People make fun of infomercials, but they work. The number of businesses using them has risen 10% in the past year. Known as direct-response television, or DRTV, the ads have been helped by
the recession, with infomercial marketers enjoying better air time on the cheap.
The cost of television ad time has fallen as much as 50% lately because so many Fortune 500 companies
slashed their advertising budgets. "Networks have been willing to unload" certain time slots for "fire-sale prices," says Sam Catanese, CEO of Infomercial Monitoring Service.
DRTV
is well-suited for hard times. Customers make their purchases either through a Web address or a toll-free phone number, producing a clear record of each transaction for comparison against when the
infomercial was aired. Results can be seen within minutes. If a product in an infomercial doesn't sell well within a few days, the company can replace the ad with a new approach and keep waste to a
minimum.
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