Its hard to turn on the TV today and not see commercials for some of the biggest ripoff schemes in existence. From Get Rich Quick schemes around the internet, around trading stocks, around real estate and anything else scam artists can think of, to get fit, get trim, get pretty, get studly, get this, that and the other, rip off commercials are in full force these days.
Why are they on TV ?
There are few rules in business that are simpler and easier to understand than "DONT RIP OFF YOUR CUSTOMERS". Why is it that TV stations and networks and I need to include radio as well, have no problem running commercials that are blatant hustles of one sort or another ?
If you ever need an example of short term thinking at the expense of long term value, this is it.
Here we are at a point in time when the value of the traditional 30 second ad is being questioned and reconsidered because of industry wide fears that consumers will just TIVO right past them, yet the same industry places and runs commercials with a guy in a dollar suit sign running around selling a book that is questionable at best on how to get money from the government. Why ?
How stupid can you be to run these commercials ? Do you not realize that its not a commercial for the product, its a commercial to reduce the value of the brand of your station or network ?
HDNet wont run informercials or any ripoff commercials. We don't need or want their money and I would rather go without commercials than run them. My viewers are my customers. For some reason that is a strange concept to stations and networks these days. They would rather squeek out a commission on herbal enhancement pills and end up with a poorer, upset viewer than run a show without commercial breaks. Thats ridiculous. Its a brand killer
How about this for a concept: If you havent sold a commercial, dont run a commercial. The lack of a spot will hurt your bottom line far less than running a spot to ripoff your customers
Ripoff Commercials = Stupid TV Stations and Networks
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(Page 1)2. A great observation, Mark. It is especially appalling that so many of the commercials that air on talk radio are for highly questionable get rich quick schemes. Those shows are the product of individual hosts who seem to value their integrity, and then apparently sell it to the highest bidder during the breaks.
Posted at 12:54PM on Apr 22nd 2007 by Trey Tomeny
3. Even if there aren't many viewers, it still erodes the brand. You may stumble upon this junk TV and change the channel, but over time you'll know which stations have junk TV and which don't. The brand gets eroded regardless of whether or not you stick around for the experience.
Posted at 1:01PM on Apr 22nd 2007 by Dewey Hammond
4. Good Point...I have always wondered why they run these on main stations. Maybe that is why the big three are falling behind. You don't see these on Bravo or other stations that are coming into their own. They are producing cool new shows and then replaying them to get viewership and drive brand.
Posted at 1:05PM on Apr 22nd 2007 by J Sandifer
5. I guess you won't be selling Don Lapre any ad time soon. He looks like your kid brother. You want to talk about rip-offs my man, look at the healthcare industy--$2.2 trillion in spending last year. Lots of room for rip-offs in an industry of that size. Take the pharma industry ($220 billion in spending), and I quote Mike Guarini, president of Ogilvy Healthworld, in an interview with a pharmaceutical advertising trade magazine, "...it's about getting patient's in doctors' offices, getting them diagnosed and on medication."----Medical Marketing and Media Magazine April 2007 issue page 41
If you want to save us from being ripped off by crooks, start with guys like this. They are more harmful than low lifes like Carlton Sheets pitching real estate.
Posted at 1:06PM on Apr 22nd 2007 by Scott Norris
6. You've got to be a pretty easy mark if you fall for one of these schemes, but where do you draw the line?
Should networks refuse to air ads for high interest loan/mortgage firms? Gaming companies? State lotteries?
It's not the networks responsibility to be advertising czars, they're facing pressure from online and will always accept the best offer.
Feel free to report any of these 'ripoff commercials' to the FTC/FCC, that's their job.
Posted at 1:12PM on Apr 22nd 2007 by Adam Cains
7. ideally I agree, but what about freedom of speech?
Posted at 1:21PM on Apr 22nd 2007 by Scotty D
8. What could possibly cheapen a station more than running Girls Gone Wild commercials?
Posted at 1:24PM on Apr 22nd 2007 by David
9. Sales departments look at numbers in a quarterly fashion.
Anything to make those numbers go up, that no one complains about... Well, there you go.
Posted at 1:30PM on Apr 22nd 2007 by Joseph Mastantuono
10. Kevin Trudeau has made millions upon millions, ripping people off. He's used commercials and informercials entirely to do it. While you're likely to get my respect and business for not ripping of customers (honest mechanics make damned good money), the proof is in the pudding, unfortunately. As long as people keep getting away with it, there'll be more and more of them out there.
Posted at 1:41PM on Apr 22nd 2007 by Kirk
12. Yes, this tendency is lame. It is also prevalent.
For conventional networks, TV stations, radio, etc. the audience is not the customer; rather, the audience is the product. The advertiser is the customer.
It reminds me of a line from Vogel's Entertainment Industry Economics. He begins a chapter on television with this definition -- "programming: the scheduled interruption of marketing messages." While we out in the audience might view commercials as noise, to the station owner these represent the signal.
The best bet these days is to watch a good TV show after at least one season is on DVD.
Posted at 1:45PM on Apr 22nd 2007 by Joel
13. It's a sign of the end of broadcast television as we know it. Remember that you need to make the distinction between broadcasters and cable channels. With many people receiving their "TV" via cable or satellite, the broadcasters are losing audience share.
Thus the proliferation of the 30 Minute paid commercials. They were once the content of cable channels; but as the more forwarding thinking companies realize that content is king - they are producing more programming for cable. Syndicators are getting better deals and less headaches selling to cable and dropping the broadcast distribution channel. This broadcasters have less original content, so they fall into the trap of running the 30 minute commercials for quick cash. Thus driving viewers away.
With the Analog Cut-Off less than 2 years away, I suspect that we will see the number of broadcasters decrease as they will be unable to compete in the market for both local and original content.
14. I'm not sure that a less-than-honest commercial reflects badly on the station airing it. I've been ripped off by things before, but I don't go to the TV station I saw the ad on or the newspaper I read the ad in. I think it's normal to assume TV stations are not in the business of recommending products to their viewers and that it is up to the viewer to filter the good products from the bad.
If a friend recommended one of those products to me, that would be a different story. I don't value a TV station's opinion on products and therefore I don't hold it responsible if I end up getting burned on a product it ran an advertisement for.
Posted at 2:32PM on Apr 22nd 2007 by Jon Graves
15. Mark,
I am in agreement completely.
Your customers will associate your product with value. So everything you do reflects on the value.
However, I am seeing commercials that are funnier and more "worth my time" in the last few months.
All commercial makers shouldn't be lumped in together since some are actually good.
If you wouldn't mind explaining the last part of your post. What do you mean by: "if you haven't SOLD a commercial..."
Posted at 4:35PM on Apr 22nd 2007 by Antonio Howell
16. I work in advertising for Deutsch Inc. and part of my job is to help spots get cleared through the networks. I can tell you that in the last few years the networks have actually got significantly tougher about what kinds of spots and claims within those spots they'll accept. In addition, many cable networks now require this clearance where just a few years ago only the major networks did.
I see the same junk you do but it runs in places that major advertisers dont want to be or during time periods that arent desirable.
Posted at 4:49PM on Apr 22nd 2007 by Jayme Maultasch
17. unfortuantely, it is a sign of our declining moral and ethical culture, for several reasons.
1. It is clearly obvious that the television stations main purpose is to make a buck(nothing wrong with that, its what makes our economy strong), but that's also the main purpose of a two bit hooker. It is sad that bits and pieces of our society will cheapen themselves to make a few extra dollars. Remember when after midnight, local tv stations would constantly play the national athemn with the american flag in the background? I have to say to the women of the night and i guess, television stations...have pride in yourselves and your product. DON'T SELL YOURSELVES SHORT, YOUR WORTH MORE THAN THAT!
2. Greed...in several ways
I might watch a little of these get rich scams and think to myself, "who is buying this stuff"..."if there's no one purchasing these plans, could they be paying for this time". It stands to reason that someone is purchasing this junk, which brings me to my next point. The only people getting ripped off by these products are greedy people. You have to have dollar signs in your eyes to really believe that you can make an "extra" 20000k in your spare time.
3. greed again...Money ruins everything that once was intended for pleasure. Money has pretty much ruined every sport i enjoyed as a kid. With big money comes watering down of the sport to reach a larger markets, bigger attitudes, etc. I loved the nba as a child and now as a young adult, i can barely choke down a few quarters. Hip Hop this and hip hop that, its just all about me and what can i get. i'm just as much of a captialist as anyone, but we really need to reconsider our motives. bigger is not always better. KISS
4. something that drives me crazy and i'll use the nba as an example, but applies to all the major sports, is when a player gets in trouble and all of a sudden he or she is not a role model, but watch a game and notice the commercials showing players building houses and reading to children.
Mark, you keep me interested in the nba. David Stern has ruined the game. Keep up the good work and maybe one day i'll have a reason to take my children to a game.
Posted at 4:57PM on Apr 22nd 2007 by Brad Gainous
18. Look at the newspapers or just print in general. There are numerous ads for fraudulent schemes in very reputable publications. None of them care because the business model is about how many eyeballs will see the ad, and the purchase/subscription price is either inadequate or nonexistent. That's why Google and the like are killing them slowly; in 20 years time print will be a niche industry for senior citizens.
Posted at 5:38PM on Apr 22nd 2007 by Siggyboss
19. Funny I watched 3 of those infomercials. I now have washboard abs, drive a Rolls, and a Speciman the women are "sweat dancing" for!!!!
Posted at 6:34PM on Apr 22nd 2007 by Ramsey
20. Mr Cuban, a lot of the commercial time being bought by the scammers is done through local stations and local cable. The networks have some standards, but these low level ad salesmen are told to sell the local stuff at all costs, and live on commission, so it is tough to not sell to scumbags when you have to eat.
Posted at 7:42PM on Apr 22nd 2007 by jbou
1. Most of these ripoff commercials are in non-primetime hours with few viewers and probably a cheaper per minute price.
Fewer viewers means that there will be little to no brand dilution of the TV station. Cheaper per minute price means that demand and supply is working. Given the timing, it isn't worth a national brand's money to air any commercials. Hence the ripoff commercials are a great source of income since they can only afford to air commercials in times where little people are watching TV. The alternative would be no commercials at all.
If the argument is that these commercials damage the station brand, then you would have to assume that the viewer stays to watch these commercials, not change channels, and then decide not to watch this station any more. Most would change channels.
Not sure what is very wrong with this.
Posted at 12:49PM on Apr 22nd 2007 by Eric Lam