Definition
An infomercial is a form of advertising that is typically a long-form television commercial, often ranging from several minutes to an hour. Its purpose is to provide detailed information about a product or service, including demonstrations and testimonials. Infomercials aim to persuade viewers to purchase the product or service being advertised.
Key Takeaways
- An infomercial is a form of advertisement that is designed to promote a specific product or service. It’s typically a lengthy broadcast, providing detailed information about the offering.
- One of the major characteristics of infomercials is their use of persuasive strategies. They often involve direct responses, such as calling a toll-free number or visiting a website to place an order, aiming to achieve immediate action from potential customers.
- Infomercials are not purely advertising tools, they’re also informative sources. While promoting a product or service, they provide an immense amount of information, this combination of information and advertising is what gives them their name – ‘infomercial’.
Importance
The finance term “infomercial” is significant because it pertains to a long-format television commercial, typically lasting between 15-30 minutes.
Infomercials are designed to introduce a comprehensive presentation about a product or service to potential customers.
These programs often employ a direct-response marketing strategy, encouraging immediate action by the viewer such as calling a toll-free number or visiting a website to purchase or learn more about the highlighted product or service.
By clearly demonstrating the product’s benefits, infomercials aim to convince viewers of its value and spur purchasing decisions, leading to increased sales and revenue generation.
Consequently, infomercials play a crucial role in shaping buying behaviors and driving business growth.
Explanation
An infomercial serves as a primary tool in marketing and advertising, utilized by businesses to communicate detailed information regarding a product or service directly to the consumers. The purpose of infomercials is to inform, demonstrate, and stimulate interest or enthusiasm about a specific product or service.
They offer a platform for a company or brand to pitch its product or service in a persuasive manner, often demonstrating its use or benefits and explaining why it might be more beneficial than other similar competing products or services. Infomercials can often be accompanied by testimonials from satisfied customers or expert opinion to strengthen the credibility of the product or service being promoted.
Furthermore, infomercials serve as a convenient and cost-effective method for companies, especially new startups, to reach large audiences during off-peak television viewing hours, which typically would be expensive during prime times. They are also used to persuade potential investors about a company’s worthiness of investment, portraying its future growth potential, stability, or profitability.
In essence, the main goal of an infomercial is to encourage viewers to take action, whether that be purchasing the product, investing in the company, or seeking more information – all leading to tangible benefits for the company.
Examples of Infomercial
Nutribullet Blender Infomercial: Nutribullet promoted their high-speed blender through an infomercial where they demonstrated its power and efficiency. The blender’s ability to blend fruits, nuts, and vegetables in mere seconds was showcased, along with testimonials from customers who achieved health benefits by making smoothies using Nutribullet. They highlighted the product’s price and offered a direct phone line and website to immediately purchase the product.
Proactiv Skin Care Infomercial: This line of skincare products used an infomercial to explain the science behind their product and how it fights acne. Celebrity endorsements and testimonials from satisfied customers were included. They showed before and after photos of people who used the product, and discussed the deal customers could receive if they signed up for a monthly subscription.
P90X Workout Program Infomercial: P90X used an infomercial to introduce their intensive 90-day workout program. The infomercial showed clips from the workout videos, testimonials from individuals who saw great physical transformations, and detailed information on the total package- workout DVDs, meal plan, and workout schedule. The overall cost was highlighted with a direct phone line and website provided for immediate purchases.
Infomercial FAQ
What is an Infomercial?
An infomercial is a form of television commercial that serves both as an advertisement and a stand-alone program. They usually last for a longer duration than typical commercials and are used to promote a wide range of products, services, or causes.
How does an Infomercial work?
Infomercials are usually aired during off-peak hours and they have a direct response format that requires immediate action from viewers. The objective is to persuade viewers to make a purchase decision on the spot or to gather leads for future sales.
What is the difference between an Infomercial and a commercial?
While both infomercials and commercials are promotional in nature, the key difference lies in the duration and intent. Commercials are shorter, usually lasting for about 30 to 60 seconds, and are presented between programs. Infomercials, on the other hand, are much longer and can stand as a program on their own.
What types of products are commonly featured on Infomercials?
Various types of products can be advertised through infomercials. These could range from household products, fitness equipment, beauty products, to health supplements and more. The common characteristic of these products is that they are typically relatively unknown and require detailed demonstration to convince potential customers of their benefits.
Related Entrepreneurship Terms
- Direct Response Television (DRTV)
- Television Advertising
- Product Demonstration
- Testimonials
- Call-to-action (CTA)
Sources for More Information
- Investopedia: A comprehensive online resource dedicated to empowering consumers with knowledge about finance and investing.
- AdWeek: An online magazine that provides information and analysis on all aspects of advertising, including infomercials.
- Entrepreneur: A well-respected publication offering insights into the world of entrepreneurship, including the use of infomercials in startup businesses.
- Federal Communications Commission (FCC): The US government’s regulatory agency for interstate and international communications, which provides guidelines and rules about infomercial advertising.
