A little one-on-one

It's not enough to target segments of a population anymore - that notion is old news. Broadcasters are now taking things to the micro level to chase the supreme niche: the individual. And the techniques they're using aren't necessarily big budget or high-tech. Be it via direct mail, the Internet or face-to-face interaction, broadcasters are trying to establish one-on-one relationships with audiences. Starting and maintaining a dialog where they can gather viewers' opinions on media use, hosts and programming - often with a few simple key strokes - is critical, because when it comes to connecting with audiences, this two-way relationship can become the ultimate focus group.

As Mike Morris, deputy MD at London-based Channel 4 International, has discovered, it can also translate into cash. The one-on-one feedback loop is a concept with which he has had to become intimate considering the upcoming changes in the UK's TV landscape: the switch off of the analog TV signal begins in 2008, and the region will be entirely digital by 2012. "As traditional terrestrial broadcasters lose ownership of their audience to the platform providers - whether that be Sky or a cable, mobile or Internet service supplier - it's really important that between now and 2012 we forge as many direct links as we possibly can with viewers," says Morris. In order to thrive amongst this influx in platforms, creating connections with audience members is essential, and C4 Rights and Consumer Products has been exploring direct mail options to do so.

Morris explains that C4 began its direct mail trial a year ago in an attempt to find a route to market for its large stash of "lower-profile factual programming." C4 is currently promoting 10 history, science and lifestyle titles via 4Direct, a quarterly catalog sent to 100,000 homes in the UK as well as an insert delivered in over one million copies of The Sunday Times newspaper. This initiative is a joint venture with London-based direct mail marketing company DD Video, which provides a list of people who've bought non-fiction DVDs from them in the past. Morris says DD Video actively manages the list, with new recruits added through advertising and list buying. The direct mail experiment generated sales of 120,000 units in 2005.

Morris predicts this business will generate yearly profits of £1 million (US$1.72 million) within five years, but adds that it won't be a main financial driver for C4 over the next decade. "It's a good service for our viewers and it's profitable, but there's a fundamental strategic reason for us doing it, which is that we can get a direct relationship with our viewers," maintains Morris. He adds that a residential magazine aptly called 4Homes (and a subsequent consumer event "with a C4 twist") will be launching in 2006 to develop more direct links with the audience.

But direct mail campaigns can get pricey, observes Artie Scheff, senior VP of marketing for A&E. "Direct mail is very tough to do at a price point that's palatable, and that's why so many have moved online," he speculates.