Effects of a Busy Economy

There have been quite a few major events that have impacted direct response advertising in 2012. Domestic and overseas markets struggling with natural and economic disasters have certainly caused a reduction in discretionary consumer spending. Big sporting events such as the Euro Cup and the Olympics allowed for record ad sales. According to Nielsen, 219.4 million Americans watched the London Olympics on the networks of NBCUniversal, setting the record as the most watched even in US television history.

We are also in the midst of one of the largest quadrennial events to shake any preconceived advertising norms (if there are such things) – the United States presidential election. National political ad spending is at an all-time high, coming in around double what it was from the previous presidential election. Across the board we have seen an increased competition for inventory leading to a rise in rates, especially in many of the swing states such as Iowa, New Hampshire, North Carolina, Virginia, Ohio and Colorado. Many direct response advertisers are ready to put all these things behind them and move onto a better end of the year, and a great first quarter.

It’s time to welcome consumers back! The National Retail Federation projects retailers will add roughly 700,000 workers this holiday season. Major contributors include Amazon which plans to hire 50,000 and Target which plans to hire 90,000. The holidays are a time for retailers to make up for any hardships they’ve endured throughout the year. The holidays can account for up to 40% of annual sales, and consumers are starting their holiday shopping now! In a time when manufacturing and industrial production has been struggling, retails sales are down and gas prices are through the roof, the holidays couldn’t come soon enough. For those looking to sell their goods, there is plenty to look forward to in the upcoming months. We are seeing continued evidence of stability and growth in the US job market, and the unemployment rate is dropping back down to pre-2009 levels. Manufacturing slowed through much of the last couple of years, bottoming out midway through 2009. Since then, the sector has steadily rebounded, with industrial production hitting a nearly four-year high in April. Economists also believe the nation’s housing market has turned around. It seems like each week, interest rates are breaking new record lows and home prices are continuing to rise across the country. Furthermore, many of the companies hiring for the holiday season have announced that those part time jobs can lead to full time careers in 2013.

We are confident that Q4 will lead the charge into a strong 2013. Houses Using Television (HUT) levels are on the rise, and the New Year is just around the corner. With the start of a new year comes all sorts of consumer lifestyle and habit changes. New Year’s Resolutions and Direct Response ads are a match made in heaven. Everyone will be looking to improve their lives in 2013 after a tough 2012. Consumers will look turn their lives around – to cook better, to exercise more, to make more money. Look for campaigns in the health and fitness categories to be as successful as well as Beauty, Entertainment, Household/Kitchen and Business Opportunities. There are so many ways to reach consumers through direct response; however there are changes every single day on both the consumer and media side. Whether it is caused by a new program change, a shift in the seasons, a shift in the economy or a shift in the way consumer is spending their money, it is important to be aware of such changes and see how each platform can actually complement each other. By utilizing a strategic plan and being aware of all the variables that can have an effect on the market you can be very successful. Media spending is on the rise as the economy turns itself around and consumers are more confident in their spending. That spending has already begun, so take the initiate and don’t miss out.

Source: Direct Avenue