Electronic Retailer - October 2012 - 26

MEDIA ATTRIBUTION GOES MOBILE
percent of infomercial consumers used their phones while watching TV, and 41 percent said their use while watching TV has increased in the past year (compared to 26 percent of non-purchasers). Given the mounting evidence that consumers’ phone-TV-web activity is becoming mainstream, is it possible to institute a mechanism that is properly aligned to leverage this trend while providing a unique ID tied to a specific media airing? The answer is yes, using short code/ keyword combinations integrated into the infomercial’s call-to-action (CTA). Short codes are phone numbers or words to which an SMS or text message can be sent. A short code is fewer than 10 digits and can be shared or dedicated to an individual marketer. Keywords are unique and memorable words or number series (e.g. fitness or 2999) used in conjunction with short codes. The combination of the two creates a system of unique identifiable codes that is as scalable and as versatile as 800 numbers. Short code/keyword combinations are used in a similar manner to 800 numbers, but the viewer responds to the CTA via SMS text, which prompts an immediate response from the marketer containing a short message and link to a mobile website. Metadata contained within the initial SMS text enables the marketer to present a mobile website specifically configured for the viewer’s phone. The engagement process is seamless and economical. The entire interaction remains on the phone including the final purchase, and there are no inbound telemarketing agent costs. Using short code/keyword combinations is relatively easy to implement and the administrative costs are minimal when working with solutions providers that are experienced with the technology. Generally, there are three stakeholders in the process: a mobile firm, a DRTV agency and, of course, the marketer. The mobile firm can build the mobile website, provide short codes and keywords, and handle all related technical requirements of the carrier networks. The DRTV agency will incorporate the shortcode/keyword combinations into the CTA and manage all media related 26 matters. The marketer is responsible for the e-commerce transaction and product fulfillment. The sheer number of mobile devices used in the U.S. combined with the growing trend of television viewing, web surfing and e-commerce integration provides ample reason for the DRTV industry to leverage the mobile channel. Add the opportunity to regain media attribution at a time when the 800 number is losing relevance and it becomes clear that mobile should be a top priority within the DRTV industry for 2013. But, if that isn’t compelling enough to get started, consider how the mobile category is growing in the form of tablets and the impact the tablet will have on in-home shopping. The tablet is gaining household penetration at a rapid pace. Pew Research reported in January 2012 that 19 percent of U.S. adults own a tablet, twice as many as in December 2011, and eMarketer estimates a 28 percent compound annual growth rate over the next two years. The Cannella consumer survey conducted this April found an even higher level (44 percent) of current tablet ownership among infomercial consumers, which was more than double the number (21 percent) for non-buyers of DRTV products. The tablet, which shares the Android and iOS operating systems, is designed and best suited for entertainment consumption (videos, music, games, books), text based communication (email, social media posts) and shopping. As expected, tablet owners are consuming hours of entertainment content. Almost 70 percent of owners use their tablet weekly to access content, more than half (54 percent) watch videos and two-thirds use their tablet more than an hour a week, according to an Online Publishers Association study. Tablets are also well suited to integrate with the television viewing experience. A.C. Nielsen reported that 88 percent of U.S. tablet owners said they used their device while watching TV at least once during a 30-day period. For 45 percent of tablet owners, using their device while watching TV was a daily event, while 26 percent use their tablet concurrently with the television several times a day. That translates into 30 percent of all tablet use time tied to the TV. Twentytwo percent of tablet owners looked up coupons or deals related to an advertisement they saw and 37 percent searched for information related to TV programs. A study by InMobi found that more than half of tablet owners (53 percent) actively evaluate products using their tablet, and 58 percent follow through with purchasing those products through their tablet. This is promising news for the DRTV industry. Technology is evolving at a rapid pace, which is presenting many new possibilities for the DRTV industry. Despite the encroachment of other media forms, television will remain as the most efficient method to reach mass audiences with a compelling advertising offer. Even with all the changes in the direct response industry over the years, two core requirements of DRTV remain the same: the ability for marketers to interact directly with a viewer to make a sale and the capability to attribute individual inbound orders to unique television airings. For the DRTV marketer, the 800 number filled those roles masterfully. But, as consumer behavior evolves, the 800 number is becoming less able to provide accurate attribution. In recent years, the industry has responded with attribution models and algorithms, but these are merely internal business practices that compensate for the change in consumer behavior. The real opportunity for the DRTV industry is to embrace the tools that consumers are using in their everyday life. Fortunately, there is a whole new suite of mobile tools ready for deployment that meets the needs of the DRTV industry and opens up even more possibilities to build brands and sales. These are exciting times. Tony Besasie is president of Cannella Response Television LLC (www.drtv.com), a leading authoritative and innovative long-form direct response media agency. He can be reached at (262) 763-4810 ext. 9060 or via email at tbesasie@drtv.com.

electronicRETAILER | October 2012

Electronic Retailer - October 2012

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