The Roar of Diginets
Eight years ago, MGM launched two digital networks, MEtv and THIS Television. A mere eight years. Stations were eager to clear the networks because they had no other quality content to fill up their new D2, D3, and D4 channels. Shortly afterward came Antenna, COZI, Bounce, and several other adorably named “comfort” TV channels. The content – nostalgic, and the revenue untapped.
And so began the ROAR of the diginets. Over the last three years, 14 more channels have launched, and they just keep coming. Want to know why? Because these little “digi-wonders” are making the phones ring – and the direct response business is ROARING back, fiercely – redistributing cable, network and spot dollars to these new players in the digital spectrum.
Diginets Provide Efficient Direct Response Inventory
Diginets have created so much needed new inventory, which direct response advertisers have flocked to by the dozens. As agencies pitch the opportunity of this new digital space to clients, a wide variety of TV advertisers have come to realize the value of these new growing properties. In the span of these eight short years, we have a crop of new networks looking ‘super-mature’, boasting over $100 million dollars in annual billing and covering over 80% of the U.S. households. And don’t discredit the smaller players in this space – only 10 million households and lower billing, yes – but the VALUE is hardly diminished because they all have one thing in common…they DELIVER!
You have to love direct response for the simplicity of the business model: if we sell stuff on your network, we will spend more money with you. The general market of TV advertising is so busy trying to buy a rating point for the lowest price; they have forgotten that the whole point of advertising is to sell stuff. The direct response business spends over $500 million dollars a year on these relatively new networks. You really have to respect this sector of advertising. Where else in the Nielsen and Rentrak world can you look your advertiser in the eye and say, “The phones rang, we sold your product today. In fact, we sold a LOT of it!”.
The growth, the value, the opportunity and the ROAR is echoing through the direct response community. ROAR sounds like a good name for a new diginet, doesn’t it?
Janet Schoff is President and CEO of T Media Sales, a national direct response and paid programming rep firm designed to represent a unique list of clients and offering a boutique go to market approach. She can be reached at:
Phone: (323) 591-0303