Backchannelmedia

Backchannelmedia, Inc., December 07, 2006

Backchannelmedia Solves Fragmentation

By Jane Austin

DRTVQ: In general, how have marketers' jobs changed in the conventional advertising business compared to the DRTV marketer side of the business? Have consumers' attitudes driven this change? What other factors my have contributed?

Michael Kokernak: The internet, social/new media and digital TV have opened up new opportunities for marketing and advertising. More importantly, companies can get closer to their consumers and see the immediate impact of their marketing dollars on sales. This has created a shift on conventional marketing practices and placed an emphasis on ROI. Traditional marketers are just now beginning to adapt to a direct response model of having to justify their media expenditures - this is something DRTV has always been comfortable doing. This change has not been driven by consumer attitudes; it is more a function of the expanding digital marketplace and increasing media choices. Marketers are being drawn to direct response vehicles which can give them some sense of ROI.

DRTVQ: How has the process of buying DRTV media changed since you joined the industry? Has it become easier or more complicated?

MK: The process of buying media has changed a lot, and it has become even more complicated. The issue of fragmentation has always been around, but back in the early 1990's, we had certain media outlets that we knew would be a hit -that is really not the case today. This makes the media buyer's job even more challenging.

DRTVQ: On November 1, 2006 Backchannelmedia issued a press release announcing the arrival of "DRTV Research", a component of your website that is dedicated to allowing media buyers and planners to access all programming that airs in the US. The data is further broken out by DMA, genre, day parts, etc. What was the vision behind this service and since it's such a powerful tool, why is it free?

MK: Our vision for the product was to create a central resource for media buyers and planners to access all the critical data they need on a daily basis. By providing it for free, marketers and agencies can learn about the tool and see its immediate benefit. This also allows us to increase its adoption in the industry and provides opportunities for us to license more advanced versions of the technology.

DRTVQ: Exactly how does "DRTV Research" resolve media buying challenges of finding media outlets that will have a higher chance of succeeding?

MK: There are a few different ways that "DRTV Research" resolves the media buying challenges of finding those media outlets that are a hit. First, users can select media outlets based on market demographics, then based on their direct marketing criteria. Users can even see what outlets are airing similar shows. Also, users can search for television shows that have themes related to the advertiser category such as kayaking, or finance, or household repairs.

DRTVQ: Just so we understand how this service works, the number 1 program that aired today (November 2, 2006) is "Paid Programming", with 13,854 airings. Does that mean that on a given day, across the United States, there are 13,854 possible infomercial timeslots for media buyers to access for their product?

MK: That is correct, however keep in mind that "DRTV Research" includes digital TV stations as well as analog TV stations, which may duplicate some spots. However many television stations are breaking off their program schedules from analog and digital so we feel that it is important to report these occurrences as unique.

DRTVQ: In the press release you are quoted as saying that one of the big ideas behind "DRTV Research" was to bridge the "chasm that long has separated direct-response TV and general advertising". How will "DRTV Research" accomplish this?

MK: "DRTV Research" is giving users a new fresh way to add value to their content and to purchase media time. At Backchannelmedia, we see "DRTV Research" as the first step in tying sales back to media placements. "DRTV Research" allows media buyers and planners to better place advertisements, which will in turn help bring accountability back to TV advertising.

DRTVQ: You also indicated that Backchannelmedia hopes to "monetize" "DRTV Research" as new services are added. Are you at liberty to discuss what those services are? Will this service be unique enough to become a revenue generating entity?

MK: Eventually we'd like to have the marketer subscribe to our service so we can marry their sales and response data with an interface that looks like "DRTV Research". "DRTV Research" will always be free, however, for those added services there will be a charge, creating new revenue streams for the company.

DRTVQ: In the same press release, "DRTV Research" was noted as a "Web 2.0 Strategy". What specific elements in the "DRTV Research" module satisfy a Web 2.0 strategy?

MK: Web 2.0 is all about advanced technologies and greater online collaboration through social media, RSS feeds and more. We have built "DRTV Research" using a Web 2.0 open source tool called Ruby on Rails. By leveraging Web 2.0 we were able to develop a richer portal and we are well positioned to deliver new services in the upcoming year.

DRTVQ: How has the advertising community responded to this service?

MK: The response has been tremendous! It has caused people within the industry to rethink their methods of media buying. Others have told me it's a breath of fresh air.

DRTVQ: Is this a service that Backchannelmedia envisions rolling out globally?

MK: Yes, this is definitely something we are considering as we look to expand the product offerings and global reach of the company.

DRTVQ: A recent article published in Advertising Age, stated "DRTV Research has the potential to let media planners and buyers put together some of the most outrageously targeted plans and buys ever by finding thinly sliced content segments such as spot availability on archery or kayaking shows." Would you agree or disagree that this kind of niche marketing takes away one of the fundamental rules of buying DRTV media: that the product must have mass appeal.

MK: We think the specialized marketer will rejoice when they discover that they can buy a television schedule over the long term and gain market share. Imagine a rodeo supply store zeroing in month after month on rodeo shows, thus building market share in their niche category. The repercussions can be staggering!

DRTVQ: In your opinion, what are the biggest issues challenging DRTV marketers today? How do you propose DRTV marketers shift their philosophy to overcome these challenges?

MK: The biggest challenge to DRTV marketers today is that they lack the ability to target their media properly. In order to overcome this, marketers must take a fresh perspective and realize that fragmentation is not the enemy of direct response, but rather the opportunity.