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The Infomercial at 20

 

Format has grown from comics'
punch line to a bottom-line boost

By DONNA PETROZZELLO
DAILY NEWS STAFF WRITER

Believe it or not, the infomercial is 20 years old.

And how it has grown.

Today, the often mocked format is as much a part of the TV landscape as sitcoms and ­reality shows.

The genre has been spoofed on "Saturday Night Live" and is frequent fodder for late-night comics. However, as America laughs, product pitchers are making big bucks.

The diet aid Herbalife was among the first infomercials to break big during the mid-'80s, with a spot that aired late at night on USA Network.

Since then, infomercials have created some of the best-known faces in America.

·  Self-help guru Tony Robbins has sold more than $300 million of his products through infomercials. Football great Fran Tarkenton anchored Robbins' first spots in 1995. Leeza Gibbons anchored another.

·  Ali MacGraw and Lisa Hartman opened the way for actors to appear in informercials when they turned up in a 1989 makeover spot for Victoria Jackson Cosmetics.

·  Based on the success of Jackson's infomercials, ­actress Victoria Principal began hawking her own skin-care and beauty products.

·  Former Miss America Vanessa Williams has ­appeared in a spot for Proactive Acne Treatment.

Marketing is the mother of invention

Ron Popeil, creator of kitchen products and the famed Pocket Fisherman, may be the best-known infomercial star and salesman. His company, Ronco, has generated $1 billion in sales of rotisseries, roasters and other gismos.

"I'm an inventor first and a marketer second," Popeil said. "But what drives the invention is the marketing. Most of my inventions are related to the kitchen because everybody's got one."

He has dabbled out of the kitchen, too, with such products as GLH Formula #9 spray-on "hair" to cover bald spots.

"People always want to buy a product from its inventor," said Popeil, who has adopted the nickname America's Inventor.

Infomercials were born out of a Reagan administration ruling in the mid-1980s that lifted restrictions on how much commercial time stations could air. As a result, struggling cable networks took hold of the concept and sold large chunks of time to the highest bidder.

Savvy marketers then created spots designed to look like TV shows, while including a call-in sales pitch.

"Infomercials were a saving grace for a lot of independent TV stations and cable networks," said Steven Dworman, author of "$12 Billion of Inside Marketing Secrets Discovered Through Direct Response Television Sales."

Over time, the appeal of info-mercials has been, in part, the mix of products, running from the useful to the incredibly useless - all sold with the seriousness of an evening newscast.

"These pitches are still incredibly convincing and incredibly effective, even on people who know better than to buy this stuff," said Syracuse University Prof. Robert Thompson.

"But my guess is that a lot of people are watching them with a portion of their tongue in their cheek," Thompson added.

Whether they're reaching for their pocketbooks or just laughing along with the product pitchmen - people are watching - and buying in huge numbers

The Infomercial Triumphant

Forbes.com

The Infomercial Triumphant

Dan Ackman 11/11/02

New York - How much would you pay for the thousand of products sold through infomercials?Before you answer, consider that nearly two-thirds of all Americans report seeing infomercials and that there are more than 1,000 products a year sold that way.Consider the numbers: In an average month 300,000 infomercials spots appear on 36 national cable stations and 1,800 broadcast stations, according to Elissa Myers, presidentof the Electronic Retail Association (ERA), the industry trade group. To watch them all would take you roughly 1,027 years-and it might seem longer. Direct response television advertisers spend more than $800 million annually on media, according to Response, a trade publication based in Santa Ana, Calif.

Now how much would you pay? If you're the American consumer, the answer is $14 billion; that's the annual amount of products marketed via infomercials, Myers estimates. This is more than Americans spend on movies tickets.  The infomercial has long been the object of ridicule. That comes with the territory. But attention must be paid, for the signs are everywhere that long-form advertising, as it is known, is not just liked, it is well-liked.  Nearly 63% of Americans aged 16 and over "have experienced" at least one form of infomercial, the ERA says. More than one in four Americans have responded to the ads bydialing up and buying. Characters in movies are forever shown watching the spots and they have long been fodder for late-night comedians, perennially satirizing the hucksterspitching Vegomatics and Ginszu knives.  But the king of late-night comedians, at least, has joined forces with the subject of satire. Over the last three years, Carson Productions has partnered with Respond2, aninfomercial advertising agency base in Portland, Ore. They have sold 2.5 million videos and DVDs that mine the Tonight Show archives, which Is comparable to the DVD/video sales for a hit Hollywood movie. Respond2 has actually sold 35,000 copies of the  infomercial itself, says Tim O'Leary, the company's CEO, making the video the first product ever to be an infomercial for itself.  But it is not the first infomercial to entertain. The success of home shopping channels like QVC and HSN, a division of USA Interactive (Nasdaq: USAI - news - people), show that there is at least a core of viewers who sit and watch advertising as programming. This phenomenon is not new. The infomercial industry has its roots at country fairs and on the Atlantic City boardwalk (where, coincidentally, Ed McMahan, Carson's sidekick, got his start). Only a good showman could get the people to stop while on their way to other distractions so he could hawk his wares. In recent years, infomercials have moved into mainstream. O'Leary says he has done long-form ads for major companies like Apple Computer, Gateway, Whirlpool, Sony,Carnival and even hospital chains. He is not alone in serving corporate America. The Time-Life unit of AOL Time Warner has long run infomercials, just of quieter type than some others. Major companies are converts, but they want to be assured they won't be embarrassed. "We don't ?yell and sell," O'Leary says.

Forbes

Forbes

Even broadcast giant NBC, a unit of General Electric, got into the act with ShopNBC, a home shopping channel 60% owned and operated by ValueVision Media. Home

shopping in the U.S. is itself a $6 billion industry-and growing.

 

Infomercials have been around in one form or another since the beginning of television. But the modern industry got its start in 1984 when the Reagan Administration

deregulated the airwaves and renounced rules limiting the number of commercial minutes that could be broadcast in a given hour. With the change in policy, coupled by

The growth of cable television, infomercials took off.

 

Since the beginning, certain products have tended to proliferate in infomercials, and they still do. Response reports that cosmetics and personal care is the leading

product category on infomercials, followed by housewares and appliances-the famous vegetable slicer. Health and fitness products are the next most popular.

 

Industry insiders say these products are sold on TV because they require a lot of demonstration. But the prevalence of diet products and hair loss remedies gives rise to

the impression that infomercials sell a lot of shoddy wares. Insiders don't deny that there are con artists in their midst. "Are there bad people in the industry? Absolutely.

I hate them!" says Earl Greenberg, an infomercial impresario based in Santa Monica, Calif. But they say they are working hard to weed out scofflaws, both from within

the industry and with U.S. Federal Trade Commission, which can only help its business overall.

 

Infomercial marketers want to rid themselves of their image as fly-by-night. They note also that most products advertise through direct response  media and is actually

sold in traditional retail channels. The hoary slogan ?Not sold in stores'  has become the exception to the rule. At the same time, they say infomercials are still a haven for

untested entrepreneurs who can't afford slotting fees charged by retailers or who simply can't get in the door.

 

Infomerciaiatistas are nothing if not relentless-and resistance to their pitches may be futile, especially as digital television takes hold. With more channels to surf and

increasingly balkanized audience, there will be more places to sell. In Europe, in fact, the future has arrived already. In contrast to America, which has to make due with

Just four national home shopping channels, the TV Guide in England list 35.

 

 

 

Infomercial Funding Group LLC

10 East 39th Street    Suite 1118

New York, NY 10016

Tel: 212-532-2400

EMail: ej@infomercialfunding.com

 

                                                  

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