Direct Response Television (DRTV).

Direct response advertising is relatively new to the Latin American region. According to a December 20, 2006 analysis published in Electronic Retailer Magazine (Arlington, VA USA) direct response advertising as a market factor can be traced back only 15 years-as opposed to a far longer history in more developed markets.

Electronic Retailer says, "In a region known for change and volatility, the region's DRTV industry has had a rather stable and constant development." Chief among notable consistencies has been the main product categories marketed through the DRTV channel.

The products are: Exercise, health and beauty aids (HABA), and housewares. Key distributors, says Electronic Retailer have led their markets for at least a decade. Familiar media outlets include regional cable networks, and local broadcast television.

The magazine has uncovered eight trends that will be important to marketers during 2007. These trends will induce market changes.

Cost trends will impact on product marketing-specifically local manufacturing, which keep "on-screen" costs down. This trend is being driven by international suppliers who expect to benefit from the lower labor costs inherent in local manufacturing.

Local programming is a second important trend. Electronic Retailer says that locally produced shows that garner high ratings have increased 300 percent in the past 24 months. Because of this success, many distributors are investing in production facilities.

Radio, long known in developed markets for its cost efficiency in direct response, is beginning to be developed in the Latin American region. "With significant time and effort, radio can become a profitable medium," the magazine says.

In 2006, direct response retailers began to develop an in-store presence. This consisted of kiosks (wholly owned), and self-branded stores. DRTV distributors also entered into joint ventures with mid-level retailers. The agreements were largely for shelf space. Deals were also struck-more successfully, says the magazine-with department stores.

Local broadcast, particularly in Argentina and Mexico, is the way distributors drive traffic to their retail outlets.

More sophisticated use of the Internet, better product quality, and direct response industry self-regulation are three final trends. This last mentioned trend is designed to ward off formal government regulation.

CONSUMER MARKET INSIGHTS: