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+DR DisruptionSocial and Over-the-Top television are revolutionizing the way                                              ...
Through conceptionThrough developmentThrough promotionThrough protectionThrough success
Vol. 9, No. 2 | February 2012        tableofCONTENTS                                                                      ...
EVOLVE.                                                 With the advent of the technology era, keeping                    ...
The                                      TABLE OF CONTENTS                    DRTV                                        ...
CALENDAR                FEBRUARY-MAY 2012 INDUSTRY EVENTS                                                                 ...
YOUR ASSOCIATION, YOUR BOTTOM LINE                                        BY JULIE COONS                       A Time for ...
GREAT I D E A S ATC-LEVELT H E G R E AT I D E A S S U M M I T R E T U R N S T O M I A M I .For 2012, we’re back in the hot...
INDUSTRY REPORTSConnect, Collaborate and Discover with MyERAARLINGTON, Va. – The  Electronic                              ...
INDUSTRY REPORTS                                                                                            Read Electroni...
for our customers, Vice President of           industry, has moved into its new cor-Business Development Curtis Kleinman  ...
INDUSTRY REPORTS FTC ForumWhere the FTC SaysFacebook Went WrongBY LESLEY FAIRIt’s no surprise the FTC’s proposed privacy s...
The DRTV Experts ThatDrive Multi-Channel SalesAt Koeppel Direct we start by thinking inside the box to deliversales outsid...
EMARKETER RESEARCHWho is the U.S. Hispanic Market?  The U.S. Hispanic population is booming, and eMarketer estimates that ...
U.S. Hispanic Internet Users and Penetration, 2009-2015 (millions and % Hispanic population)                              ...
RETAIL RANKINGS         RETAIL INFOMERCIAL RANKINGS BY MEDIA FOR DECEMBER 2011                       LONG-FORM PRODUCTS SO...
SPOT RANKING BY FREQUENCY FOR DECEMBER 2011                       SHORT-FORM PRODUCTS SOLD ON TV                       Bas...
JORDAN WHITNEY’S TOP CATEGORIES                         JORDAN WHITNEY’S TOP INFOMERCIAL CATEGORIES                       ...
JORDAN WHITNEY’S TOP TRADITIONAL SHORTFORM CATEGORIES                            FOR DECEMBER 2011                      H...
LOCKARD & WECHSLER’S CLEARANCE & PRICE INDEX                                                                              ...
1 2 0 -s econd Clearance           3.00           2.50           2.00           1.50           1.00           0.50        ...
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
Electronic Retailer Magazine, Itv Story
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Electronic Retailer Magazine, Itv Story

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In this technology-focused issue of Electronic Retailer magazine, I am featured in a story discussing ITV, along with leaders at Discovery Communications and Comcast who are also pioneering ITV as a new form of advertising available to enhance engagement with TV Viewers.

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Electronic Retailer Magazine, Itv Story

  1. 1. +DR DisruptionSocial and Over-the-Top television are revolutionizing the way Bienvenido a Miami! Page 32people view and interact with content across platforms andnetworks. Direct marketers must learn these new trends if Interactive TV:they hope to survive TV’s brave new world. Just a Click AwayPage 28 Page 36
  2. 2. Through conceptionThrough developmentThrough promotionThrough protectionThrough success
  3. 3. Vol. 9, No. 2 | February 2012 tableofCONTENTS FEATURES 28 DR Disruption Social and Over-the-Top television are revolutionizing the way people view and interact with content across platforms and networks. Direct mar- keters must learn these new trends if they hope to survive TV’s brave new 28 Social and Over-the-Top world. By Sarah Sain TV are revolutionizing the way people view 32 programming. Bienvenido a Miami! The Great Ideas Summit 2012 returns to Florida, where ERA members andDEPARTMENTS RESEARCH direct-to-consumer industry leaders will gather for education, networking 7 Calendar of Events 16 eMarketer Research and fun in the sun. Upcoming Industry Events Who is the U.S. Hispanic By Sarah Sain February through May Market?11 Industry Reports 18 IMS Retail Rankings 36 Interactive TV: Connect, Collaborate and The Top 25 Shows and Spots Just a Click Away Discover with MyERA 20 Jordan Whitney’s Learn how both viewers and the52 Member Spotlight Top Categories direct marketing industry will reap The Top 5 Shows and Spots the benefits of interactive television’s54 Advertiser Spotlight and the Top 3 Categories rapid growth in 2012. Highlighting This By Jacqueline Renfrow Month’s Advertisers 22 Lockard & Wechsler’s Clearance & Price Index55 Bulletin Board 40 Index for 30, 60 and What Your Consumer Says DG and Discovery Launch 120 Seconds About You Matters Digital Distribution System The marriage of customer55 Advertiser Index testimonials and social media is56 Classifieds unveiling legal issues that the FTC and the industry must quickly balance in order for direct response to maintain its integrity. By Peter Marinello4 electronicRETAILER | February 2012
  4. 4. EVOLVE. With the advent of the technology era, keeping up with the fast changing information world can be a real challenge. Fortunatelly for you, we love challenges. InfoShare, our in-house designed software, coupled with state of the art computers from IBM, MFLS provides a large base of reports and services giving your business a brand new way of getting the total picture. • Advanced "click and drag" GUI system allows for ease of use and flexibility to reporting • Customized landing page allows our clients to see what is important to them at first glance • Dozens of filters to extract the data you need • Easy export of information to your spreadsheets … and MUCH MORE! EXPERIENCE INFOSHARE FIRST HAND. CALL US TODAY AT (909) 517-2200 AND FIND OUT WHY WE CAN BE A GREAT ASSET TO YOUR COMPANY. RETAIL DISTRIBUTION MFLS award-winning LogistiShare Program offers our clients real time access to our advanced warehouse management solutionDIRECT RESPONSE FULFILLMENT offering solid performance and reliability, developed to enable unlimited scalability• 24-Hour FDB Web Access and flexibility, assuring compatibility with• Continuity and Installment Programs our clients.• Save the Sale/Upsale Programs • Full EDI and XML Integration• 88 Customer Service Stations • Daily shipments to all major retailers• Secure Electronic Communications • Full electronic access to daily shipments• Negotiated Postage and Freight Discounts • 4PL supply chain management• Shipping warehouses in California and • 24-hour shipping and inventory access other locations across the country. • Lowest negotiated freight rates 36 years MOTIVATIONAL FULFILLMENT & LOGISTICS SERVICES 15820 Euclid Ave. • Chino, CA 91708 Tel (909) 517-2200 • Fax (909) 517-1570 R www.mfals.com © 2012 Motivational Fulfillment & Logistics Services
  5. 5. The TABLE OF CONTENTS DRTV 36 Fulfillment iTV allows viewers to request information, learn about local deals or buy Leader new products with a click of the remote. Visit www.MoultonLogistics.com/demo for a free demo and learn why the biggest names in DRTV have chosen Moulton. COLUMNS CHANNEL CROSSING R RTV Specialists Direct-to-consumer and Retail Fulfillment 8 Your Association, 49 DRTV Your Bottom Line Supporting Retail: Is This A Time for Community the Answer? and Conversation By Dick Wechsler By Julie Coons 14 FTC Forum 50 Fulfillment Bi-coastal Locatio Bi coastal Locati ns t tions Contact Center Contact Center Where the FTC Says Are You Delivering a Great Facebook Went Wrong Customer Experience? By Lesley Fair By Yolanda Kokayi 24 Ask the Expert 51 Teleservices Who Says Kids’ Products Real time DRTV Real-time Don’t Sell on DRTV? Stop Losing Thousands Analytics of Leads Timothy Hawthorne By Scott Richards 26 From the Executive’s Desk Create the Complete Package By Steven Feinberg 44 Guest Viewpoint For Hispanic Vote, the DRTV Software Suite Developed Campaign is On In-house by Moulton By Marcelino Miyares Jr. 46 Guest Viewpoint Own Your Own Online Media By Jaffer Ali 58 Rick Petry MINI Me By Rick Petry 888-765-Moulton www.moultonlogistics.com Celebrating 40 years of integrity and service. Proud to be the first in the electronicretailermag.com direct response ©2012 Electronic Retailing Association. All rights reserved. Published by Naylor, LLC. No part marketing industry for of this publication may be reproduced or transmitted in any form or by any means, electronic real-time DRTV analytics or mechanical, including by photocopy, recording or information storage and retrieval system, and total transparency. without permission in writing from the publisher. Reprints of articles are available. Visit www.naylor.com, click on “Client Support” and select “Article Reprint.”525237_moulton.indd 1 4/11/11 8:15:07 AM 6 electronicRETAILER | February 2012
  6. 6. CALENDAR FEBRUARY-MAY 2012 INDUSTRY EVENTS Online Marketing Summit 2012FEBRUARY 2012 | VOLUME 9 • NUMBER 2 Feb. February 6-10, 2012Electronic Retailing Association2000 North 14th Street, Suite 300 6-10 Hilton San Diego Bayfront San Diego, Calif.Arlington, VA 22201Toll Free: (800) 987-6462 | Phone: (703) 841-1751 For more information, visit www.onlinemarketingsummit.comFax: 703-841-8290www.retailing.org Social Media Strategies Summitinfo@retailing.org Feb. February 7-9, 2012We’re moving! Look for ERA’s new address at www.retailing.org. 7-9 Mirage HotelPresident and CEO: Julie Coons Las Vegas, NevadaExecutive Director, ERA Europe: Marcel Avargues For more information,Chief Financial Officer and Chief Operating Officer: Kevin L. KellyVice President, Government Affairs: Bill McClellan visit www.socialmediastrategiessummit.com/2012vegasVice President, Marketing and Content: Dave MartinVice President, Sales and Group Show Director: Evan Shubin The Great Ideas Summit 2012 Feb.Electronic Retailer magazine is 27-29 Presented by ERApublished for ERA by February 27-29, 2012Naylor, LLC5950 NW 1st Place Fontainebleau Miami BeachGainesville, FL 32607 Miami, Fla.Toll Free: (800) 369-6220 | Phone: (352) 332-1252Fax: (352) 331-3525 For more information, visit www.eragreatideas.orgwww.electronicretailermag.comEDITORIALSenior Editor: Sarah Sain Feb. Washington in Miami –ssain@naylor.com | (352) 333-6020Managing Editor: Elaine Richardson 28 A Networking Reception to Benefit the ERA PACelaine@naylor.com | (800) 856-8092 Presented by ERALayout and Design: Barry Senyk 6:00 p.m.-7:30 p.m. February 28, 2012Photography: Brian DavisMarketing: Kaydee Currie Fontainebleau Miami BeachContributing Writers: Peter Marinello, Jacqueline Renfrow Miami, Fla.Contributing Columnists: Jaffer Ali, Lesley Fair, Steven Feinberg, For more information, visit www.retailing.org/eventsTimothy Hawthorne, Yolanda Kokayi, Marcelino Miyares Jr.,Rick Petry, Scott Richards, Dick WechslerEditorial Submissions eMetrics Marketing Optimization SummitSend press releases and other data to ssain@naylor.com March March 4-9, 2012ADVERTISING 4-9 Marriott Marquis San FranciscoPublisher | Charles Poppercpopper@naylor.com | (888) 404-6154 San Francisco, Calif.Publication Manager | Heather Ciocca For more information, visit www.emetrics.org/sanfranciscohciocca@naylor.com | (352) 333-3463Publishing Consultant | Gina Mullins-Cohen Merchant Risk Council’s 10th Annual e-Commercegcohen@naylor.com | (949) 276-2346Publication Director | Matthew Yates March Payments & Risk Conferencemyates@naylor.com | (352) 333-6014 27-29 March 27-29, 2012Sales Representatives | Pam Blasettiblasetti@naylor.com | (352) 333-3423 Wynn Las Vegas| Shaun Greyling Las Vegas, Nev.sgreylin@naylor.com | (352) 333-3385| Scott Pauquette For more information, visit www.merchantriskcouncil.orgspauquette@naylor.com | (352) 333-3446 ad:tech San Francisco| Jessica Semoninjsemonin@naylor.com | (352) 333-3357 April April 3-4, 2012MAGAZINE ADVISORY BOARD 3-4 Moscone Center WestMAB Chairman: Dick Wechsler, Lockard & Wechsler Direct San Francisco, CaliforniaHal Altman, Motivational Fulfillment & Logistics ServicesBrendan Condon, REVShare For more information, visit www.ad-tech.comDanette Dickerman, R2C GroupStacy Durand, Revenue Frontier/Media Design Group April 2012 ERA Hong Kong SeminarMarty Fahncke, FawnKey & Associates Presented by ERAEdward Glynn, Venable LLP 20 April 20, 2012Harry Hill, Oak Lawn Marketing GroupMaria Kennedy, Discovery Communications Hong Kong Convention & Exhibition Centre (CEC), 1 Expo DrivePeter Koeppel, Koeppel Direct Wanchai, Hong KongGary Latz, a2b Fulfillment Inc. For more information, visit www.retailing.org/eventsCollette Liantonio, Concepts TV ProductionsRobert Logie, Studio ModernaKen Musante, Direct Response PaymentsRick Petry, Creative Writer, LLC May Government Affairs Fly-InJoan Renfrow, Onyx Productions Direct Inc. 7-8 Presented by ERAGene Silverman, Hawthorne Direct May 7-8, 2012Anthony Sziklai, Moulton Logistics ManagementJeff Tuller, Savvier Washington, D.C.Dan Zifkin, Zephyr Media Group For more information, visit www.retailing.org/eventsSUBSCRIPTIONSEmail Jerry Rozario, JRozario@retailing.org Please send your upcoming industry event listings to Sarah Sain at ssain@naylor.com.Published February 2012 ERA-M0212/6655 Note: Dates and locations are subject to change. February 2012 | electronicRETAILER 7
  7. 7. YOUR ASSOCIATION, YOUR BOTTOM LINE BY JULIE COONS A Time for Community and Conversation tThere’s been a lot of buzz surrounding The Great Ideas Summit 2012. And much of that excitement is attrib- uted to our return to Miami – a favorite destination for many. We’ll be rolling out the red carpet at the Fontainebleau Miami Beach and gearing up for three days of high-powered networking and deal making. Aside from the receptions, exhibits and special events on our agenda, we also have assembled a great educa- tion program that will include the Keynote Presentation along with long-form and short-form sessions located right on the Show Floor. On February 28 and 29, ERA will present education featuring four Panel Discussions (hour-long sessions) and eight Lightning Sessions (12-minute presentations). ERA staff, the ERA Education Committee and more than 300 ERA members voted on these final 12 sessions via • The Multichannel Marketing Advantage – Learn how to leverage all marketing channels from digital to direct mail to DRTV so that you can maximize sales at the lowest possible cost. • Create Meaning ful Consumer Connections by Integrating Mobile with DR – How to build and implement an effective mobile and direct response strategy to build meaningful customer connections, and increase ROI and customer loyalty. • How A Virtual Store Leads to More Sales – Understand how a 3D store with augmented reality allows customers to have an in-store experience from home. • Don’t Run Your DR Campaign by the Seat of Your Pants: Have a Plan! – The 20 elements of a good DR plan, which include market opportunity, independent research, demographics and legal substantiation. a crowd-sourcing initiative. Thank you to the Education On Tuesday, February 28, I encourage all of you Committee for, once again, supporting this initiative. to attend this year’s Keynote Presentation titled “DR The 12 sessions include: Disruption – What You Need to Know About Social • 10 Profound Marketing Secrets That Produce Big Profits and Over-the-Top TV.” I will be moderating this panel – Industry experts will reveal 10 of the most profound discussion and joined by leading experts Brendan hidden secrets you can use to accelerate your results! Condon of REVShare, Andrew Gordon of Direct • Which Came First – Retail or DRTV in Seeking the Impact Group and Ben Mendelson of the ITV Alliance Golden Egg? – Hear from major players in the industry to learn more about these technologies and the impact as they compare and contrast the direct marketer mold that social and OTT TV might have on our industry. from the start to retail outlet modeling to incorpora- As you can see, we’ve put together an assortment of tion of DRTV. sessions designed to not only provide our attendees with • The Real Men and Women of Madison Avenue – valuable information, but also to serve as a conduit for Understand the three things that you must do to create conversation. It’s an opportunity to get people talking a memorable, lasting, results-driving brand campaign. about the topics and issues affecting our business today. • The Road to Retail – A Superhighway with Many Exits! We want to keep the communication going between – Attendees will learn which path leads to increasing our speakers and attendees long after The Great Ideas ROI and the shortest route to success. Summit concludes. That’s why we invite ERA members • Apparel – The HOT Category for DRTV – Learn more to participate in our online community, MyERA, at about these popular apparel products and how you myera.retailing.org and start a dialogue. This custom- can market the next “must have.” ized social networking tool puts you in touch with our • Positive Reputation = Revenue: Increasing Your Online industry’s thought leaders, and gives us – ERA staff – Market Share – This online reputation management direct feedback on the types of educational content you session will teach DRTV marketers and service pro- would like to see at future conferences. viders how to navigate their online market share. Finally, be sure not to miss ERA’s Washington in • For the Hispanic Vote, the Campaign is on! – Discover Miami, a high-powered networking reception to help why ignoring the Hispanic electorate in 2012 could raise funds for the association’s E-Retail Political Action be at your peril! Committee. • Deal of the Day Sites: A Game Changer – Learn how For more information about The Great Ideas Summit to immediately capitalize on this new segment by 2012 or to register, please visit www.ERAGreatIdeas.org educating them about industry players, success stories, or retailing.org. roadblocks and the economics of the deal. I look forward to seeing you in Miami!8 electronicRETAILER | February 2012
  8. 8. GREAT I D E A S ATC-LEVELT H E G R E AT I D E A S S U M M I T R E T U R N S T O M I A M I .For 2012, we’re back in the hottest, coolest city on the planet. The Great Ideas Summit is at Miami’sfabulously reimagined, modernly luxurious Fontainebleau Miami Beach. Get the chance to shakehands with nearly 800 decision makers, fill your brain with the latest selling strategies, and raiseyour glass (and the roof)! It’s ERA’s Access2 with the right people and everything you need to grow …all under the golden Florida sun. Register now and we’ll C you there. ERAGreatIdeas.orgF EBR UARY 27-29, 2012 | MI AM I , F L | F ON TAI N E B LE AU M I AM I B E AC H
  9. 9. INDUSTRY REPORTSConnect, Collaborate and Discover with MyERAARLINGTON, Va. – The  Electronic with fellow members and the industryRetailing Association (ERA) gave its at large.”members an early holiday present with The MyERA website, myera.retailing.the launch of its new online networking org, is a powerhouse tool for network-community, MyERA. ing and collaboration. By logging into MyERA is a user-friendly online net- the community and creating a profile,working community that allows ERA both members and non-members canmembers to easily connect with one Dave Martin, vice president of market- get access to personalized contentanother, find new business leads, share ing and content at ERA, says MyERA is alerts, exclusive info from the ERAideas and content and much more. It’s a valuable resource that offers members Knowledge Center, easy access to con-the direct response industry’s leading new ways to think about and do business. nect and network directly with eliteresource for actionable content. The com- “We’re very excited to provide our leaders in the direct response industry,munity is also where ERA’s committees members with this new and excit- start discussions with your peers andand councils are managed and also where ing community,” Martin says. “We much more.ERA members can gain access to special encourage users to utilize MyERA as For more information about MyERA,members-only information, including a business social networking tool that contact Dave Martin at dmartin@retail-eMarketer reports and best practice briefs. will help them stay closely connected ing.org or visit myera.retailing.org. Brandenburg Gate, the show will feature inventor or a service provider to theRegistration Now many of the same elements that made industry, this conference is the placeOpen for ERA Europe Stockholm such a success. to go.” “The standard was set high with “We want people to come to the con-Conference Stockholm, but Berlin has its own ference and do great business and haveBRUSSELS, Belgium – Registration flavor,” says ERA Europe Executive a great time. That’s what it’s all about.is now open for the 2012 Electronic Director Marcel Avargues. “The busi- You can meet all the right people inHomeShopping Conference. After a ness should be more active; the edu- Europe in one location,” says Conferencerecord-breaking 2011 show in Stockholm, cation sessions are to be on the right Director Nancy Barkan.the ERA Europe Conference continues its track.” When asked why people should For more information about the 2012travels, making its next stop in Berlin. attend, he explains, “People will meet Electronic HomeShopping Conference Taking place on June 24-26 at the entire core of the industry in Europe or to register, visitthe Marriott Hotel near the famous here. Whether you’re a vendor, an www.e-homeshopping.org. As Seen on TV Inc. Completes $15 Million in Equity Financing CLEARWATER, Fla. – As Seen On TV Inc., parent company of TVGoods Inc., recently received $12,155,000 in equity financing, bringing the total raised in recent months to $15 million. The transaction provides the capi- tal necessary to accelerate market- ing and promotional efforts for a variety of products, as well as for the development of products to be introduced during the beginning of 2012. Management intends to use the majority of the net proceeds from the offering for purchasing product inven- tory for AsSeenOnTV.com, producing February 2012 | electronicRETAILER 11
  10. 10. INDUSTRY REPORTS Read Electronic Retailer Magazine Online! The latest editions of Electronic Retailer are available in our new digital format at www.elec- tronicretailermag.com. Also, browse back issues from the last five years, all online and at your fingertips. The new digital format is available as well via your smartphone or iPad and has a host of interactive features, including offline download, bookmarking and sending of pages to social networking sites. new infomercial projects, building out Canis Launches the retail distribution, media buying, and expanding global distribution and UK’s First Shopping marketing of its products. Radio Network According to Chairman of the Board Kevin Harrington, “We are gratified LONDON, England – Canis Media that investors are showing support for has teamed up with WRN Broadcast our expansion plans and recent inno- to launch the UK’s first shopping radio vations. In this economy, we realize it station, Shop Radio. can be difficult to raise capital to help Shop Radio will be broadcast on the facilitate growth but we are succeeding Sky platform 22 hours a day, seven days with this strategy, which can help the a week and can also be found on the company, our partners and inventors web at www.shopradio.com. achieve their goals.” This new radio station will be the first of its kind in the UK to bring radio listeners the same quality products that TV viewers have had access to for more than a decade. Ed Hall, chief executive of Canis Media, says, “I have been looking for the right partner to launch Shop Radio for nearly 10 years. WRN Broadcast is a great distributor of radio stations, and a combination of our market knowledge and experience and WRNB’s history in radio seems like a winning combina- tion to me.” Swipe Solutions’ Rapid Response Team a Success LOS ANGELES, Calif. – Swipe Payment Solutions announces the success of its new Rapid Response Team. The five- person team responds to client requests, support issues, proposals or any needed action immediately. Manned with the technology, more than 75 years combined banking and Glossary Link payment processing experience and 20 domestic banks518998_InfoCision.indd 1 525177_EM.indd 1 12/16/11 9:41:58 AM 12 electronicRETAILER | February8:39:27 PM 3/19/11 2012
  11. 11. for our customers, Vice President of industry, has moved into its new cor-Business Development Curtis Kleinman porate headquarters. The newly con-says the company is proud of the team’s structed building doubles Cannella’ssuccessful July launch and of it has space to 9,600 square feet in order toaccomplished in the months since. accommodate a significant staff expan- The Rapid Response Team can sion necessitated by record growth forrespond within minutes and hours to the company.nearly all requests. It is also available to The new address for Cannellahelp its priority e-commerce and direct Response Television is 848 Libertyresponse customers during off-hours, Drive, Burlington, WI 53105. The com-including evenings and weekends. pany’s main phone number, (262) 763- For more information, visit www. 4810, remains the same.swipellc.com “We have been eagerly anticipating this day since we broke ground on ourCannella Response new building in June,” says Frank Cannella, founder and executive directorTelevision Moves to of Cannella Response Television. “OurNew Headquarters new headquarters is testament to our continuing growth, our standing asBURLINGTON, Wis. – Ca nnel la DRTV industry leaders and, most sig-Response Television, the largest info- nificantly, to the people here who mademercial media company in the DRTV it all possible.” STATWATCH 10-30 second videos, BY IRV BRECHNER using existing footage that you’ve already shot, repurposed for a differ- ent purpose. One might be “See how it works” with animation of the product’s operation. Another might be “See what a professional says” with one or more video testimonials. Or “Hear what the inventor says” with a video interview of the products’ inventor. Think short and sweet “video bursts” that take advantage of our insa- tiable appetite for video. Chances As video takes over the web (180 are good your online conversion million Americans watched online rate will benefit. video in a single month**), having extensive video on DRTV product *MarketingExperiments quoted in websites is a no-brainer. SeeWhy Webinar, 11/8/11; Internet While many DRTV advertisers Retailer, 4/10/11 do indeed have their short- or long- **BizReport, 10/26/11 form commercials on their websites, that’s often where it ends. With all Irv Brechner is EVP and creator the video footage marketers have, of Acquirgy’s Customer Acquisition there’s an opportunity to take it to IntelCenter and can be reached the next level. at irv@acquirgy.com. Look for an Let video do the selling instead extended version of StatWatch in of dense text. Think a slew of the ERA Knowledge Center. 562725_Dial.indd 1 11/30/11 9:45:28 AM February 2012 | electronicRETAILER 13
  12. 12. INDUSTRY REPORTS FTC ForumWhere the FTC SaysFacebook Went WrongBY LESLEY FAIRIt’s no surprise the FTC’s proposed privacy settlement withFacebook has attracted industry attention. The terms of aparticular order apply only to the company in question,of course. But savvy retailers use FTC cases as compliancechecklists to help them stay off the law enforcement radarscreen. Where did Facebook go wrong, and what tips canyour business take from the case? The FTC’s complaint charges eight separate violations ofthe law. According to the FTC, Facebook falsely promisedthat people could restrict their information to a limited audi-ence, but then went ahead and shared it with users’ friends’apps. In addition, the FTC says that when Facebook changedits privacy practices in December 2009, it overrode users’existing privacy choices in a way that was both deceptiveand unfair. What’s more, says the FTC, Facebook deceivedpeople about how much of their information was shared Electronic retailers who do business in Europe understandwith apps they used. the significance of Facebook’s promise that it complied with What about Facebook’s promise that “We don’t share your U.S.-EU Safe Harbor Framework, a mechanism by whichinformation with advertisers unless you tell us to”? The FTC American companies can transfer data consistent withsays that in many instances, Facebook shared with advertisers European law. But according to the FTC, Facebook’s pledgethe user ID of people who clicked on ads. The complaint also wasn’t truthful.charges that before awarding apps the company’s “Verified What does the future look like for Facebook’s privacy practices?App” seal, Facebook promised to put them through a “detailed The order includes a broad ban on deception and a violation kicksreview process.” But according to the FTC, Facebook really in substantial financial penalties. Furthermore, when Facebookdidn’t do anything different to check out the security of those offers privacy settings on its site, it has to honor them. What ifapps. The FTC also says Facebook made deceptive claims Facebook wants to share certain broad classes of informationabout its photo and video deletion policy. “When you delete in a way that exceeds the privacy settings a user has alreadyan account, it is permanently deleted from Facebook,” the chosen? Facebook will have to clearly and prominently disclosecompany claimed. But even after users followed Facebook’s what it wants to do and then get each user’s affirmative expressprocedure for deactivating or deleting an account, Facebook consent. What about just changing the privacy policy? No dice.still served up their photos and videos to anyone who accessed That’s not “clear and prominent” under the order.them via the content URL. The company also has agreed to a comprehensive overhaul of its privacy practices, including regular audits by independent outsiders for the next 20 years. The program has to address According to the FTC, Facebook privacy risks posed by existing products and new ones that falsely promised that people right now are just a fleeting thought in a Facebook developer’s imagination. To ensure compliance, the order imposes strict could restrict their information monitoring and reporting requirements. to a limited audience, but then Looking for tips to help keep your company on the right side of the law? Visit the Privacy & Security portal at went ahead and shared it with business.ftc.gov. users’ friends’ apps. Lesley Fair is an attorney with the FTC’s Bureau of Consumer Protection. 14 electronicRETAILER | February 2012
  13. 13. The DRTV Experts ThatDrive Multi-Channel SalesAt Koeppel Direct we start by thinking inside the box to deliversales outside the box. Why? Because direct response television(DRTV) is a powerful hub that educates buyers and drives salesacross all channels.The Koeppel Direct team, led by Wharton MBA Peter Koeppel,offers superior media planning strategies, and proprietary researchand analytics, combined with buying clout – all designed to ensureyour success. Christena Garduno, Chief Media Strategist and Peter Koeppel, PresidentMeet Us At ERAs Great Ideas Summit, 2/27-2/29/12, Fontainebleau Miami Beach, contact us at 972-732-6110 or visit www.koeppeldirect.com.
  14. 14. EMARKETER RESEARCHWho is the U.S. Hispanic Market? The U.S. Hispanic population is booming, and eMarketer estimates that by the end of this year 66 percent of it will be online.As the number of Hispanics and their spending power continue to increase, so will the role of digital media in their daily lives. Marketers who want to reach them have a number of factors to consider. Language is only one of the issues to address.While English may be many Hispanics’ primary language, they often still rely on Spanish to get information they trust. Technology and media usage are also key. Hispanics are early adopters of many of the latest devices, including smartphonesand tablets. They are heavy consumers of digital media and participate in a wide range of content activities as they make thedesktop and mobile internet an integral part of daily life.U.S. Hispanic Adult and Child Population, 2000 & 2010 (millions and % change) 0% 50.5 43. 35.3 33.3 2% 45. 23.0 8% 17.1 12.3 38. 2000 2010 Children (<18) Adults (18+) Total Note: numbers may not add up to total due to rounding Source: Pew Hispanic Center, “Census 2010” 50 Million Latinos,” March 24, 2011U.S. Buying Power*, by Race/Ethnicity, 1990, 2000, 2010 & 2015 (billions) 1990 2000 2010 2015 White $3,788.7 $6,349.6 $9,439.3 $11,841.3 Black $316.3 $600.2 $957.3 $1,247.4 Asian $115.4 $274.4 $543.7 $775.1 Multiracial $0.0 $59.6 $115.5 $164.6 American Indian $19.6 $40.0 $67.7 $90.3 Total $4,239.9 $7,323.7 $11,123.5 $14,118.7 Hispanic (can be of any race) $210.0 $499.0 $1,036.0 $1,482.0 Note: numbers may not add up to total due to rounding; *defined as disposable personal income, meaning the share of total personal income available for personal consumption, personal interest payments and savings Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, “The Multicultural Economy 2010,” Dec. 1, 2010 16 electronicRETAILER | February 2012
  15. 15. U.S. Hispanic Internet Users and Penetration, 2009-2015 (millions and % Hispanic population) 42.1 39.8 37.0 34.9 32.2 30.1 73% 27.7 71% 66% 68% 63% 58% 61% 2009 2010 2011 2012 2013 2014 2015 Hispanic internet users % of Hispanic population Note: can be of any race; individuals of any age who use the internet from any location via any device at least once per month Source: eMarketer, January 2011U.S. Hispanic Mobile Phone Users, by Age and Gender, 2009 & 2010 (% of respondents in each group ) 2009 2010 Gender Male 80% 80% Female 71% 73% Age 18-29 81% 90% 30-44 80% 80% 45-59 73% 73% 60+ 58% 50% Note: 2009 n=1,754; 2010 n=1,375 Source: Pew Hispanic Center, “Latinos and Digital Technology, 2010,” Feb. 9, 2011Actions Taken After Seeing an Ad According to U.S. Hispanic vs. Non-Hispanic Internet Users,October 2010 (% of respondents) Search the internet for product/brand information 43% 37% Comparison shop for lowest price 39% 31% Shop in physical stores for product/brand 38% 36% Talk about it with friends/family 36% 31% Read product reviews 30% 23% Shop online retailers 20% 16% Nothing 13% Note: ages 13+ 17% Source: comScore, Inc., Conectados!: Understanding the U.S. Hispanic Online Consumer,” provided to eMarketer, Nov. 19, 2010 Hispanic Non-Hispanic February 2012 | electronicRETAILER 17
  16. 16. RETAIL RANKINGS RETAIL INFOMERCIAL RANKINGS BY MEDIA FOR DECEMBER 2011 LONG-FORM PRODUCTS SOLD ON TV Based solely on media spending for programs aired on national cable networks monitored, media index and web activity. Rank Product Marketing Company Category Price 1 NuWave Oven Hearthware Kitchen Three payments of $39.99 plus $29.95 S&H 2 Shark Steam Pocket Euro-Pro Household Four payments of $39.95 plus S&H 3 My Pillow LifeBrands Household 60-day risk-free offer Computers & 4 MagicJack MagicJack 30-day free trial Electronics 5 Total Gym Total Gym Fitness Health & Fitness 30-day trial for $49.95 6 Meaningful Beauty Guthy-Renker Beauty $39.95 plus $5.99 S&H 7 Ninja 1100 Euro-Pro Kitchen Four payments of $39.95 with free S&H 8 Zumba Zumba Fitness Health & Fitness Three payments of $29.95 plus $15.95 S&H 9 Brazil Butt Lift Beachbody Health & Fitness Three payments of $19.95 plus $12.95 S&H 10 Wen Guthy-Renker Beauty $29.95 plus $5.99 S&H 11 Insanity Beachbody Health & Fitness Three payments of $39.95 plus $24.95 S&H 12 Genie Bra Tristar Products Fashion $59.99 plus $9.99 S&H 13 NInja Pulse Euro-Pro Operating Kitchen Four payments of $37.50 with free S&H 14 Nopalea TriVita Health & Fitness Free bottle; pay $9.95 S&H 15 Sensa Sensa Products Health & Fitness 30-day trial for $9.95 with free S&H 16 Shark Navigator Lift Away Euro-Pro Household Four payments of $49.95 plus $45.90 S&H 17 Food Lovers Fat Loss System Provida Life Sciences Health & Fitness Six payments of $19.99 plus $19.99 S&H 18 Miracle Fireplace Heat Surge Household $298 plus $49 S&H 19 InStyler Tre Milano Beauty 30-day trial for $14.99 plus $19.99 S&H 20 Tria Laser Tria Beauty Beauty Lead generation 21 10-Minute Trainer Beachbody Health & Fitness Two payments of $39.95 plus $9.95 S&H 22 OrGreenic Telebrands Kitchen $19.99 plus $6.99 S&H 23 P90X Beachbody Health & Fitness Three payments of $39.95 plus $19.95 S&H 24 no!no! Radiancy Beauty Three payments of $89.95 plus $14.95 S&H 25 CarMD CarMD Automotive Three payments of $39.95 plus $14.95 S&H© Copyright 2012 Infomercial Monitoring Service Inc.™ All rights reserved. IMSTVOnline.com. Satellite 2, 810-812 Park Way, Philadelphia, PA 19008. Phone (610) 328-6902. Fax:(610) 328-6791. Email sam@imstv.com. IMS is a research and publishing company that tracks both long-form infomercials and short-form DRTV spots on national cable, broadcastand satellite networks. IMS Rankings are for December 2011. Rankings for each month are based on long-form infomercial media and short-form spot frequency of programsaired on networks monitored. IMS database and video library services involve all aspect of the DR industry. IMS provides weekly and monthly reports, rankings, verifications,evaluations, research, consulting, film and video production and post production. No part of any IMS reports may be reproduced or transmitted in any form electronic ormechanical, including photocopy, or any information storage and retrieval system without permission in writing from IMS. IMS is not responsible for any loss due to errors oromissions in information provided, or for any loss of service due to technical or other difficulties. Please visit IMSTVOnline.com for more information. 18 electronicRETAILER | February 2012
  17. 17. SPOT RANKING BY FREQUENCY FOR DECEMBER 2011 SHORT-FORM PRODUCTS SOLD ON TV Based solely on frequency of programs aired on national cable networks monitored. Rank Product Marketing Company Category Price S&H 1 Proactiv Solution Guthy-Renker Beauty $19.95 $0 2 Perfect SitUp Perfect Fitness Health & Fitness $59.95 $14.95 3 Mint Evolution Robotics Household $199.99 $0 4 Vibration Tri-Phoria Church & Dwight Co. Personal $0 $0 5 Pajama Jeans Hampton Direct Fashion $39.95 $7.95 6 Pro-Form Ab Glider ICON Health & Fitness Health & Fitness $14.95 $0 7 Slice-O-Matic Telebrands Kitchen $19.99 $6.99 8 Lipozene Obesity Research Institute Health & Fitness $29.95 $0 9 Ahh Bra Ahh Bra Fashion $19.99 $0 10 Salon Express Ontel/Spark Innovators Beauty $10 $6.99 11 Flex Seal Flex Seal Household $19.99 $9.95 12 Forever Lazy Allstar Products Group Fashion $29.95 $7.95 13 Kobalt Double Drive Kobalt Household $19.98 $0 14 Plaque Blast Telebrands Pet Products $10 $6.99 15 PajamaGram The PajamaGram Co. Miscellaneous $0 $0 16 Chef Basket Telebrands Kitchen $10 $6.99 17 Grout Bully Harvest Direct Household $10 $7.95 18 Gray Away Qbeauty Beauty $19.99 $13.98 19 InstaHang Product Trend Household $14.99 $7.95 20 EZ Moves Allstar Products Group Household $19.99 $7.95 21 Twin Draft Guard Hampton Direct Household $19.99 $7.95 22 2012 Gold Buffalo Coin National Collectors Mint Crafts & Hobbies $9.95 $4.95 23 Pro-Form TDF ICON Health & Fitness Health & Fitness $0 $0 24 OrGreenic Telebrands Household $19.99 $6.99 25 Eggies Allstar Products Group Kitchen $10 $7.99© Copyright 2012 Infomercial Monitoring Service Inc.™ All rights reserved. IMSTVOnline.com. Satellite 2, 810-812 Park Way, Philadelphia, PA 19008. Phone (610) 328-6902. Fax:(610) 328-6791. Email sam@imstv.com. IMS is a research and publishing company that tracks both long-form infomercials and short-form DRTV spots on national cable, broadcastand satellite networks. IMS Rankings are for December 2011. Rankings for each month are based on long-form infomercial media and short-form spot frequency of programsaired on networks monitored. IMS database and video library services involve all aspect of the DR industry. IMS provides weekly and monthly reports, rankings, verifications,evaluations, research, consulting, film and video production and post production. No part of any IMS reports may be reproduced or transmitted in any form electronic ormechanical, including photocopy, or any information storage and retrieval system without permission in writing from IMS. IMS is not responsible for any loss due to errors oromissions in information provided, or for any loss of service due to technical or other difficulties. Please visit IMSTVOnline.com for more information. February 2012 | electronicRETAILER 19
  18. 18. JORDAN WHITNEY’S TOP CATEGORIES JORDAN WHITNEY’S TOP INFOMERCIAL CATEGORIES FOR DECEMBER 2011 FITNESS RANK SHOW NAME PRODUCT PRICE DISTRIBUTOR 1 Insanity Exercise program $119.85 Beachbody 2 The Firm Express Fitness program $89.85 Gaiam Americas 3 Total Gym Home gym $49.95 trial Total Gym Fitness 4 P90X Fitness DVDs $119.85 Beachbody 5 Zumba Fitness DVDs $89.85 Zumba Fitness SELF-HELP RANK SHOW NAME PRODUCT PRICE DISTRIBUTOR 1 Free Money Book $29.95 QSN Direct 2 Humana Medicare Medicare Advantage plan Lead generation Humana 3 Brainetics Math/memory training $14.95 trial Launch Pad 4 Total Transformation Parenting program Lead generation Legacy Parenting 5 Life Lock Identity theft protection Lead generation Life Lock BEAUTY RANK SHOW NAME PRODUCT PRICE DISTRIBUTOR 1 Lifestyle Lift Face lift procedure Lead generation Lifestyle Lift 2 Wen Hair care products $29.95 Guthy-Renker 3 Genie Bra Seamless bra $59.99 Tristar Products 4 Meaningful Beauty Skincare $39.95 Guthy-Renker 5 Tria Laser Hair removal device $445 Tria BeautySource: The Jordan Whitney “Greensheet,” published by Jordan Whitney Inc., Tustin, Calif. For information about the “Greensheet,” Jordan Whitney’s consulting, tapelibrary or category specific research reports, contact Clare Kogler at Jordan Whitney Inc. Voice: (714) 832-3353; fax: (714) 832-4422; email: greensheet@cox.net or visit ourwebsite: jwgreensheet.com. ©Jordan Whitney Inc. 201220 electronicRETAILER | February 2012
  19. 19. JORDAN WHITNEY’S TOP TRADITIONAL SHORTFORM CATEGORIES FOR DECEMBER 2011 HOUSEWARES RANK SPOT NAME PRODUCT PRICE/OFFER DISTRIBUTOR 1 Slice-O-Matic Manual Slicer $19.99 Telebrands 2 Flex Seal Rubber spray sealant $19.99 Swift Response 3 Kobalt Double Drive Screwdriver set N/A Lowe’s 4 Furniture Fix Support panels for furniture $14.99 Hampton Direct 5 Space Bag Vacuum storage bags $19.95 ITW Space Bag PET PRODUCTS RANK SPOT NAME PRODUCT PRICE/OFFER DISTRIBUTOR 1 Plaque Attack Dental spray for pets $19.95 Exceptional Products 2 Shed-Pal Dog grooming tool $19.95 Telebrands 3 Tagg Pet Tracker Pet tracking device $14.95 trial Qualcomm 4 Pet Rider Car seat throw for pets $14.99 Telebrands 5 Comfy Control Harness Restraint system for dogs $10 Telebrands TOYS RANK SPOT NAME PRODUCT PRICE/OFFER DISTRIBUTOR 1 Pillow Pets Stuffed animal pillow $19.95 CJ Products/Ontel 2 Wuggle Pets Plush toy making kit $19.99 IdeaVillage 3 Happy Nappers Stuffed pillow for kids $19.99 Merchant Media 4 Fushigi Ball Magic ball toy $19.99 IdeaVillage/Zoom TV 5 Criss Angel Magic Magic kit $29.98 IdeaVillageSource: The Jordan Whitney “Greensheet,” published by Jordan Whitney Inc., Tustin, Calif. For information about the “Greensheet,” Jordan Whitney’s consulting, tapelibrary or category-specific research reports, contact Clare Kogler at Jordan Whitney Inc. Voice: (714) 832-3353; fax: (714) 832-4422; email: greensheet@cox.net or visit ourwebsite: jwgreensheet.com. ©Jordan Whitney Inc. 2012 February 2012 | electronicRETAILER 21
  20. 20. LOCKARD & WECHSLER’S CLEARANCE & PRICE INDEX BY EDDIE WILDERSThe Price and Clearance Indices are based on a 52-week moving average, dating back to the first week of January2011. The Index is calculated by dividing current week clearance percentage or CPM over the most recent 52-weekaverage clearance or CPM. Trends are now compared to those of 2010. CLEARANCE INDEX The very soft marketplace that advertisers were enjoying The end of the holiday season brought us into presi- through the beginning of the quarter lasted right into dential primary season with Iowa and New Hampshire the final week of the year. The higher percentages dur- kicking off the festivities. Local broadcasters will be in ing December brought each length above 2010 levels. full political blackout windows, and inventory will be The 30-second clearance increased from 28 percent to extremely difficult to secure. 31 percent, while 60-second clearance rose from 25 The soft marketplace continues to afford direct percent to 28 percent and 120-second clearance jumped response inventory on both syndication and network. from 15 percent to 21 percent in 2011. Early indications Programming such as The Price is Right and the Today of the 2012 marketplace show that this softness of the show are prime locations for DR advertisers, and 2012 inventory should be around through at least the end should continue to afford these opportunities, if the of the first quarter. price is right. 3 0 -s econd Clearance 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Week 1 Week 4 Week 7 Week 10 Week 13 Week 16 Week 19 Week 22 Week 25 Week 28 Week 31 Week 34 Week 37 Week 40 Week 43 Week 46 Week 49 2010 2011 Week 52 6 0 -s econd Clearance 2.50 2.00 1.50 1.00 0.50 0.00 Week 1 Week 4 Week 7 Week 10 Week 13 Week 16 Week 19 Week 22 Week 25 Week 28 Week 31 Week 34 Week 37 Week 40 Week 43 Week 46 Week 49 Week 52 2010 201122 electronicRETAILER | February 2012
  21. 21. 1 2 0 -s econd Clearance 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Week 1 Week 4 Week 7 Week 10 Week 13 Week 16 Week 19 Week 22 Week 25 Week 28 Week 31 Week 34 Week 37 Week 40 Week 43 Week 46 Week 49 Week 52 2010 2011PRICE INDEXStrong December viewership helped curb the 2011 price index, as the year finished strong. Stations such as Hallmark,Fox News and WGN continue to be direct response mainstays. USA, AMC and ESPN remained at the top of the view-ership mountain, while also allowing for a stronger DR presence in select dayparts. With the return of network primeprogramming, the NFL playoffs and the political season starting in January, viewership promises to increase once again. CPM 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 Week 1 Week 4 Week 7 Week 10 Week 13 Week 16 Week 19 Week 22 Week 25 Week 28 Week 31 Week 34 Week 37 Week 40 Week 43 Week 46 Week 49 Week 52 2010 2011 February 2012 | electronicRETAILER 23

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