Rather than simply focus on the cost to create the video content, we prefer to outline the total “risk capital” that is required to implement a direct-to-consumer (DTC) campaign. Marketers have different starting points, in addition to the content creation, dedicated microsite creation, media test budgets and transactional set-up costs, for fulfillment and call-centers. It’s really impossible to determine the specific costs to set-up and test a campaign without knowing more about the product/service, and what deliverables are appropriate, but the discussions likely begin at $100,000 if television is going to be tested.
Since ROI driven television is all about dollars out versus dollars in, we are able to see if the performance is meeting goals with a relatively small amount of media. There are some exceptions, and the numbers are higher if the main objective is to drive retail sales, but we can likely generate a statistically significant media test in less than one month’s time and for under $50,000. It could be as little as $25,000 if there are not multiple price points or offer configurations that need to be tested.
When we talk about a digital DTC test, we are not simply talking about banner ads. We are more focused on video-based campaigns that can include Facebook ads, digital pre-roll and even email marketing with the video content. The costs of developing the ad content are not included in this estimate, but a good indicative digital test can be achieved for approximately $20,000 inclusive of set-up costs for specific sales funnels and media spends.
When we talk about social media, we are not referring to getting “Likes” or “Shares” of video content. We are focused on using the platform to drive sales conversions. We use paid social media ads to put our optimized content in front of the right audience, in addition to using platforms like Facebook for retargeting. Yes, you should also have a strategy to share non-sales content with consumers, and that is what traditional social media and PR agencies provide, but you will not be able to measure an ROI on that spend. Ultimately, we see social media platforms as conversion optimization tools as well as their own sales channels.
Putting together a successful DTC campaign is not something that should be rushed. The content is the primary variable in performance, so you have to put together the right creative strategy and then execute it correctly. Shorter format campaigns will typically take 60-90 days from initial creative development to launch. Long-form campaigns that require additional content development and potentially more testimonial elements will take 90-120 days from start to media test.
Many campaigns fail because they never should have been produced in the first place. We see our role as leaders in this space to help educate marketers and allow them to make the most informed decisions. We spend a lot of time reviewing products and consulting on growth strategies. In many cases the best answer is not to do television, or at least not to do it yet. We invite you to reach out to us so we can help you evaluate the feasibility of your product or service for direct-to-consumer campaigns, and to be informed as to what the capital requirements are to do things right.