By Ken Liebeskind
VALPARAISO, IN --Infomercials aren’t just on TV any more. They often run as broadband videos on the Web, with sales made online instead of via toll-free telephone numbers.
Livemercial, based in Valparaiso, Indiana, streams direct response advertising online for a range of companies. The infomercials, which originally ran on TV in long-form or short-form versions, appear on the Web in all their splendor, demonstrating the products and asking for a sale. The TV infomercials are repurposed slightly, with “Order Online” instructions replacing the toll-free number at the end.
The broadband infomercial for PackMate, CA, which can be seen here, features the program in a screen on top of the home page, with a Stack & Vac Demo in a smaller box on the left and a series of testimonials underneath the main screen that can be clicked to play.
“We developed our own streaming platform,” said Jeff O’Connor, VP of sales and media at Livemercial. “We’ve done 900 broadband infomercials and we currently host 475 Web sites. The products have a life cycle of 90 to 120 days and 85 percent of the sites have infomercials.
“The sites act as a place where they can view the infomercial, the testimonials and the product descriptions, and a shopping cart where they can make a purchase,” O’Connor said.
The broadband infomercials are supported by the TV versions, which are “tagged with a url so viewers can come to the site where the infomercial is restreamed with a call to action,” O’Connor said. “They can capture sales this way instead of a toll-free number. Half of all infomercials have it now.”
Jordan Pine, VP of marketing at IdeaVillage, Fairfield, NJ, said his company uses Livemercial and one of its competitors Permission Interactive, to run broadband infomercials. “We launch six to 12 products per year in retail categories like household items, tools and pet products,” he said. “The products have a short life cycle of up to two years and the Web site with the infomercial stays up for the full term,” he said.
Not all companies put their infomercials on line immediately, he said. “They don’t build a site until they run the TV commercial in a test phase for a month. They buy a few strategic cable stations and do a small media plan. If it’s a good response, they expand it, put up the site and run the infomercial. But we do it fast, so the site is up and running when we start. The percent who buy online varies by product and you don’t know how many sales you’ll get from the Web, but with some campaigns it’s higher than 50 percent, so we want to be there from the start,” Pine said.
Andrew Gordon, president of Direct Impact Group, a direct response firm in Newton, MA, that specializes in broadcast lead generation, said broadband informercials can be successful because they are fully watched. “Traditional TV infomercials are 28-1/2 minutes long and most people don’t watch the whole program, it’s not appointment TV,” he said. “So marketers are taking the programs and streaming them on their sites to refresh them and provide another viewing opportunity. In the old days, marketers were in control, but today consumers are, so this allows consumers to view them at their leisure.”
Google Opens Its Defense In Antitrust Case Alleging Monopoly Over Online Ad Technology
Google opened its defense against allegations that it holds an illegal monopoly on online advertising technology Friday with witness testimony saying the industry is vastly more complex and competitive than portrayed by the federal government.
"The industry has been exceptionally fluid over the last 18 years," said Scott Sheffer, a vice president for global partnerships at Google, the company's first witness at its antitrust trial in federal court in Alexandria.
The Justice Department and a coalition of states contend that Google built and maintained an illegal monopoly over the technology that facilitates the buying and selling of online ads seen by consumers.
Google counters that the government's case improperly focuses on a narrow type of online ads — essentially the rectangular ones that appear on the top and on the right-hand side of a webpage. In its opening statement, Google's lawyers said the Supreme Court has warned judges against taking action when dealing with rapidly emerging technology like what Sheffer described because of the risk of error or unintended consequences.
Google says defining the market so narrowly ignores the competition it faces from social media companies, Amazon, streaming TV providers and others who offer advertisers the means to reach online consumers.
Justice Department lawyers called witnesses to testify for two weeks before resting their case Friday afternoon, detailing the ways that automated ad exchanges conduct auctions in a matter of milliseconds to determine which ads are placed in front of which consumers and how much they cost.
The department contends the auctions are finessed in subtle ways that benefit Google to the exclusion of would-be competitors and in ways that prevent... Read More