5/27/2005 9:25

I'm a bit of a night owl, which means I'm well acquainted with late-night television...and the infomercials that go with it. Given the content of such shows and the bizarre time slots they air in, I've often wondered what kind of ROI they bring in. Obviously, they must be yielding some benefits since there are so many of them out there.

Thus, it was with great interest that I read Business 2.0's article "Stronger Sales in Just 28 Minutes." This piece -- which was authored by Thomas Mucha and appears in the June 2005 issue -- takes a look at the burgeoning infomercial industry and provides tips on how organizations can make their own 28-minute spiel a success.

The full article is available online for subscribers only, but here are some highlights:
*Last year 2,036 infomercials ran in the United States, and of those, 714 were new shows. Fortune 1,000 firms now produce an estimated 20 percent of all new infomercials.
*The typical infomercial viewer is a mass-market consumer between the ages of 30 and 50 with some college education and an income of about $50,000 a year. Sixty percent are women.
*Infomercial products that have grossed more than $1 billion in sales: Proactiv, Soloflex, Bowflex, George Foreman Grill, Total Gym and Ron Popeil's Rotisserie & BBQ.
*Aside from just the revenue numbers, other "infomercial benefits" include viewer recall that can be three times higher than for traditional 30-second spots and phenomenal brand awareness.
*Viewers will generally watch for 13 to 15 minutes before calling.

But not all products are right for infomercials. The article quotes infomercial expert Steve Dworman as saying, "The most successful spots speak to universal desires: fitness and diet, health and beauty, home convenience appliances and business opportunities."

Interested in an infomercial of your very own? Business 2.0 says that in addition to just offering a quality product, infomercial success depends on:
*Mass Appeal: The product needs to solve "common denominator" problems
*Demonstrability: "Seeing is believing" holds true in the world of infomercials
*Good Hosts: Credibility is key
*A Store Presence: Infomercials are great at boosting brand awareness, but only 30 percent of viewers will buy from TV
*The Right Price: Stay in the $29.95 to $999.95 range

Based on all of the above, I guess I have some new found respect for these little off-hour goldmines!

Posted by at May 27, 2005 9:25 AM

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