Bob Reif Marketing Innovator

Indy Racing League Speeds up Ticket Sales With Infomercial The Indianapolis-based racing outfit isn’t the only non-traditional company seeking out space on DRTV. GM, Callaway Golf and Hewlett Packard are also getting into the mix. BY DOUG MCPHERSON

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o Bob Reif, marketing is about telling a story. And when he needed to tell a story about his product, he went with an infomercial. But you might never have expected an infomercial for his product: auto racing. Reif is senior vice president of sales and marketing and chief marketing officer of the Indy Racing League (IRL) and the Indianapolis Motor Speedway. And he likes the infomercial medium — a lot. "It is absolutely the best marketing tool we've used this year," says Reif. "We are now starting to sell out races we had never sold out before, and I believe the infomercial has helped make the difference. It has produced the biggest spike in our sales we've seen. The bell has rung more with infomercials." The Indy Racing League has used the infomercial form to build a new image for its product.

Reif says the infomercial has not only helped sell more tickets, but it has also taught the public about what it's like to actually go to a race. And the latter, Reif says, is where the long-form production really made the difference. "Our mantra is trial and conversion. We want them to smell the methanol," he says. "If people understand what it's like to come to an IRL event and realize it's a good value, that the access is there and that it's great entertainment with side-by-side competition, the female drivers, the American drivers and so on, then we are doing our job. The people look like you and me at these events. Most folks don't know so we need to educate them, and the infomercial does that for us. Marketing is not just about communication, it's about education, too."

IRL Leads Charge

couldn't, it wasn't feasible." That's when the idea of the infomercial hit him and he approached Script to Screen Big Tracks In Marketing Reif is not your average marketing man. in Santa Ana, Calif., to produce it. At only 34, he's already left big tracks in the marketing world. He has worked for the A Great Testimonial "I think it's a great testimonial to the sports marketing giant IMG and led it into format and the industry to have Bob usthe direct marketing business. He also served as senior vice president ing an infomercial," says Tony Kerry, seof marketing for the Miami Dolphins. While nior vice president of marketing for there, he helped entrepreneur Wayne Script to Screen, who worked with Reif Huizenga consolidate his sports holdings on the infomercial. "It was a very maverick and then sold more than a quarter billion dol- thing for Bob to do. They were into tradilars worth of sponsorships for the teams and tional TV spots that didn't tell the story. It the stadiums. Street and Smith's Sports Busi- was one of the first things Bob did when he ness Journal recognized him and his came on board, and I know he doesn't reachievements two times in its "Forty Under gret doing it." Kerry admits he was converted to racForty" lists. It was at IMG where Reif became more ing. As part of his research for the familiar with infomercials and saw them infomercial he attended a race for the first work with sports figures like Joe Montana time in his life. "I was really never a fan, it just didn't do and Mike Ditka among others as hosts. "I knew they [infomercials] worked. I anything for me. But now I've been bit. It's a tremendous experience—the speed of the saw that many times," he says. One example Reif remembered was with cars and atmosphere. Everything about it Alien, the golf club maker. The company en- was simply amazing," Kerry says. Kerry's company has also helped other listed the help of touring golf pro Jerry Pate to serve as a spokesperson on its infomercial. nontraditional infomercial users, including "Alien went gangbusters when it started General Motors and Skis Dynastar Inc., a using the infomercial with Jerry," Reif says. ski manufacturer. Kerry says Skis Dynastar used "Direct marketing has been an important part infomercials to educate its audience on its of my career ever since." When Reif took over marketing for the skis and other products. The company's Indy Racing League he quickly realized that infomercial won an award last year from the the business had a "great story to tell." But Electronic Retailing Association (ERA). Charlie Adams, vice president of marthat story wasn't being told. He asked himself, "What can I do to get people to try the keting for Skis Dynastar, describes the infomercial as a solid marketing victory. product, to come to a race?" "We are very proud of the infomercial," "I've always believed that television was the most effective way to communicate," says Adams. "The quality, the production, Reif says. "And I knew people would come the content were all there and any skier back to the track if they came once, but we would keep watching because it was a great just needed to get them there for the first skier program. There really was a lack of time. We had ski programming on television, and none of a staff but it our competitors were using television so didn't have we knew skiers would appreciate it." Adams says they used some of the time to go out and tell that "biggest names in the ski industry" to tout story. We just Skis Dynastar's products. Those names included Alberto Tomba, Picabo Street Bob Reif, and Tommy Moe. senior vice "The results were remarkable. We inpresident of creased sales by 20 percent and that was sales and without a top media schedule," says marketing Adams. "We ran it mostly on Fox Sports and chief marketing officer of the Indy Racing League and the Indianapolis Motor [cable network] affiliates and at ski resorts." Speedway, says using infomercials has According to a case study from Script produced a spike in interest and, more importantly, ticket sales.

Skis Dynastar’s infomercial was honored in 2000 by ERA.

to Screen, Skis Dynastar "greatly surpassed its cost per inquiry (CPI) objectives by delivering CPIs in the $2 range ... and drove skiers to the [company's] Web site." The study also reports that the increase in sales came during the winter 1999-2000—when a lack of snow drove down overall sales in the industry. Despite the success Adams says Skis Dynastar's parent company opted not to continue funding the infomercial. "I will go to my grave believing if we had kept running it we would have grown our sales by 80 percent," says Adams.

GM, Hewlett Packard Among Companies to Seek DRTV Script to Screen also produced videos using an infomercial format for General Motors' GMC division to share information about some of its autos. Anyone who expressed interest in a GM Suburban, Yukon or Yukon Denali got a VHS video in the mail. "We shot the videos just like an infomercial. It had testimonials, features and benefits and calls to action but it just didn't air on TV," says Kerry. "GM realized it could tell its story better in this kind of format." The video featured the stories of three

Agilent Technologies is using what Tyee Euro RSCG calls a “vision film” to tell its story to clients.

IRL Leads Charge "American heroes": two-time Olympian Bob Molinatti; America's Cup champ Gary Jobson; and champion horse trainer Sandy Collier. They each own a GMC SW and they provide testimonials to the vehicles' practicality, reliability and safety. Kerry says the effort was so successful that GM has adopted the videos to promote other brands. Script to Screen isn't the only company enjoying work for nontraditional clients. Tyee Euro RSCG in Portland, Ore., a television-advertising firm that focuses much of its work on long-form ads for Fortune 1000 companies, is getting its share of business, too. Tyee has done work for Callaway Golf, Agilent Technologies and Hewlett Packard to name a few. For the latter two, Tyee produced what the company calls "vision films" that are between eight and 16 minutes long, not aired but used at point of purchase in the retail setting or used internally with employees. The videos, just as the GM videos Script to Screen produced, are formatted like infomercials with testimonials, demonstrations and calls to action. These vision films make up about 20 percent of Tyee's business, according to Hugh Allspaugh, vice president of client service for Tyee. "I'd love to see that grow," says Allspaugh. Allspaugh says there are typically two ways to produce these videos. "One way is the fact-based, linear type and another way is one that tells a story, kind of a minidrama," says Allspaugh. "Often the minidrama can help the audience understand real-world applications of the product that's being featured and it seems to work well." One area where he sees potential for infomercials is the pharmaceutical industry. "That's an industry where an infomer-cial can really help consumers truly understand the pros and cons of drugs Hugh Allspaugh, vice president of client service for Tyee, says infomercials are the “next evolution of advertising.”

but FDA regulations have hampered this," he says. Allspaugh adds pharmaceutical sales reps are using videos to share information with physicians about drugs and that it works well because "doctors can take time to view at their leisure." Allspaugh says he feels "bullish" about infomercials and their future. "I wouldn't say long-form is having a renaissance, but I believe it is gaining more and more acceptance," says Hugh Allspaugh, vice president of client services for Tyee. "Infomercials are getting better in quality and, to put it simply, they work. I'd say nine out of 10 sell [in these markets]." One reason they work, according to Allspaugh, is because the advertiser has the time to tell a story and get all the benefits and information in comfortably. "In a 30-second spot an advertiser can get in a brand impression. In 30 minutes, an advertiser can get in a brand experience," says Allspaugh. "Infomercials are the next evolution of advertising. There's so much distraction on television today that time is critical. You have to educate your audience and long-form is a great medium to do that." Allspaugh predicts that the "yell-andsell" type infomercials will give way to better quality infomercials and that these improved ads will "protect nontraditional advertisers' brands."

Standard Part of the Mix Kerry says Script to Screen does market its services to nontraditional advertisers and that infomercials are now a standard part of the marketing mix. "I'd say about three-quarters of Fortune 500 companies either have used or are now using infomercials. They like the accountability of the infomercial," Kerry says. "They can measure success and their costs more than with spot ads. It's a lot less expensive and on top of that, it allows them to tell a story." Kerry says advertising agencies, too, are starting to use infomercials. "With General Motors, it was their advertising agency that wanted to produce the videos," he says. "I know there are some

General Motors offers DRTV videotapes to potential customers.

agencies that still look down their noses at it [using infomercials], but I'd say at least half of the agencies are starting to use them." Kerry describes the move to infomercials as a "slow and consistent" trend. "It's not a hot thing but there's a slow progression toward using them," he says. Kerry says he even gets letters from MBA students at Harvard, Wharton and other prestigious business schools who want to know more about the business. "Marketers know what infomercials are and what they can do, its part of the marketing vernacular now," he says. "They're not just for slicers and dicers anymore." Reif says he would tell anyone that infomercials "are worth at least a test." "If you have a compelling story that can't be communicated with traditional media then infomercials are your answer," Reif says. "The more you can connect with your customers to make them feel good about an association with you, the better off you'll be. Get as deep as you can with your customers, peel back the layers and develop a relationship with them." Reif, Allspaugh and Adams all say that infomercials are cost effective. "They're cheaper and they've increased our programming. In 2000, we had 88 hours of programming. That was the total for the whole year. Now we're up to 600 hours of programming with the infomercial," says Reif. As for Reif and his future using infomercials to tell his story about racing — that will continue. "You can bet I will increase my investment in infomercials next year," he says.