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P&G has quietly been increasing its use of direct response TV in recent years, and last month named its first DRTV media buying agency of record, Quigley-Simpson Brand Response - a move that has perhaps fueled claims by experts that in five or 10 years, all TV advertising will include some form of direct response, AdAge writes.
Though P&G and Quigley-Simpson declined to comment, people familiar with the industry say that the packaged goods giant’s buying in the direct response space may be approaching nine figures.
And, while direct response rates have exploded - Telebrands has seen its media rates grow 250 percent in the past two years, for example - DRTV still offers advertisers CPMs of 30-70 percent lower than broadcast or national prime-time rates. But the consolidation of the WB and UPN - two reliable generators of DRTV inventory - could fuel more rate increases, according to the article.
TNS Media Intelligence shows that direct response advertising is a $3 billion segment that grew 16.4 percent last year.
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