The New Frontier of Advertising: Why Your Business Needs Both TV and Internet Ads to Survive

Today, television and the Internet are merging, at least when it comes to advertising and reaching potential customers. No longer are customers using only one medium to learn about new products and services. Rather, customers appreciate and expect companies to take a multi-media advertising approach when selling products and building brand awareness. As such, smart marketers are using the synergy created from the convergence of television and Internet marketing to capture the lion’s share of the marketplace.

For example, many television networks are now selling TV and online ads as part of a marketing package. That is, when you purchase a television ad you can also purchase online advertising, such as a video ads, on a network’s website. The TV networks realize that a company’s online presence is becoming increasingly important, and networks are trying to create better online content to combine with their TV packages.

Taking the merging of the two mediums a step further, NBC is developing a tool called Total Audience Measurement for advertisers, which examines the amount of time viewers spend with NBC programming, both online and on TV. This tool will help advertisers better understand how the two marketing mediums work together and how much the online portion of a company’s advertising impacts their bottom line.

So why is this multi-media approach gaining so much attention? Consider the facts:

  • The Weather Channel did a study and found that ad recall was 23% higher when people saw a commercial on both TV and the web, versus when they saw the commercial on TV alone.
  • Additional studies reveal that anywhere from 15 to over 70% of customers make their purchase via the web when they’re offered an 800 number and a website in a television ad.
  • TV networks have found that people who are surfing the web are more attentive than people watching TV. In fact, web video commercials increased viewer attention rates by 53%, viewer awareness by 52%, and brand consideration by 27% over traditional TV spots, according to Millward Brown’s CTV-1 Study
  • The bottom line is that if you’re not using both television and online ads to reach customers, you’re missing a huge share of potential revenue. To help you successfully integrate your television and online presence, use the following suggestions to guide your marketing efforts.

  • Use your existing TV spots to drive people online.
    If you watch any television channel, you can see that many programs direct viewers to the web. The website will then give viewers additional information about the show, interviews with cast members and/or producers, or even clips from upcoming episodes. Programs such as Fox’s 24 and MTV’s The Hills are well-known for this approach. According to the Scripps Networks, 80-90% of their online audiences have watched the network’s TV channels within a week. So there’s a lot of interplay between the two mediums and it’s a good idea to run a customized version your TV ad on the network’s website too.
  • Realize that you can use this same concept with your company’s TV ads. Make sure all your television advertising includes a website mention and perhaps even web-only specials that people can receive. Use your site to offer people more information about your product or service, coupons, testimonials from real-life customers, and even some interactive features such as blogs or message boards where customers can get involved. When started using their site for customer involvement, they saw a 70% increase in ad revenue. There’s no reason you couldn’t achieve similar increases in sales on your site employing some of these ideas.

  • If you’re a web-only business, use TV ads to give your online presence a boost.
    With all the technology available today, being a web-only business is not just feasible, it can also be extremely profitable. However, web-only businesses that do web-only advertising need to realize that TV is the biggest mass medium and has a proven ability to drive people to the web. So don’t ignore television and think it’s not applicable to your web-only business. For example,, the online dating site, is a web-based business and initially did web-only advertising. When they added TV commercials to their advertising mix, its been reported that they grew rapidly from approximately $10 million to an estimated $100 million in revenue. So while online ads are certainly effective for online businesses, remember to use the power of television to grow your web-based business even more.
  • Buy online keywords that match your television advertising.
    Since people watching television may not be 100% focused on your ad, you need to make it easy for them to find you later. So even though you may offer a website address and phone number in your TV commercial, don’t expect viewers to always write them down or remember them. However, chances are they will remember the name of your product, or at least a close variation of the product’s name. Therefore, when you buy keywords for your online presence, be sure you purchase not only the name of your product and company, but also variations of your product’s name that not-so-focused consumers can type into a search engine to locate your site. This is one example of how the combination of TV advertising and keyword search works together to improve results.
  • Customize your message to suit the medium.
    Web video advertising needs to be shorter than the typical TV ad. In general, plan your online commercial to be 15 seconds in length. TV commercials typically are anywhere from 15-60 seconds in length, even longer with a direct response spot. If your online commercial is a pre-roll ad that runs before the video segment people are downloading, realize that viewers don’t want to watch a long ad. So in this instance, shorter is better. However, if it’s a freestanding online ad that’s not connected to a video, then you can use a longer format. Many companies who use infomercials, which are typically about 28 minutes in length, shorten it to a 2-minute segment on the web. If possible, have the spokesperson who appears in your TV spot also appear in your web advertising, so there’s a tie in between the two mediums.
  • Take advantage of web-based TV.
    Some TV networks are now creating their own webisodes. These are television-like shows that appear on the web only. For example, in preparing to roll out a web-based show called Cocktails. During each webisode, advertisers will have the opportunity to present ads that thematically tie in with the videos the viewers are watching. As the networks attempt to capture some of the ad dollars that are switching over to the Internet, you’ll likely see more websites with relevant content that engage viewers.
  • In addition, there’s also an emergence of TV networks that are developing on the Internet. One of the forerunners in this medium is Joost, which offers TV programming online. Some of the programming is original, while the rest is from networks like MTV. Since many big name advertisers are realizing that audiences are migrating over to the web, they are committing advertising dollars to online networks like Joost, in order to capture new audiences.

    Another TV network called Ripe TV is taking multi-media advertising to the extreme. Not only do they have traditional television and online ads, but they also have TVs shows online, downloadable podcasts, video on demand, and content people can download onto their mobile phone. It’s an entire network that has developed on the web and has components that cross over into other mediums. Getting your advertising on just a few of these options will certainly increase your company’s presence.
    The Future of Advertising is Now

    Companies that are relying solely on one advertising medium are missing the mark. It takes a combination of television and Internet advertising to make a true impact on today’s consumers. So leverage your marketing dollars by using the synergy of TV and online ads. When you do, your company’s brand recognition will grow, and so will your bottom line results.

    Peter Koeppel is Founder and President of Koeppel Direct, a leader in DRTV and direct response television online, print and radio media buying, marketing and campaign management. With a Wharton MBA and over 25 years of marketing and advertising experience, Peter has helped Fortune 500 companies, small businesses and entrepreneurs develop direct marketing campaigns to increase profits.

    Peter started Koeppel Direct in 1995 and has built it into one of the leading direct response media buying firms in the U.S.

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    Television Media Buying versus Online and On-Demand Media Buying

    While television media buying remains a key plank in the direct response marketer’s strategy, it has become more and more challenging to get a pure-play DRTV hit. The high cost of television media coupled with more competition for media slots makes it harder than ever to launch a new DRTV product.One of the problems is that there are more direct response marketers on television than ever, competing in the same product categories for the same avails. We are also seeing an erosion in the value of linear television itself. Technology influences and lifestyle changes are diluting the mass-market effects that made broadcast TV such an attractive advertising medium in the first place.

    Following are some of the factors contributing to this erosion:

    • A flood of new cable channels and niche programming options are undermining the mass-media marketing formula
    • Overall television viewership is decreasing; television advertising is reaching a smaller audience
    • Television viewers are forwarding past commercials using DVR technologies such as TiVo
    • More and more viewers are multi-tasking while watching television. Our busy lifestyles and multi-media remote controls are filtering out more and more television ad content.
    • DVDs, video on demand (VOD), video games and other technologies are competing for viewers’ attention/time
    • Pirating of television shows on peer-to-peer networks using technologies such as BitTorrent
    • Today’s consumers prefer the Internet over television for product information; they tend to be tougher, more educated buyers

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    Darts Against the Media Buying Board

    For DRTV media buying professionals, there’s no relief in sight, at least from Jacobs’ perspective. The fact that media time is tight, prices are high and results are less than desirable has pushed this media buyer to switch to the kind of media plans that he used back in the early 1990s: buy more broadcast than cable, since the former is more negotiable.

    “While it’s tougher to make broadcast work, we’re taking our network orders and doing market purges and buying those markets that index over 100,” says Jacobs. “We’re trying to pick the markets using some kind of logic, instead of just throwing darts against the board.”
    Rob Medved, president at Cannella Response Television Inc. in Burlington, Wis., credits an increasingly fragmented channel lineup and notable news events with creating a “very inconsistent viewing audience,” this year. He says short-form DRTV media on larger networks has been very difficult to obtain, which is not very different from last year.
    “Healthy scatter and hybrid DRTV media buying do not allow for much remnant inventory,” says Medved. “At the same time, the rise in the price of gas and a slowing of the housing market run have also curbed the response pocketbook.”

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    Media buyers have always wanted to get inside consumers minds.

    It’s the media buyers Holy Grail: being able to read your target customers minds. Although that exact ability may yet elude our grasp, current research is bringing us remarkably close to that precognitive reality.
    “In the past, we’ve used things like focus groups,” says Akshay Rao, General Mills professor of marketing at Minnesota’s Carlson School of Management. “Now, I can actually look inside your brain as you look at an advertising piece that has yellow, green, and blue versus a black and white piece, and tell whether the yellow, green and blue piece is generating more neural activity.”
    To accomplish this, Rao uses a functional Magnetic Resonance Imaging (fMRI) scanner to peer into consumers brains. Basically a giant doughnut-shaped magnet, an fMRI scanner enables researchers to see how much oxygen different parts of the brain are using while the test subject lies on a narrow table with his or her head in the “hole” of the donut. The most active areas display the most oxygen flow and “light up” on the scanner.
    Advocates of neuromarketing research say that its results are more objective and accurate than results gained using customary research methods such as surveys and focus groups. “With traditional marketing research techniques, people do not always express their true feelings, so information is often not reflective of what the consumer is actually thinking,” says Peter Koeppel, president of Koeppel Direct, a firm that provides multi-channel direct-response services.
    “Neuromarketing allows media buying experts to understand the impact of their ad on the consumer’s brain,” he says. “By reviewing and analyzing this information, the marketer can change the marketing campaign to improve consumer response, which translates into a better return on investment.”
    That improved understanding of how campaigns affect consumers is the first step toward creating more intimate relationships, says Rao, who is also the director of the Carlson School’s Institute for Research in Marketing. “When I do consulting work for companies, I tell them to develop consumer intimacy,” he says. “With neuromarketing, we have a physiological means of assessing whether those intimate relationships have been established.”

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    Marketing Firm Announces Integrated Media Buying Services

    Nationally recognized direct response media buying firm, Koeppel Direct, introduces their breakthrough Multi-Channel Direct Response approach to media buying.
    Koeppel Direct, a leader in direct response media buying for the past decade, is launching a new service: Multi-Channel Direct Response media buying. The announcement will take place at the upcoming Electronic Retailers Association meeting. This new service combines direct response media buying for television, online media, print and radio. This industry-transforming announcement of Koeppel Direct’s new media buying approach will enable direct marketers to maximize profits from their direct response advertising.
    As part of their Multi-Channel Direct Response media buying services, Koeppel Direct has formed Koeppel Interactive, a specialty division providing online buying for direct marketers. The combination of direct response TV, online, print and radio media buying services allows Koeppel Direct to maximize campaign performance for direct marketers.
    “Our Multi-Channel Direct Response media buying approach brings together a full range of media options and allows us to find the channels that perform best for each campaign,” touts Peter Koeppel. “This helps optimize clients’ media campaigns and maximize their return on investment.”
    Koeppel Direct is headquartered in Dallas, Texas, with satellite offices in Detroit, Austin, Iowa and Chicago. The Electronic Retailers Association meeting will take place in Las Vegas, Nevada, on September 9th – 12th.
    Peter Koeppel is Founder and President of Koeppel Direct, a leader in direct response media buying, marketing, campaign management and creative strategies. With over 25 years of marketing and advertising experience, Peter has helped Fortune 500 companies, small businesses and entrepreneurs develop marketing campaigns to increase profits. Peter is a Wharton MBA and has improved the media buying strategies and advertising for clients such as H.J. Heinz, DIRECTV, Hair Club, Ben Hogan Golf, and Little Giant Ladder.

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    Develop an Ongoing Advertising Campaign with a Consistent Message

    Don’t run a TV ad one day where you call your company the “low-price leader,” and then do a radio ad where you call your company the “solution for the discerning customer.” Those are two completely different brands and images, and you’ll only end up confusing your prospects. Realize that no brand is born overnight. It takes lots of repeated messages to get the brand into people’s minds. So be consistent with your advertising messages. Additionally, advertise on a continuous basis. That’s the only way people will become familiar with you, thus increasing your name and brand recognition.
    Use Public Relations to Get Your Name Out There
    Along with media buying and advertising, you need to do some public relations to make your name known. One great way is to write and publish articles about your business and industry. You can also be a featured guest on radio and TV programs. A good PR firm can help get you in the media’s limelight. Without a doubt, public relations is a great and easy way to increase your name recognition.

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    Media Buying Guru Awarded Placement In Prestigious “Who’s Who in America”

    Media Buying expert Peter Koeppel has been awarded a position in the Marquis Who’s Who in America. The only way to obtain entry into the 2007 (61st) Edition is to be nominated by a prior recipient and then to be selected for inclusion.
    Peter Koeppel is Founder and President of Koeppel Direct, a leader in direct response media buying, marketing and campaign management. With a Wharton MBA and over 25 years of marketing and advertising experience, Peter has helped Fortune 500 companies, small businesses and entrepreneurs develop marketing campaigns to increase profits.
    Koeppel Direct recently sponsored the National Young Inventors Competition in Washington, DC., in conjunction with the Electronic Retailers Association and the Future Business Leaders of America.
    “I’m honored that I was selected for inclusion in such a prestigious publication,” commented Koeppel.
    Since 1899, when A.N. Marquis printed the First Edition of Who’s Who in America, Marquis Who’s Who has chronicled the lives of the most accomplished individuals and innovators from every significant field of endeavor — including politics, business, medicine, law, education, art, religion, and entertainment. The Marquis Who’s Who in the World publication is viewed by many as among the most prestigious. Today, Who’s Who in the World remains an essential biographical source for thousands of researchers, journalists, librarians and executive firms globally. In addition, the company’s on-line database enables users to search through more than 1-million biographical entries.

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    Media Buying and is a website where 40 million kids hang out regularly. Membership has quadrupled since January 2005, according to Business Week. The site ranked number 15 in terms of page hits last October according to Nielsen//NetRatings. The number of unique visitors grew by 12% in October to 24.2 million. That’s why two Los Angeles entrepreneurs, Chris De Wolfe and Tom Anderson, who started MySpace, were able to sell it to Rupert Murdoch’s New Corp. for $580 million.

    Why should a media buyer care about MySpace and similar sites?  These social network sites are a great place to reach the nation’s 24 million teenagers (Source: Pew Internet & American Life Project). Teens are traditionally a hard to reach group, but they have tremendous spending power and can’t be ignored by drtv marketers. Teens have a combined spending of $175 billion and college students account for $200 billion in spending, according Alloy Media + Marketing.

    Any savvy media buying expert needs to understand that 87% of 12-17 year olds use the Internet, vs. only two-thirds of adults, according to the Pew Internet & American Life Project. In addition, 65% of this group Instant message (IM) and they consume many forms of drtv media, including surfing the net, watching TV and playing video games 6 ½ hours a day, according to a Kaiser Family Foundation survey. This makes them a hard group to reach, but MySpace provides a new opportunity to tap into this market segment.

    Peter Koeppel is Founder and President of Koeppel Direct

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    What other media buying options do firms have?

    What other media buying options do firms have besides traditional spots?

    Many direct response TV media buying experts are running their commercials on their Web sites and including an 800 number. This is a good way for someone with a limited budget to advertise.

    What role will the Internet play in shaping the future of DRTV?

    Currently, anywhere between 15 percent to 50 percent of the direct response TV purchases are coming from the Internet. Half the people watching TV are simultaneously online, and more than half of the online audience now has access to high-speed Internet connections. This has fueled the growth of DRTV sales on the Internet. It also has allowed for streaming video of TV commercials on the Web. This has helped to reinforce the direct response TV message online, which has translated into more online business for DRTV media buyers.

    What coming trends do you foresee in direct response TV?

    I expect video on demand (VOD) to become a big growth area for direct response TV marketers. This will allow consumers interested in finding out more about a particular product or service to view a longer format commercial, somewhere between a short- and infomercial DRTV spot length. Comcast and others are aggressively moving forward with VOD programs.

    Due to the fragmentation of the viewing audience, I expect to see the industry start to air commercials in new mediums such as cell phones, iPods, gaming devices, etc., to more efficiently reach various segments of the population.

    Peter Koeppel is Founder and President of Koeppel Direct

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    Million Dollar Media Buying Mistakes

    Mistake #1: Delivering the wrong message. You can usually best appeal to your target market by clearly stating the benefits of the product and making sure those benefits are relevant to that target audience’s needs or “hot buttons”-both pleasurable and painful. Certain types of drtv ads, such as for weight loss, hair restoration, and skin care products, demand “Before” and “After” shots to give the product credibility, show results, and deliver a positive message about the company’s belief in its product and what it can do for the consumer.

    Mistake #2: Not running drtv ads often enough. You’ll generally need three exposures to build awareness and motivate someone to respond to an ad. By spreading your media buying over too many different types of media, your intended audience might not get those three exposures, and they won’t take the action you want them to.

    Based on your budget, focus on the highest-performing media for your type of product; this will allow your target audience to see the ad enough times to build awareness. Research services like MRI research can help you with this. They survey 26,000 consumers every year. You give them information, and they give you a goldmine of drtv research tailored to your needs, such as the television networks and shows your target audience watches with the highest frequency. Again an experienced media buyer can help you navigate through the relevant research information.

    Mistake #3: Utilizing the wrong media to reach your target prospects. Seniors, for example, still don’t use the Internet as much as younger people do. So if you have a senior product, focusing your drtv marketing efforts on the Internet might not be a good idea. Similarly, if you’re trying to reach a smaller, niche audience, TV or radio might not be the best fit, since they reach a broader, mass audience. Consider a specialty print publication like a trade journal or a local interest publication to more effectively reach potential customers. Work with and media buying expert to pinpoint the right media to research your target audience.

    Peter Koeppel is Founder and President of Koeppel Direct

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