After 1984, when the Federal Communications Commission (FCC) eliminated regulations to govern the commercial content of television, infomercials began to proliferate the late-night airwaves because they were cheap to broadcast and proved to be a highly profitable media, selling anything that could be easily shipped.
In fact, infomercials became so profitable that more and more money poured into the industry and by the dawn of the 21st century, even big brands were pumping money into the infomercial profit party in a much bigger way. This raised the profile of the infomercial industry as a whole and furthered the acceleration of rising rates.
Having been involved with some of the most successful infomercials, I have observed that infomercials, as an advertising media, have matured in a way somewhat analogous (although not nearly as fast), as what has happened in the Pay Per Click advertising channel. As PPC became a successful advertising model, over the years advertisers have driven up PPC costs.
Further, the level of sophistication in PPC strategies to stay profitable has also increased.
In a similar way, the costs and risks associated with creating and testing infomercials have skyrocketed since their humble beginnings.
And yet, the investment to test for sales and profit potential via PPC is less than TV.
So, when someone asks me if they should produce an infomercial, rather than delve into the relative merits of their product or service and how broad the demographics are for the market that buys it, I simply ask “How much testing has been done through less expensive media?”
When that has been refined and scaled up to optimize the response and profits, enough marketing data will have been gained to determine the best keywords and messages that underlie this product’s success. And all that data will be very important as a research basis for scripting and producing an infomercial TV “test,” to see how it would do on a limited trial basis as a TV advertisement.
There is much more to know about creating infomercials, but the simple answer about whether you should create an infomercial for your product would be based upon how well it’s selling on the internet and using the supporting data to help evaluate a translation to TV.
Stated another way, for most business persons, the question about whether a product would be successful as a national infomercial shouldn’t even be considered until it’s been tested online and then tested in smaller geographical regions on TV.
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Avid hiker, bicyclist, motorcyclist and long-time advertising pro. Founder of Skyworks Marketing, Nonprofit Fire and Our Ventura TV (cable TV). One career highlight was working on a small team that built a business from nothing to over $100 Million in 3 years. Skyworks Marketing provides lead generation and video advertising services. We create custom marketing funnels that provide the highest-quality leads and sales.