WITH THE COST OF AIR TIME FALLING, MORE SMALL COMPANIES ARE DISCOVERING THE BENEFITS OF INFOMERCIALS. Here’s something you may not know about infomercials: They work, and a growing number of small businesses are using them. In fact, amid widespread weakness in the retail sector, companies behind the Shamwow, PedEgg, and other products are thriving, thanks to infomercials, also known as direct-response television, or DRTV. TeleBrands Corp., creator of the PedEgg foot-care product, says profits are up 30% from the same period last year. Square One Entertainment, the seller of the Shamwow absorbent towels, says it has sold 48 million Shamwow products since launching in November 2007. Sam Catanese, president and CEO of Infomercial Monitoring Service Inc., estimates the number of businesses using infomercials has risen 10% in the past year. The recession, he says, “means more sales as businesses are getting better air time at lesser prices and more people are watching in places they weren’t watching before.” Indeed, some of the companies using direct-response television ads say they’re reaching consumers at a time when many people are jobless or spending more time at home, watching more TV. Typically, DRTV comes in two forms: Two- to three-minute spots and 20- to 30-minute infomercials that explain how a product is used, and why the customer needs it, through demonstrations and testimonials.
