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Q: TV shopping stats in the USA ( Answered 5 out of 5 stars,   1 Comment )
Question  
Subject: TV shopping stats in the USA
Category: Business and Money
Asked by: edgreen321-ga
List Price: $45.00
Posted: 30 Mar 2003 18:36 PST
Expires: 29 Apr 2003 19:36 PDT
Question ID: 183448
-Who are the major players in the American TV-shopping world? (for
dedicated shopping channels) What is the transaction volume for these
major players?
-What is the total volume of sales from “Infomercials” (TV shopping,
but not on dedicated channels)? Who are the major players behind
these? What is their transaction volume?
-How many people watch and shop via the “TV”? (what I am looking for
is people who dial a 1-800 number and make a purchase after watching a
commercial – not those who go into a store and buy something)

THESE IS FOR THE US market only.
Answer  
Subject: Re: TV shopping stats in the USA
Answered By: bobbie7-ga on 30 Mar 2003 21:26 PST
Rated:5 out of 5 stars
 
Edgreen321-ga,

Who are the major players in the American TV-shopping world? (for
dedicated shopping channels) What is the transaction volume for these
major players?


Companies that are acknowledged leaders in the United States are QVC,
HSN and ShopNBC.

“HSN has 75 million subscribers, while QVC has 83.9 million. Shop at
Home is at 40 million.”

---------------------------------
Home Shopping Networks
---------------------------------
Network:                 QVC
2001 revenue:            $3.92 billion
U.S. homes full-time:    83.9 million
Estimated annual sales
per cable home:          $40 

Network:                 HSN
2001 revenue:            $1.93 billion
U.S. homes full-time:    75 million
Estimated annual sales
per cable home:          $20 - $22

Network:                 ShopNBC
2001 revenue:            $463.3 million
U.S. homes full-time:    45 million
Estimated annual sales
per cable home:          $13-$14 

Network:                 Shop at Home
2001 revenue:            $177.6 million
U.S. homes full-time:    40 million
Estimated annual sales
per cable home:          $6 
                  
Broadcasting & Cable by Linda Moss
http://www.retailing.org/newsroom/InTheNews/ERA_BroadcastCable_7-15-02.pdf


=====================================================

QVC

“QVC was founded in June, 1986 by Joseph Segel, and began operations
in November 1986. QVC broadcasts live 24 hours a day, 364 days a year,
and introduces 300 new products every week to viewers in 79 million
homes across the United States. Q Direct is the direct marketing
division of QVC. Q Direct is prepared to bear virtually all of the
expense and risk involved in your marketing campaign.”

Source: Electronic Retailing Association
http://www.retailing.org/platinum.html


In 2001, QVC generated $3.9 billion in revenue, an 11% increase from
2002; NBC took in $4.4 billion last year. "We bypassed CBS and ABC
this past year," says QVC President of U.S. Commerce Darlene Daggett.
"We have quietly generated a $4 billion business."

(..)

“He projects that QVC will hit $4.4 billion in revenue this year. In
the first quarter, it posted $993.5 million in revenue, up 12.4% from
a year ago.”

Broadcasting & Cable by Linda Moss
http://www.retailing.org/newsroom/InTheNews/ERA_BroadcastCable_7-15-02.pdf


=====================================================

Home Shopping Network (HSN)

“Home Shopping Network (HSN), a division of USA Networks Inc's
(NASDAQ: USAi) Interactive Group, is the world's most widely
distributed TV shopping network. HSN pioneered the electronic
retailing industry in 1977 when it first introduced America to the
convenience of home shopping. Since then, HSN has grown into a global
multichannel retailer with consolidated sales in excess of $1.8
billion dollars and a growing customer base of over five million.”

Source: Electronic Retailing Association
http://www.retailing.org/platinum.html


“HSN (which is technically not called Home Shopping Network anymore)
generated roughly $1.9 billion in revenue last year, just half what
QVC did.”

Broadcasting & Cable by Linda Moss
http://www.retailing.org/newsroom/InTheNews/ERA_BroadcastCable_7-15-02.pdf


=====================================================

ShopNBC:

“ShopNBC is the nation's fastest growing shopping network within the
NBC family. Our mission is to be the most innovative TV and Internet
shopping destination offering consumers entertaining, informative, and
interactive programming showcasing high-quality, unique, and diverse
merchandise at great values. We broadcast 24 hours a day, 365 days a
year. Also, we simulcast our programming on the web at ShopNBC.com. As
of October 31 2002, we reach 54 million cable and satellite homes in
the US. We use on-air personalities to market and promote brand name
and private computers, health and beauty, collectibles, apparel,
shoes, home furnishings, and more. Consumers can also find over 7,000
products at ShopNBC.com. We sell a portion of our network airtime to
companies such as AOL, Bose, and Brookstone, for the production of
live promotional shows.”

Source: Electronic Retailing Association
http://www.retailing.org/platinum.html


=====================================================

What is the total volume of sales from “Infomercials” (TV shopping,
but not on dedicated channels)? Who are the major players behind
these? What is their transaction volume?

“The infomercial industry is an extremely financially rewarding
industry with over $2 billion in annual sales every year in the United
States alone.”

Infinnity: FAQ
http://www.infinnity.com/faq.html


GoodTimes Entertainment:

“GT Direct is one of the leading infomercial companies in the
industry. We have a proven track record in creating branded &
compelling merchandise offers in all direct channels of distribution.
Our specialties are: infomercials, continuity marketing, catalogs,
retail and e-commerce.”

Source: Electronic Retailing Association
http://www.retailing.org/meetmembers/list.asp?st=alpha&a=G


Groff Films Inc

“In over eighteen years, Groff Films has written and produced hundreds
of programs. In the last two years alone, their direct marketing
productions have been creatively responsible for over 200 million
dollars in sales including Chitosol, Calmax and the Telly Award
winning Celbrity Diet with Ivana trump to mention just a few.”

Categories: Direct Response Marketer, Infomercial Marketer,
Infomercial Producer

Source: Electronic Retailing Association
http://www.retailing.org/meetmembers/list.asp?st=alpha&a=G


Time Life Direct:

“Time Life Direct, the direct response television marketing division
of Time Life Inc, harnesses the resources of the world's largest
direct marketing organization to build valuable infomercial franchises
on behalf of partners in such categories as personal finance,
self-help. Beauty, and cosmetics, and diet and nutrition. Our powerful
direct marketing machine, backed by more than $100 million annually in
DRTV alone, includes a team of professionals with extensive experience
shaping direct marketable product concepts, bringing them to market,
and handling product upsells and continuity programs to make the most
of back end sales potential.”

Source: Electronic Retailing Association
http://www.retailing.org/platinum.html


Thane International, Inc

Thane International, Inc. has emerged as the leading global marketer
of third party developed products and infomercials in the industry.
Over the past three years we have distributed over $30 million in
profits and royalties to independent product owners and producers who
brought their projects to Thane.

Contact Information:
Bill Hay
78-140 Calle Tampico, 2nd Floor
La Quinta, CA 92253-2986, UNITED STATES
Phone: +(760) 777-0217
Fax: +(760) 777-0214
E-mail: afallick@thaneinc.com

Source: Electronic Retailing Association
http://www.retailing.org/platinum.html


Blue Stuff Inc:

“Blue Stuff Inc is a marketing phenomenon which grew out of the simple
desire of one man. Jack McClung wanted to fond a better way to
alleviate the aches and pains that plagued the daily lives of his
friends and the customers at his restaurant. And he did exactly that.
Three years later, he heads a growing business that rocketed from a
tiny one-man operation selling a few jars of a new product, to a
company spending $40 million on advertising in the first three
quarters of 2002. His home-spun infomercial held the #1 DRTV spot for
over 4 months. Customers noticed, giving him record growth and an
astounding re-order rate. (..) Blue Stuff Inc is poised to be a DRTV
case study in success on all fronts in 2003.”

Source: Electronic Retailing Association
http://www.retailing.org/platinum.html


In-Finn-Ity Direct:
“In-Finn-Ity Direct is the company of choice for Fortune 500 marketers
and entrepreneurs alike.”
“Since 1989 In-Finn-Ity Direct has been producing award winning and
extremely profitable direct response television campaigns.”

Infinnity Products and Sales:

AeroBed by Imaginair
- $37 million in sales on television with an additional $85 million in
retail.

The James Bond Video Collection
- It generated over $60 million in Bond video sales.

Masterswing 
- “This campaign for a golf training system has generated over $11
million in sales in just four months.”

The Smart Chopper 
- “This successful product launch generated over $32 million in sales
from the long-form campaign and introduced the product to major retail
chains.  To date, the product has generated over $75 million in sales
and continues to sell well in retail locations.”

TheraCel Advanced Pro-Cellular System 
- “Within one week of national roll-out, the TheraCel infomercial was
ranked at #5 on the infomercial charts. (..) The campaign has since
generated close to $10 million in product sales to date.”

The SlimPatch System 
- “The product developers first produced an infomercial with an
inexperienced infomercial company.  When the show did not work, the
company decided to call In-Finn-Ity Direct and start from scratch. 
In-Finn-Ity Direct produced a very successful show that has generated
over $10 million in television sales.”

GX2 Irons from Giant Golf 
- Over $6 million in sales have been generated to date. 

The NuFit System 
- “This infomercial has generated over $3 in sales for every $1 in
media spent ... up to a 4 to 1 on the Lifetime Network.  The media buy
has ramped up to $200,000 per week and is still building.”
   
Source: Infinnity Direct
http://www.infinnity.com/spotlight.html


Infomercial Monitoring Service, Inc.
http://www.imstv.com/samples.html
 
IMS monitors and documents more than 20,000 hours of programming every
month.

“IMS Report grids provide the hard numbers on what programs aired,
where and when. Our weekly Top 25 and monthly Top 100 rankings show
the relative saturation achieved by paid programming, based on
frequency and the IMS media index. We also list short form spots and a
ranking of the 50 most frequently seen spots of the week.”

You may download the latest report here:
http://www.imstv.com/samples/SampleReport.pdf


=====================================================

How many people watch and shop via the “TV”? (what I am looking for
is people who dial a 1-800 number and make a purchase after watching a
commercial – not those who go into a store and buy something)


Ellen Neuborne in her article Big Brands Trying out Infomercials:


“According to the Electronic Retailing Association, nearly two-thirds
of all U.S. consumers saw a direct response ad in 2002; one in four
made a DRTV purchase.

The main attraction is the format's swift measurability, said Elissa
Matulis Myers, the association's CEO.

More than 80 percent of a spot's sales come in the first 10 minutes
after the ad airs, so companies can easily track its effectiveness.”

Source: Electronic Retailing Association
http://www.retailing.org/newsroom/InTheNews/ERA_NYPost_12-29-02.pdf


=====================================================

Additional information that may interest you:


The AfterMarket Co. of Phoenix conducts an annual survey to identify
the demographics, attitudes and buying habits of DRTV consumers. The
survey was conducted in June-July 2001.

The survey includes tables and graphs:

- Demographics of the average TV shopper
- What are they buying? Product Popularity 
- How old are the buyers? Age (in years)
- How often do buyers buy? Frequency of purchases 
- How much does the average buyer spend? Buyer Spending Levels 
- Why do buyers buy from television?
- Where are the buyers buying?
- Are buyers satisfied? Customer Satisfaction

You may view the results of this survey at this direct link.
http://www.marketconnect.tv/facts.htm


An excellent resource that may interest you is The Direct Marketing
Association 2002 Statistical Fact Book (24th Edition)
- 295 pages
- 400+ charts and graphs included
- Published October 2002 by The Direct Marketing Association (The DMA)
- Price: $195  
http://sherpastore.com/store/page.cfm/1988

You can check out the table of contents here:
http://sherpastore.com/store/page.cfm/1989


=====================================================


Search Criteria:

shop at home television marketing.
U.S. shopping networks
dedicated shopping channels 
"Infomercial Monitoring Service" 
The infomercial industry sales billions OR billion
leading infomercial company
purchase infomercial products +U.S.
consumers buy products seen on infomercials
major players infomercials
infomercials sales million OR billion
demographics of the average TV shopper
infomercial  statistics


Thank you for your question and I hope that this information helps you
in your research.

Best Regards,
Bobbie7-ga
edgreen321-ga rated this answer:5 out of 5 stars and gave an additional tip of: $3.00

Comments  
Subject: Re: TV shopping stats in the USA
From: bobbie7-ga on 30 Mar 2003 23:02 PST
 
Thank you for the five star rating and tip.
--Bobbie7

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