have marketed Verified by Visa and SecureCode to increase cardholders' confidence in making more online purchases, but the programs really do nothing for cardholders.

In fact, they may take away some of the cardholders' chargeback rights because the issuers cannot pass on the loss to the acquirers and are less likely to credit cardholders when the funds come from the issuers.

The card Associations' zero liability policies have already virtually eliminated consumer liability in cases of card fraud for all transactions.

More for merchants

The programs do a lot for online merchants, though, especially now with lower rates for Verified by Visa and SecureCode transactions. When properly used, the programs eliminate chargebacks for fraudulent transactions. The risk of loss remains with issuers. This is a huge benefit to acquirers and online merchants who have been plagued with "I didn't do it" chargebacks, such as:

Visa Reason Code 83: Fraudulent Transaction-Card Absent Environment
Visa Reason Code 75: Cardholder Does Not Recognize Transaction
MasterCard Reason Code 37: No Cardholder Authorization.

Free network vulnerability scans

To make it easier for merchants to understand, adopt and comply with the Payment Card Industry (PCI) Data Security Standard, MasterCard recently announced the global availability of free network scans for merchants.

Scanning is one of the steps required for many merchants to achieve compliance with PCI. This offering by select companies will allow merchants to learn more about network vulnerabilities and how they can improve network security and achieve PCI compliance. (Go to www.mastercardsecurity.com to find links to the participating security companies.)

Merchants have been slow to adopt Verified by Visa and SecureCode primarily because of the added cost and because of the fear of lost sales due to consumer abandonment before finalizing the transaction.

The true measure should be the merchants' net income rather than the gross sales. Many abandoned sales are fraudulent transactions anyway. The savings from reduced chargebacks and fees and lost product and the new interchange discounts may offset the merchants' upfront expense and extra cost for the services. Both card Associations have a lot of information available on their Web sites that ISOs and MLSs can review to learn more about the programs and to find information helpful to their merchants. Visit:

usa.visa.com/business/accepting_visa/ops_risk_management/vbv.html

www.mastercard.com/us/merchant/security/what_can_do/SecureCode/index.html

Electronic Representment of NSF Transactions

Mon, 10 Apr 2006 16:24:12 +0000

Electronic representment of NSF (Non Sufficient Funds) is a method whereby checks from bank accounts with insufficient funds are repeatedly deposited through the Federal Reserve Automated Clearing House until funds are available.

This is good for retailers because it protects retailers by allowing them to collect upon bad checks from customers that have already received merchandise.

While the process of paper check representment is complicated, simply put, the bad check is held and the customer's account is tracked until the necessary funds to cover the check are deposited. Once deposited, the amount that the check was drawn for is removed.
Some payment processors do not represent NSF checks or electronic checks for their merchants at all and merchants must go through the files to separate cleared transactions from NSF transaction and then create a batch file to resubmit them through the Fed. Others payment processors only perform this representment of NSFs once.

The best option is to have these transactions represented two times after the transaction initially bounces with all of the work done electronically through the payment processors automatic check representment system.

A Serious Look at Electronic Checks as a Payment Option

Wed, 29 Mar 2006 16:37:06 +0000

In 1998 it became legal to accept ACH transactions over the phone without an actual check or signature from the customer. This opened the door for the convenience of electronic checks (e-checks) via phone or internet sales. An estimated 40% of all consumers do not have access to a credit card. Therefore, offering e-checks as an additional payment option is an attractive alternative and facilitates faster phone and internet sales.

Advantages of e-checks:

customer convenience is improved because customers who do not have access to credit cards need another method of payment, e-checks are that method.
e-checks also make life easier for a customer, instead of having to mail in a check to pay for a product or service, it can easily be paid for over the phone or internet.
processing speed is increased because electronic checks can be cleared in a matter of days instead of the standard two to three weeks it takes to make sure a paper check has not bounced.
e-checks have priority over paper checks in the ACH system
e-checks can be electronically re-deposited for recollection of NSF's up to two more times, instead of only once for a paper check.
back office time is reduced because tallying deposit slips, copying checks, and going to the bank are all eliminated.
refunds can also be done electronically. This saves the vendor time and money as no more paper checks need to be drafted and mailed to clients.
reporting is easy because it is all electronic and available daily on-line.
transactions are processed in batch mode if desired, for speed and convenience.

e-checks are typically associated with a lower when compared to credit card costs.

Disadvantages of e-checks:

some customers may still be unfamiliar with the e-check process (giving their routing number and account number) so you may need to ensure that your call center agents or website is familiar with the process so it works smoothly.

e-checks can not be authorized or preauthorized as credit cards are. Because of this, merchants must be willing to wait until the e-check clears prior to shipping merchandise unless they want to ship before clearance, which may take between 3 to 10 days.

How long do you want to live?

Tue, 21 Mar 2006 15:15:19 +0000

That�s the question every DRTV marketer must ask before they decide to launch a product. This goes beyond the costs of getting ready to launch a product on television; and, with success, sustaining the spending as long as the MER (media efficiency ratio) remains favorable. It literally means, �How long a life cycle are you willing to create for the product?�

Yes, you are the one who will determine how long this baby of yours will survive in today�s competitive marketplace. If you want to be a DR product only, life will probably be relatively short. In many instances, knock-offs will take advantage of the category awareness generated through your advertising and get to the store shelves in short order. This can cause response for your product to wane, so you end up dumping it on the retail market at a reduced price until the inventory dies away.

Those who take the fast track to retail get the benefit of distribution based on early success. However, being available on store shelves before creating sufficient product interest and brand demand can result in slower than anticipated sales and the ultimate loss of distribution. This, too, shortens the life expectancy of your product.

So, you might want to consider phasing your product into the market in hopes of it having a longer and more productive life. Because you�ll need inventory and funds for media support, DRTV products usually ramp up the spending until achieving rollout mode. This allows you to maximize the advertising investment in needed to optimize profits. The same kind of thinking makes sense when approaching the retail side of your marketing effort.

Go for selective distribution -- those who are spread out geographically and are willing to hold the price -- while you continue to reap the benefits of DRTV. On a planned basis, continue to add to your distribution network until the move can be made from class to mass retailers. The best time for this is when DRTV sales are peaking and before the copycats start offering their versions of your product. Once you decide to take this plunge, it�s important that all distribution gaps are filled as quickly as possible. This will allow you to generate volume at the store level before the DR sales slow down, which they surely will once your product is readily available at retail. That�s okay, because you can expect to sell many more units through retail outlets than through DRTV.

After that, it�s up to you to continue the marketing and advertising support needed to keep the product going. By doing this, it is reasonable to expect good sales, good profits and a good long life for your brand.

Selecting a Payment Processor

Mon, 13 Mar 2006 12:02:29 +0000

Choosing a payment processor can be a difficult choice as there are numerous factors to consider, such as, pricing, customer service, knowledge of your industry, and integration.

Research: Research your choices before deciding on a processor. Rates, services, and features of processors can greatly vary.
References: Always check references or get a referral of any company you contract to process your payments, as you will be required to give the company access to your checking account. Therefore, it�s important to be sure you find a company you can trust!
Reports: Review the reports that will be provided to you. Usually this is something that is not thought about at the start of a merchant relationship because the focus is on rates and terms. The reality is you have to live with these reports every day. Although your fulfillment house can manage much of this on your behalf, you will still need to be able to balance your bank accounts and understand the status of any transactions or chargebacks. Reports also help you to understand why you are losing sales, such as, why are you getting so many declines. Surveying your report codes and analyzing them are a great source of data.
Customer Service: Find out about the customer service department. No one ever plans on having problems with their account. The fact is, however, that every account will encounter some issue that requires assistance at one point or another. Whether it�s resolving a chargeback or dispute, increasing your limits, or helping you reduce chargebacks. A good payment processor will be able to assist you in all of these areas without billing you for every minute they are working on one of these issues.
Know Your Limits: Research the processing cap limits of your account. If you are in Direct Response, be sure to find a company that is familiar with this industry. Many processors who are unfamiliar with DR will freeze your funds once you start processing beyond the limits of the account because it moves into a possible higher risk category. This can potentially put a company at risk if a freeze like this is unanticipated.
Are Big Banks Better: Don't assume a big bank name is any better, more ethical, has lower costs, or is more efficient. Most big banks outsource all of these services and leave the merchant paying high fees. In addition, getting changes or data can be tough if they are not customer service orientated.
Cancellation Penalties: Be careful of signing a contract too hastily or for a full year. Read the application carefully because many contracts carry a cancellation clause or penalty. There is nothing worse than being stuck with a company that�s not responsive to your needs because they know you won�t take a financial hit to cancel their contract.

The Chargeback Process

Tue, 28 Feb 2006 14:42:35 +0000

The chargeback process is a largely unknown to merchants and can often be a cause for frustration. Therefore, in order to shed some light on this subject let's take a look at the chargeback process used by Visa and MasterCard:

The customer disputes a transaction by contacting their card-issuing bank
The card-issuing bank researches to determine whether the reasoning for the chargeback is valid.
A provisional credit is provided to the customer. The card-issuing bank initiates a chargeback process and obtains credit from the merchant's processing bank.
The merchant's processing bank researches the validity of that chargeback. If they determine the chargeback is invalid they will decline the chargeback and return it to the card-issuing bank.
The chargeback amount is removed from the merchant's account and the merchant's processing bank provides written notification to the merchant.
Did a processing error occur? If so, the sale is re-presented to the card-issuing bank for corrections.
The merchant provides documentation to remedy the chargeback. If the provided documentation is found to be satisfactory, the chargeback is declined and the customer is once again charged for the sale. If the documentation is found to be unsatisfactory, the chargeback is successful and the process ends.

As you can see, there are multiple steps involving multiple parties, and each step requires the responsible party to dedicate a certain amount of time to its management. The resolution of a typical chargeback can take anywhere from six weeks to six months. If each party takes the maximum amount of time to complete a responsibility, it's not hard to see how a chargeback can seem to drag on forever.

Continuity Programs � The Ultimate Upsell?

Fri, 24 Feb 2006 16:00:34 +0000

Continuity is very attractive to the marketer when you figure that the cost of customer acquisition is tempered by the subsequent �free� orders generated by the continuity system.

There are 3 types of continuity programs:

The simplest is shipping the same item over and over again until the customer cancels. We refer to this as our "replenishment" system.

More complicated is the �Time Life� collection that starts with Volume 1 and continues on until the collection is complete (a good marketer never let�s on how many volumes there are until one has half a book case full and has not choice but to finish the collection).

Then there is the �variable� continuity where the end recipient can alter what�s being sent to them in midstream. For cosmetics one could be getting a lipstick every 3 months and might want to vary to the color-- or for nutriceuticals one could change the boost or add or delete an item to their program without canceling the original program.

The key on all these programs is the control they require to manage them without having a nightmare in customer service that boomerangs into returns / refunds / better business bureau letters and the like.. Thoroughly investigate your capabilities on the back end before venturing to quickly into this. It�s pretty easy to start it but quite another to administer.

Could DVR be a friend to DRTV marketers?

Mon, 20 Feb 2006 09:32:56 +0000

More than half the television viewers using DVR (digital video recorders) fast-forward through the commercials when playing back the programs, research tells us. That�s probably not a revelation to most marketers, but claiming this is a benefit to DRTV (direct response television) advertisers may be a bit of a shock.

Consider the following. Most of those recording a show are not available to see it live, but they do want to watch it later. Many record their favorite show(s) just in case they are not home or can�t watch the program for some other reason. So, the actual numbers of those not being exposed to commercials is not known. However, it is safe to assume that the overwhelming majority would choose to view most programs in real time if they could � commercials and all.

The shows being recorded are usually a specific prime time series or big events, not the type of programs carrying DR spots, day time programming (such as �Soaps�) would obviously be an exception. Most DRTV spots appear in what is considered alternative programming, which normally do not meet the criteria for recording. On the other hand, late night programming -- especially the half-hour infomercials -- may lose some viewers to those preferring to play back the shows they missed rather than engage in channel surfing. Although, the greater problem for infomercials could be the on-screen TV Guide scroll, used by many to avoid tuning in to a paid program.

There�s little reason to worry about DVR pirating away a large number of potential DRTV buyers in the near term. However, as the penetration of these recorders continues to grow, both general and DRTV advertisers will need to address the potential fall-off in live viewers and what this might do to the effectiveness of their advertising spending.

Making Waste In Our Haste: You Don�t Need to Break the Sound Barrier to Get Retailers to Notice Your Product

Thu, 16 Feb 2006 15:00:47 +0000

Confident manufacturers sometimes foolishly rush to market with products that could sell much better if they were launched a little slower.

We�ve all been there. You have a great idea that you�ve turned into a product that�s blistering to be sold. You�ve rushed the manufacturer, air freighted cargo across great distances, spun out miles of marketing and sales materials, and alerted everyone that the derrick is about to burst. You can actually see the light at the end of the tunnel and it�s shining a golden path to your retirement.

Yes� �We�ve� all been there. �We,� the ones that now know better, that is!

I suppose it is only human nature to want to get everything done as soon as possible so that we can find time to do more. We sometimes thrive on productivity. As members of today�s fast-paced society, we strive to do things quickly. I sometimes wonder why, and then I see a Fed Ex truck go by and it all begins to make sense. We have an innate propensity towards positioning ourselves to be successful so that we can demonstrate to others that we�ve accomplished more than they have. However, more often than not, we are simply making waste in our haste.

Ironically, we can actually be more successful by doing less and doing it slower. Certainly there are fewer mistakes and less waste if things are done at a more measured pace, or at least with better planning. Unfortunately, it is very hard to demonstrate this reasoning to someone with a new product.

I speak with experience on this subject as I�ve had four and five figure Fed Ex bills for years now. I have anxiously fired off sample after sample of products to buyers that I�m certain just can�t wait to see my shiny new products. The proper packaging, marketing materials, price list, etc. can always wait. Just get it packed and out the door because it feels so good to think that you are one step closer to having a successful product.

This is obviously not a commercial for Fed Ex (Not that the world would be able to thrive without them!) God knows, I�d be up a creek if I couldn�t drop a package off at Kinko�s in L.A. at 6:00pm and have it sitting on a customer�s desk in N.Y.C. at 8:00am the next morning.

So, after reading the above, why in the heck would you want to listen to me? I�ve fallen prey to my own desperation many times. Certainly you can find someone better than me to take advice from. Or can you? Probably not, because it takes experience on all levels to properly advise a new manufacturer. Furthermore, I�ve had substantial success in getting my Wizard Industries, Inc. (http://wizind.com) products to market. Notice how I take this opportunity to promote my own inventions!

So enough of the babble� I just wanted to point out that if you plan, think ahead, and don�t get impatient you can possibly see the light from the end of the tunnel without getting hit by the train. There are a gazillion ways to succeed without rushing if you can only hold out until the time is right to deliver the goods. As they say, �patience is a virtue,� �all things come in time,� �don�t rush to hurry up and wait,� etc, etc, etc�. You know the drill.

Here are a few things to consider before you launch your products and plan that next big rush job:

1. Sit on your hands until your product is totally ready for presentation. The first thing that kills a product is lack of completion when it comes to manufacturing, packaging, marketing materials, PR and pricing. It�s better not to send samples and information until all of the above are complete. In other words, don�t serve the eggs until they are cooked!

2. Chances are that the buyer you are rushing a package off to is not going to rip open the box as soon as it lands at his doorstep. He will likely follow up on the package he overnighted to someone more important than you.

3. Know who and where you are sending the samples or materials to! Retailers and the media receive loads of products each week. You are far from alone in the crowd of �buy my product� screamers. More than 90 percent of new products fail. Of the 10 percent that make it only about five percent do well enough to be called successful. The others are simply treading water until they die. The five percent that are true successes are invited to be in the top retailers, the retail giants. The other 95 percent are in the same boat as you are, wanting to get in front of a buyer that will put them in a store. Imagine the time it takes a buyer or whole departments of large retailers to sift through, pillage and donate products to charities or simply toss new products into the scrap bin. It�s a daunting task. In our office, there are so many samples that are not added to our system that last year it took several trucks to get rid of them. And we try very hard to sell everything that comes our way.

4. Follow up with every sample or piece of sales material you send out. It sounds like a lot of work but the returns are very worthwhile. Furthermore, pace yourself. Don�t send out more samples and materials than you can follow up on within one week of sending.
Here�s a test:
Do you read and evaluate all of the junk mail you get each week? Imagine how retailer buyers feel after seeing their desks buried under mail from manufacturers that feel they have the greatest thing since sliced bread. I bet most could open a Subway sandwich franchise and never have to spend a dime on bread if all of the sample products they receive really cut the mustard.

5. Remember the sermon above about not rushing? Well, there is one thing you can rush: responding back to a buyer when you are lucky enough to get an inquiry about your product. But in your speedy response don�t be overzealous and, above all, don�t blow the sale by rushing them to order.

If any of this is useful (and it all should be) please let us know. We�re in the same boat as you are. And it�s a large, wide, and very deep ocean.